David Treppendahl, a broker associate with Re/Max First Commercial Co. in Zachary, LA, says the Omaha-based seller had only one asset in the area and sold it to concentrate on Florida's markets. Tapestry Group has owned the 95%-leased asset at 15580 George O'Neal Rd. for five years.
"This generated a lot of interest. I had five offers within the first couple of weeks," Treppendahl tells GlobeSt.com. To winnow the pool, the seller specified exact terms, with two finalists agreeing to the mandates. Favrot & Shane up ended up vying against a buyer from New York.
Treppendahl says Springbrook Apartments fit perfectly into Favrot & Shane's investment plans. "The company wanted to have a great presence in Baton Rouge. They already have a complex there so they were able to justify coming close to the asking price," he says. It also didn't hurt that Favrot & Shane was willing to assume the 40-year HUD loan that was put in place in 2000, a year after the complex was built.
Treppendahl says Favrot & Shane will make some upgrades to boost rents in the class A complex, a mix of one-, two- and three-bedroom units ranging from 740 sf to 1,386 sf. The monthly rents are $699 to $1,109.
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