Apartment Development on Jefferson Highway Faces Road Block

By Eliza Theiss, Associate Editor

The 315-unit mixed-use Cedar Lodge Apartments project planned on Jefferson Highway might not take off from the drawing board, according to the Greater Baton Rouge Business Report. According to the report the reason for this is the inability to provide more than one access way into the development. The only access that can be implemented might place too much pressure on Jefferson Highway.

Two other projects were cancelled earlier this year for the same reasons: mega-church Bethany World Prayer Center and The Preserve, an apartment complex. Cedar Lodge Apartments is a 315-unit mixed-use apartment complex with 56,000 square feet of retail space. Phil Witter is the developer of the project.

While Cedar Lodge faces an uncertain future, high-profile luxury mega-development The High Grove is making up for time lost due to unfavorable weather, according to the Greater Baton Rouge Business Report.

The project, which broke ground in late March, is one of the most ambitious projects attempted in Baton Rouge. The High Grove is the centerpiece of The Grove, a traditional neighborhood development (TND) developed by Baton Rouge-based Carmouche Development. The 118-acre project located along 1-10, east of the mall of Louisiana, will create a mixed-use community in a village-centered layout. Retail, commercial and office space will blend with single-family homes, senior housing, luxury rental housing as well as a full-service hotel. Forty-two acres will be preserved as green space.

The High Grove features 198 luxury one-and two-bedroom apartments at a projected development cost of $28 million. High-end fixtures, granite finishes, walk-in closets, washers and dryers will be found in all units. Most residences will contain balconies and terraces.

Community amenities will include a resort-style pool with a soaking deck, green lawns, an outdoor fireplace, gas grills and cooking areas, an indoor/outdoor lounge area, cyber café, media center, state of the art fitness center,  theatre, tanning room and meeting room and other features. Parking will be ensured by onsite garages and carports, which will be installed with photovoltaic panels. The property will apply for LEED Silver Certification. Other green features of the property include energy-star lighting and appliances, high-efficiency HVAC systems, water-conserving appliances and fixtures, landscaping with low-water consumption and wiring for future electric car-ports.

Phase one is set to be completed by May 2013, and phase two by October 2013.

Photo credit: highgrovebr.com

Hilton Baton Rouge Capitol Center Changes Hands for $40 M

By Eliza Theiss, Associate Editor

This week marks the closing of a major commercial real estate transaction for the Baton Rouge market and especially its hospitality industry. According to a story by the Greater Baton Rouge Business Report, Kevin Gallagher, senior vice president of Prism Hotels & Resorts, has announced Prism will be staying on to manage the downtown hotel in a partnership with the buyer, identifying the new owner as RockBridge Capital LLC, of Columbus, OH. The buyer paid $40 million for the property—considerably less than the estimated $70 million it took to revitalize the property by former owner Commercial Properties Realty Trust, the for-profit branch of the Baton Rouge Area Foundation (BRAF).

According to a May 2012 article by the Greater Baton Rouge Business Report, Commercial Properties Realty Trust began marketing the hotel earlier that month. Initially, Prism seemed to be the likely buyer, as it took over management of the hotel the same month, and had a history with the property, as it was the BRAF’s partner in renovating and reopening the hotel back in 2006. In May the word at Prism was that purchasing the hotel will be considered during a 60-day due diligence period.

The Hilton Baton Rouge Capitol Center, located in downtown Baton Rouge, features 290 guest rooms, eight of which are luxury suites. All rooms have complimentary high-speed wireless internet access. The hotel also features an executive floor with a private lounge and concierge, complimentary continental breakfast and evening reception. Hotel amenities include 20,000 square feet of meeting space, including two ballrooms with views of the Mississippi River and downtown Baton Rouge, a business center, full-service spa, a fully equipped fitness center, an outdoor pool and garden deck. Dining options include The Kingfish Grill with its Cajun cuisine and fresh seafood and The Viking Cooking School, the outdoor pavilion restaurant, which also offers cooking classes to interested parties.

