NEW ORLEANS | Project/Development Thread

[broadmoor]

Originally Posted by jjslonaker

May is going to really kickstart some serious construction between the Odeon and the Four Seasons starting.. Happy to see so much activity around town

That article also linked to this one about the Standard that I hadn't seen before. One of the penthouses sold in January for $3.215 million, or $920/sq ft. It was the most expensive condo sold in New Orleans in 23 years. I can't tell you how many people I've heard ask "but who's going to buy these things?" Well it's definitely someone, that's for sure.

http://realestate.nola.com/realestat...dos_april.html

[Tchoupitoulas]

Here's the April aerial update for the new airport terminal. They've made a ton of noticeable progress over the last few months.

[Jccali1214]

Originally Posted by broadmoor

I can't tell you how many people I've heard ask "but who's going to buy these things?" Well it's definitely someone, that's for sure.

http://realestate.nola.com/realestat...dos_april.html

Unfortunately those someone(s) aren't the majority of people who live here (remember the AMI for New Orleans is $36,000) - including the people that make our city run by working downtown in these fancy (new) hotels and luxury condos.

For the record, I'm not against these developments - I just know if they were more inclusive for New Orleanians, they would be much more successful.

[tennis1400]

Originally Posted by Jccali1214

Unfortunately those someone(s) aren't the majority of people who live here (remember the AMI for New Orleans is $36,000) - including the people that make our city run by working downtown in these fancy (new) hotels and luxury condos.

For the record, I'm not against these developments - I just know if they were more inclusive for New Orleanians, they would be much more successful.

Im not sure how one can complain about people putting big money down to own places here!

[thalia]

Not quite sure how them being inclusive of New Orleanians would make them more successful. Its quite expensive to build and buy development level projects in New Orleans. The city should do more incentives for developers to build affordable housing that are at least on par with the costs, heck even in the ballpark.

Originally Posted by Jccali1214

Unfortunately those someone(s) aren't the majority of people who live here (remember the AMI for New Orleans is $36,000) - including the people that make our city run by working downtown in these fancy (new) hotels and luxury condos.

For the record, I'm not against these developments - I just know if they were more inclusive for New Orleanians, they would be much more successful.

[sguil1]

WWII Museum says March broke single-month visitation record


The National World War II Museum said Wednesday it welcomed 100,592 visitors in March, breaking its previous monthly record of 84,858 visitors set in March 2017.

Last month also set a record for visits by school groups. A total of 9,350 students visited the museum on field trips in March, officials said. Those include kindergarten through college ages.

The museum has announced recent developments in its ongoing, multimillion-dollar expansion. The facility broke ground on a $14 million Canopy of Peace that will rise high into the downtown skyline.

The museum is also working on a hotel and conference center that will have 230 guest rooms and more than 18,000 square feet of conference space. Other projects include the Hall of Democracy pavilion and the Liberation Pavilion

https://neworleanscitybusiness.com/b...tation-record/

[lamsalfl]

http://www.theadvocate.com/new_orlea...6bc327b05.html

Good rundown in today's Advocate about the construction downtown.

In the 70130 ZIP code — which includes the CBD and Warehouse District — 189 condos were sold last year, averaging roughly $363,400, according to Ragas' data. By comparison, the 70116 ZIP code — which includes the French Quarter and Marigny — saw 73 condos sales, averaging roughly $431,800.

Those numbers will pale compared to the prices that the Four Seasons Hotel is expected to command for its 90 luxury condominiums, which observers say are destined to be among the city's priciest.

After being stalled by years of litigation, the project — which will transform the former World Trade Center building at the foot of Canal Street into one of the world's most prestigious hotel brands — will soon begin interior demolition and remediation work. It's scheduled to open in late 2020.

Progress on the roughly $460 million development will become more obvious when a construction elevator is erected in coming weeks to allow crews access to the top of the 33-story, 1960s office building.

[buckett5425]

Interesting quote from Matt Schwartz. Wonder if Domain Companies will be bullish on downtown office space or if this is any indicator what's planned for the last phase of SMD?

Personally, I was frustrated with DXC's decision to locate in such a remote location in the CBD. The 2,000 employees would have much more impact if they were more centrally located in the CBD (1010 common), where restaurants and shops are much more convenient to walk to.

Now, with the downtown real estate market going strong and more amenities in place, Schwartz is optimistic that office pricing will be lifted next.

"The profile downtown has really changed," he said, "and I think the next thing we're going to see is that it's made it a much more attractive place to live, but it's also a more attractive place to work as well."

[tennis1400]

Originally Posted by buckett5425

Interesting quote from Matt Schwartz. Wonder if Domain Companies will be bullish on downtown office space or if this is any indicator what's planned for the last phase of SMD?

Personally, I was frustrated with DXC's decision to locate in such a remote location in the CBD. The 2,000 employees would have much more impact if they were more centrally located in the CBD (1010 common), where restaurants and shops are much more convenient to walk to.

Now, with the downtown real estate market going strong and more amenities in place, Schwartz is optimistic that office pricing will be lifted next.

