Stirling Properties Adds Two Advisors to Commercial Real Estate Team
Rankin Bihm recently joined the Stirling Properties team as an Advisor, working dually from the company’s Lafayette and Lake Charles offices. He is primarily focused on the sales and leasing of retail properties, with representation of both tenants and landlords. His specific geographical expertise is on the Southwest Louisiana market area.
Prior to joining Stirling Properties, Bihm served as a Multimedia Consultant, where he advised business clients on digital marketing and promotional strategies. He has a strong understanding of market research and analyzing competitor data, which translates to the real estate market, where he helps his clients to effectively locate and market properties. He also has extensive experience in the hospitality and service industry, where he honed superior customer service and relationship-building skills.
Bihm is a graduate of the University of Louisiana-Lafayette with a Bachelor of Science degree in Business Administration and was a member of the National Society of Leadership and Success. He is currently enrolled in the University of Louisiana-Lafayette MBA program.
Rankin is a volunteer with St. Joseph Parish Vacation Bible School and Keep Lafayette Clean. He is an avid reader and enjoys listening to podcasts—and all things sports.
Blaise Brown also joins the Stirling Properties’ commercial real estate team as an Advisor, working from the company’s New Orleans office. With a geographic focus on New Orleans East and St. Bernard Parish, he specializes in the sales and leasing of retail and industrial properties and raw land.
Brown is a member of the New Orleans Metropolitan Association of Realtors (NOMAR), the Commercial Investment Division of NOMAR (CID), International Council of Shopping Centers (ICSC), and Retail Brokers Network (RBN).
Born and raised in NOLA, Blaise is a graduate of St. Augustine High School and currently resides in New Orleans East. He holds a bachelor’s degree in Justice and Peace Studies from Georgetown University in Washington, D.C., where he played football and was named the Team Captain his Senior year.
While in Washington, Blaise served as a Sursum Corda educational tutor, helping to implicate new techniques of reading for children in the poverty-stricken neighborhoods. He helped to create opportunities and practices of learning between tutors and tutees while acting as a mediator between Georgetown students and Sursum Corda children.
Stirling Properties Promotes Mac Bauer to Development Director
Stirling Properties commercial real estate company is pleased to announce that Mac Bauer has been promoted to Development Director.
Bauer has been a member of Stirling Properties’ development team for more than eight years, assisting with identifying, evaluating, and implementing new development and redevelopment opportunities for the company.
In his previous role as Development Associate, Mac played an instrumental part in several notable company projects, including the recent acquisition of Northshore Medical Complex (former Louisiana Heart Hospital), financing of Ochsner Rehabilitation Hospital in Jefferson, development of Hammond Square Self Storage in Hammond and Academy Sports+Outdoors in Lake Charles, as well as the ground-up construction of Ochsner’s Emergency Department and Imaging Clinic in Laplace.
“We are proud to promote Mac Bauer to Development Director. This new title is well-deserved and more consistent with his role and how it has evolved over the last few years. He has been an integral part of our development team, and we’re confident he will serve an essential role in our company’s future growth plans,” said Townsend Underhill, President of Development with Stirling Properties.
As Development Director, Bauer will continue to work on Stirling Properties’ day-to-day healthcare-related real estate services. In addition, he will take on more of an advisory role, assisting the company’s clients in strategizing and plotting short- and long-term objectives. He will also be responsible for managing client relationships, sourcing new business, and managing development projects.
Mac Bauer works from Stirling Properties’ New Orleans, Louisiana, office. He can be reached at mbauer@stirlingprop.com or (504) 620-8131.
President’s Message: Happy NOW
In this fast-paced, chaotic world we live in, we are frequently bombarded with constant communication and digital noise. We have so much clutter and stuff thrown at us daily that it’s easy to get caught up in the clamor of it all, particularly the negativity and vicious dialogue that plagues our social streams.
Sometimes it causes us to lose sight of the positive things, the important stuff, all the things for which we should be grateful. Often, it takes a setback or unfortunate incident to bring our perspective back into its proper place. You know the saying: you don’t realize how good you have it until it’s gone.
Too often, we spend so much time dwelling on the past or worrying about the future that we don’t appreciate what we have. But, truthfully, we only have now! Even when you look back on the past or plan for the future, you’re still doing it in the NOW. The only thing we can truly control is right here, right now.
So, there is no better time than now to pause and express my gratitude and thanks. I’m grateful for our Stirling Properties team, our clients, investors and friends, all the people who are critical to our success and have made our progress possible, and more importantly, for all your generosity, kindness and caring. I want to personally say THANK YOU; it’s not something we do enough of these days.
