As an update to a recent post regarding the transfer of real estate for the Mac’s Fresh Market on Arkansas Road, please note the ownership change was between related parties and the Mac’s Fresh Market operation continues to operate as it has been since it recently opened. There has been no change in management regarding this business operation.

Good questions about the future of real estate. It’s not if, but when…..

Are real estate values nearing a peak?

by Sean McDonald, MAI, Baton Rouge, LA

Nov 16, 2015Every few days, it seems I’m reading about a new/near record price paid for real estate like the recent sale of The Standard here in Baton Rouge or record low cap rates for national retail tenants. But there’s some growing thought that we might be nearing the end of this trend and some growing concern about sustaining the current pricing growth. This article from Commercial Observer is a bit pessimistic with some talk of a looming crash, while CNBC and the President of the Boston Federal Reserve Bank are a bit more measured.

On the other side, Seeking Alpha has an article pointing out that increasing interest rates have not historically resulted in increasing capitalization rates, as spreads have tended to compress when interest rates increase, though cap rate is only half of the equation. Expected income is the other half, with the basic equation being Value = Income / Rate. If rental incomes decrease and cap rates stay flat, values decrease.

I know this is probably not a popular thing for an appraiser to be looking at, but the articles are out there and I think its good for others to be cognizant of them. Maybe now is just the time to be completing your deal or getting a value opinion rather than later.

We’ve not seen much in the way of decreasing values just yet locally, though it does seem that the volume of sales is decreasing and that pricing for some property types has leveled off over the past year. Is it a sign that we are at or near the top for this cycle?

What are you seeing and expecting?

This article was published by Sean McDonald, MAI and shared in this blog.

November 10, 2015

Office Space for Lease: 1300 Hudson Lane

Office space for Lease – Hudson Plaza / 1300 Hudson Lane, Monroe, LA

Space ranging from 850 up to 3,400 square feet. Rents starting at $550 per month.

For more information contact: Mike Graham @ 318-801-0950

Mike Graham Real Estate / 318-387-9092

October 5, 2015

Ruth’s Chris in Baton Rouge sells for $2.35M

Follow this link for the original article. Ruth’s Chris in Baton Rouge sells

The Ruth’s Chris Steakhouse on Constitution Avenue, the Baton Rouge institution that has served politicians and city leaders for more than a generation, has been sold to a local businessman.

Christopher Bachman, the sole member of Check B LLC, paid $2.35 million to Texas-based Bekmet Ltd. for the restaurant, according to sale documents filed with the East Baton Rouge Parish Clerk of Court’s Office.

Attempts to reach Bachman on Monday afternoon were unsuccessful. A Daily Report article from 2009 on renovations to the building identified Bachman as the general manager at Ruth’s Chris.

Baton Rouge restaurant icon TJ Moran opened the establishment on Constitution in 1977.

—Ryan Broussard

June 17, 2015

For Lease: 3,000 SF at Richland Tower

Beautiful 5th floor space in West Monroe’s signature building, Richland Tower. Over 3000 square feet complete with personal balcony, break room, offices and a huge conference room. Current building tenants include Ford Bacon Davis, Richland State Bank and Jo-Els Café. Lease is subject to Landlord and current Tenant approval.

Call Mike @ 318-801-0950 for more information.