BATON ROUGE, LA-In an acquisition totaling a little more than $27 million, a Brooklyn, NY partnership has taken possession of the 330,000-sf Chase Tower South in Baton Rouge and the 61,145-sf Chase Bank Building in Alexandria. The assets were part of a JP Morgan Chase & Co. portfolio acquired by Brookfield Asset Management for $460 million in October 2006.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.