182-Unit Multifamily Complex Planned, LSU Foundation Considers New HQ at Nicholson Gateway

By Eliza Theiss, Associate Editor

Zachary, La. might see some new multifamily development in the near future, as a permit application has been filed for a 182-unit apartment complex between Barsket Road and Bur Oak Drive, on Mount Pleasant Zachary Road, reports The Advocate. Owner Heritage Construction plans to build a 12-building apartment community featuring one-, two- and three-bedroom units and amenities such as a clubhouse and a car wash stall. Cost are estimated at $14.5 million

In other news, the Louisiana State University (LSU) Foundation is considering building a new headquarters within the Nicholson Drive Corridor redevelopment project. According to the Greater Baton Rouge Business Report, LSU Foundation representatives are considering the move as not only is the Foundation’s current lease at the Lod Cook Alumni Center on West Lakeshore Drive providing insufficient space, but a new HQ would also provide space for LSU Press and University Relations currently housed in separate structures among sorority houses. A move could also free up space for one or possibly even two new sororities. The new location would be part of the Nicholson Gateway redevelopment project and would take up 149,250 square feet of office space near the old Alex Box Stadium.

As previously reported on this page, LSU is considering the redevelopment of the Nicholson Drive Corridor, a project that could cost between $140 million and $200 million and create an estimated 130,000 square feet of retail, 110,000 square feet (or more) of office space, surface parking and about 1,200 rental student residences. Expanding a streetcar line to the area has also been brought up in some instances. The project, expected to soon go before the LSU Board of Supervisors might break ground as early as 2014, with the first phase completing in 2015 and the entire project wrapping up in 2018. LSU might undertake the project on its own, or enter into a partnership with a foundation or private developer.

Los Angeles, CA-based AECOM, a global provider of professional technical and management support services helped in creating the redevelopment plan, after public and stakeholder meetings.

Image courtesy of LSU’s Facebook page

Costco Heading to Baton Rouge; Condominium Project to Add 104 Units

By Eliza Theiss, Associate Editor

Costco’s coming to Baton Rouge seems more like a question of “when” than “how,” after the most recent East Baton Rouge City-Parish Planning Commission meeting. Costco Wholesale Corp., the Issaquah, Wash.-based international chain of membership warehouses, has received site plan approval from the Planning Commission, reports The Advocate.

According to the Baton Rouge publication, the store will be located on Dawnadele Ave. in the now-defunct Coca-Cola bottling plant. The proposed 144,807-square-foot Costco warehouse, which will be more than 30-foot high, and 3,840-square-foot gas service station will be developed on 15 acres of land out of the total 28 acres the company has under contract. Costco plans to open the store warehouse by summer 2014, depending, on the property sale finalizing and state and city-parish approvals.The remaining outparcels will be developed later.

The warehouse club retailer also received a sign waiver allowing it to install four signs atop the structure. The sign will have to be scaled to the height and acreage of the building.

Costco Wholesale representatives are advocating for several changes to Dawnadale Ave., such as new turn lanes, as the road is incompatible with retail developments in its current state.

In other news, the planning commission meeting also approved plans for the expansion of The Cottages at Southfork condo project.

The Cottages at Southfork has received final development plan approval for 19 structures on 2,250-square-foot lots. The buildings will consist of 104 single-family attached condo units. The development currently consists of 40 condos in five buildings located off Sherwood Forest, near Interstate 12. The one-story condos feature two or three bedrooms, two-car garages, large master suites and open floor plans, with kitchens centering around islands. The project also boasts a swimming pool.

Tower Capital Corp. is the project’s developer, while construction is being handled by FaKouri Construction, Inc. and E. Jacob Construction Inc. All companies are Baton Rouge-based and have been involved in several other condominium projects in the state capital.

