$23M Film Studios for East NOLA; $1.6B Iberville Tremè Transformation Slowly Moves Along

By Eliza Theiss, Associate Editor

Amid recent news and speculation regarding the future of New Orleans’ status as Hollywood South – namely Gov. Bobby Jindal’s recent proposal to decrease Louisiana’s film industry tax incentives – came some good news for local film production. According to The Times-Picayune, the Industrial Development Board (IDB) awarded a property tax break to a proposed film studio that is set to break ground in fall 2013.

The $28 million project, helmed by Starlight Studios, would create a mixed-use development in eastern New Orleans, in the vicinity of the Michoud Assembly Facility. The IDB will assume title to the property for a 10-year period, during which it will lease the land back to the developers in exchange for an annual pilot starting in 2014, when the project is expected to be completed. After the pilot period, the IDB will sell the 32-acre land to Starlight. The movie production facility will comprise a 30,000-square-foot office building and four sound stages totaling 96,000 square feet.

In other news, the Housing Authority of New Orleans (HANO) and the city of New Orleans have announced a public information meeting for May 20^th during which schematic designs will be reviewed for Phases I and II of the Iberville redevelopment project. The meeting seeks to provide information and receive input from the general public and other interested parties.

As previously reported on this page, the Iberville Tremè transformation project is set to undergo a massive transformation process. Valued at $1.6 billion, the project will cover a 300-square-block area bounded by Broad Street, St. Bernard Avenue, Rampart Street and Tulane Avenue. The Iberville Tremè project is a recipient of a $30.6 million Choice Neighborhoods Initiative HUD grant that seeks to transform distressed neighborhoods and public assisted housing developments into vibrant mixed-income neighborhoods with adequate schools, public transportation and access to employment.

The Iberville Tremè Transformation Plan ultimately plans to create a total of 2,400 mixed-income housing units, increasing affordable housing options including both rental and owned, as well as seniors housing and housing compatible with the needs of the disabled. Other goals will include creating opportunities for quality education as well as for employment and entrepreneurship, support of cultural assets, revitalization of infrastructure, access to neighborhood services and fresh foods, removal of blight, strategic reinvestment into commercial corridors and increasing green space as well as the overall percentage of green buildings.

Image courtesy of Choice Neighborhoods New Orleans’ Facebook page

126 KSF Dillard’s Announced as Anchor of Summit Fremaux Phase II

By Eliza Theiss, Associate Editor

CBL & Associate Properties Inc. and Stirling Properties have announced that Fremaux Town Center Phase II will be anchored by national fashion apparel and home furnishings retail chain Dillard’s Inc. The retailer is set to open a single-level, 126,000-square-foot store featuring the company’s newest store design and presentation layout. The location will offer fashion apparel, home furnishings and cosmetics, including the chain’s exclusive label, tailored to the shopping preferences and habits of the Slidell region.

Phase II of Fremaux Town Center is expected to open in spring 2015, with groundbreaking set to take place around the March 2014 opening of Phase I, now in development. Phase II will feature 320,000 square feet of fashion-oriented retail space.

“With construction underway on Phase I, we are pleased to welcome a key department store such as Dillard’s to Phase II,” declared CBL Development and Administration Executive Vice President Michael Lebovitz, adding, “The traction we are receiving from retailers for both phases is a statement to the strength of the market and its increasing demand for retail.”

The 330,000-square-foot Phase I of the Slidell retail hub will be anchored by national brands such as Kohl’s, Dick’s Sporting Goods, Best Buy and T.J. Maxx. Other retailers will include Rack Room Shoes, ULTA Beauty, PetSmart and LongHorn Steakhouse. All in all, Phase I currently boasts a 70 percent lease rate.

Fremaux Town Center is being developed on 80 acres at the corner of Fremaux Avenue and I-10 in Slidell, a municipality located in Northshore — on the northern shore of Lake Pontchartrain in the New Orleans metro area. As previously reported on this page, the project — initially imagined as a 400-acre mixed-use development with office, retail and residential components — sat in limbo for years after the ’08 market crash before Louisiana-based Stirling Properties took it over last year. In January 2013, Striling Properties entered into a 35/65 joint venture with CBL Properties to develop what is expected to become a premier shopping destination.  Read more about the deal here.