As I count my blessings this Thanksgiving Day, know that you are among them.
I wish you and your families a very Happy Thanksgiving and holiday season—and especially a very happy NOW!
Marty
Putting For A Purpose
Stirling Properties’ Annual Stirling Invitational Golf Tournament Raises $25,000 for local charities!
Stirling Properties hosted its 19th Annual Stirling Invitational Golf Tournament on Monday, November 11th at University Club Plantation in Baton Rouge, Louisiana. This year’s tournament successfully raised more than $25,000 for local charities!
Although the original tournament date was unfortunately rescheduled due to inclement weather, more than 100 golfers participated and brought their A game, enjoying a variety of friendly competition in addition to 18 holes of scramble golf tournament play.
Congratulations to the 1st Place Low Net winners, Bryan Hobnett, Callen Hotard, Justin Langlois, Chip Lavigne and Hunt Vaughn. The Low Gross winning team included Barrett Dick, Brett Hymel, Shawn Folks and Dex Shill.
The Longest Drive award went to Jason Williams, and Closest to the Pin prizes were presented to Justin Glenn, Wheeler Graf, Dan Smith and Rhett Hymel. Additional awards were given for 2nd and 3rd Low Gross and Low Net. A special shout out to the Highest Gross scoring team, Steve Legendre, Chad Calongne, Mitch Rotolo, Mitch Rotolo Jr.
All the putting was for a purpose though, with local nonprofit organizations benefiting from the tournament proceeds. Ochsner Foundation received $10,000 from the proceeds, and the remaining profits will be distributed to various local charitable causes.
Representatives from Ochsner Foundation were on hand to receive a check for their contributions. Grady Brame, Executive Vice President with Stirling Properties, presented a check to Jason Ruggles, Assistant Vice President of Corporate Real Estate with Ochsner Health System, during an awards celebration and cocktail reception following the tournament. Rick Perry, President and CEO of Tiger Athletic Foundation, was also presented with a $1,000 check to TAF for the LSU Golf Team.
“Despite having to reschedule the tournament—from our original date in October—due to some pretty nasty weather, the Stirling Invitational Golf Tournament was still a huge success. We were once again able to raise funds for local nonprofit organizations that are doing such great work right here in our communities. We are grateful for the generosity of our tournament sponsors and thank everyone who came out to support us. We hope to see you next year!” said Brame.
The Stirling Invitational Golf Tournament has contributed more than $264,000 to numerous organizations over the past 19 years.
Thank you to all our friends and supporters who participated and contributed to the Stirling Invitational Golf Tournament. This event would not be possible without you.
#StirlingProud
Thank you to Big Easy Parking Lot Maintenance, Cosmich Simmons & Brown PLLC, Gulf South Electric, River Parish Disposal, AOS, Business First Bank, Chris’ Paving, Coastal Environmental Services, Connelly Construction Group, Cost Segregation Services, Covington Electric Services Inc., Geiger Heating & Air, ITS Fire Alarm Security LLC, Jefferson Sprinkler, Larry Loyd Construction Co., Moran Construction Consultants LLC, PMAT Real Estate Investments, Premier Service Team LLC, Premium Parking, Professional Maintenance Services, Southeastern Waterproofing, Southern Farm Bureau Life Insurance Company, Upchurch Services, CMC, Moradel Cleaning Services Inc., Angelos Landscaping, B&G Lawn Maintenance LLC, Cook Moore & Associates, CSRS Inc., Dale’s Paving Inc., NcNeer Electrical Contracting Inc., Unit Design Inc., CertaPro Painters of Lafayette, Delta Flooring, Dixie Office Products, Floor Trader, Huseman & Associates LLC, Mele Printing, ACA Mechanical/Industrial LLC, T.L. Construction LLC, Grass Unlimited, Acadiana Lighting & Signs, CJ Ladner Insurance Agency Inc., Multitech Office Machines and Sign Lite.
Torchy’s Tacos and AT&T Store Headed to LSU’s Nicholson Gateway in Baton Rouge, Louisiana
LSU and Stirling Properties announced today that Torchy’s Tacos and AT&T will fill two more retail spaces in the university’s Nicholson Gateway Development, a mixed-use project located on a 28-acre site of the Nicholson Drive Corridor, between West Chimes Street and Skip Bertman Drive.
The two new tenants join anchor retailer Matherne’s Market, Wendy’s, Starbucks, Private Stock, Frutta Bowls, The Simple Greek and Baton Rouge General Express Care in the roughly 50,000-square-foot retail component of Nicholson Gateway. With the addition of these two tenants, all the first-floor retail space in the project is now fully leased.