The Hilton finished a $70 million renovation in 2006, as the 1927-built property sat empty for several years, starting in 1985. It was even considered for demolition in 1982, but its inclusion on the National Register of Historic Places saved it from the wrecking ball. The BRAF got involved with redeveloping the former Heidelberg Hotel and Capitol House in the 1990s. An undisclosed, but large, part of the renovation costs were covered by state and federal historic tax credits and tax increment financing, according to The Advocate. Following the impressive overhaul, the Hilton Capitol received a four-diamond status from the AAA for exceptional hospitality, customer service and physical attributes. The hotel also received the 2012 TripAdvisor Certificate of Excellence Award.

Photo credit: Hilton Baton Rouge Capitol Center’s Google + Profile

Commerce Building to Undergo $22M Conversion into Downtown Mixed-Use Property

By Eliza Theiss, Associate Editor

The Commerce Building in Downtown Baton Rouge, which has sat vacant for the past three years after temporary state offices moved out, faces a $22 million overhaul. The redevelopment will turn the Commerce Building into a mixed-use project that will bring the area to life even after office hours, by introducing permanent residents and businesses that usually sprout up around residential areas.

The 180,000-square-foot property recently sold for $1.3 million, purchased by T.J. Iarocci on behalf of a New Orleans-based group of private investors, according to a report by The Advocate. The seller was Bob Dean.

The eight-story structure at Laurel and North Third Street was the first significant office property transaction in Baton Rouge since the recession.

The Commerce Building’s redevelopment would build out over 100 apartments as well as 75,000 square feet of retail space. The apartment units will be built in contemporary loft style and will rent at market rate, targeting a young demographic, especially professionals.  Over 100 parking spaces will be constructed inside the building to accommodate future residents.

The retail space will be located mostly at street level along both North Third Street and Laurel Street. Iarocci reportedly said there is a necessity for service-oriented retail, such as a boutique grocery store. The developer would also like to add a restaurant to the roof area to take advantage of the view on the Mississippi River.

The character and design of the 1950s building will be preserved.  A major influence on the project will be the award-winning Rice Mills Lofts redevelopment in New Orleans. Iarocci was one of the partners of that project which garnered national attention.

Financing will an estimated one year to secure, while the actual build out is expected to wrap up in 16 months.

Photo credit: Google Maps

Gulf Coast Housing Partnership Apply for Townhome Permit; Construction Completed at $98M ULL Student Center

By Eliza Theiss, Associate Editor

Mid City Townhouses, the Gulf Coast Housing Partnership’s newest Baton Rouge project, is moving forward. According to a report by The Advocate, developers have filed a building permit for the $4 million residential complex.

The development will consist of four 32-story townhomes built at the corner of North St. and N.19 St. at the former site of Olinde’s furniture store. The townhomes will feature 11 two-bedroom units and 21 three-bedroom units. A pavilion featuring a basketball court, barbecue grills and water fountains will also be constructed at the site. Construction is expected to take a year, and can start immediately as the city-parish council approved plans for the residential development in March.

Gulf Coast Housing Partnership is forming a partnership with the Mid-City Redevelopment Alliance to offer counseling to potential buyers. The developers have stated that units will target households making $35,000 or less in lease-to-own type contracts.

In other news, The Advocate also reported construction completion at the last phase of University of Louisiana Lafayette’s (ULL) new $98 million student housing development project.

The ambitious projects saw the construction of four new dorms, increasing the university’s housing capacity by 50 percent, from 2,000 to 3,000 beds. The student residence expansion consisted of four new dormitories completed in the past 12 months. One of the major changes in ULL’s student residence structure is distributing students by class level.

Taft Street’s Baker and Huger Hall will house students at sophomore level and higher. Located in the “Rose Garden” area of the campus next to the Student Union, Bonin Hall and Coronna Hall will house freshmen. Legacy Park, the on-campus apartment complex will accept exclusively upperclassmen.

