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Started By
Message
Office RE Bust hits Baton Rouge: Owners default on One American Place Tower
Posted on 7/17/24 at 7:47 am
Posted on 7/17/24 at 7:47 am
Someone will pick this up for cheap....
It's 83% occupied which isn't great, but it's not horrible either considering the national economy. I'd hate to see what it would be had some other office buildings nearby not been converted into apartments.
There is a glut of office space across the US since the pandemic.
LINK
It's 83% occupied which isn't great, but it's not horrible either considering the national economy. I'd hate to see what it would be had some other office buildings nearby not been converted into apartments.
There is a glut of office space across the US since the pandemic.
quote:
According to a suit filed last month in 19th Judicial District Court, as of May 30, One American Place Operating LLC owes $24.2 million in principal, interest, late charges and other fees to the trustee Wilmington Trust National Association. That total includes $23.9 million in unpaid principal.
Court documents show that One American Place Operating borrowed $31.5 million from JPMorgan Chase in August 2018. The agreement called for One American Place to make monthly debt service payments, and then pay off the loan on its maturity date of Sept. 1, 2023.
quote:
One American Place was built in 1974 and renovated in 2003. The 24-story building is home to several businesses, including McGlinchey, Capital One Bank, KPMG and Breazeale, Sachse & Wilson.
The property was listed for sale earlier this year, but the listing was recently removed. According to sales documents, the property is 83% occupied.
quote:
A sale date for the office building has not been set yet, Hicks said. The first available date would be Sept. 18, though attorneys for the lenders could request a later one.
LINK
This post was edited on 7/17/24 at 7:51 am
6
Posted on 7/17/24 at 7:51 am to goofball
It’ll be Gordon’s new corporate office
Posted on 7/17/24 at 8:05 am to goofball
quote:That building is huge and it’s downtown. That’s about the highest occupancy it will get.
It's 83% occupied which isn't great, but it's not horrible either
quote:So someone was betting they could hold on to it for a few years and then flip it for a big profit. I guess Covid really fricked their plans.
JPMorgan Chase in August 2018. The agreement called for One American Place to make monthly debt service payments, and then pay off the loan on its maturity date of Sept. 1, 2023.
Posted on 7/17/24 at 8:06 am to goofball
quote:
It's 83% occupied which isn't great, but it's not horrible either considering the national economy.
However, it's probably down to 82% by the writing of this article. And it will be lower by the end of the year, and by the end of next year...
Office real estate glut is a mess and there's a lot of people that are going to go bust over it.
Posted on 7/17/24 at 8:14 am to Giantkiller
Downtown BR has other options, too. There are about 3-4 other tall office buildings available within a decent radius.
Posted on 7/17/24 at 8:30 am to goofball
The problem is and has been the lack of flexibility in zoning. There's a huge housing shortage and a glut of CRE available, why not let CRE have the flexibility to be turned into condos?
Posted on 7/17/24 at 8:35 am to NYNolaguy1
quote:
There's a huge housing shortage and a glut of CRE available
As a contractor, we're seeing more and more planned residential units in former office buildings in downtown Shreveport. Surely it's the same in Baton Rouge as well.
Posted on 7/17/24 at 8:53 am to Donkus
The Chase tower has condos now I believe.
Posted on 7/17/24 at 8:54 am to Donkus
(no message)
This post was edited on 9/12/25 at 7:04 pm
Posted on 7/17/24 at 9:12 am to Odysseus32
quote:
Would you be willing to expand on why a developer might think this is a good idea, specifically in these high crime cities?
Downtown Baton Rouge is not that bad.
Posted on 7/17/24 at 9:19 am to Stevo
(no message)
This post was edited on 9/12/25 at 7:07 pm
Posted on 7/17/24 at 10:15 am to Odysseus32
In general, I find that downtown has decent amenities during the workday in most normal weeks but is a fricking ghost town on the weekends with regards to most restaurants, shopping, etc.
You still get events at the River Center and people bar hopping on the weekend but, in general, there are few reasons to be there on the weekend.
You still get events at the River Center and people bar hopping on the weekend but, in general, there are few reasons to be there on the weekend.
Posted on 7/17/24 at 10:15 am to goofball
quote:
Someone will pick this up for cheap....
Still not worth it
Posted on 7/17/24 at 10:19 am to Cosmo
I wouldn't take a building in downtown Baton Rouge even if you just threw me the keys.
It's continuing to get worse, not better.
It's continuing to get worse, not better.
Posted on 7/17/24 at 10:20 am to NYNolaguy1
quote:
There's a huge housing shortage and a glut of CRE available, why not let CRE have the flexibility to be turned into condos?
I think the problem with many office buildings is that they are plumbed for what, 2 big central bathrooms per floor? It’s cost prohibitive to convert them to residential use, unless you’re doing one lux condo per floor.
Posted on 7/17/24 at 10:37 am to Odysseus32
quote:
Would you be willing to expand on why a developer might think this is a good idea, specifically in these high crime cities?
I can't speak to other cities, but crime in downtown Shreveport really isn't that bad in almost all areas. There's a couple of spots where the clubs are that might not be the safest places to be on a weekend night. But for the most part it's so empty of commerce that it's almost peaceful. A gas station and real grocery store would do well as more people move downtown.
Posted on 7/17/24 at 10:49 am to Old Hellen Yeller
quote:
It’s cost prohibitive to convert them to residential use,
Wouldn't there be ways to offset this, like tax credits and specialized depreciation especially if the building is in a historic district?
Posted on 7/17/24 at 10:53 am to Donkus
(no message)
This post was edited on 9/12/25 at 7:07 pm
Posted on 7/17/24 at 10:55 am to Odysseus32
Kip was the only thing holding downtown together. Was a fun place to live from 2010-2018.
Been on a spiral since SWB took over
Been on a spiral since SWB took over
Posted on 7/17/24 at 11:11 am to Old Hellen Yeller
quote:
It’s cost prohibitive to convert them to residential use
That used be the case. Now with approved PVC flexible piping you can run plumbing into multiple units from a central location. Drainage is a little trickier but can be accomplished.
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