Out-of-state investors have signed a purchase agreement for the 12-story Archdiocese of New Orleans building at 1000 Howard Avenue, with plans to transform the mid-rise office building into a new one hospitality concept.
Commercial broker Parkerson McEnery, whose company has listed the building for nearly $9 million, said he could not release the purchase price or the name of the buyer because the transaction was not yet complete. concluded.
But he confirmed he was under contract and said the buyers were considering redeveloping the building into a hybrid hotel and short-term rental concept.
“It’s a neat concept that doesn’t exist in this market yet,” McEnery said. “It would be a major redevelopment project.”
Buyers are currently in the due diligence phase of the process. However, before any sale can be completed, the deal would need to be approved by the US Bankruptcy Court in the Eastern District of Louisiana.
That’s because the building is part of the archdiocese’s more than $243 million in listed assets, which filed for Chapter 11 bankruptcy protection over two years ago.
At the time of filing, the church said the move was necessary after numerous clergy abuse lawsuits and the coronavirus pandemic have dealt serious blows to its finances. The case continues its way in court.
The archdiocese declined to comment on the deal, but a spokesperson confirmed that any building sale would need to be approved by the court.
Growing interest in Howard Avenue
If the deal goes through, it would be the most recent example of out-of-state interest in the burgeoning Howard Avenue corridor.
Last week, an entity owned by Miami-based Southern Glazer’s Wine and Spirits acquired the three-story iHeart Media building in the 900 block of Howard Avenue, paying nearly $3.6 million for the 17,765-storey building. square feet, or more than $200 per square. foot.
Southern Glazer’s is the largest distributor of wines and spirits in the United States and counts Louisiana among the 44 states in which it does business.
The company could not be reached for comment and brokers for the local company that listed the property, Corporate Realty, said they were not free to comment on the transaction or what the new owners had planned.
In 2021, the Museum of Southern Jewish Experience opened on the 800 block of Howard Avenue in a newly renovated building acquired by New York real estate developer Jeffrey Feil.
McEnery says recent and potential investment along Howard Avenue is a positive sign that foreign investors see long-term potential in the area.
“There’s a lot going on there,” he said. “Developers understand and see the value of the product and the location.”