Chase Tower in Downtown Shreveport Sells
The deal for the former Chase Tower, 400 Texas Street, located in the Central Business District (CBD) of downtown Shreveport, LA, closed last Monday. The 203,737 square-foot, 15-story, multi-tenant office building was put up for auction in mid-September. The auction, hosted on TEN-X, was under contract by 11/2/22, and escrow closed on December 5th.
Owned by the CoStar Group, TEN-X is considered the world’s largest online commercial real estate exchange. Mart Martindale of Edge Realty Partners out of Dallas, TX, and Joe Fleming of SRES out of Shreveport, LA, partnered in facilitating and closing the deal.
“This is a value-add opportunity in downtown Shreveport. Ten-X enabled us to present the deal to a large target-specific audience, which in turn allowed for an efficient disposition for the seller”, says Fleming.
The deal closed with 34% occupancy, but the $12.00 per square foot list price appealed to several investors. Notable tenants include ATF, Hunt, Guillot & Associates, PHO Homes, and Pettiette, Armand, Woodley, Dunkleman, Byrd & Cromwell, LLP.
Sub-market rents in the CBD have increased by 2.6% since the third quarter of 2021.
“Despite the lack of robust activity in the Shreveport market, we felt like the pricing would be attractive to a number of investors, and that was definitely the case. The buyer, a Louisiana native, is getting a really nice asset with a lot of upside at an incredibly low basis per square foot.”, says Martindale.
The buyer, local to Monroe, owns other assets within the Shreveport CBD. Plans for improvement have yet to be announced, but the building currently offers ideal amenities. These include on-site security and management, Figlio's Gourmet Coffee House, and a deli located in the lobby. Additionally, the property is near hotels, restaurants, and retail. This presents the investor with acquiring an asset in Shreveport’s CBD while generating value through vacancy lease-up.
For more information, contact Joe Fleming of Sealy Real Estate Services (SRES) www.sres.com. For more information on Edge Realty Partners, contact Mart Martindale or visit edge-re.com.