Information on Capital one bank

New development on Highland Road near Kenilworth Parkway has been extremely difficult to have approved. This was the case with the recent purchase by Bank One on Highland Road at Kenilworth. Bank One purchased an 80,000-square-foot site on Feb. 14 for $800,000 or $10 per square foot.

The site was brokered by Rob Hebert of Latter & Blum. Hebert indicated that it took more than a year to have the proposed development of the branch bank approved before the sale could take place. The site is improved with a welding shop and an older masonry building formerly occupied by Tom Thumb Nursery.

The approval process taking one year is typical of new development along Highland Road. Bank One needed to enlarge its existing branch and was unable to do so at its current location. As a result, they are purchasing a site across the street and building a new modern branch bank facility. The new development will certainly be more aesthetically pleasing than the existing buildings.

Two apartments sold

In December, Bob Kirby of Sealy & Falgoust Real Estate sold an apartment project in Gonzales. The property consisted of 49 units (25 townhomes and 24 fiats) and also included 19 multifamily lots. Kirby brokered the property which fronted on Roth Drive. The units were sold by Bengal 8 Investments. The purchaser was River Villa LLC. Kirby says the apartments sold for $2,085,000 and the adjoining lots sold for $300,000. The apartment portion indicates a per-unit price of $42,500.

The Gonzales location is prime for multifamily development, due to very stringent multifamily development requirements in Ascension Parish. The purchase of these 49 units and adjoining 19 lots enables new construction to take place.

An additional apartment sale has taken place of the River Pines Apartments at 5750 Florida Blvd. in Baton Rouge. River Pines Apartments were owned by Oak Royale East and purchased by Gendusa-Murphy Properties III LLC. The property sold for $1,250,000.

This project includes 64 units, made up of one- and two-bedroom units. The sale price calculates to approximately $19,500 per unit. The property was in good condition at the time of sale. The investors were purchasing the property for its on-going rental income.

New warehouse for WBR

Robert Merrick, the owner of Latter & Blum, is adding another phase to his development on North Line Road in West Baton Rouge Parish. Over the last five years, Merrick has constructed a total of approximately 800,000 square feet of warehouse space, which is leased to industrial occupants. Merrick plans to add an additional 300,000 square feet and lease the property to Dexco and Dow Chemical.

The lease was brokered by Marc Barker with Latter & Blum, who has managed and leased the development since its inception five years ago. The 300,000-square-foot addition will bring the total warehouse area in Merrick's development to $1,100,000.

This is significant new construction in the West Baton Rouge Parish area. Barker indicated that demand for warehouse storage space in West Baton Rouge Parish was strong and that additional development will take place shortly.

TOM COOK, MAI, is a local real estate appraiser, consultant and broker. Send him real estate news at tomwcook@aol.com.