For further New Orleans market data, click here.

Image courtesy of Stirling Properties’ Facebook page.

$340M in BP Restoration Funds Coming to Louisiana

By Eliza Theiss, Associate Editor

It’s been just a little over three years since the BP Deepwater Horizon oil spill (also known as the Macondo blowout), the largest, most devastating marine oil spill in history, devastated the Gulf of Mexico. With 200 miles of Louisiana’s shoreline still oil polluted, restoration of natural habitat, local communities and the fishing and tourism industries still has a long and very costly way to go. While BP agreed to allocate $1 billion in restoration funds throughout the Gulf of Mexico in April 2011, until recently the company had approved only $70 million in restoration projects in the state of Louisiana, which took the worst of the spill. However, Gov. Bobby Jindal recently announced that BP has agreed to provide $340 million in restoration projects in The Pelican State, declaring, “We must aggressively move forward on these and other important restoration projects to ensure future generations have the same great opportunities.” He added: “This announcement today makes a great stride forward, but this marathon is far from over.”

The $340 million will go toward restoring four barrier islands from Terrebonne Parish to the eastern bank of Plaquemines Parish and two Fish Stock Research and Enhancement Centers: one in Lake Charles in Calcasieu Parish and one in Point a la Hache in Plaquemines Parish. The two centers will cost $22 million.

The restoration of the four barrier islands will take up the larger chunk of the funds and contains the following components:

-      Caillou Lake Headlands Component (also known as Whiskey Island). The $110 million Terrebonne Parish will restore beaches, dunes and back-barrier marshes.

-      Shell Island Component in Barataria Bay, Plaquemines Parish. The restoration of back-barrier marsh and dunes and beach on the east and west lobes will cost $101 million.

-      Breton Island Component in Breton Sound, Plaquemines Parish. A $72 million project to restore and protect beach, marsh and dune in the Breton Wildlife Refuge. The project is in its last configuration phase.

-      Cheniere Ronquille Component, also in Barataria Bay, Plaquemines Parish. The $35 million allocation will cover the construction of beaches, dunes and back-barrier marshes.

Following the spill in 2010, Louisiana was the first state to request BP to fund restoration projects immediately. BP agreed to allocate $1 billion in restoration funds the following year. In July 2011, Gov. Bobby Jindal released the “Louisiana Plan,” an initial list of priority projects to be funded from the BP payments. The list was compiled with input from various stakeholders, such as coastal residents, fishermen and parish officials.

During the 87 days during which the oil gusher flowed unrestricted, an estimated 4.9 million barrels of oil spilled into the ocean. Oil discharge continued after the July 2010 capping of the oil gusher, and even though officially the well was declared sealed off in September 2010, some reports indicate the site could still be leaking.

Click here for further New Orleans market data.

Photo courtesy of NASA via Wikimedia Commons

Chesapeake Lodging Pays $65M for Second W Acquisition in April

By Eliza Theiss, Associate Editor

Annapolis, Md.-based Chesapeake Lodging Trust has acquired the 410-key W New Orleans from Starwood Hotels & Resorts Worldwide Inc. for $65 million.

The hotel’s 410 guest rooms include 22 large suites. Among its amenities are a 24-hour, 1,500-square-foot signature Sweat Fitness Center, signature WET outdoor rooftop pool complete with poolside cabana and TV sets and high-tech signature WIRED business center. In addition, its 13,000 square feet of state-of-the-art meeting space comprises 13 flexible banquet and meeting rooms, with the largest space clocking in at 4,992 square feet. The 24-story hotel features two bars – the Living Room Bar and Whiskey Blue – as well as full-service on-site restaurant Zoë, offering Southern New Orleans cuisine.

The hotel’s 333 Poydras St. address locates it in Downtown New Orleans, in close proximity to the French Quarter with its world-famous jazz clubs, the Ernest N. Morial Convention Center, Riverwalk Marketplace, Harrah’s Casino and the Warehouse District’s art galleries.

According to a press release, Chesapeake will embark on a $29 million repositioning renovation of the property, set to kick off in April 2014 with plans to minimize operational disruption. “Historically, we have not acquired many assets with significant renovation needs, yet we have a very talented team that can execute on this renovation and add value to the property” declared James Francis, president & CEO at Chesapeake. Planning for the renovation is currently underway, with work reportedly to include the addition of about 3,000 square feet of meeting space, relocation of the restaurant, new hard and soft goods in the guestrooms, as well as refreshing the Living Room lobby.

