NEW ORLEANS | Project/Development Thread

[FenderOz]

Saw this article, and it certainly seems to back up what I've heard around downtown -- lots of CBD apartments are being turned into AirBnBs because there isn't enough demand. In other words they charge too much and won't reduce prices.

Interesting to see that while these moves are legal in the city, they appear to run afoul of federal laws for HUD, which I guess helped subsidize these buildings' renovations in the first place.

Considering how bad the city has been grappling with rising rents and cost of living, one could surmise that rental prices won't drop when developers can take apartments off the market and turn them into commercial units. Supply and Demand.


http://www.theadvocate.com/new_orlea...f0c096c2d.html

[WesternSon]

Originally Posted by tennis1400

the parking lot is closed and torn up but i dont pass that area regularly so no clue what else has been done

They are driving pilings and doing cement work now.

[tennis1400]

Originally Posted by FenderOz

Saw this article, and it certainly seems to back up what I've heard around downtown -- lots of CBD apartments are being turned into AirBnBs because there isn't enough demand. In other words they charge too much and won't reduce prices.

Interesting to see that while these moves are legal in the city, they appear to run afoul of federal laws for HUD, which I guess helped subsidize these buildings' renovations in the first place.

Considering how bad the city has been grappling with rising rents and cost of living, one could surmise that rental prices won't drop when developers can take apartments off the market and turn them into commercial units. Supply and Demand.


http://www.theadvocate.com/new_orlea...f0c096c2d.html

I dont know many of these buildings that would have qualified for HUD though. Most of these are historic tax credits which isnt HUD. HUD is whats involved when you use new market tax credits or apply for things within an economic disadvantaged area. the air bnbs just make so much more money.. so i dont blame people.. its more lucrative than renting out for a full month even.. factors row is all stay adam now and the return on investment is double what they planned for as normal rentals

[FenderOz]

I agree it's lucrative, but now we're turning residential properties into commercial properties without zoning/public input. I feel bad for 9-5 workers who are renters in one of those apartment buildings and now get surrounded by drunk tourists. This is part of why I originally left the Marigny for Mid City. They literally killed chunks of the neighborhood by chasing away the renters.

The people make the culture in some of these smaller neighborhoods. Get rid of the people and all there will be is the Quarter and Frenchmen.


That and as we now take rental supply off the market, we won't see prices drop. This is only good for a few developers and the people who can still rent, but turn their apartments into AirBnBs anyway. I'm hoping we find a better solution to this, but it will take time and some persistence.

[tennis1400]

Originally Posted by FenderOz

I agree it's lucrative, but now we're turning residential properties into commercial properties without zoning/public input. I feel bad for 9-5 workers who are renters in one of those apartment buildings and now get surrounded by drunk tourists. This is part of why I originally left the Marigny for Mid City. They literally killed chunks of the neighborhood by chasing away the renters.

The people make the culture in some of these smaller neighborhoods. Get rid of the people and all there will be is the Quarter and Frenchmen.


That and as we now take rental supply off the market, we won't see prices drop. This is only good for a few developers and the people who can still rent, but turn their apartments into AirBnBs anyway. I'm hoping we find a better solution to this, but it will take time and some persistence.

its a difficulut situation. personally i have less a problem with it in the cbd though. its just better built to handle it.. btw the cbd is zoned for these uses and shouldnt need public input .. at least downtown.. thats my two cents

but the world is headed for a sharing economy and thats something the city will have to adapt too as well as everywhere else is having too.. so my opinion is the supply in downtown can help stabilize the need for it in smaller neighborhoods.which is the much better of the two outcomes

[nolafan]

Originally Posted by tennis1400

Irenes never closed .. they are being kicked out of their current home. Its unfortunate but logical.. the state museum bought the building Irenes is in... and they are wanting to store many artifacts there.. its just not smart to store priceless artifacts above a working restaurant


BTW it seems after plans fell through for Hard Rock Hotel at Plaza di italia site that they will be heading to 1031 Canal. Think its a great get for that corner of Canal.. will really help to connect upper and lower canal street

Whoa...what about Hard Rock??? LOL Subtle

[ardecila]

Well, the city could help the issue by allowing more hotels to be built. If there's such a bottomless demand for tourist lodging, then allow developers to build hotels to serve them. Not just on downtown, but on St. Charles, St. Claude, Tulane, etc. So much of the city is historic and protected, and the remaining land isn't even zoned for midrise development. They don't have to be full-service hotels, we could learn from yesteryear and start building apartment hotels again with few hotel-style amenities but big, apartment-style units.

