Former lounge now a nursery

Nonprofit nurtures small business owners

Tuesday, June 12, 2007
By Greg Thomas
Real estate writer

Two 19th century warehouses at St. Joseph and Constance streets are slated to be turned into a 61-unit, mostly affordable apartment complex geared toward artisans and entrepreneurs.

The renovation will set aside 7,500 square feet for retail space plus another 7,500 square feet for entrepreneurial meeting and seminar space that will be designed by the Idea Village, a nonprofit business start-up group. Idea Village is in negotiations to operate the entrepreneurial space, although a third party may be hired instead.

"This is specifically designed for entrepreneurs . . . and those that can take part in a vibrant entrepreneurial setting," said developer Jay Trevor of J&T Development LLC of Chicago. He said demand for such sites has soared post-Katrina as many creative, business or program-minded people no longer have work facilities, let alone homes.

"There's a real need for giving a spot to live downtown for . . .entrepreneurs and artists alike," said Trevor, whose firm specializes in the restoration of historic properties across the country.

"We feel like this project will have overwhelming demand."

About 11 of the units will be rented at competitive market rates, while the balance will be affordable housing, thanks to a $1.25 million Low Income Housing Tax Credit that is worth $10.25 million over 10 years. The credit was approved by the Louisiana Housing Finance Authority.

Some $4 million in state and federal historical tax credits are providing equity for the $18 million project, which includes the acquisition costs of the buildings.
The affordable units will be open to tenants with households that earn less than 60 percent of the area's median income.

Local architectural firm Eskew+Dumez+Ripple of New Orleans is doing the design using the Idea Village's concepts for the space in the complex. The architectural firm for the overall project is Sikes-Abermathie Architects of Omaha, Neb.

Mike Sikes said Monday that his firm specializes in historic restorations and has done several projects with Trevor.

The restoration will also follow green building principles, meaning it will be energy-efficient, and may seek Leadership in Energy and Environmental Design certification from the U.S. Green Building Council, an unusual accomplishment for anything other than new construction.

The project, which includes construction of a four-story building on the Magazine Street side of the site, has won Historic District Landmark Architectural Review Committee approval, and some small issues with the Board of Zoning Appeals have been worked out, Trevor said.

The project must wrap up by 2008 to take advantage of the Gulf Opportunity Zone Act's one-year depreciation incentive, which Trevor said he is relying on heavily. "If it weren't for these incentives, this project couldn't happen," he said.

Trevor said he's taking no chances that Congress will extend, as many suspect it might, some provisions of the GO Zone subsidies past the current 2008 deadline by which projects must be completed. The St. Joe Lofts, as Trevor has named his project, will be completed by Dec. 31, 2008.

The site takes up most of the river side of the block bounded by Andrew Higgins Boulevard and Constance, St. Joseph and Magazine streets.

The project also includes 401 St. Joseph St., an industrial building across the street from the main building at 400 St. Joseph, a four-story former Woodward warehouse building currently occupied by Gulf Marine Inc..

Teragon Consulting LLC of Omaha is the contractor on the project.

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