Starwood will stay on as property manager under a long-term contract.

W New Orleans is the second W-branded New Orleans hotel acquired by Chesapeake in April 2013. The company acquired the 97-key W of New Orleans – French Quarter earlier this month. Click here for further information about the transaction.

For more New Orleans market data, click here.

Photo courtesy of W New Orleans’ Facebook page

Ramada Suites Hotel Completes Renovation, Rebrands as Holiday Inn Express

By Eliza Theiss, Associate Editor

Real estate investment and development company Laurus Corp. announced it completed renovation of the 130-key Ramada Suites Hotel at New Orleans Airport, as well as the rebranding of the property as a Holiday Inn Express. The property, located at 110 James Drive East, was purchased by Laurus in March 2012.

The $2.7 million renovation of the property included a total rehaul of guestrooms, as well as meeting areas, the exterior façade and the landscaping. Guestroom renovations include new flooring, furniture, lighting and window treatments, plus upgraded fixtures in guest bathrooms. The hotel’s lobby, conference room and breakfast area also feature new flooring, furniture, televisions, window treatments and light fixtures. Exterior renovations include a new courtyard deck, pool deck and paint job.

Hotel amenities now include three meeting rooms totaling 3,800 square feet, with the largest of the rooms capable of accommodating 200. Meeting space is outfitted with audio-video equipment. Other amenities include a business center, technical concierge, fitness center, outdoor pool, 24-hour lounge, wireless Internet access, 187-car on-site parking, a cocktail lounge and an on-site VooDoo BBQ & Grill. Room amenities include 32-inch flat panel TVs, refrigerators and microwaves.

“The extensive renovation program will enhance the hotel’s brand in a well-performing marketplace as well as increase the asset’s performing value,” Laurus Chief Investment Officer Austin Khan declared in a news release.

The hotel asset is conveniently located in proximity to the Louis Armstrong New Orleans International Airport, a major transportation hub serving an estimated 9.7 million travelers every year. The hotel, now dubbed Holiday Inn Express Hotel & Suites New Orleans Airport South, is located at the entrance to the 200-acre upscale James Business Park, which features more than 2 million square feet of commercial space.

Laurus also signed a new management agreement for the property with an unnamed local management company.

Click here for additional New Orleans market data.

Photo courtesy of Laurus Corp. via PRNewswire.

W of New Orleans – French Quarter Trades for $25.5M

By Eliza Theiss, Associate Editor

Annapolis, Md.-based Chesapeake Lodging Trust has announced finalizing the
purchase of the 97-key luxury W of New Orleans – French Quarter. The self-advised lodging REIT acquired the property from Starwood Hotels & Resorts Worldwide Inc. for $25.5 million.

Located on Chartres Street, the W is within a short walk of Jackson Square and the world-famous French Quarter’s entertainment, dining and shopping venues. The hotel boasts a four-diamond rating, courtesy of a major revamp it underwent in 2012. Following the renovation, the hotel now boasts amenities such as a state-of-the-art signature SWEAT fitness center, a tree-lined heated WET branded outdoor pool, a Living Room lobby, and more than 735 square feet of high-tech meeting space overlooking a classically New Orleans courtyard and capable of hosting 150-guest events. The W also boasts the SoBou restaurant and bar, named in Esquire magazine’s Top 10 ranking. The locale offers contemporary Creole cuisine and an innovative cocktail program.

The 97 guest rooms include four carriage-house studio suites and a deluxe suite. The recent renovation revamped guest rooms as well, and they now reflect the Big Easy’s unique culture and history. Rooms either exude “Jazz,” with golden yellow walls and a floor-to-ceiling brass image modeled after a horn, or voodoo mysticism in the “Tarot” rooms, inspired by famed New Orleans voodoo queen Marie Laveau. Amenities include 40-inch LCD flat-screen TVs, IPod docking stations, infrared keyboards and Bliss bath paraphernalia.

Starwood owned the property since 1997. It will continue to manage the hotel under a long-term contract.

