There’s been several transactions recently involving Blockbuster Video store locations (or former locations as the case may be) in the Baton Rouge market. The current College Drive location sold several months ago and is closing. The Millerville location recently sold. The Blockbuster location at Old Hammond Hwy. and Airline Hwy is in the process of closing. Other locations have closed their doors in the past couple of years.
What was once considered a prime investment opportunity ( both from a stock standpoint as well as investment real estate) has devolved into a bankruptcy sale. Real estate investors have taken a significant hit on their initial purchases; however those who bought sites in “prime” locations may still end up doing reasonably well.
Key factor for real estate investors? For those considering real estate investment opportunities predicated on long-term leases and national credit worthy companies, remember the following:
A. keep technology in mind
B. know your location and
C. think beyond the existing use
Larry Dietz, CCIM
Written by Tiffany Kary and Erik Larson [April 6, 2011 / Businessweek.com]
April 6 (Bloomberg) — Dish Network Corp. won an auction for bankrupt Blockbuster Inc.’s movie-rental business with a $320 million bid that beat offers from Carl Icahn and other investors.
The deal, which still requires approval from U.S. Bankruptcy Judge Burton Lifland, will allow what was once the world’s largest movie-rental chain to reorganize instead of having its assets sold off by liquidators. Dish said it expects to pay approximately $228 million in cash as part of the bid to acquire the company.
Blockbuster filed for bankruptcy in September with 5,600 stores, including 3,300 in the U.S., saying sales shrank in recent years while Netflix Inc. grew by renting movies online and through the mail, and Coinstar Inc. put Redbox DVD vending machines in supermarkets and drugstores.
“While Blockbuster’s business faces significant challenges, we look forward to working with its employees to re- establish Blockbuster’s brand as a leader in video entertainment,” Tom Cullen, a Dish Network executive vice president, said today in a statement.
To read this article in its entirety click HERE.
To view this week’s Featured Property click HERE.
Larry Dietz, a real estate broker with Saurage Rotenberg Commercial Real Estate, has over 30 years of Sales, Marketing and Public Relations experience. He is a member of the Commercial Investment Real Estate Institute, holding the designation as a CCIM. He is a licensed real estate broker in Louisiana and Mississippi.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Growth Coalition; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).