Torchy’s Tacos, a popular Austin, TX-based taco chain, will open its first location in Louisiana in early 2020, occupying more than 4,000 square feet of space on the end cap facing Nicholson Drive. The fast-casual restaurant is known for its Tex-Mex-inspired menu, including a variety of unique tacos and signature cocktails. Torchy’s started in 2006 as a food truck and has since grown to more than 60 locations across Texas, Oklahoma, Colorado and Arkansas.
AT&T will fill 1,675 square feet of retail space next to The Simple Greek, facing Nicholson Drive. The mobile phone sales, service and accessories provider plans to open in January of 2020.
Stirling Properties’ commercial real estate advisors Rhonda Sharkawy and Dottie Tarleton worked with both tenants to secure locations in the retail development. An additional 11,000+ square feet of rooftop space is available for lease.
The LSU Property Foundation, an affiliate of the LSU Foundation, is facilitating Nicholson Gateway. Stirling Properties is serving as the retail developer and leasing broker on the project, working with the prime developer, Georgia-based RISE Real Estate, which specializes in student housing. Stirling Properties will also handle ongoing retail property management.
Opening last fall, Nicholson Gateway includes 763 units of apartment-style housing for more than 1,500 students, with associated residential support spaces, such as lounge spaces, study areas, community gathering places. The project turned what has traditionally been the back of the campus into an exciting new gateway district while responding to demands for on-campus housing and supporting student success, improving the campus living experience for both undergraduate and graduate students.
For retail leasing information, please contact Dottie Tarleton at dtarleton@stirlingprop.com or 225-922-4253 or Rhonda Sharkawy at rsharkawy@stirlingprop.com or 504-620-8145.
For student leasing information, visit lsu.edu/nicholson.
What Does Triple Net (NNN) Mean?
The Popularity of NNN Deals
Single-tenant, triple net (NNN) deals have become one of the most prevalent and often traded types in commercial real estate. However, despite the popularity, triple net deal structures are still commonly misunderstood by many commercial real estate practitioners.
Triple net deals usually offer new, or nearly new real estate and are generally secured by long-term leases to national tenants. In addition to rent, an NNN tenant is responsible for operating expenses, or the “net” amount of three costs: real estate taxes, insurance and maintenance. (In other commercial property transactions, these costs would usually be the responsibly of the owner or landlord.)
NNN deals are appealing to all types of investors because they offer stable cash flows, attractive financing and unique tax benefits.
Characteristics of a Triple Net Investment
NNN investments are usually secured by long-term leases of 10 to 20 years and offer low risk with a steady monthly income stream. Typically, the long-term tenant is responsible for all maintenance and upkeep of the property with little, if any, responsibilities left to the investor. This makes NNN deals an attractive option for investors who lack time or experience to manage commercial real estate or who may be looking for a better return than is available in their specific market area.
NNN investments vary in price points from as little as $500,000 for a property leased by a small company or franchise up to $20 million for big-box retailers and similar properties. This investment type can include office buildings, malls, industrial parks or freestanding buildings.
Cap rates for NNN deals typically start at 5% for the highest-rated tenants with choice real estate and range up to 9% for tenants with lower credit ratings and non-traditional lease structures.
The Triple Net Benefits
NNN deals offer many benefits to investors, including providing a long-term solution to allow investors to meet their goals despite short-term market instability. The primary benefits that NNN deals should include are:
- Long-term lease secured by stable, credit tenant with national recognition
- Minimal management responsibilities
- Clear description of who is responsible for each expense
- All expenses should be payable by the tenant
- Scheduled rental increases over the life of the lease
- A clear understanding of any lease options
- An assessment of the underlying real estate and its residual value and usefulness at the end of the primary term
Challenges Associated with NNN Leased Properties
Just like all other investment types, there are certain risks and disadvantages that go along with NNN leased properties. They generally do not offer much of an opportunity for short-term profit, and they are less liquid than other types of investments. There is also the remote possibility that the tenant could go out of business, be acquired or merge with a competitor, leaving the building dark.
Even if the tenant has strong credit, the type of business may affect investment value. For instance, a general-purpose use—where tenant improvements are easily convertible to another tenant’s needs—is more desirable than a special use building with limited utility for future tenants. Fast food uses are one example of this issue, but certainly not the only one. Despite these possible risks, NNN investments offer a unique combination of market advantage and financial reward that makes them attractive to many investors.
If you want the best return available in your market, then you should consider this type of commercial real estate investment. Please feel free to reach out to me or one of our commercial advisors for questions or more information.
Ben Graham, CCIM can be reached at (225) 329-0268 or bgraham@stirlingprop.com.