Photo courtesy of  The Cottages at Southfork’s Facebook profile

LSU Master Plan Proposes to Redevelop Nicholson Drive Corridor, Spend Up to $200M

By Eliza Theiss, Associate Editor

Louisiana State University (LSU), one of the economic driving forces in Baton Rouge, announced a new plan that could make a difference in the Nicholson Drive Corridor, if not the city. According to a report by the Greater Baton Rouge Business Report, LSU’s Department of Residential Life has submitted a master plan for the project to the LSU Board of Supervisors. The master plan could go on the board’s agenda as soon as Feb. 1.

Though few details have been released, the proposed master plan could cost between $140 million and $200 million and would create not only thousands of new student housing units, but hundreds of thousands of square feet of commercial space. The multi-phase project would raze the outdated Alex Box Stadium and replace it with a mixed-use development with street-level retail topped by residential housing. North of the stadium, LSU’s married student housing would also be demolished, and replaced with three residential-only structures and much-needed surface parking. It is estimated that 130,000 square feet of retail, 110,000 square feet of office space, surface parking an about 1,200 multifamily units would be created. The residential element of project would mostly target LSU’s student body, but a proposed 89 units could rent at market rate and house LSU staff and faculty members. The idea of a streetcar line has also been brought up.

According to the same report, if the project is green-lit, it could start as early as 2014, and the first phase of development, containing mixed-use, as well as residential-only structures, could be finished in 2015-2016. The entire project could wrap up in 2017 or 2018. LSU has yet to decide if it plans to develop and manage the project on its own or enter a partnership with a private developer or foundation.

Los Angeles-based AECOM, a global provider of professional technical and management support services helped in creating the redevelopment plan, after public and stakeholder meetings.

The news was received with mostly positive feedback from students and alumni of LSU, as well as the general Baton Rouge population, garnering several hundred likes and dozens of comments in only a few days on LSU’s Facebook page.

Image courtesy of LSU’s Facebook page

Technip Lands FEED Contract for Potential $700M Plant Expansion

By Eliza Theiss, Associate Editor

Technip, a global project management, engineering and construction firm targeting the energy industry, has announced The Mosaic Group has awarded it the front-end engineering and design (FEED) contract for a new ammonia plant currently under consideration.

According to The Advocate, the new facility would be located adjacent to the Faustina plant in St.James Parish and will cost around $700 million. If Mosaic decides to go forward with the build, construction would probably start in 2014. The plant could be operational by early 2016 and would generate 53 new direct jobs with average salaries of $83,000 per year. 366 indirect jobs would also be created by the expansion, while around 1,400 workers would be employed during construction. The State of Louisiana is also offering a $3 million, five-year Modernization Tax Credit as well as job training services, to attract the development.

Mosaic is the world’s largest producer of finished phosphate products, with annual production capacity greater than the next two largest producers combined. The company plans to integrate more fully into ammonia production by expanding its present capacity at Faustina. The proposed expansion would increase  production capacity to 2,200 metric tons per day -  almost triple its current output. Mosaic already has two facilities in the Greater Baton Rouge Area: the Faustina fertilizer manufacturing facility on the west side of the Mississippi River and Uncle Sam on the river’s eastern bank.

According to a press release, the plant’s design will feature Haldor Topsøe’ proprietary ammonia process technology that Technip has utilized for the past 40 years. Technip will also be in charge of preparing the corresponding engineering, procurement and construction (EPC) proposal including preliminary design work for plant offsite, interconnections, utilities and various supporting units for the facility.

The FEED contract will be executed by the Houston office of Technip in collaboration with the Technip engineering center located in Rome, Italy. Both FEED and EPC proposals begin in November 2012 and are expected to complete by mid-2013, when Mosaic will make the final decision regarding the expansion.

Photo courtesy of Sharon Loxton via Wikimedia Commons

$4.7M Affordable Housing Property Opens in Downtown Baton Rouge

By Eliza Theiss, Associate Editor

Baton Rouge is offering affordable downtown housing for those looking to work, play and live in downtown.

