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Alabama New Orleans Condos
Some individuals question the future of New Orleans after Hurricane Katrina, but not condo developers. They had faith. Within six months after Katrina, at least six of the major New Orleans condos projects have been announced for the metro area. Some projects were being considered before the storm, says developers. Combined, developers could build over 1,000 New Orleans condos in the metro area. A co-developer for Tracage Development LLC, Rob Tatum said that living in the Warehouse District is the future of New Orleans (roughly 130- unit, 23-story, $50-million project slated for the Warehouse District.) Some on-lookers question whether all the projects will be built based on past announced projects that did not go anywhere.
There are condos that are proposed, there are condos that are built, said Arthur Sterbcow who is the president of Latter & Blum Cos. of New Orleans. Sterbcow stated that he is waiting to see some of the many New Orleans condo projects announced in the past five years. Fortunately enough, units will likely to begin pre-selling within the next month or so, Mowe said. We are still working with the city and continuing to look at some of the incentives that are available but we are moving forward, he said. The total of new condo units slated for the metro area, as well as projects announced before Katrina, is 3,000, said Wade Ragas, a Metairie-based real estate professional. Construction has not begun on any of the post-Katrina projects.
Everyone is waiting for parish or city approvals regardless of the fact that some are even further along than others in the same process. Parc d'Iberville, a 287-unit development in the French Quarter, is engaged in court proceedings however developer Neal Hixon noted that construction should start before the end of the year. Another project killer is neighborhood opposition, which could be huge factor based on the heights of some projects.
Over a year ago, developer Jim MacPhaille declared plans to construct Riverview New Orleans Condos, a 140-foot-high project at Short Street and Leake Avenue. Even after MacPhaille was in agreement to lower the height to 94 feet, he was forced to back down after Uptown neighbors and the City Planning Commission refused his proposal. For certain projects, it is obligatory that developers pre-sell a specific number of units before banks approve loans to initiate construction.
Developers don not appear worried about finding buyers now. Trey Cefalu said that thus far, demand has exceeded our expectations, he is developing the Vantage Tower Condominiums at Girod and O'Keefe streets downtown. Cefalu said he has reservations for more than 50 of 219 total units just 48 days into the sales process. Cefalu also said every bank wants a percentage of units, more or less 50 percent, pre-sold before lending money for New Orleans condos projects involving 100 to 200 units. 'Secure environment' Condo developers are depending on the shaky demand for housing incurred by Katrina. Owners want a secure environment( that is the belief), safe from wind, flood, and robbery. MacPhaille believes that this will be a flourishing market , building a 12- condo project at 8416 Oak St. before Katrina, said he has sold all but one of his New Orleans condos.
