matthew eaton, ccim [email protected] senior …
TRANSCRIPT
In conjunction with:
Matthew Eaton, CCIM [email protected]
Senior VP of Sales/Leasing 504-339-2136
Richard Juge, CCIM, SIOR [email protected]
President & Broker/Owner 504-915-8877
RE/MAX Commercial Brokers, Inc.
504-838-0001 (Office)
3331 Severn Ave., Ste. 200
Metairie, LA 70002
Licensed in Louisiana, Mississippi & North Carolina - Each Office Independently Owned & Operated
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TABLE OF CONTENTS
• Executive Summary
• Property Facts & Features
• Pricing Summary
• The Unique History of Brown’s Dairy
• Zoning
• Neighborhood History
• Mapping:
o Metro Area Aerial
o Central City Aerial
• New Orleans Metro Economy
• Property Photos
• Market Trends
• Demographics
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Executive Summary
RE/MAX Commercial Brokers, Inc., in coordination with Cushman & Wakefield, is excited to present this opportunity to the market. The former Brown’s Dairy complex is a unique property in an even more unique neighborhood in the heart of New Orleans. It is in close proximity to numerous signature experiences and vibrant neighborhoods and presents the largest infill development opportunity to hit the market in recent years. It provides an unparalleled adaptive reuse use opportunity, potentially with the use of state and/or federal historic tax credits, but also presents an opportunity to tear down and start a mixed-use redevelopment from scratch in a dense, energetic neighborhood. The complex was constructed in multiple parts over many years, and includes a number of buildings on separate squares. Ownership is willing to sell the complex as a single piece or consider splitting and selling separately. This is a rare opportunity to be part of the 21st century renaissance in the heart of the 300-year-old city of New Orleans.
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Property Facts & Features
The complex is made up of several previously separate buildings that have been joined over the years, spanning five separate city squares.
• 1300 & 1400 Blocks of Baronne St. encompasses the main plant with a large
fenced, paved lot. Improvements total approximately 120,000 sq.ft. built in multiple
phases and land area totals approximately 200,000 sq.ft. The warehouse
buildings appear to have been built in at least four different phases, with the oldest
portion of the building(s) dating back to as early as the turn of the 20th century.
The original buildings that face Erato St. (Buildings B&C) appear to be about
12,500 sq.ft. (see historic photo below). The largest portion of the building (D)
appears to have been constructed in 1950s, and added onto in at least two other
phases in the 1960s-70s (E & A) and then the 1980s-90s (F). The footprint is
approximately 75,000 sq.ft. and with second floor area of approximately 44,000
sq.ft.
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Pricing Summary
Property 4: $8,500,000
approx. $42.50/sq.ft. (based on land area)
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Brown’s Unique History in New Orleans
Brown’s Velvet Dairy was founded by Benjamin Christian Brown in 1905 and was family-owned until 1993. Benjamin. C. Brown was a native of Kingston, Ontario, Canada and came to New Orleans in 1904. He established the Brown’s Velvet Ice Cream Company a year later in 1905. The company started at the corner of St. Charles Ave. and Polymnia St. with a “10 gallon, old-timey ice cream freezer, one old gray mare and a wagon.”1 The business employed four people who cranked ice cream by hand using crushed ice and rock salt. The company then moved to St. Charles Ave. and Terpsichore St. and then moved again to the 400 block of Baronne. St., at which time the company had expanded to include “two freezers and two wagons.” In 1915 Brown’s bought a lot at the intersection of Baronne St. and Thalia St. and in 1917 constructed the brick portion of the plant, installing freezers that held 5,000 gallons. In 1950 the company noted that their freezers held 25,000 gallons and that the company produced 10,000 gallons of ice cream a day and was expanded to include the wholesale milk business. In 1954, Brown’s announced a revolution in milk packaging – the new plastic-coated twin milk containers – with a huge advertisement in the Time-Picayune on September 16. The founder’s two sons, Benjamin Temple Brown, Sr. and Alfred W. Brown were executives with the dairy products firm. Benjamin C. Brown’s death was announced on January 16, 1967 in the Times-Picayune. The Times-Picayune reported that his death was “the same day on which the Louisiana Dairy Products Association Inc. – an organization that he founded – began its three-day 1967 meeting at the Roosevelt Hotel.” The founder’s grandson, Alfred W. Brown Jr. served as vice-president and a director of Brown’s Velvet Ice Cream Inc. and Brown’s Velvet Dairy Products Inc., until his death. In 2000, Brown’s Velvet Dairy (then part of Suiza Foods) changed its name to Brown’s Dairy. In 2001, Brown’s Dairy became part of Dean Foods Southwest Division, and in 2004 they merged with Barbe’s Dairy, making Brown’s Dairy the sole dairy in New Orleans. Brown’s Dairy finally shuttered its New Orleans operations in 2016 when they opened a new plant in Hammond.
