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Kingfish Picks Up 133 KSF Kenner Office Building Near $826M Airport Expansion Site

4 Feb 2014, 6:44 am

By Eliza Theiss, Associate Editor

2400 Veterans Boulevard

Kingfish Development II LLC, a real estate management and development company focused on the Gulf South office market, has announced the purchase of the former Rault Office Building in Kenner, La., for an undisclosed sum. The 133,312-square-foot office building at 2400 Veterans
Blvd. is the only Class A office space in Kenner, a submarket of Metro New Orleans. Parking for 456 cars, divided into an adjacent parking garage and two parking areas, was also included in the deal.

Built in 1982, the five-story, glass-façade office building will undergo a comprehensive renovation to both common areas and tenant space. Work is expected to wrap up in 2014. Leasing will be handled by Max J. Derbes Inc. CCIM Joe Gorman. Although a press release announcing the property’s purchase by Kingfish touted an 80 percent occupation rate and only 25,000 square feet of vacancy, according to the Max. J. Derbes website, a total of 35,905 square feet of space, or roughly 27 percent, was up for grabs a week after the purchase. Annual rental rates range between $18.5 and $19.50 per square foot.

Arial view rendering of the new North Terminal at New Orleans International Airport

The purchase of 2400 Veterans Blvd. could prove extremely profitable for Kingfish, as the property is located just one mile from New Orleans Airport, set to undergo an $826 million renovation and expansion process, designs for which have recently been released.  According to data provided by the city of New Orleans mayor’s office, the project includes a brand-new 650,000-square-foot, two-concourse, 30-gate airport terminal featuring 2,000 parking garage spaces. The project also includes a $72 million power plant and a $17 million on-site hotel. Currently named the North Terminal, its design is signed by Cesar Pelli of Pelli Clarke Pelli, Manning Architects, Crescent City Aviation Team and Leo A. Daly/Atkins. Targeted for a 2018 completion, the North Terminal is expected to create 13,000 construction jobs and a $1.7 billion construction economic impact, as well as retain and expand the existing 12,471 jobs on-site and an annual $3.2 billion economic impact on tourism.

Images courtesy of City of New Orleans Mayor’s Office via Facebook and Max J. Derbes



Circle Food Store, Magnolia Marketplace to Curb NOLA’s Retail Shortage

28 Jan 2014, 5:47 am

By Eliza Theiss, Associate Editor

Circle Food Store

One of the most highly anticipated retail openings in the Crescent City is the return of the Circle Food Store in the Seventh Ward. The historic grocery market, first opened in 1938, was the city’s first African-American owned and operated grocery store, not only offering a retail option to the community but also becoming a neighborhood meeting hub. The historic market had suffered extensive damage during Hurricane Katrina and remained shuttered until recently, opening thanks to a comprehensive $8 million renovation.

The renovation project was designed by John C. Williams Architects and executed by general contractor the McDonnel Group. Financing was assembled from a $2.2 million Historic Tax Credit, along with $2.2 million in New Market Tax equity, $1.7 million from First NBC Bank, a $1 million “PROP” loan from the Louisiana Office of Community Development, a $100,000 Economic Development Fund grant from the city, as well as a $1 million Fresh Food Retailer Initiative loan, of which $500,000 is forgivable. The Berger Co. advised store owner Dwayne Boudreaux throughout the financing assembly process, while the city helped out in the permitting, recruiting, hiring and training process. The store now employs 65 people, 95 percent of which are New Orleanais.

Groundbreaking at Magnolia Marketplace

Located at the intersection of South Claiborne Avenue and Toledano Street in Central City, the $24.4 million Magnolia Marketplace is also a much anticipated retail project, especially for the underserved Central City neighborhood. The 106,000-square-foot project, helmed by Stirling Properties and developed in a joint venture with JCH Development, will rise on a six-acre special economic development district, governed by the New Orleans City Council, which approved it in October 2013. Serving exclusively Magnolia Marketplace, the district levies a special 1 percent sales tax that will finance as much as $2.3 million in select extraordinary flood elevation, public infrastructure and financing costs. Development will create approximately 344 construction jobs and 217 permanent positions upon completion.

The project’s first phase, totaling 6,000 square feet, is complete with a Capital One Bank location operational on site. Tenants such as T-Mobile and Subway are slated for an early 2014 opening, while major-footprint tenants such as T.J. Maxx, Ross Dress For Less, PetSmart, Shoe Carnival and Raising Cane’s are scheduled to open in spring 2015. (Details on Magnolia Marketplace available here.)

