740 750 Carondelet

Project Overview

Property Details

The Project is comprised of 34,523 SF of land with 28,143 SF of existing improvements and a 25-space parking lot at the northeast corner of Carondelet and Julia Street in the Lafayette Square Historic District. The Venture and the seller (Avenue Capital - NYC) have agreed to a $3.5M purchase price with closing to take place by year-end. The purchase price would be all cash, with both the Fund and NORF each raising $2M for a total of $4M in equity/preferred equity: $3.5M for the real estate and $500K for immediate improvements and working capital.
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The proposed plan for the 10,319 SF, 740-746 Carondelet property is to leverage the existing improvements (the property most recently served as the headquarters for contracting firm Palmisano) and reopen the office building as an Urban Hub coworking location in Q2 2024. The 750 Carondelet property will be redeveloped into street retail to serve the neighborhood with construction estimated to begin within 12 months of closing. Construction of the retail portion of the Project would require the Venture to pursue a construction loan.
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While not included in our initial underwriting, there is a possibility for Historic Tax Credits and other incentives, all of which would be considered a bonus for the Project.

Financials

Urban is offering a select group of investors the opportunity to co-invest alongside the Fund in the Project on a pari passu basis:

• Total Sidecar Opportunity: Up to $1.5M
• Targeted Closing Date (“Closing”): December 2023
• Sidecar commitment to be called prior to Closing.

5-year investment horizon with projected base case returns of 19.1% IRR and 2.2x equity multiple.

To see detailed financials, download the PDF included next to the Indications of Interest form above.

Location Details

Market & Site Overview

• Lafayette Square Historic District is extremely active development corridor, with construction surging during past 5 years.
• Great visibility on corner of Carondelet and Julia streets, heading into CBD.
• Easy access to I-10 and Pontchartrain Expressway, as well as quick connection to other New Orleans neighborhoods.
• St. Charles Avenue street car runs directly in front of the property.
• In vibrant area near world-class restaurants, Class A office towers, sports facilities, museums, shops, and mixed- use developments.

Project Thesis

CBD Co-Working

Urban Hub is a co-working community for the New Orleans area's most vibrant professionals. From real estate to technology, film to finance, we aim to support local businesses and individuals in the pursuit of their career goals.

The co-working opportunity at 740 Carondelet is approximately 7,500 SF of net rentable Class A office space, tailor-made for co-working/flex office. The program allows for a wide variety of uses from open work space, 2 to 4 person offices, collaboration spaces, conference rooms, event spaces, and even emerging brand retail suites. Additionally, a unique feature of this site is that it has 20 secure, indoor parking spaces.

Retail Demand

The retail opportunity at 750 Carondelet is approximately 15,800 SF of net rentable space at the corner of Julia St. and Carondelet. The existing property (pictured above) will be redeveloped into street retail to serve the neighborhood with interest from retailers such as Restoration Hardware, Buck Mason and Rag & Bone.. The underwriting assumes construction will begin within 12 months of closing and would require the Venture to pursue a construction loan.

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