$9,440,000 Sale of Condos For Shell Oil

Date: 2005

After Hurricane Katrina in 2005, Shell Oil Company purchased over 100 single family homes and two large apartment developments in order to house employees in the 25,000 population town of Hammond, Louisiana. Eastgate Condominiums was a 44 unit property on 9.5 acres and Nicholas Point was a 52 unit Townhome Complex on 5.6 acres. When employees were able to find housing on their own, Shell wanted to dispose of the two large properties without affecting the market and receiving a liquidation price.

We prepared a detailed Marketing Plan which included a Media Plan with both local and national advertising advertising and a timeline for each activity until closing. I also prepared a 20 page Marketing Presentation for potential buyers which walked them through a valuation based on the net present value of cash flows from the sale of each unit over time.

Our Marketing Presentation also included site maps, floor plans, satellite maps, property descriptions, title information and up-to-date aerial photographs which I took from an airplane. I conducted a Sealed Bid Sale which provided the seller with a deadline, and we received 12 offers to purchase properties individually but also offers on both properties. I advised Shell on a strategy to obtain maximum value, and sold both properties for higher than the appraised value within 8 months.

Northpointe in Hammond
Eastgate in Hammond

Louisiana Commercial Realty

Commercial Real Estate Experts
Robert Hand, MBA, CCIM, SIOR
Licensed in Louisiana & Mississippi
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