The W of New Orleans – French Quarter is Chesapeake’s third W-branded property and fourth Starwood hotel. The company owns 17 hotels totaling 5,004 rooms.

Click here for further New Orleans market data.

Image courtesy of W of New Orleans – French Quarter’s Facebook page.

Stirling Properties Opens First Walgreens

By Eliza Theiss, Associate Editor

New Orleans just got a new drugstore. Stirling Properties announced the grand opening of a full-service Walgreens drugstore on Magazine Street. The Crescent City also managed to repurpose a building with a lot of patriotic history.

The 13,000-square-foot marquee store at 5518 Magazine St., portions of which date back to 1947, used to be the Ed Brauner American Legion Post #307. In homage to its history, the property’s interior design incorporates symbols and images connected to the American Legion.

To redevelop the property in a manner appealing to all, Stirling’s design team met repeatedly with area residents, local retailers and city officials. After achieving a consensus, it replaced both the front and rear facades of the property and fully gutted the interior. It installed new, large windows to showcase the renovated interior and allow for more natural light, as well as a new pedestrian access on Magazine Street designed to encourage foot traffic and walk-in customers. It also added a rear parking lot.

The repurposed building will encompass a full-service pharmacy, drive-through window and high-end cosmetics boutique.

“This adaptive-reuse project represents a true cooperative effort between Stirling Properties, Walgreens, the city of New Orleans, local retailers and surrounding neighborhoods. Without public input and citizen participation, we could never have achieved this level of success. We are proud to bring a once distressed but historically significant property back to prominence once again,” declared Stirling Properties Vice President of Development Peter Aamodt.

Stirling Properties will soon start work on a second Walgreens location in New Orleans’ Westbank, in the neighborhood of Terrytown. Set to break ground in April, the project relocates an existing Walgreens store. The new, 17,384-square-foot location is expected to open in the third quarter. Stirling is also currently developing a Walgreens property in Gulf Port, Miss., making the full-service commercial real estate company Walgreens’ preferred development partner in the Gulf South.

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Image courtesy of Stirling Properties.

Six Flags Mall in Trouble; Summit Closes $135M, Five-Hotel Deal

By Eliza Theiss, Associate Editor

After several strong weeks for the Crescent City retail industry that seemed to bring nothing but news of growth and investment, the white-hot retail sector was bound for some less than favorable news. According to a report by The Times Picayune, DAG Development Principal David Garcia recently told the Industrial Development Board that the planned Six Flags outlet mall cannot compete with the Riverwalk outlet mall, well underway in the New Orleans CBD. The announcement effectively put an end to the retail hopes attached to defunct amusement park and left officials wondering about the future of the 150-acre Katrina-marred site.

As previously reported on this page, DAG Development and Provident Realty Advisors’ joint venture to develop the Jazzland Outlet Mall project at the amusement park won out over several other proposals that included a new amusement park. Jazzland Outlet Mall was envisioned as a $40 million, 400,000-square-foot retail- and-entertainment district that was to incorporate some of the park’s features into its final look. It was to comprise an amphitheater, a big-box retailer, a hotel and several other entertainment components. The joint venture received a year to conduct due diligence. However, as previously reported on this page, Dallas-based Howard Hughes Corp. swooped in and took over ownership of the Riverwalk marketplace in mid-2012, promptly starting renovation and expansion work on the downtown mall, set to open before the 2013 holiday shopping rush.

The Times Picayune reported that DAG’s proposal to partner up with Howard Hughes Corp. on Riverwalk Marketplace was shut down by the latter firm. DAG reportedly will now look into developing an exclusively entertainment-oriented project at Six Flags.

In other news, Summit Hotel Properties Inc. announced closing on a five-hotel portfolio purchase in Louisiana. As previously reported on this page, Summit entered a deal to acquire five unencumbered Louisiana hotels for $135 million. The Marriott-branded properties total 823 rooms and are to be operated by a Marriott International Inc. affiliate. The purchase was funded with available cash and borrowings under Summit’s senior secured revolving credit facility. The portfolio includes two properties in Metairie, La. – a 153-key Courtyard by Marriott and a 120-room Residence Inn by Marriott – and three New Orleans hotels: the 140-room Courtyard by Marriott in downtown New Orleans near the French Quarter and the 202-key Courtyard by Marriott and 208-room SpringHill Suites by Marriott, both located in proximity to the New Orleans Ernest N. Morial Convention Center.