1 https://noladairies.wordpress.com/2014/04/01/browns-velvet-dairy/
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Zoning
The zoning of the Subject Property is MU-2, High Intensity Mixed-Use District, the stated purpose of which is to “encourage walkable neighborhood centers and corridors conducive to transit, with a mix of residential and supportive commercial and office uses. Buildings may contain vertical mixed-use as well as single purpose uses designed to be located both at neighborhood centers and along major arterial corridors.” Permitted uses within the MU-2 zone include multi-family, art galleries, bars, micro-breweries, office, reception facilities, recording studios and restaurants. Importantly, the Subject Property is also permitted for use as commercial short-term rental (e.g., Airbnb), which has become a huge factor in the New Orleans real estate market in recent years. MU-2 calls for a minimum lot area of 800 sq.ft. per dwelling unit for multi-family development, a maximum of 85’ or no more than 7 stories of building height with a minimum of 20% of the lot area reserved for permeable open space. Taken together, this is an attractive zoning classification that will allow developers to build a dense, mixed-use development.
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Neighborhood History
Central City is a core New Orleans neighborhood, roughly bounded by Martin Luther King Jr. Blvd., South Claiborne Ave. and the Pontchartrain Expwy. to the north (downtown), Magazine, Thalia, Prytania and Felicity Streets and St. Charles Ave. to the south (riverside) and Toledano St., Louisiana Ave. and Washington Ave. to the west (uptown). The area closest to St. Charles Ave. developed first, in the first half of the 19th century, booming with the opening of the New Orleans & Carrollton Railway, which later became the St. Charles Ave. Streetcar Line. The opening of the New Basin Canal at the neighborhood's lower end contributed to the area's development as a center of commerce and a working class residential area, attracting many Irish, Italian, and German immigrants. After the Civil War, many African Americans from rural areas settled in this part of the city. By the 1870s, the urbanized area extended back from St. Charles Ave. to Claiborne Ave. Dryades St. was the main commercial thoroughfare by the 1830s and has remained so since then. In 1849 the public Dryades Market was built, and served as an anchor for almost 100 years. The commercial district thrived in the first half of the 20th century, becoming the city's largest commercial district patronized by African Americans during the Jim Crow era. At its height in the years after World War II, the Dryades St. district boasted over 200 businesses, with businesses owned primarily by Jews and some African Americans. The commercial portion of Dryades St. began to decline in the late 1960s, which continued through to the 1990s. During this time, the old commercial section of Dryades St. was renamed after local civil rights activist Oretha Castle Haley, who participated in lunch counter desegregation demonstrations on Canal St. Projects to improve the neighborhood gradually began to bear fruit by the start of the 2000s. A large part of Central City was above the flooding which devastated the majority of New Orleans in the aftermath of Hurricane Katrina. As there were many vacant buildings and vacant lots in this rare piece of high dry ground, greater attention has been drawn to Central City in post-Katrina redevelopment of the area. Central City has a significant Civil Rights history. In addition to boycotts on Dryades St., the Southern Christian Leadership Conference (SCLC) was founded with Martin Luther King Jr. in Central City in 1957. The New Orleans chapter of the Congress of Racial Equality was founded in Central City as well.
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Oretha Castle Haley Blvd. has seen large-scale investment and redevelopment in recent years, and is now considered one of the premier up-and-coming commercial stretches in the city. It is marked by mostly local and regional credit restaurants and retailers, office and non-profit users with some upper floor multi-family development. Examples of some of the OC Haley mix include IberiaBank2, Café Reconcile3, GoodWork Network4, Roux Carre5, the Southern Food and Beverage Museum6 and the New Orleans Jazz Market7.
2 https://www.iberiabank.com/about-us/our-company/ 3 https://www.cafereconcile.org/about/ 4 https://www.goodworknetwork.org/ 5 https://rouxcarre.com/about/ 6 https://natfab.org/southern-food-and-beverage/ 7 http://www.phnojm.net/about
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Metro Area Aerial
Central City Aerial
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New Orleans Metro Economy
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Property Photos
PROPERTY 1
PROPERTY 2
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PROPERTY 3
PROPERTY 4
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Market Trends
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Demographics
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Matt Eaton, CCIM – Senior VP of Sales and Leasing
(504) 339-2136
Richard Juge, CCIM, SIOR – President & Broker/Owner
(504) 915-8877
Office Information:
(504) 838-0001
RE/MAX Commercial Brokers, Inc.
3331 Severn Ave., Ste. 200
Metairie, LA 70002
Each Office Independently Owned and Operated
Individuals Licensed in Louisiana, Mississippi & North Carolina
Disclaimer: Information contained herein is from sources we deem reliable but cannot be guaranteed for its accuracy. All potential purchasers will be required to perform their own due diligence and the property will be sold As Is – Where Is with a waiver of Redhibition.