Property Type: Retail
Status: In Contract
Address: 5909 Bluebonnet Blvd.
Baton Rouge, LA 70836
|CAP Rate: 8.15%|
Square Feet: 135,367
Tenancy Type: National
Lease Type: NNN
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell Bluebonnet Parc, a four-building power center anchored by Best Buy, BuyBuy Baby and Havertys. The well-positioned asset in the high-barrier to entry Baton Rouge, Louisiana, retail market is being offered for $17,395,000, representing an attractive 8.15% CAP Rate and a high 12.52% projected year-1 cash-on-cash return.
The property also offers significant upside through the lease-up of the remaining two vacant units (13% vacancy) and includes an additional 15,000 S.F. developable pad. Bluebonnet Parc is comprised of 94% national tenants on corporately-backed leases with a strong history at the center. In fact, 45% of the current rent roll have been in occupancy since construction in 2002 and continuously exercised renewals, demonstrating commitment and success at the location. The majority of the leases are long-term giving minimal near-term rollover exposure. BuyBuy Baby and Havertys have lease terms out to 2029, David’s Bridal is leased well into 2027 and Men’s Wearhouse into 2025. The BuyBuy Baby location is the flagship store and only location in the city of Baton Rouge, with the next closest location over 70 miles away. The center also serves as a critical flagship location for Havertys Furniture, with it next closest location 100 Miles away. Both Men’s Wearhouse and David’s Bridal stores are both vital to the area with next closest locations 50-60 miles away, and Men’s Wearhouse also reports extremely strong sales coming in at double the chain’s average volume! For Best Buy, it is only one of two stores in the Baton Rouge MSA. The center also just welcomed Richport Technical College with a new 5-year lease and like many of the other tenants, rental increases throughout the term.
The Class ”A”, 135,367 S.F. center has a welcoming curb appeal and has frontage along heavily traveled Interstate 10. Additionally, the center has highly visible signage, also visible from Bluebonnet Blvd and I-10, along with ample parking (approx. 650 spaces). Its position in the market is central to other complimentary retailers and employers. The property has had many upgrades, but most recently in 2019, the inline portions of the center received a Duraline Silicone roof coating, while BuyBuy Baby had a new roof installed in 2017 and also a new roof over the Havertys space in 2016, both with long-term warranties.
The attributes to this property seem never ending, but if you are an investor that focuses on strong demographics, this asset is definitely for you! Bluebonnet Parc is located in an affluent community with average household incomes of over $105,000 within a 1-mile radius of the center and a high population density of 167,920 within 5-miles, which doesn’t even take into account the 34,290 students nearby that attend world-famous Louisiana State University, just 7 miles away. The area has a huge regional draw and is loaded with retailers and numerous popular entertainment venues. The property is conveniently adjacent to the Mall of Louisiana, a largely popular 1.6 million square foot complex, which is also the largest mall in Louisiana. The Mall of Louisiana sees more than 15 million visitors annually with foot traffic to the upscale merchandise mix that includes more than 180 specialty stores, 8 full-service restaurants, a 600-seat food court, carousel and 15-screen AMC and IMAX Theater. The mall also just opened a 16,000 S.F. Blue Zoo Aquarium, drawing even more people to this statewide hot spot. Within 2 miles of Bluebonnet Parc, Siegen Lane Marketplace, which hosts Lowe’s, Walmart Supercenter, Topgolf, TJMaxx, World Market, Kohl’s, Sam’s Club and more can be found, as well as Perkins Rowe Shopping Mall that boasts Cinemark and Freshmark and is directly next to Bluebonnet Village Shopping Center. For travelers to the area, the hotel options are plentiful and Downtown Baton Rouge (9 miles) is also nearby. Convenient access to the Baton Rouge Metropolitan Airport is just 14 miles north of the featured asset.
Being situated just 9 miles south of Baton Rouge, the vast employment base offers residents of the area a multitude of opportunities. Less than a 1/2 mile west of the featured asset is Baton Rouge General Medical Center with nearly 3,000 employees and just beyond is Our Lady of the Lake Hospital and Children's Hospital (affiliated with St. Jude Children's Research Hospital) that offers 6,000 employees to the region from their hospital system. Being the state’s capital and parish seat, Baton Rouge is home to the Louisiana government with over 64,580 employees and recently consolidated all branches of its state government downtown at the Capitol Park complex. The largest employer in Baton Rouge’s private sector is Amedisys Home Health and Hospice Care (3.5 miles) with 16,000 employees, followed by the second largest, Turner Construction, with 9,520 employees. Additionally, ExxonMobil established a huge presence in the area with approximately 6,000 employees. The company has six operations in the Port Allen and Baton Rouge areas and is the 4th largest refinery in the country and 10th largest in the world. Their local facilities include a refinery and manufacturing plants for chemicals, plastics, polyolefins, aviation, and lubricants. BASF, the chemical company, employs nearly 2,000 people at their four Louisiana sites, while BlueCross BlueShield of Louisiana also employs nearly 2,000 Louisianians at the Baton Rouge headquarters and in eight district offices across the state, one of which is directly across I-10. CB&I is the most complete energy infrastructure-focused company in the world and a major provider of government services and has more than 1,500 employees in Baton Rouge. IBM boasts 800 employees devoted to technology services for the downtown area. Other major corporations participating in the economy of Baton Rouge and its metropolitan statistical area include Lamar Advertising (3,200 employees), Piccadilly Restaurants (5,000 employees), Raising Cane's Chicken Fingers (1,410 employees), and Community Coffee, which is based in Baton Rouge and has 820 employees. In addition to the incredible population and business density, the area also boasts world-famous Louisiana State University (LSU) that is home to over 5,000 employees in a vast variety of positions to the more than 34,290 students attending the school, further feeding into the local economy. Given the property’s strategic placement and proximity to employees and residents; Bluebonnet Parc is positioned with great potential to generate substantial returns for years to come, along with additional upside being offered today.
Full Offering Memorandum