The Downtown Development District (DDD) recently announced the opening of the 22-unit affordable housing project, 438 Main Street Apartments. The property, currently in the process of vetting applicants, features one- and two-bedroom units ranging between 538 square feet and 920 square feet. Six floor plans are available at the property. Apartments feature stained concrete floors, ceramic tiles, outdoor balconies, walk-in closet, and a full range of appliances including microwave, dishwasher, in-unit washer/dryer and refrigerator. Community amenities include a community room, elevator, covered parking, courtyard and on-call maintenance. 438 Main Street also has access to public transportation, though many destinations can easily be reached on foot.

“As Downtown continues to grow it is imperative that we continue to look forward and provide housing to support our downtown work force,” said Davis Rorer, executive director for DDD.

The project cost $4.7 million and was developed by Norman Chenevert and Helena and Kevin Cunningham. According to The Advocate the developers paid $369,544 for the former Brown building’s site. Of the total development cost, $3.5 million was provided by federal funds, while $1.2 million was secured through Liberty Bank.  Seventeen units will be affordable, with three units renting at $300 per month, and the remaining five apartments will be market rate.

New Orleans-based Latter & Blum, a licensed real estate brokerage firm, was chosen to handle property management services.

Photo courtesy of 438mainstreetapartments.com 

LDG Development Opens $24M Affordable Apartment Community

By Eliza Theiss, Associate Editor

Baton Rouge has gained yet another apartment community: Mallard Crossing, a 192-unit affordable housing complex on Greenwell Spring Road. According to a report by The Advocate, the $24 million development, located next to the Greenwell Spring library, features two- and three-bedroom units. Apartments range between 909 square feet and 1,106 square feet and come equipped with washer/dryer, dishwasher and microwave.

The Weber Group, Inc. handled design for Mallard Crossing, while property management was supplied by Latter&Blum Property Management. Funding was secured from several sources, including Bank of America, Freddie Mac, CW Capital/Walker Dunlop, as well as the state Office of Community Development, the City-Parish Office of Community Development and the Louisiana Housing Corp.

Mallard Crossing’s developer, Louisville, Ky.-based LDG Development develops, builds, renovates and operates rental communities targeting a moderate-income demograhic. LDG’s previous work includes the $49 million The Muses I and the $11 million The Muses II apartment communities in New Orleans. Completed in 2009 and 2010, The Muses feature a total of 263 apartment units. According to the Green Architecture and Business Report, the mixed-income apartment community is the first LEED NC-Silver certified multifamily project in New Orleans and the State of Louisiana. LDG developed the project with the Gulf Coast Housing Partnership.

In other news, New Orleans-based fast-casual barbecue restaurant chain VooDoo BBQ & Grill has announced it will be opening a location in Perkins Rowe. 

“We’ve been aggressively expanding in other states this year, but this is a great move to shore up our solid foundation in our home state,” said VooDoo BBQ CEO Tony Avila in a press release. He added: “Perkins Rowe is a unique development with a tremendous amount of foot and vehicular traffic and potential for even more.”

The restaurant will be the chain’s 12^th Louisiana location and third in Baton Rouge. VooDoo executives have signed a development deal with Brad Smith and Joe Scardino, the owners of another Baton Rouge VooDoo restaurant located on Drusilla Lane.

Located at the intersection of Perkins Road and Bluebonnet Boulevard, Perkins Rowe is mixed use development, featuring 300 condominium and apartment units, as well as office space, a movie complex, a grocery store, a book store and space for approximately 60 restaurants and shops.

Founded in 2002 in New Orleans, VooDooo BBQ & Grill has 57 restaurants across six states.

Photo courtesy of VooDoo BBQ Drusilla Lane’s Facebook page

American Campus Purchases Baton Rouge Student Housing in $862.8M Deal

By Eliza Theiss, Associate Editor

Two Baton Rouge student housing complexes have sold as part of a large portfolio purchase by American Campus Communities Inc. in a deal valued at $862.8 million.

