Southdowns Shopping Center Sold

Posted on April 20, 2011

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As reported in the Baton Rouge Business Report

Tom Cook: Southdowns Shopping Center sold

Southdowns Shopping Center was built around 1960 and then underwent minor renovations in the mid 1990s. The property was acquired by Southdowns Center in May 2006, and a nearly $2 million renovation took place. The most recent renovation included the re-tenting of the shopping center and renovating space for Enoteca Marcello’s Wine Bar & Café and the Bulldog. The upgrade to the center brought in additional new tenants at significantly higher rental rates. The location on Perkins Road, between South Acadian Thruway and College Drive, is prime for the south Baton Rouge residential community. After the property was re-tenanted and rental rates increased, it became a much more attractive investment. On Friday the center was sold in an arms-length deal from Southdowns Center/7251 McCarty, LLC to Southdowns Village Group. Southdowns Village Group was represented by Matt Mullens at Taylor Porter; Donnie Jarreau, who redeveloped Southdowns Village, remains one of the principal owners. The sale price of $6.24 million equates to $110.50 per square foot for the 56,444 square feet of leasable area. Rental rates have ranged from a low of $5.50 per square foot to a high of $21 per square foot on a triple-net basis. According to sources close to the transaction, the new ownership group will get a more-than-adequate return on their investment. This center is located in a very stable location, has an excellent tenant mix, and should continue to be a solid investment.
(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
 
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