Photos courtesy of the New Orleans Mayor’s Office



Astor Crowne Plaza Hotel Sold for $116M, While Royal St. Charles Goes for $10M

14 Jan 2014, 3:37 am

By Eliza Theiss, Associate Editor

Astor Crowne Plaza Hotel

Two French Quarter hotels have been traded since 2014 kicked off, showing how sizzling hot the New Orleans hospitality market is.

According to Canal Street Beat, Starwood Capital Group shelled out $116.6 million for the 693-key Astor Crowne Plaza Hotel. The property was acquired from LNR Partners, special servicer for its $73.4 million CMBS loan from 2005. The property, appraised at of $108 million roughly six months ago, spent some time on the market in 2013 but was withdrawn after no buyers emerged. Prior to being put up for sale again, the asset was renovated. The property, currently operated by Intercontinental Hotels Group on a short-term lease, used to be made up of two distinct hotels: the 191-room Alexa tower, built in 1900 and redeveloped in 2002, and the 502-key Astor Crowne Plaza, developed in 2002 by Decatur Hotels, a previous owner of both assets.

Located on the corner of Bourbon and Canal streets, the 693-key hotel is right in the heart of the French Quarter, a highly desirable location. It boasts 12,000 square feet of grade-level retail space and 32,000 square feet of meeting space in 13 meeting rooms, with the Astor Ballroom offering 5,733 square feet. Further amenities include a fitness center, outdoor pool, business center, 24-hour lounge and onsite restaurant: the Dickie Brennan-run Bourbon House Restaurant.

In other hospitality news, the 143-key Royal St. Charles has also been sold, picked up by Lowe Enterprises Investors (LEI) on behalf of an investment client.  The property was put under the management of Destination Hotels & Resorts, but will continue to operate as an independent boutique hotel. According to Canal Street Beat, the property was acquired from California-based investment group Clearview Capital for $10.1 million, a price that included the assumption of an $8.7 million loan from U.S. Bank.

Located at 135 St. Charles St., between the French Quarter and the New Orleans Convention Center, the 10-story hotel was previously the Southern Federal Savings Bank. According to a news release, the hotel was converted from office to hotel in 2000, but its original bank vault was kept intact. The Royal St. Charles most recently underwent a renovation in 2012, when 2,610 square feet of meeting space, a fitness center as well as an award-winning PJ’s Coffee & Café were added.  Other amenities include a fitness center, valet parking and easy access to the St. Charles Streetcar Line.

Image courtesy of Astor Crowne Plaza Hotel – New Orleans via Facebook



Walker & Dunlop Arranges $43.5M Financing for Esplanade at City Park

30 Dec 2013, 6:44 am

By Gabriel Circiog, Associate Editor

Walker & Dunlop Inc. recently announced it provided $43.5 million for Esplanade at City Park, an apartment community located in New Orleans.

The 10-year, five-year interest-only acquisition loan was structured by Walker & Dunlop Senior Vice President Stephen Farnsworth through German American Capital Corp. for longtime borrower Priderock Capital Partners.

Commenting on the financing, Farnsworth said in a statement: “This financing is indicative of the recent growth of the CMBS market nationwide, resulting in Walker & Dunlop’s ability to structure loans with higher interest-only periods for borrowers. The transaction also demonstrates the continued development of the multifamily market in New Orleans and the increased demand for out-of-state institutional equity. As a native New Orleans resident, I am proud to have contributed to financing Esplanade at City Park, one of the most iconic apartment communities in the city.”

Located in the picturesque Mid-City area of New Orleans at 3443 Esplanade Ave., the Esplanade at City Park was built in 1973 and renovated between 2008 and 2010.The property offers 436 residential units and four commercial spaces. With floor plans ranging from 510-square-foot studios to 1,485-square-foot three-bedroom apartments, prices range from $995 to $2,555. The building features a prominent seven-story façade facing the scenic Bayou St. John waterway and overlooks the historic City Park. The property also benefits from being close to the new medical district, which includes the new Veterans Affairs facility and University Medical Center.

Esplanade at City Park features numerous amenities, including covered parking, a movie theater, a gaming room, a fitness center, a yoga/pilates room and a cabana room.