American Campus, the largest owner, manager and developer of high-quality student housing properties in the U.S., purchased the student housing properties from Kayne Anderson Capital Advisors, L.P affiliates. The Cottages of Baton Rouge and U Club Cottages comprise a total of 12,049 beds, including 366 beds at expansion of an existing complex (expected to be completed in third quarter 2013). The deal, which just recently closed, includes in its purchase price $395.8 million of outstanding mortgage debt.

Located at 777 Ben Hur Road, The Cottages of Baton Rouge is a 1,290-bed student housing complex near Louisiana State University.  The gated community features high-end amenities such as a 24-hour fitness center, 24-hour computer center equipped with iMacs, pcs and complimentary printing, Wi-fi Hotspots, two-story clubhouse out decked with television sets, billiards, foosball, shuffle board, etc. Other amenities include a swimming pool, poolside cabana, poolside jumbo screen, sundeck, barbeque grills, outdoor fireplace, hammock garden, barbeque grills and free tanning service. Outdoor amenities include recreational green spaces, walking and fitness trail, ponds and lakes, a catch and release lake, sandy volleyball court and tennis court. The community is pet friendly, and includes pet washing stations. Individual units feature granite kitchen countertops, stainless steel appliances, full-sized refrigerators, walk-in closets, full-sized washer and dryer and air conditioning in each room.

5689 River Road, U Club Cottages, formerly known as Aspen Heights, is a 308-bed student housing complex that is also adjacent to the Louisiana State University campus. The card-controlled access community features a fitness center, computer center, media room, study area with conference room, on-site maintenance and on-site management. Complimentary tanning, a swimming pool, hot tub, BBQ pavilion and porch swings are also available at the pet-friendly community. Units feature walk-in closets, full-sized refrigerators, granite kitchen countertops and dishwashers.

“These assets represent an exceptional opportunity to increase our asset base with high-quality properties and locations in Tier 1 university markets,” said American Campus CEO Bill Bayless in a press release.

Photo courtesy of Aspen Heights’ Facebook profile

Baton Rouge Student Housing Complexes Go On the Market

By Eliza Theiss, Associate Editor

Covington, LA-based Stirling Properties has placed on the market two Baton Rouge student housing complexes. The 268-unit Place du Plantier and the 446-unit Fairview View Apartments are part of a six-property student housing portfolio being sold by Heitman, a Chicago real estate management firm. According to the Greater Baton Rouge Business Report, Stirling Properties is also selling two student housing complexes in College Station near the Texas A&M campus and one student housing property near Purdue University in West Lafayette, Ind., all of them currently owned by Heitman.

According the Greater Baton Rouge Business Report, Stirling Properties will announce property prices after the Dec. 4 call for offers deadline expires. Reportedly, the properties are expected to generate interest from both local and national investors and will most likely be under contract by the time the new year rolls around.

Located on 2225 College Drive, the 446-unit Fairview View Apartments is just a few minutes from Louisiana State University, Southern University and Baton Rouge Community College. Built in 1972, units range between one-bed one-bath layouts and three-bed two-bath layouts with surfaces between 632 and 1331 square feet.

The 550 Lee Drive 268-unit Place du Plantier student apartment complex was also built 1972. Apartments range from one-bedroom one-and-a-half bath units to three-bedroom two-bath residences. Community amenities include a clubhouse, two swimming pools, a tennis court and a sand volleyball court, as well as an onsite laundry facility. The community offers 24-hour emergency management and online payment, while also allowing pets.  Some units feature sundecks, patios, balconies, walk-in closets, fully equipped kitchens as well as washer/dryers.

Photo courtesy of Fairview View Apartments’ Facebook page

Carter Lands Second Project at University of Louisiana at Lafayette

By Eliza Theiss, Associate Editor

The investment, development and advisory firm Carter announced it has been selected for a second project at the University of Louisiana at Lafayette (UL Lafayette). The company will be responsible for managing the development of the university’s new 170,000-square-foot student union.

