Home values are increasing in Irish Channel

Tuesday, September 19, 2006

By Greg Thomas

The old Sara Mayo Hospital on Jackson Avenue near St. Thomas Street will become 78 condominiums as Dallas-based Today Realty Advisors Inc. invests $25 million into the conversion of the 135,000-square-foot abandoned property.

The hospital complex will be converted into the Oak Tree condominium complex, which should be complete in about 18 months.

Realtor Isabel Reynolds thinks the conversion can accelerate commercial and residential development in a part of town that sorely needs an economic shot in the arm. The razing of the nearby St. Thomas housing complex and the reconstruction of the site into a multifamily, mixed-income neighborhood has opened up development potential along the river-end stretch of Jackson .

She added that at a cost of $250 to $300 per square foot, the Sara Mayo project undercuts more recent deals that begin in the $350 to $500 range. The average 1,200-square-foot condo at Sara Mayo will cost about $300,000.

Reynolds, of RE/MAX Real Properties, said she has had 30 to 40 inquiries about the project.

"Everybody is coming (out) with projects at $375 and $500 (per square foot). Where do people get that kind of money? I'm turning down listings at $400 and above because they're not moving. I can't afford to advertise them. It's absolutely insane," Reynolds said.

Since the demise of the St. Thomas housing complex, a flurry of home renovations are being undertaken in the Irish Channel area, and that trend is pushing up home values in the area, Reynolds said.

Today Realty is wholly owned by Eric Brauss, who has 35 years of experience in real estate development and management. Brauss, originally from Windsor , Ontario , also operates a sister company, Today Management Inc., also in Windsor .

Since 1990, Today Realty and its affiliates have developed nearly $2 billion in real estate projects, creating a portfolio of retail, office, and residential projects. The company, doing business as Oak Tree Condominiums LLC, purchased the Sara Mayo hospital in the spring from New Orleans Life Medical Center LLC.

The company also operates Today Real Estate Investments in Florida , which will manage the property until it is sold out.

Local attorney Randy Opotowsky, representing Today Realty, said the district is zoned RO, meaning it is designated as a general office district. Multifamily projects are permitted under that zoning.

Opotowsky said the developers anticipate having to seek some waivers or face some parking issues when the project is submitted to the City Planning Commission.

Today Realty Advisors has purchased a strip shopping center in the 5600 block of Magazine Street across from Whole Foods Market. The anchor tenant in that strip center, Major Video, sustained significant roof damage and has not reopened.

Green said that Today Realty will invest $2.7 million in acquisition and construction to accommodate a new tenant, Chico 's, a women's clothing boutique, which already has locations at the Riverwalk Marketplace, 600 Decatur St. , Canal Place and Lakeside Shopping Center .

Total Realty has also taken over the Jacob Candy Factory at 827 Carondolet St. Originally bought by Sarpy Hixon Development Inc., Total Realty has acquired the property and is converting it into 25 condominiums.

"If we're coming into a market, and we do want to be part of rebuilding New Orleans , we want more than one property," Green said.

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Greg Thomas can be reached at gthomas@timespicayune.com or (504) 826-3399