If the returns from short-term lodging are really that high, then developers should be able to do these projects without a HUD subsidy anyway.

[tennis1400]

Originally Posted by ardecila

Well, the city could help the issue by allowing more hotels to be built. If there's such a bottomless demand for tourist lodging, then allow developers to build hotels to serve them. Not just on downtown, but on St. Charles, St. Claude, Tulane, etc. So much of the city is historic and protected, and the remaining land isn't even zoned for midrise development. They don't have to be full-service hotels, we could learn from yesteryear and start building apartment hotels again with few hotel-style amenities but big, apartment-style units.

If the returns from short-term lodging are really that high, then developers should be able to do these projects without a HUD subsidy anyway.

all good ideas and i know some folks doing this exact thing.. in many ways thats what Stay Adam is ...

[tennis1400]

Originally Posted by nolafan

Whoa...what about Hard Rock??? LOL Subtle

yeah this is something i heard from very reliable source... dont know if it will be all hotel or still include apartments

[prokowave]

Ugh...Hard Rock. Things like that are going to make it harder for other developers - it's basically a bait-and-switch, because the height approvals were given under the assumption that it would be residential and retail.

That being said, if developers want to build hotels, I'm all for it as long as they go through the proper channels. We have about 1000 hotel rooms under construction or recently opened as it is. There are still some great locations open on Canal Street.

[tennis1400]

Originally Posted by prokowave

Ugh...Hard Rock. Things like that are going to make it harder for other developers - it's basically a bait-and-switch, because the height approvals were given under the assumption that it would be residential and retail.

That being said, if developers want to build hotels, I'm all for it as long as they go through the proper channels. We have about 1000 hotel rooms under construction or recently opened as it is. There are still some great locations open on Canal Street.

thats not really true... hotels are allowed as is in that area so its not a bait and switch.. simply put they are doing what makes most sense economically for them or what is best bet for them to get financing... the height changes etc were not use specific. Personally i like this project since it will be a great anchor for the corner and bring lots of activity to it. much more so than a regular apartment building can .. also we still dont know if it will be full hotel or a mixture.. the most recent plans indicated a mix of both

[prokowave]

Originally Posted by tennis1400

thats not really true... hotels are allowed as is in that area so its not a bait and switch.. simply put they are doing what makes most sense economically for them or what is best bet for them to get financing... the height changes etc were not use specific. Personally i like this project since it will be a great anchor for the corner and bring lots of activity to it. much more so than a regular apartment building can .. also we still dont know if it will be full hotel or a mixture.. the most recent plans indicated a mix of both

While it may be zoned for hotel, the height variance was given under the pretense that it would be residential. Regardless of the legality, it does look bad to the average person and especially the VCC and other associations and will probably be brought up when other big projects request height or density waivers.

[tennis1400]

Originally Posted by prokowave

While it may be zoned for hotel, the height variance was given under the pretense that it would be residential. Regardless of the legality, it does look bad to the average person and especially the VCC and other associations and will probably be brought up when other big projects request height or density waivers.

Well the project was also approved years ago and is a hole in the ground eyesore. Another thing no one expected either . As someone thag lives in the neighborhood the sooner that blight is eradicated the better. Not sure why use matters at all since that was never at issue since they could do whatever they wanted to begin with

[Blitzen]

Interesting update. Not sure if this is two separate projects, or still one new building with a pedestrian bridge. I hope it's one simple, elegant design.