Click here for further New Orleans Market data.

Photo courtesy of Courtyard by Marriott Downtown New Orleans’ Facebook page

Ascend, Wyndham Add Downtown New Orleans Hotels to Portfolio

By Eliza Theiss, Associate Editor

Ascend Hotel Collection, a network of historic, boutique and unique hotels and member of Choice Hotels International Inc. has announced the addition of four new hotel properties to its growing portfolio, now 77 properties strong. The new properties are Napa Winery Inn, Carmel Mission Inn and Arroyo Pinion Hotel, Ascend’s first properties in Napa Valley, Carmel and Sedona (respectively) and St. James Hotel, its second hotel in New Orleans.

“Our new members play a key role in the Choice Hotels strategy to expand in the upscale market,” said Michael Murphy, senior vice president of upscale brands at Choice Hotels in a press release.  In addition to its 77 hotels currently operational, the brand has signed agreements for 24 additional properties, which are set to go live within the network in two months’ time.

Located at 330 Magazine St., the 86-key St. James Hotel is located in the Banks Arcade, a 19^th century landmark and former hub of the Caribbean coffee and sugar trade. As such, the property features a distinguished West Indies décor, including courtyards and rooftop terraces.

Just a few blocks from the original 1859-built St. James Hotel’s location, the current St. James opened in 1999 and was renovated in 2006. Amenities include landscaped courtyards in line with the West Indies décor, an outdoor lounging pool and Wi-Fi throughout the property. The luxurious boutique hotel is located in the downtown business district, just minutes from the French Quarter and all its attractions. It is also in close proximity to the Board of Trade special events venue and the Mercedes-Benz Superdome.

In other news, Parsippany, N.J.-based Wyndham Hotel Group announced rebranding and taking over management services for eight U.S. hotel properties. The Wyndham Worldwide Corp. member entered into an agreement for the deal with FelCor Lodging Trust Inc., the owner of the properties.

The properties, which are set to undergo extensive renovations, total 2,523 rooms and include the Wyndham New Orleans French Quarter, located at 124 Royal St., in the heart of the historic French Quarter.

The 374-key hotel features amenities such as a fitness center, an indoor heated pool, a lounge, on-site parking and the on-site Checkered Parrot restaurant, with its upscale sports bar design and island cuisine.

Click here for further New Orleans market data.

Photo courtesy of Saint James Hotel’s Facebook page

$20M Boomtown Casino Hotel Breaks Ground

By Eliza Theiss, Associate Editor

Given the success of the 2013 SuperBowl, it’s no surprise that hospitality continues to drive the Crescent City. And with the recent announcement that WrestleMania 30 is to take place at the Mercedes-Benz Superdome in 2014, The Big Easy will need all the hotel rooms it can get.

Boomtown Casino New Orleans is happy to oblige. The casino just broke ground on a previously announced $20 million project on its Westbank site. The 150-key, five-story hotel will feature amenities such as a fitness center and conference space. To accommodate guests, 250 additional parking spaces will be created onsite. Louisiana-based The Lemoine Co. has been selected as general contractor for the project. Construction is expected to take 14 months and create 150 construction-related jobs; 50 new jobs will be created upon the hotel’s completion. Boomtown currently employs 700.

The new hotel will be connected to the existing Boomtown Casino, which includes 30,000 square feet of gaming space operating on a 380-foot riverboat and features a 350-seat entertainment venue, more than 4,600 square feet of meeting space, 1,700 parking spaces and four restaurants: the 200-seat Pier 4 Restaurant, the 220-seat Bayou Market Buffet, Bayou Market Express and Asia. Boomtown Casino opened in 1994.

“In a time when many communities are struggling, we are pleased to work closely with the Boomtown management team on this exciting hotel project, bringing new jobs and continued economic development to the West Bank,” declared Jefferson Parish District 1 Councilman Ricky Templet in a news release.

Boomtown Casino New Orleans is a Pinnacle Entertainment Inc. property. Pinnacle owns and operates four casino properties in Louisiana, including the L’Auberge Casino & Hotel Baton Rouge, which opened in the second half of 2012.

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Photo courtesy of Pinnacle Entertainment