"The profile downtown has really changed," he said, "and I think the next thing we're going to see is that it's made it a much more attractive place to live, but it's also a more attractive place to work as well."

I get what your saying but im happy to have them downtown period ... but some of these companies with national / international profiles need to be located in a spot that isn't cut off by things like mardi gras parades etc...

[Nickapedia]

Originally Posted by tennis1400

I get what your saying but im happy to have them downtown period ... but some of these companies with national / international profiles need to be located in a spot that isn't cut off by things like mardi gras parades etc...

I agree. It is definitely interesting that Domain might shift to office. In talking with some people who have more experience with the office market then i do, the office stock in NO and the metro area is mostly sub par. Even most of the class A stuff downtown wouldnt really be class A in other markets. Maybe people like domain see value in creating new class A office space to replace the existing inventory as it continues to age in the coming years. Or maybe they know of, or are really banking on more DXC style announcements in the coming years. Either way the office market could get really interesting in the coming years.

Personally i think something has to happen with 1010 common at some point. Its just so hugely vacant that it deadens an area that has seen a lot of activity over the last few years. Either the owners need to update the building for continued office use like the receivables exchange did, or they need to pull a 1250 Poydras move and lease large portions of the building for hotel or residential use.

[FenderOz]

Originally Posted by tennis1400

I get what your saying but im happy to have them downtown period ... but some of these companies with national / international profiles need to be located in a spot that isn't cut off by things like mardi gras parades etc...

I get the feeling DXC was lured by a prominent location on Poyrdas by the Superdome, as well as favorable sublease terms for the floors on the building I sense Freeport McMoran is leaving.

Looking at the Q4 2017 Office Occupancy report from Corporate Realty, there isn't enough space for DXC to keep leasing at 1615 Poydras unless they had an understanding they were taking over someone else's floors. FYI the report says 57K sq feet available for the building in Q4 2017 -- this would have been after DXC signed the lease for two floors to start their operations.

Also, 1010 Common is only 20% occupied now -- there's something seriously wrong there so I bet there's a good reason DXC chose another location. For the last year there has been 0 absorption at 1010 Common...

Last thing I notice from the Q4 report -- which is just numbers without any summary or notes -- is that the amount of rented office space declined last year in New Orleans/Metairie. The decline isn't big, but I think it's another indication that our economy is stagnant at best...

[FenderOz]

Originally Posted by Nickapedia

I agree. It is definitely interesting that Domain might shift to office. In talking with some people who have more experience with the office market then i do, the office stock in NO and the metro area is mostly sub par. Even most of the class A stuff downtown wouldnt really be class A in other markets. Maybe people like domain see value in creating new class A office space to replace the existing inventory as it continues to age in the coming years. Or maybe they know of, or are really banking on more DXC style announcements in the coming years. Either way the office market could get really interesting in the coming years.

Personally i think something has to happen with 1010 common at some point. Its just so hugely vacant that it deadens an area that has seen a lot of activity over the last few years. Either the owners need to update the building for continued office use like the receivables exchange did, or they need to pull a 1250 Poydras move and lease large portions of the building for hotel or residential use.

Per Domain -- they already entered the office market with The Shop co-working space. I think they realize this city doesn't have the corporate presence to justify large scale office developments. And it's not like we're growing elsewhere minus DXC and a couple smaller announcements that have yet to hit their target numbers.

I'd be shocked to see them do anything else office-related in the foreseeable future.


Per 1010 Common -- I think Tennis mentioned in the past that 1010 Common's floor plate's just don't match what we'd expect for residential and hotel/hospitality. Also, don't forget Kailas owns 1010. He strikes me as a typical over-leveraged real estate developer waiting for someone to come bail him out like they did for that Hard Rock hotel property. Figure he's stuck in purgatory where he can't afford any changes or upgrades but isn't bankrupt enough to sell.

[prokowave]

IIRC correctly 1010 has been trying to consolidate tenants and hasn't been trying to lease more space, presumably in anticipation of a major redevelopment. Whether that's more office space or hotel/residential I don't know.

I do think the best opportunity for office growth is the lower part of the Plaza Tower, with residential above as it was originally intended.

[tennis1400]

I know if I owned 1010 my goal would be to consolidate the remaining tenants onto contiguous floors, upgrade common areas and do an interesting lighting scheme for the exterior to bring attention to it on the skyline and then id pursue wework or something like that for the time being...then you can begin to attract others to fill in the gaps.. the floorplates just dont make the best sense for residential or even hotel. The ALOFT was really pushing it with that building..

[cnolae16]

Originally Posted by FenderOz

Per Domain -- they already entered the office market with The Shop co-working space. I think they realize this city doesn't have the corporate presence to justify large scale office developments. And it's not like we're growing elsewhere minus DXC and a couple smaller announcements that have yet to hit their target numbers.

I'd be shocked to see them do anything else office-related in the foreseeable future.


