Stirling Properties and JCH Development Complete Acquisition for Land to Develop Shopping Center in New Orleans
Stirling Properties and JCH Development are pleased to announce the closing of the land acquisition and development financing for Magnolia Marketplace, a 106,000 square-foot shopping center located in New Orleans, LA at the intersection of South Claiborne Avenue and Toledano Street. First NBC Bank of New Orleans provided financing for the project.
“This project required a true partnership and we are excited to be a part of providing new jobs and economic opportunities to the residents, neighborhood, DBE businesses and the City of New Orleans. We are truly grateful for the support and collaboration on this project with the Mayor’s office, the City Council, and the Community, without which this project would not have been possible”, stated Townsend Underhill, Senior Vice President of Development for Stirling Properties.
“We are proud to bring a dynamic new retail development to an underserved portion of Central City. This development will bring a formerly vacant and blighted piece of property in the City of New Orleans back to commerce”, stated Tara Hernandez, President of JCH Development.
Stirling and JCH previously announced the 6,000 square foot initial phase of the Magnolia Marketplace development located at the intersection of South Claiborne Avenue and Fourth Street. Capital One Bank is currently open in that building. T-Mobile and a proposed national sandwich shop are slated to open in early 2014.
Tenants scheduled to open in spring 2015 are Ross Dress For Less, T.J.Maxx, Michaels, PetSmart, Shoe Carnival, ULTA Beauty and Raising Cane’s. The project is 100% pre-leased. The Developers expect to break ground on the project this coming January.
Stirling’s recent projects in New Orleans include Mid-City Market, a 108,000 square-foot Winn-Dixie anchored shopping center located at North Carrollton Avenue and Bienville Street, as well as the full renovation of the former American Legion building located on Magazine Street into a new 13,000 square foot Walgreens Marquee Store. Since 2011, Stirling Properties has invested over $120 million in the City New Orleans.
JCH Development’s most recent project is the conversion of the former Blue Plate manufacturing facility into the Blue Plate Artist Lofts, 72 residential lofts, on South Jefferson Davis Pkwy.
For more information, contact Townsend Underhill at tunderhill@stirlingprop.com or 985-898-2022, or for leasing information contact Rhonda Sharkawy at rsharkawy@stirlingprop.comor 504-523-4481.
New Orleans Retail is on the Rise
Mark Twain once quipped “History doesn’t repeat itself, but it does rhyme”. The Crescent City has been America’s boomtown before, but this time, something is different. Aided by tech, medical and digital media job growth, infrastructure improvements, rising tourism and political reform, the City has become a magnet for young educated professionals, and retailers have noticed.
Selected New Orleans Rankings
In recent history, aging infrastructure and crime crippled economic development. While Hurricanes Katrina and Rita were physically devastating to the region, they also uncovered social and political issues that needed to be rectified. Federal funds flowed to improve infrastructure. With that came oversight and political reform. The private sector rolled up their sleeves and made bold choices to invest in the city and its unique culture.
Together this created a higher demand than the current supply of Retail can absorb. As reported by The New Orleans Business Alliance, the city currently is losing $1.9 Billion in retail sales annually to neighboring parishes where traditional retail development has flourished. While some sections of the city still are recovering, the city’s core has experienced a great demand for development and re-development. “New Orleans was once considered a market that offered the worst to retailers. Today retailer activity and interest are at an all-time high,” stated Townsend Underhill, Senior Vice President at Stirling Properties.
Luxury retail is on the rise. The Shops at Canal Place, anchored by Saks Fifth Avenue, has experienced double digit sales growth in each of the last four years. Recent openings include J. Crew, Allen Edmonds, Michael Kors and Lululemon, with Tiffany and Company slated to open in November. “It is clear that New Orleans is experiencing nothing short of a Renaissance,” stated Brandon Berger of The Berger Company, owner of Canal Place. “Canal Place is well positioned as the only Luxury Mall between Houston and Atlanta. The higher end the item the retailer carries, the higher their sales volume.” In addition H&M will open a 32,000 square-foot French Quarter location in late October, their first in the United States outside of New York and Boston to offer home goods as well as soft goods.
The Outlet Collection at the Riverwalk – Rendering
The Outlet Collection at the Riverwalk, an upscale outlet center downtown near the French Quarter and Warehouse district, is scheduled to open in 2014. At 250,000 square feet, it will serve both locals and tourists and is billed as the only Outlet Center in a downtown setting in the U.S. Mark Bulmash, Vice President of Development at the Howard Hughes Corporation and Developer at Riverwalk added, “A few years ago, retailers would ask the question, ‘Why New Orleans?’ Today the question is, ‘Why aren’t we in New Orleans?’”