Stirling Properties Announces New Tenants, Expansions at Metro NOLA Developments

16 Dec 2013, 9:38 pm

By Eliza Theiss, Associate Editor

Joint venture partners Stirling Properties and CBL & Associates Properties Inc. have announced four new tenants for Phase I of Fremaux Town Center in Slidell. Verizon Wireless, Mattress Direct, LA Nails Spa and Anna’s Linens will be joining Kohl’s, Dick’s Sporting Goods, Best Buy, T.J. Maxx and Michaels at the 350,000-square-foot Phase I. According to a press release, construction on the Fremaux’s first phase is on schedule, with the retail hub expected to open in March 2014.

The joint venture recently sold 1.13 acres at the Fremaux site to Panera Bread’s owners at a rate of $19 per square foot.  Panera’s Fremaux location is expected to open in April 2013.

As previously reported by Commercial Property Executive, the Fremaux Town Center is being developed by national retail REIT CBL & Associates Properties and Covington, La.-based Stirling Properties in a 65/35 joint venture. The 80-acre development along I-10 will consist of a 330,000-square-foot first phase opening in March 2014 and a 320,000-square-foot Phase II set for a spring 2015 opening.

Stirling Properties also announced a 9,000-square-foot expansion for the River Chase Shopping Center. The expansion, which has already broken ground, will consist of a two-tenant building, set to open in summer 2014. Tenants include regional luxury spa and salon services operator Bellagio Salon Spa and national specialty retailer Men’s Warehouse, which will expand to 5,000 square feet from its current 1,400-square-foot footprint at River Chase.

Located in Covington, River Chase Shopping Center is a multi-phase mixed-use development on a 253-acre site.  Initially known as Stirling Covington, Phase I opened in 2004 as a shopping center anchored by Target, Belk Department Store and Regal Cinemas. It has now become a master-planned mixed-use development featuring retail, entertainment and a 240-unit multifamily development. Further retail expansion is expected, as well as a 96-key Holiday Inn Express set for a February 2014 opening. In addition, 600,000 square feet of Class A office space is in the works, with a 157,400-square-foot office building expected for a spring 2014 delivery.

Image credits: River-Chase.com



Columbia Residential Opens $24M Luxury Seniors Housing

10 Dec 2013, 9:54 am

By Eliza Theiss, Associate Editor

Heritage Senior Residences at Columbia Parc, one of the most highly anticipated projects in New Orleans, has celebrated its grand opening in Gentilly, with the first residents expected to move in starting March 2014.

Located within the Columbia Parc at the Bayou District master-planned community, the 120-unit luxury senior residence boasts community amenities such as a 30-seat movie theater, fully equipped fitness center complete with Wii room, community room kitchen, dining and dance hall, resident’s business center complete with computers and printers, craft room, interior mail room, on-site maintenance, management and leasing office, access controlled parking, garden patio surrounding a porte cochere as well as elevators. The LEED Platinum-certified community features rooftop solar panels, among several sustainable elements.

The 1401 Caton St. project comprises one- and two-bedroom apartments outfitted with energy efficient stainless steel appliances, Energy Star washer and dryer and granite countertops. The senior living community is located on public transport routes and will be within walking distance of a community park as well as a retail area.  Residents must be 62 and older.

The senior living community as well as the entire Columbia Parc at the Bayou District project is owned and managed by Atlanta-based Columbia Residential and its subsidiary Columbia Residential Management, a developer, owner and manager of quality affordable and mixed-income housing that often engages local authorities and not-for-profits when creating new communities. According to WWL-TV.com, the senior housing project had a price-tag of $24 million. According to the Times-Picayune, the tenant mix for Heritage Senior Residences, as well as the entire master-planned community, includes market-rate, affordable, low-income and public housing tenants.

Columbia Parc at the Bayou District is being developed on the former site of the Katrina-marred St. Bernard public housing project, by the Housing Authority of New Orleans (HANO), local non-profit Bayou District, Atlanta-based non-profit consulting firm Purpose Built Communities and Columbia Residential.

According to The Times-Picayune, the goal of the project is to create a cradle-to-college community, which, upon completion will feature 1,325 mixed-income residences, 300 of which will be owned by residents, K-8 school, preparatory high school, YMCA, library, health clinic, grocery store, city-park, resort-style pool, splash park. A learning center and NFL-quality football stadium have already been completed, as have 685 rental units, 80 percent of which are leased by single mothers – one of the main reasons for the heavy emphasis one education within the development. Ground was broken in 2009 and the $440 million project is expected to complete in 2016.

