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.

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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.

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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.

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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.

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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.

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