South Market District – Rendering
The Warehouse District in the CBD has transformed from blighted space into a vibrant neighborhood. The 40,000 square-foot Rouses Grocery opened in 2011 and was influential in making the area a true neighborhood. While condominium conversion is still underway, new construction mixed-use projects are also taking shape. The South Market District by the Domain Companies is under construction. Phase I will open late 2014 featuring 209 residential units and 22,000 square feet of Retail. Once complete, the project will include over 600 residential units and 170,000 square feet of retail located along the streetcar line and walkable from downtown Class A office buildings and the Superdome.
Mid-City Market
The 107,000 square foot Mid-City Market developed by Stirling Properties opened in July. Anchored by Winn Dixie, the site marks the entry into New Orleans for some notable restaurant chains like Panera Bread, Pei Wei, and Five Guys, and filled the void for much needed goods and services in the Mid-City neighborhood. Whole Foods will enter Mid-City as well with a store currently under construction on Broad Street that will mark their third location in the New Orleans metro.
Big box stores and Jr. Anchors that traditionally were kept out of the city for lack of developable land have found a limited opportunity to penetrate the market. Costco has completed its first Louisiana location with a 148,000 square foot store located near the population center. Wal-Mart has two Supercenters under construction in Gentilly and New Orleans East, 110,000 square feet and 180,000 square feet respectively. Magnolia Marketplace, scheduled to break ground in January 2014, will be the only true Power Center on the Eastbank of New Orleans and will offer Jr. Anchors the chance to gain access to the local market for the first time.
Development projects in virtually all areas of the city will allow retailers to penetrate a market previously thought impenetrable. Additional growth of mixed-use and street retail projects will offer more opportunities for the growing retail sector and will cater to the urban population and tourists. From luxury to discount, retail is hot in New Orleans and investors, lenders, developers and retailers are working hard to gain a presence.
This article was submitted to Southeast Real Estate Business magazine. An edited version appeared in the October 2013, Volume 14, Issue 7 print edition.
President’s Message: It’s a New Day in New Orleans!
Last week, we celebrated the Grand Opening of Mid-City Market in New Orleans. This Winn-Dixie anchored, urban shopping center is a milestone for Stirling Properties, as it’s our largest ground-up shopping center development in the City of New Orleans in our company’s 37 year history! It also represents one of the most significant retail developments in New Orleans since Hurricane Katrina, taking once blighted and vacant properties and returning them to commerce. This project creates over 500 new jobs and generates projected annual retail sales of over $61 Million.
Mid-City Market is the culmination of over 4 years of work and it was a challenge to put (and keep) all the pieces together. Few companies could take on a project of this complexity and succeed, but Stirling Properties was up for this challenge.
I want to commend our incredible team who worked on this project for a job well done! There were many points in time where it looked like the deal was dead, but our Stirling team worked diligently to complete it. It was through their hard work and perseverance that this inner-city project materialized.
I also want to commend Mayor Mitch Landrieu for his vision and leadership and Councilwoman Susan Guidry for her incredible support and drive to help make this a reality for Mid-City.
The Mid-City Market project is a result of over $40 Million in private investment and demonstrates our strong belief in the City of New Orleans and the civic and business leadership which has created an environment where businesses are confident to invest. A plethora of national and regional rankings paint a truly remarkable picture of New Orleans as THE city on the move, which is in stark contrast to previous decades.
This project, combined with our other projects completed to date, brings Stirling’s investments to over $120 Million in the City of New Orleans in just the last 3 years. All of us at Stirling Properties are confident in the direction of New Orleans, and Mid-City Market shows our continued commitment to the market. This project was the first for us in many ways and certainly will not be the last.
Grand Opening of Mid-City Market
Stirling Properties’ largest ground-up Retail Development in New Orleans
Today, Stirling Properties celebrates the grand opening of Mid-City Market, located at North Carrollton Avenue and Bienville Street in New Orleans. The 108,763 square-foot shopping center, anchored by a 54,390 square-foot Winn-Dixie, represents one the of the most significant retail developments in New Orleans since Hurricane Katrina. This highly anticipated urban development brings new retailers to an established, historical neighborhood. The Honorable Mayor Mitch Landrieu commented that, “Mid-City Market is proof that New Orleans is building back better than before. This project took once blighted and vacant properties and transformed them into a retail and restaurant hub for the community. It’s another example of a strong public-private partnership delivering new jobs, new tax revenue and new energy to this important corridor. The project also will nicely complement the nearby Lafitte Greenway, the linear park that will link neighborhoods and spur activity and redevelopment across the city.” Mid-City Market is a result of over $40 Million in private investment, illustrating Stirling’s continued commitment to the market. The center creates over 500 new jobs in the area. Mid-City Market was designed to complement and address the proposed Lafitte Greenway pedestrian and bicycle pathway that is scheduled to begin construction later this year and will border the shopping center. “We have been diligently pursuing this development for the better part of 4 years. Completing this project is the culmination of a great deal of work by many people. It is extremely gratifying for us all to see the fruits of our labor, this project is very exciting for the future of the City of New Orleans and the Mid-City neighborhood,” states Townsend Underhill, Senior Vice President of Development at Stirling Properties. To commemorate the Grand Opening, special guests Mayor Mitch Landrieu, Councilwoman Susan Guidry, and Winn-Dixie’s Regional Vice President Karena Niblett will attend. Stirling Properties’ President and CEO Marty Mayer and Senior Vice President of Development Townsend Underhill will address the audience at the event.