“We are thrilled to be a part of two side-by-side projects that are transforming the University of Louisiana at Lafayette campus in such a positive way. We are pleased to continue our relationship with both the University of Louisiana and The Foundation,” stated John Jokerst, senior vice president of Carter. John Joekrst will be leading the second UL Lafayette project.

The announcement comes after Carter’s September announcement of closings on development deals worth $100 million, as well as plans to start construction on projects worth around $200 million by early 2013.

Carter had announced in 2011 that it will be focusing on equity development in student housing, multifamily and mixed-use projects in core areas, as well as value-add office investment opportunities, and education-oriented project management. It had also announced it would expand its strategic consulting/advisory services practices.

Work is already in progress for the student union, and is expected to complete by fall of 2014.

Carter was previously involved in developing UL Lafayette’s new 1,934-bed student housing, which celebrated its official inauguration earlier in October, as reported on this page. The $98 million project razed five existing buildings and replaced them with four new structures totaling 470,000 square feet, while also renovating three other structures totaling 57,000 square feet. The project, which also included a 850-car parking deck and 8,000 square feet of retail, was delivered within a 30-month timeline. Carter handled evaluation and selection of proposals and development teams, and it stayed throughout the process as owner’s representative.

Carter’s higher education group has managed $2.5 billion in new projects and capital improvements, completing more than 70 projects on 30 separate campuses.

Rendering courtesy of Carter

CF Industries Announces $3.8B Expansion of Industrial Facilities

By Eliza Theiss, Associate Editor

Deerfield, Illinois-based CF Industries Holdings, Inc. has announced expansions worth $3.8 billion at existing plants in Donaldsonville, La. and Port Neal, Iowa.

“We are pleased to announce definitive, large-scale nitrogen capacity expansion plans at our North American operations focused on substantially increasing our ability to serve our customers”, stated CF Industries Holdings’ chairman and chief executive officer, Stephen R. Wilson in a  press release. “We believe that our projects will be among the first in North America to be in production. We already own suitable sites, have retained a world-class engineering partner and have completed the front end engineering and design study for key components of the projects.”

CF’s board of directors approved the construction of  new ammonia and urea/UAN production units at CF’s existing 700-acre Donaldsonville operations, and new ammonia and urea units at its complex in Port Neal. Upon completion the projects will have an annual output of 2.1 million tons of gross ammonia and upgraded products ranging from 2.0 to 2.6 million tons of granular urea and up to 1.8 million tons of UAN.

The engineering partner is Uhde Corporation of America, ThyssenKrupp Uhde’s North-American affiliate. Uhde Corporation of America will be handling engineering and procurement services for both projects, having had extensive experience in the field of developing nitrogen plants worldwide.  According to Anthony W. Will, senior vice president manufacturing and distribution, brownfield construction of new ammonia and upgraded product plants will be the most cost-effective way to expand CF’s operations and production. “We have completed a significant amount of engineering and design work with them, and the rigor of that work along with bids we have received from several construction firms give us confidence in our project cost estimates and timelines.”

Some of the major equipment necessary for both projects have already been ordered, and permit applications for the Donaldsonville location are to be submitted by the end of November 2012. Funding for the projects is already being lined up, as CF Industries also expects a strong balance sheet, investment grade credit ratings and dependable access to debt financing as well as a solid cashflow.

Donaldsonville was selected due to the advantageous cost of North American natural gas combined with the five natural gas pipelines that serve the area. Furthermore, the state of Louisiana and Ascension Parish has offered incentive packages to attract the multibillion development.

The Donaldsonville facility is expected to create 93 direct jobs with average starting salaries of $55,000, increasing to $85,000 per year when full certification is reached by employees. The plant will also create 700 indirect jobs. The new urea and UAN plants are slated to be completed in the second half of 2015. The new ammonia plant is expected to open in 2016.

Photo credit: Sharon Loxton via Wikimedia Commons