Photos courtesy of Columbia Parc via Facebook



Tiffany’s, H&M Open in French Quarter

2 Dec 2013, 4:51 pm

By Eliza Theiss, Associate Editor

H&M New Orleans Grand Opening Second Line

New Orleans, the city that not so long ago had one of the biggest shortages of retail in the nation, just keeps adding retail options. From big-box retailers such as Walmart to affordable fashion icon H&M to luxury retailers such as Tiffany’s, everybody seems to want to set up shop in the Big Easy. A combination of filling in of post-Katrina shortages, rebounding population numbers, and a growing local economy with existing and expected high-income employment opportunities in the technology and biosciences sectors have increased disposable income in the region. Also, as reported by The New Orleans Advocate, the city’s booming hospitality industry and growing reputation as a convention hub bring further high earners into the area, with an eye for luxury and a population that in some cases comprises as much as 30 percent of a store’s clientele.

One of the latest arrivals to the Crescent City is iconic jeweler Tiffany & Co., which opened its first New Orleans store on Canal Street, reports The Times-Picayune. Located in the Shops at Canal Place, the 3,900-square-foot store took over space vacated by local jeweler Mignon Faget, which moved to a larger setup just a few feet away. Tiffany’s New Orleans, a location 10 years in the making, is the 94th U.S. store for the world’s second-largest luxury jewelry retailer and incorporates design elements from the flagship Fifth Avenue store in New York. Tiffany’s will employ 21 in New Orleans.

Another big retail event was the recent inauguration of the Pelican State’s first H&M store, a virtual mecca for the young and hip. According to The Times-Picayune, the 32,000-square-foot outlet opened on Decatur Street with thousands of customers lined up on the street. The affordable clothing and home décor bonanza is located at the former site of the Hard Rock Café and is expected to increase the area’s foot traffic. Eighty percent of the store’s 80 employees are local hires.

Photo courtesy of Michelle Irizarry via Facebook.



Housing Authority of New Orleans Seeks Affordable Housing Developers

26 Nov 2013, 2:38 pm

By Eliza Theiss, Associate Editor

Mazant Royal site

The Housing Authority of New Orleans’ (HANO) first attempt to scale down its small-housing asset portfolio has proven successful, with bids on 95 of the 115 properties put up for sale in October, reports The Times-Picayune. The majority of the properties HANO is trying to unload are located in the Katrina-ravaged Lower Ninth Ward. The housing agency, lacking the resources to redevelop these properties, has been looking for private companies and nonprofits to put the properties and sites back into use. The small-housing assets, known as “scattered sites,” are defined as being housing developments with less than 15 units.

According to the agency’s news release, some sites were offered individually, others in clusters. The housing authority accepted affordable housing as well as market-rate bids, with the former having precedence.  The affordability threshold was defined as 80 percent of or lower than the area median income (AMI). “These properties have not been in use for many years, and our hope is to put them back into commerce while encouraging the development of affordable housing,” explained HANO’s efforts Administrative Receiver, David Gilmore, in the news release, adding that reducing blight and creating healthy neighborhoods also increases the city’s sales and property tax base.

4200 Royal St.

HANO, in partnership with non-profit subsidiary Crescent Affordable Housing Corp., has also put on the market a 1.8-acre site in the Ninth Ward Bywater area. Bounded by Royal, France, Chartres and Mazant streets, the Mazant Royal site is 75 percent vacant, with two two-story residential buildings on site, and is offered as a package deal with an adjacent 0.14-acre site with the address of 4200 Royal St. and housing a six-unit residential building. Buildings on both sites will be demolished prior to handover. Buyers must propose a mixed-income residential development offering affordable, moderate- and market-rate apartments, with a minimum of 20 percent of the units targeting renters with incomes that are 80 percent of the AMI or lower. The affordability requirement will remain in effect for 30 years after the date of initial occupancy. Further project requirements include financially feasible development, high-quality sustainable design, community support and a commitment to hire local disadvantaged individuals and businesses.

HANO originally owned 1,381 scattered property sites, developed mostly in the 1960s and 1970s in an effort to integrate low-income, public-housing-assistance recipient families into neighborhoods throughout New Orleans. HANO now operates 85 scattered sites. An additional 44 properties could go on the market pending approval by the Special Application Center.

Image credits: Google Maps



125-Unit Luxury High-Rise Revived; Six Flags Back on the Market

19 Nov 2013, 5:21 am

By Eliza Theiss, Associate Editor

New Orleans’ booming economy and growing population have helped revive a project first proposed in 2005: Traçage, a $55 million luxury project set to rise in the Warehouse District, at 711 Tchoupitoulas St.