Tenants Now Open Winn-Dixie Office Depot Jefferson Feed Pet & Garden Center Panera Bread Pizza Hut LA Nails Spa
Tenants Opening Soon Verizon Wireless Felipe’s Taqueria Five Guys Burgers and Fries Pei Wei Asian Diner Ochsner Urgent Care Clinic Pinkberry GNC
For development inquires, contact Townsend Underhill, Senior Vice President of Development for Stirling Properties, at tunderhill@stirlingprop.com or by phone at 985-246-3785. For information about leasing opportunities, contact Rick Skelding, Senior Broker Associate, at rskelding@stirlingprop.com or by phone at 504-620-8126.
Mid-City Market AFTER
Mid-City Market AFTER – Winn-Dixie and Plaza Buildings
Mid-City Market AFTER – Winn-Dixie
Stirling Properties Hosts Tour of Mid-City Market Development Under Construction
Last week, Stirling Properties and VergesRome Architects hosted a building and site construction tour of Mid-City Market in New Orleans for the Urban Land Institute (ULI) of Louisiana, prior to the center opening to the public. Approximately 50 people attended the event, ranging from real estate professionals, designers, and developers to interested neighbors and residents. The event gave ULI members and non-members the opportunity to hear from the project team related to design, construction, deal structure, tenancy, and many other items related to the collaborative urban neighborhood development process.
Architects Chip Verges and Michael Roussel of VergesRome Architects discuss design themes and architectural challenges associated with the Mid-City Market development in New Orleans.
Located at the northwest corner of North Carrollton Avenue and Bienville Street in Mid-City New Orleans, Mid-City Market is a 107,000 square-foot, grocery-anchored urban infill shopping center. Stirling broke ground on the project in March 2012 and will be opening the project to the public with Winn-Dixie in late July. Prior to Stirling’s acquisition and development of the roughly $35 million project, the 6.5 acre site sat vacant and blighted since Hurricane Katrina. Designed by Mid-City architecture firm VergesRome Architects, the building and site design incorporate extensive pedestrian features, contextual urban and adaptive reuse architecture, and will complement the future Lafitte Greenway adjacent to the site.
Stirling Properties is a proud sponsor of the Urban Land Institute and is pleased to be involved with its activities in Louisiana. For more information about the Mid-City Market development or Stirling Properties, contact Jordi Goodman, Development Manager, at 985-898-2022 or at jgoodman@stirlingprop.com. For leasing information, contact Henry Spain, Sales and Leasing Agent at 504-620-8147 or at hspain@stirlingprop.com.
Stirling Properties & JCH Development to Develop Magnolia Marketplace Shopping Center in New Orleans, La.
Stirling Properties and JCH Development today announced the joint venture to develop Magnolia Marketplace Shopping Center in New Orleans, Louisiana. Construction will begin with the first building in the center, a 6,000 square foot building, with a 3,000 square foot Capital One bank branch. The Central City shopping center will be located at the intersection of South Claiborne Avenue and Fourth Street, adjacent to the larger future phases of the Magnolia Marketplace Shopping Center.
“We are proud to bring a high quality development to a severely underserved portion of the Claiborne corridor and return yet another vacant and blighted property in the City to commerce”, said Jordi Goodman, Development Manager for Stirling Properties.
“Our team is excited to introduce new services and shopping experiences, in a location that is accessible to the neighborhood as well as to all of New Orleans’ residents” said Tara Hernandez, President of JCH Development.
The 6,000 square foot center will serve as a catalyst to future development along the Claiborne corridor and will precede the balance of the Magnolia Marketplace Development located at South Claiborne and Toledano Streets slated for commencement in fall of 2013. Once completed the center will be 138,000 total square feet. Stirling and JCH have secured leases for 108,000 square feet with established national retail tenants. Stirling is currently in negotiation with tenants for the remaining spaces in the center and other tenant announcements will be forthcoming.
For more information, contact Jordi Goodman at jgoodman@stirlingprop.com or 985-898-2022, or for leasing information contact Rhonda Sharkawy at rsharkawy@stirlingprop.com or 504-523-4481.
