HRI'S NINE27 APARTMENT BUILDING OPENS AS LATEST—AND ONLY SECOND—RENTAL RESIDENCE IN WAREHOUSE DISTRICT
As all other area properties convert to condos, Nine27's mix of affordable and market rate rental units leased up in 90 days
NEW ORLEANS, LA (November 16, 2009)—Years of condominium conversions have left New Orleans's Warehouse District with a scarcity of rental opportunities for residents who either do not wish to or cannot buy their own homes but want to live in one of the city's trendiest neighborhoods. Now the company that started it all has developed what is only the second apartment building in the neighborhood.
HRI Properties, the company that pioneered Warehouse District living when it restored the Federal Fiber Mills a quarter of a century ago following the World's Fair, has now added a second rental building to the area's housing stock with the completion of Nine27 Apartments, across Poeyfarre Street from the Cotton Mill, which HRI converted into a residential property in 1997 and is now a thriving condominium community.
The only other apartment building in the Warehouse District is HRI's Woodward, restored and converted to residential use more than 20 years ago.
Proving the demand for rental opportunities in the Warehouse District, Nine27 leased all 76 of its units in 90 days, said Melissa Crowell, Marketing Director for HRI Management.
Nine27 includes a mix of affordable and market rate apartments, with 16 of the units reserved for residents whose incomes are below 40% of the area's median income (AMI). An additional 23 of the units were made available to residents whose incomes are below 80% AMI. However these 23 units will be released at market rates after the initial tenant moves out. The remainder of the building's 37 units were rented at market rates averaging $1.83 per square foot.
Typical of post-Katrina multi-family housing developments, the financing of Nine27 was a complex combination of funding sources, another area of expertise at HRI. The project's critical funding sources include: a construction loan provided by Capital One Bank; a Freddie Mac permanent first mortgage loan through Oak Grove Capital; a CDBG "Piggyback" second mortgage provided by Louisiana Office of Community Development; and Gulf Opportunity (GO) Zone Low-Income Housing Tax Credits awarded by the Louisiana Housing Finance Agency and purchased by Capital One through Hudson Housing Capital. Also, essential to the Project was the involvement and support of the Industrial Development Board of New Orleans, which issued $1,140,000 of taxable bonds. The IDB financing also allowed the project to receive a Payment in Lieu of Taxes (PILOT).
Nine27 Apartments is a five-story building with the first floor devoted to parking and management. The unit mix includes four studio apartments, 52 one-bedroom units and 20 two-bedroom units. Resident amenities include a business center, a second floor common terrace and a landscaped gated area adjacent to the building.
About HRI Properties
Based in New Orleans with offices in St. Louis, Missouri, HRI Properties (HRI) is a full-service real estate development company and a national leader in the adaptive reuse of historic structures. HRI's mission is revitalizing cities by creating diverse, vibrant, sustainable communities. For more information, go to www.hriproperties.com.