Per 1010 Common -- I think Tennis mentioned in the past that 1010 Common's floor plate's just don't match what we'd expect for residential and hotel/hospitality. Also, don't forget Kailas owns 1010. He strikes me as a typical over-leveraged real estate developer waiting for someone to come bail him out like they did for that Hard Rock hotel property. Figure he's stuck in purgatory where he can't afford any changes or upgrades but isn't bankrupt enough to sell.

I work at 1010 in unnamed office and they just built out a modern model office space on one of the floors and are getting ready to lease out the lower floors over the next 18 months. Also, on good word, there are 2 major hotels signed up to come to 1010 which should make it a lot nicer to work here. Not sure how they plan to do it, but the hotels and office are supposed to have separate entrances. If that's all true, I think they should do a big rooftop bar here. The views from the top are great because there aren't any high rises next door blocking them.

I'm doubting Kailas is over leveraged. City Business says he paid $17m a few years ago. Based on CBD sales per ft, 1010 should be worth double that plus 500+ spaces in the garage...the market is good and if he's not selling it's for a reason.

As for Hard Rock...I think getting 1031 Canal started had to do with getting Hard Rock signed up, and not someone bailing him out. We'd hear about a big investor coming in and getting involved in a deal like Hard Rock. What do ya'll think?

[tennis1400]

Originally Posted by cnolae16

I work at 1010 in unnamed office and they just built out a modern model office space on one of the floors and are getting ready to lease out the lower floors over the next 18 months. Also, on good word, there are 2 major hotels signed up to come to 1010 which should make it a lot nicer to work here. Not sure how they plan to do it, but the hotels and office are supposed to have separate entrances. If that's all true, I think they should do a big rooftop bar here. The views from the top are great because there aren't any high rises next door blocking them.

I'm doubting Kailas is over leveraged. City Business says he paid $17m a few years ago. Based on CBD sales per ft, 1010 should be worth double that plus 500+ spaces in the garage...the market is good and if he's not selling it's for a reason.

As for Hard Rock...I think getting 1031 Canal started had to do with getting Hard Rock signed up, and not someone bailing him out. We'd hear about a big investor coming in and getting involved in a deal like Hard Rock. What do ya'll think?

I know people that are partners with kailas in hard rock and you're right , he isnt over leveraged . Hes doing the parkway and hard rock right now with the jackson oaks project starting next.

Back to the state palace theatre , whats the timeline we should keep an eye out for an announcement ?

[FenderOz]

Happy to stand corrected about Kailas.

I hadn't seen any activity at 1010 since he bought it back in 2014 (IIRC), except for some tenants leaving according to Corp Realty's reports. Combine that with bait and switch he pulled at 1031 Canal, I figured something was amiss. I also recall legal issues for one of them in the past.

That all said, happy to hear these updates! That building could use some love and care, although it sounds like we're about to take a bunch more office space off of the market if they locate two hotels in 1010. I figure if Cantrell and the new council start putting more restrictions on AirBnBs in the neighborhoods around the Quarter, this will drive up hotel occupancy rates.

[Jccali1214]

Originally Posted by tennis1400

Im not sure how one can complain about people putting big money down to own places here!

It's easy to when we acknowledge that all these luxury developments are pushing out and displacing people, especially the workers in our CBD that make our city run. Our post-Katrina policies haven't helped: http://www.theadvocate.com/new_orlea...b256e2f49.html

Originally Posted by thalia

Not quite sure how them being inclusive of New Orleanians would make them more successful. Its quite expensive to build and buy development level projects in New Orleans. The city should do more incentives for developers to build affordable housing that are at least on par with the costs, heck even in the ballpark.

It would make it more successful for an equitable city, not just for rich people that can afford to buy these condos, but for working-class people who have historically inhabited these neighborhoods. Allowing them to live near to jobs and not have to travel an hour by bus sounds pretty successful to me.
But I do agree the city should do more. But in favor of the developers is a bit suspect since they make millions of dollars of these projects... maybe Matt Bruenig is right and we should return to Social Housing: https://www.theguardian.com/society/...sing-in-the-us

[Catch Basin]

Working-class people have historically inhabited the CBD?

[prokowave]

Originally Posted by Jccali1214

It's easy to when we acknowledge that all these luxury developments are pushing out and displacing people, especially the workers in our CBD that make our city run. Our post-Katrina policies haven't helped: http://www.theadvocate.com/new_orlea...b256e2f49.html



It would make it more successful for an equitable city, not just for rich people that can afford to buy these condos, but for working-class people who have historically inhabited these neighborhoods. Allowing them to live near to jobs and not have to travel an hour by bus sounds pretty successful to me.
But I do agree the city should do more. But in favor of the developers is a bit suspect since they make millions of dollars of these projects... maybe Matt Bruenig is right and we should return to Social Housing: https://www.theguardian.com/society/...sing-in-the-us

I could agree that maybe things like airBnB are pushing workings out when landlords turn long-term housing into short-term. But the vast majority of these large residential projects are being built on parking lots or in converted office building. No one lived there before, so they logically aren't pushing anyone out. If anything building more apartments, condos and hotels in the CBD leaves more room for those in historic neighborhoods, not less.