Florida Street Pays $27M for Chase Buildings

According to a source not directly involved with the deal but knowledgeable about the transaction, the Toronto-based Brookfield always planned to sell both Louisiana buildings, which were built in the early 1980s. The source tells GlobeSt.com that buyer Florida Street Holdings plans to hold the assets long term.

Charles Colvin, an agent with Beau Box Commercial Real Estate in Baton Rouge, says that Chase Tower South at 451 Florida St. has long-term tenants JP Morgan Chase and Albemarle Corp. in residence. "The purchase price was well below replacement costs for similar buildings in the Downtown Baton Rouge market," adds Colvin, who was uninvolved with the transaction. Colvin says that downtown Baton Rouge has a short supply of class A office space, making Chase Tower South a popular asset among potential investors.

While Chase Tower South will provide the buyer with long-term income, Chase Bank Building in downtown Alexandria at 400 Murray St., provides upside opportunity. "There's a definite lease-up opportunity there," says the source, who adds that the new owner will likely renovate the 30%-occupied building. "A small portion is occupied by Chase Bank right now, but once this is renovated, it should attract more tenants," the source says.

Evan Stone, John Alvarado and Stephen Luik of Jones Lang LaSalle's Dallas office represented Brookfield Asset in the Louisiana portfolio transaction. The buyer had in-house representation.