Former Champion Insurance building on the market, with a $4.255 million asking price

Sep. 17--The state is putting the former Champion Insurance complex on Government Street up for sale, with a minimum asking price of $4.255 million.

The complex at 4615 Government St. consists of two buildings facing the street with 8 acres behind them. One building is 40,272-square-feet; the other is 17,881-square-feet. There are 242 parking spaces on the property.

The asking price is based on appraisal done by David Lakvold. Lakvold said the highest and best use for the property would be to turn it into a mixed use development.

Champion was once the state's third largest auto insurance company until it collapsed in June 1989. The company's owner John M. Eicher Jr. and his family were accused of putting up a deceitful image of financial solvency to policyholders, while the company was crumbling under the weight of claims it couldn't pay. Eicher did time in federal prison after pleading guilty to mail fraud, forgery and bribery.

Former Insurance Commissioner Doug Green was also sentenced to federal prison after Eicher-backed companies bankrolled his 1987 campaign. In exchange for the support, prosecutors said Green looked the other way while Champion's claims went unpaid.

The state bought the property in December 1990 for $372,687. It had been operated by Capital Area Human Services, providing mental health, addiction and developmental disabilities services.

But within the last month, CAHS has moved to new offices and left the building vacant, said Jacques Berry, policy and communications director for the Division of Administration. The division of administration maintains and operates state buildings.

Because the building is vacant and it had been paid off, Berry said the division of administration decided to sell the property. "We can't manage a bunch of properties," he said.

Plans are to sell the property through sealed bids. An open house for the property will be held from 10 a.m. to 2 p.m. September 30 and October 7. Sealed bids must be submitted by 3 p.m. October 19 and the bids will be open at 3:15 p.m. that same day. The closing must be completed by 5 p.m. October 30.

Mathew Laborde, president and chief executive officer of Elifin Realty, which has been involved in several Mid City developments, said there are a number of possible uses for the property. The buildings could be turned into retail and office space, and apartments and other high-density housing built in the back. Converting one of the buildings into a trendy hotel is a far-fetched possibility, he said. "That could be a great fit for it, because you don't have any hotels on Government Street," Laborde said.

But with such a short time frame for a sale and so much uncertainty in the commercial real estate market because of the coronavirus pandemic, Laborde said there's a chance the property may not sell.

"I don't know of a local Baton Rouge investor who is willing to do a $4.255 million speculative development," he said. "You have to have the cash or easy access to financing."

But Laborde said the Champion property is the only space of its kind on Government Street and he's already gotten calls about the land. "It's just going to be tough to get all your ducks in a row in a short time," he said. "But this is the only opportunity like it."

___

(c)2020 The Advocate, Baton Rouge, La.

Visit The Advocate, Baton Rouge, La. at www.theadvocate.com

Distributed by Tribune Content Agency, LLC.