The development project also repurposed existing residences, such as Randolph Hall. The dormitory will house various student support services such as tutoring, and support classes. The former residence hall has also been redesigned to house a kitchen, a game room and a weight room.

Funding was provided exclusively by Ragin’ Cajun facilities, the university’s third-party nonprofit corporation.

Photo credit: Billy Hathorn via Wikimedia Commons

Tanger Factory Outlet Embarks on $8M Expansion of Retail Center

By Eliza Theiss, Associate Editor

Tanger Factory Outlet Centers Inc. has started construction work on its Tanger Outlet Gonzales facility in Metropolitan Baton Rouge’s Ascension Parish.

The expansion part of the $8 million project entails adding 50,000 square feet to the shopping center. Some of the nine stores establishing a presence at the center will be J.Crew, Talbots, Under Armour, Brooks Brtothers, American Eagle and Loft. The stores are expected to open in March 2013.

The retail center is also expected to undergo some renovation, as well as landscaping upgrades. Customer parking will be increased. “”We are excited to take this next step in further developing this modern, upscale shopping environment with a uniquely southern feel for our more than 4 million annual shoppers in Gonzales,” Steven B. Tanger, president and CEO of Tanger Outlets commented in a press release.

Retail sales following the renovation and expansion are expected to generate an additional $15 million in tax revenue. Furthermore, approximately 70 jobs will be created during construction. With the opening of the new stores, additional full- and part-time retail jobs will be created.

The expansion will raise Gonzales Tanger’s square footage to 322,000 square feet of leasable space and bring the number of designer stores and brand outlets to 60. “The addition of the new stores makes in-season and on-trend merchandise even more accessible for our customers shopping for value priced merchandise,” Steven Tanger added in the same press release.

Tanger Outlets Gonzales opened in 1993 off Interstate 10. It underwent a $10 million renovation and expansion in 2005, after Hurricane Katrina. At that time, Baton Rouge and surrounding areas had experienced an unexpected increase in housing and commercial development.

Tanger Factory Outlet Centers, Inc. is a publicly-traded REIT headquartered in Greensboro, N.C. Tanger operates or has ownership interest in 39 upscale shopping centers in the USA and Canada, totaling $11.9 million square feet of commercial space.

Photo credit: Tanger Factory Outlet Centers, Inc.

Construction Extended for $368M L’Auberge Casino Development

By Eliza Theiss, Associate Editor

L’Auberge Baton Rouge, Pinnacle Entertainment Inc.’s $368 million casino and hotel project, has been granted a one-month extension on its construction deadline by the Baton Rouge Gaming Control Board, according to The Advocate.

Initially, construction was expected to wrap up by the end of July. However, the project has lagged behind since its May 2010 groundbreaking, plagued by low water levels on the Mississippi River and flood alerts. L’Auberge is still expected to open before Labor Day.

The 74,000-square-foot L’Auberge is being developed on 575 acres near the Gardere Lane and River Road intersection in South Baton Rouge. The casino, a riverboat permanently moored on the river bank, will hold nearly 1,500 slot machines and 50 table games, as well as a 1,500-square-foot poker room, a high- limit salon and a VIP lounge capable of accommodating 94. The casino will feature hulls constructed by Bollinger Shipyard of Amelia, La.

The casino development includes a 205-key, 12-story hotel with a high-end fitness center and rooftop hotel, four dining venues and a casino bar. The resort will also feature 13,000 square feet of meeting and conference space. According to the property’s fact sheet, that includes one event center capable of seating 1,550, a 600-foot executive board room and a 1,000-square-foot multi-purpose space.

L’auberge will also feature outdoor festival grounds for 2,500. Eight hundred of the total 2,400 parking spaces will be covered spaces. L’Auberge will employ 1,250 in permanent positions, 1,067 of which have already been filled.

ABS Consulting served as safety certifications consultant. The $368 million price tag, does not include land costs and capitalized interest.

Photo courtesy of the L’Auberge Facebook profile