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Eastbank Shopping Center

Gonzales, Louisiana

Eastbank Shopping Center was acquired in 2004 for $2,750,00 and an occupancy of 70%. With roughly $1,000,000 in rehab costs, the property was brought up to 100% occupancy, which include a new lease to Fred’s Pharmacy for 32,000 sf. Three outparcels were also created and and sold for $1,500,000. In 2015, this property was sold to a second investment group ALSO controlled by one of JRE Private Equity Group’s principals, Donnie Jarreau, for $5,750,000 – a net profit of over $2,000,000.

In a completely unforeseen turn of events, this property lost over 50% of its tenants due to bankruptcy and relocation. Dollar General (20,000 sf), Anytime Fitness (10,000 sf), and a local Mexican restaurant (7,500 sf) were performing so well at this location that they ALL vacated, opening free-standing, new-construction locations within 1/2 mile of the property. At the same time, Fred’s Pharmacy (with over 500 stores at the time) filed bankruptcy, vacating their 32,000 sf space.

In the last 3 years, JRE has backfilled ALL of this space, bringing the center not only to 100% occupancy, but also secured an ADDITIONAL build-to-suit contract with Citi-Trends! Distributions have resumed at this property, and current property value is approximately $11,000,000, with significantly higher NOI than it had when purchased.

This case study is to illustrate that not all real estate investments go “as planned,” but JRE has continually demonstrated that it can actively manage properties during the “best of times,” but also in the “worst of times.”

Address:

318 W Highway 30, Gonzales, LA

Total Square Footage:

128,000

Notable Tenants:

Tractor Supply
Ollie’s Bargain Outlet
Dollar Tree
St. Vincent De Paul
Ideal Market Mexican Grocery
Citi-Trends
Rent-A-Center

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DONNIE JARREAU

PARTNER

Donnie has been behind some of Baton Rouge's most successful developments, with a portfolio of investments stretching from Lake Charles, Louisiana, to Pensacola, Florida. His passion for real estate and development is apparent, and those who work with Donnie enjoy the enthusiasm that has made him successful. In his nearly 25-year career, Donnie has developed and acquired over two million square feet of commercial, retail, office and multi-family property. Recognizing that every property, situation and client is different, Donnie sees that each new experience brings its own unique challenges, circumstances and advantages. When others skim the surface, he digs in. With creativity, dedication and diligent problem solving, Donnie is able to make his deals work. Many of his projects, like Southdowns Shopping Center, Perkins Road Hardware redevelopment, Drusilla Shopping Center, and Eastbank Shopping Center, have been diamond-in-the-rough properties that, once reenergized, have helped transform entire neighborhoods and streetscapes. Donnie has had several new development successes as well, including the 50,000 square-foot Perkins Palms mixed-use development and the 100-unit Elysian, a workforce housing complex designed to accommodate a wide array of mixed-income residents in Mid-City Baton Rouge. Over the past decade, Donnie has acquired over $170,000,000 in retail Shopping Centers through different partnership-structured syndications that encompass well over 1,000,000 square feet. Outside the office, Donnie is a valued community member who volunteers with a variety of local organizations. He served on the Board of the Baton Rouge Growth Coalition, is Board President of the Options Foundation (which provides housing and services to the mentally ill), and has been a committed mentor in the Kids Hope program for many years. Donnie also founded Everyone Plays Sports Foundation, a non-profit organization that donates sports equipment to local schools and addresses child obesity issues. Donnie is a lifelong Baton Rouge area resident, married to Barbara Parsons Jarreau and proud father to six children.