NOLA’s New Chapter

Let the Good Times Roll

By Yardi Blog Staff on Jan 15, 2015 in People

A little over nine years ago, as Hurricane Katrina slammed into the Gulf Coast and the levees broke, one of the most iconic cities in the U.S. was brought to its knees. With 80 percent of the city under water, many doubted that the city could overcome the devastation. But the resilience of New Orleans, extensive government involvement and the dedication of visionary developers paid off – the Big Easy is now flourishing. Though there is much left to do, The City That Care Forgot is well on its way to becoming one of the top urban centers in the country.

First sparks of recovery

Among the visionary developers of post-Katrina New Orleans is Yardi client The Domain Cos. Domain’s principals met while studying at Tulane University, one of New Orleans’ top colleges. The Domain Cos. was formed in 2004 and the company landed in New Orleans right after Katrina, jumping into the recovery effort.

“We have always had a special connection with New Orleans.  Working in the city post-Katrina, overcoming all of the obstacles faced in those difficult times, has strengthened that connection and our passion for our work here,” Matt Schwartz, principal and co-founder of Domain told The Balance Sheet. Today, Domain has offices in both New York and New Orleans.

Today, the city’s current development market is vastly different from the first few years after the storm. “The tragedy of Katrina ultimately presented an opportunity to drastically improve nearly every aspect of urban life here, from governance and healthcare to education and housing,” Schwartz detailed. “As those improvements took hold, we began to witness a transformation of the city’s economy unlike any other in its history.   Significant job growth in areas such as biosciences, digital media, technology and education are attracting new residents and retaining those that are educated here.   These new businesses and residents have created increased

demand in nearly every sector of the real estate market, from multifamily to hospitality, and have resulted in a healthier office market than we’ve seen in decades.”

To date, Domain has developed sought-after New Orleans locations such as the 183-unit The Preserve, the 78-unit The Meridian and the 31-unit Gold Seal Lofts. The company is also developing a 234-key lifestyle hotel in the city’s central core.

Game-changing concept

“As New Orleans began [this] dynamic transformation, we saw an opportunity to support that growth by creating a world-class, mixed-use, transit-oriented development in the heart of downtown,” Schwartz says, speaking of the $250 million The South Market District, New Orleans’ first TOD. It’s currently under development at the nexus of some of the most culturally rich neighborhoods in the city, including the popular Warehouse/Arts District. By the time the last phase opens in late 2017, the District will include over 700 luxury apartments, 200,000 square feet of retail, including an upscale grocer, and 1,300 garage parking spaces.

What sealed the deal was the city’s decision to extend the streetcar line up Loyola Avenue, connecting the Union Passenger Terminal and Downtown with the burgeoning Medical District. The influx of creative arts professionals, especially film industry-related talent was also a boost.

New Orleans “recently surpassed both New York and California in feature film production.  This creative workforce tends to want to live in downtown areas, where the entertainment and arts scenes are flourishing.  We expect South Market to be a popular destination for the creative workforce, as we sit at the nexus of several of the city’s most culturally rich neighborhoods, including the Warehouse/Arts District,” Schwartz explained. Demand for high-end multifamily housing, especially downtown, is also anticipated.

South Market’s first two phases, The Park and The Paramount will be delivered in December 2014. The Paramount will bring 209 luxury apartments and 23,000 square feet of retail and restaurant space to the market. The Park comprises 444 garage parking spaces and 27,000 square feet of retail space. Domain has also broken ground on The Beacon, the District’s third phase, which will deliver 126 luxury apartments and 20,000 square feet of Class A retail space in December 2015. The fourth phase will start in late 2015 and deliver in late 2016, when the fifth phase will kick off construction for a late 2017 delivery.

Editor’s note: Coming next Friday, the NOLA story continues with a focus on community development.