Developer Selected for WTC in New Orleans

Earlier this year, the City of New Orleans began negotiations with five developers competing to bring new life to the former World Trade Center building; this week, a winner was selected as a $364 million plan was picked as the city's top choice to sign a long-term lease for the vacant riverfront tower. A committee appointed by Mayor Mitch Landrieu's administration picked the Four Seasons group for the 99-year lease, which plans to convert the property to a 350-room Four Seasons luxury hotel and condominiums.

Carpenter and Co., a Cambridge, MA-based real estate firm, partnered with New Orleans-based Woodward Interests to bring the Four Seasons to the city. Cascade Investment Group, a holding and investment firm founded by Bill Gates, is also an investor in the project. The Four Seasons team offered a $5 million deposit, rent of $3.25 million per year for the first 10 years and $3.75 million for the next decade. After that, rent would increase by inflation. The project is being financed with $238 million in debt, $86 million in equity and $40 million in private capital, according to a New Orleans Advocate article.

"The city of New Orleans has never in our history, not ever, seen a group of investors like this that represent the breadth of the best investors in the world that have come to our city because they think we are valuable," Landrieu said. "That means that not only are we back but that we can compete on the highest levels as we go forward."

Redevelopment plans for the vacant 33-story tower on the waterfront of the Mississippi River at 2 Canal Street also include a visitor attraction called "New Orleans: History at the Confluence of Cultures" along with a public observation deck. Developers say they predict 700,000 visitors to the exhibit every year. The design also calls for three new landscaped open spaces, including a newly built urban park at the corner of Canal Street and Convention Center Boulevard.

The Times Picayune outlined the complete Four Seasons plan for the World Trade Center building which you can review here. For more news and information visit Blumberg Partners.

Howard Hughes Corp. Invests $70M in New Orleans Riverwalk

The Howard Hughes Corporation announced this week that it would be investing approximately $70 million in the redevelopment of Riverwalk Marketplace in New Orleans to create a new upscale outlet center in the heart of the city called The Outlet Collection at Riverwalk. Howard Hughes Corp. originally acquired the center in 2011 and these new plans will create the nation's first outlet location in an urban setting. The mall has seen its share of change in recent years, with fewer national retailers and more small shops. Store occupancy at the mall dipped as low as 30% after Hurricane Katrina, but rebounded in recent years to as high as 90% according to a WWLTV news item. Artist renderings show upgrades in the facility's design, and plans call for an expansion of about 50,000 square feet.

"Our redevelopment and repositioning of this storied riverfront property will bring well-known, popular retail and entertainment establishments, many which will be new to New Orleans," said Grant Herlitz, President of The Howard Hughes Corporation. "Beyond the impact of these compelling options for locals and tourists, we are pleased to be part of the continued revitalization of New Orleans given the many benefits this development will represent to the city."

The Outlet Collection at Riverwalk will showcase top national retailers with established outlet stores as well as some local retail, dining and entertainment options. Many of the retail establishments will be the first location in Louisiana, New Orleans and the Gulf region for their respective brands. Construction should begin by mid to late fall and should be complete in time for the holiday season next year.

Rod Miller, President and CEO of the New Orleans Business Alliance said, "This investment by the Howard Hughes Corporation further underscores the opportunity and viability of the New Orleans market. The New Orleans Business Alliance is passionate about improving the city’s retail landscape and believes this project has potential to be catalytic in anchoring the Canal shopping district. We will continue to work with Howard Hughes and the City to see this project and others like it to completion."

"This planned redevelopment proposes a new tenant mix that will restore Riverwalk as a favorite place to shop for tourists and locals alike and is another step in making New Orleans a regional shopping destination," said New Orleans Mayor Mitch Landrieu in a Times-Picayune article.

For more news and information visit Blumberg Capital Partners.