According to Curbed Nola, the 125-unit project will incorporate luxury apartments instead of luxury condominiums as originally planned, before the Great Recession. The height has also been cut down from the 2005-proposed 288-foot height to 182 feet – which is still considerably higher than Warehouse District structures are normally permitted to be and is reportedly causing an uproar with area dwellers. The project, set to feature 4,500 square feet of retail space on Annunciation Street, will rise on the site of a warehouse razed before the project was put on hold following the market crash. According to Curbed Nola, the Board of Zoning Adjustments approved the project earlier in 2013.

Traçage’s website, though offering little detail besides the “Where modern living and old charm live” motto, touts a 2014 groundbreaking.  According to New Orleans-based Trapolin-Peer Architects’ website, Traçage will feature a concrete structure with a metal-clad exterior curtain wall and a “minimum LEED certification,” Mississippi River views and residential units designed for the “modern downtown dweller,” with floor-to-ceiling windows. Plans also include a rooftop infinity pool and sundeck, as well as a fitness center.

Other news has another stalled development being brought back into the spotlight. The now-notorious 150-acre Six Flags amusement park in New Orleans East, a symbol of the destruction left behind by Katrina, is back on the market.

According to The Times-Picayune, the Industrial Development Board is working on having a process to select a new developer set down by the end of the year, with the final developer selected and vetted by 2014. As previously reported, DAG Development and Provident Realty Advisors were selected in 2012 to redevelop the blighted amusement park into a 400,000-square-foot outlet mall and entertainment boardwalk, dubbed Jazzland Outlet Mall. Phase one carried a $40 million price tag and was intended to incorporate existing elements of the defunct amusement park into the new project.

The JV signed a two-year lease for the site to conduct due diligence, paying a monthly rent of only $1,700 for the site. However, in early 2013 the JV expressed its intent to scrap Jazzland, due to the Riverwalk outlet mall redevelopment. The $70 million project by the Howard Hughes Corp. is well underway, set to for a second or third quarter 2014 opening.  In the meantime, the derelict Six Flags site has been used as a shooting location for several movies, including Percy Jackson: Sea of Monsters, Killer Joe and Dawn of the Planet of the Apes.

Image courtesy of ezeterberg via Wikimedia Commons



Massive New Orleans Auction Includes Hundreds of Apartment Units

12 Nov 2013, 7:11 am

By Eliza Theiss, Associate Editor

Looking for a strip mall? A CBD condo? A fourplex? Or maybe a 344-unit apartment complex? If the answer is yes, save the date: On Nov. 21, Sperry Van Ness/Gilmore Auction & Realty, the Louisiana franchise of Sperry Van Ness International, will hold its Fourth Quarter Year-End Sell-Off, by order of local banks and other entities.

Set to be held at the Crowne Plaza New Orleans Hotel, the public auction includes 37 properties that will be sold absolute, with no minimum or reserve. “This will be one of the best opportunities to buy real estate in Louisiana in the last few years. Our clients are extremely motivated to sell these assets prior to year-end,” declared Sperry Van Ness/Gilmore Auction Managing Partner David Gilmore, CCIM, in a press release.  Auction assets are located throughout Louisiana, with the exception of one in Mississippi, and include several metro New Orleans locations, such as New Orleans proper, Covington, Slidell, Chalmette, Abita Springs, as well as Capital Region locations such as Denham Springs, Hammond, Gonzales and Zachary.

One of the greater New Orleans area properties to be auctioned off is the Versailles Arms Apartments, a 344-unit apartment complex sprawled on a 21-acre site in New Orleans East. Prior to Katrina, the two-phase asset was a 236-unit Section 8 apartment complex, but underwent a $5.5 million rehab after the storm, which includes new roofing, siding, reframed windows and doors, and gutting all units to the studs. The complex consists of 43 two-story brick-veneer buildings comprising one- to four-bedroom apartments. The apartment community is located on a public transportation line and borders the Maxent Lagoon on one side, which provides green space.

Another multifamily asset to be auctioned off is a 16-unit townhouse apartment cluster on Golden Drive. Consisting of four two-story fourplex buildings, the asset totals 16,384 square feet and comprises two-bedroom units.  The asset will be sold either as a package or broken up. A 4,500-square-foot New Orleans CBD office/residential condo in the Les Carillons Condominiums complete with two parking spaces is also up for grabs, as are 13 residential lots and several single-family homes, including a two-story boathouse and  a five-bedroom Victorian and a single-story duplex.

Photo credits:  Sperry Van Ness/Gilmore Auction

 







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