The Nicholson Drive land, priced at $12.50 per sf or $544,400 per acre, holds 25 single-family homes, some of which are past their prime, according to David Trusty, a commercial realtor with Gully, Phelps & McKey Inc. in Baton Rouge. "The homeowners are excited because it's a good use of their property," he says. "They'll realize more value on it for commercial than if they were to sell this as residential."
Trusty's role has been to work the deal for both the homeowners and the developer, who is eyeing enough land to build up to 225 units. Once contracts are signed, due diligence will include addressing the zoning. Trusty tells GlobeSt.com that the developer's costs could be $100,000 per unit, with potential leases averaging about $1,000 per month. "Assuming everything falls into place, we think the entire process, with due diligence and construction, would take about a year and a half," he adds.
Nicholson Corridor is a five-mile stretch running from Tiger Stadium at Louisiana State University to Downtown Baton Rouge. Trusty says the homes along the route are somewhat distressed.
Because of Hurricanes Rita and Katrina, Baton Rouge has been piquing developers' interest in potential commercial sites. The Nicholson Drive acreage is close to under-construction condominium projects like the 37-unit Red Stick Lofts, being built by Chris Eddy of Baton Rouge, and 93-unit Fieldhouse Condominiums, being developed by Capstone Development. "There are some neat things happening in the area," Trusty says. "This particular development will help bring more convergence to LSU and the Downtown area."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.