The Audubon Nature Institute is helping facilitate construction and a location for the bridge, officials said.

The new $27 million terminal is part of an overarching plan for the riverfront that would tie in to the proposed World Trade Center redevelopment into a Four Seasons hotel and work being done by the Convention Center upriver. City officials hope to finish construction in time for the city’s tri-centennial in 2018.

The 5,000-square-foot terminal is being funded through federal grants, state matching funds, passenger ferry revenue and capital budget funds from the RTA.

Demolition of the existing ferry terminal is expected in the coming months, the news release said.

The pedestrian bridge will be located next to the Audubon Aquarium of the Americas, on property operated by the Audubon Nature Institute, and it will connect to a new bus terminal and the riverfront streetcar as part of the multi-modal hub being built by RTA.

http://neworleanscitybusiness.com/bl...officials-say/

[cnolae16]

Originally Posted by FenderOz

Saw this article, and it certainly seems to back up what I've heard around downtown -- lots of CBD apartments are being turned into AirBnBs because there isn't enough demand. In other words they charge too much and won't reduce prices.

Interesting to see that while these moves are legal in the city, they appear to run afoul of federal laws for HUD, which I guess helped subsidize these buildings' renovations in the first place.

Considering how bad the city has been grappling with rising rents and cost of living, one could surmise that rental prices won't drop when developers can take apartments off the market and turn them into commercial units. Supply and Demand.


http://www.theadvocate.com/new_orlea...f0c096c2d.html

The issue with the maritime and saratoga is they used a HUD 221D4 loan which is directed to provide homes for people in the area. This is irrelevant to new markets, historic tax credits, etc. It gives the developer a 40 year amortization which lowers the loan payments.

How can the developer take money to develop a building for residents and then not rent it to residents?

I agree that downtown is where the airbnb's should be located. This area is very dense already. The demand for the non trophy buildings is dwindling...the California building is becoming time shares.

The rumor is that the maritime and and saratoga are for sale and a Zaza hotel is rumored for maritime.

[tennis1400]

Originally Posted by cnolae16

The issue with the maritime and saratoga is they used a HUD 221D4 loan which is directed to provide homes for people in the area. This is irrelevant to new markets, historic tax credits, etc. It gives the developer a 40 year amortization which lowers the loan payments.

How can the developer take money to develop a building for residents and then not rent it to residents?

I agree that downtown is where the airbnb's should be located. This area is very dense already. The demand for the non trophy buildings is dwindling...the California building is becoming time shares.

The rumor is that the maritime and and saratoga are for sale and a Zaza hotel is rumored for maritime.

I wont say my opinions on the developer of those projecfs but i will say this ... when these peoject were developed or the loans applied for air bnb was not heard of . Simply put there is very unlikely and language to prevent it

[FenderOz]

Originally Posted by cnolae16

The issue with the maritime and saratoga is they used a HUD 221D4 loan which is directed to provide homes for people in the area. This is irrelevant to new markets, historic tax credits, etc. It gives the developer a 40 year amortization which lowers the loan payments.

How can the developer take money to develop a building for residents and then not rent it to residents?

I agree that downtown is where the airbnb's should be located. This area is very dense already. The demand for the non trophy buildings is dwindling...the California building is becoming time shares.

The rumor is that the maritime and and saratoga are for sale and a Zaza hotel is rumored for maritime.

Aren't they trying to develop the Garage and that other apartment building where residents share common living areas like a dorm?

Maybe they're looking for some cash to get started on those projects sooner rather than later?

[tennis1400]

Originally Posted by FenderOz

Aren't they trying to develop the Garage and that other apartment building where residents share common living areas like a dorm?

Maybe they're looking for some cash to get started on those projects sooner rather than later?

they started on the stephens garage one and the co share living building is already leased out to a company in new York . so don't think it has anything to do with those projects.

[tennis1400]

[York1]

Please excuse me if this has been discussed. I've had some problems finding any up-to-date info on the old Rault Center. Did it become the Joie de Vivre hotel?