Friday, August 26, 2011

Traffic, Traffic Traffic

I know....traffic is not fun, especially in August, in New Orleans, and on General DeGaulle Drive.  However, this is changing.   No, not global cooling, but the traffic. 

Listen to the podcast now:

Road way and drainage improvements are underway on General DeGaulle to reduce traffic congestion and improve drainage allowing this main corridor to thrive as it was designed to do. 

While road construction is not always fun when its happening, the end result will be a wider, accessible and vibrant commercial thoroughfare that will improve the economy and overall outlook for Algiers and its residents. 

Also improvements to Brechtel Park and local roadways are increasing the desirability levels of some of the best kept secrets of Algiers.

Our guest talk about this and more.  Join us for our exciting discussions with Senator David Heitmeier and Theo Sanders, President of the Westbank Redevelopment Corporation as we discuss these changes and their impact on the surrounding community.  Airs Wednesday, August 31, 2011 at 3:00.

Listen to the podcast now: 

Thursday, August 25, 2011

What is a Healing Center?

The New Orleans Healing Center is the latest project of developer Pres Kabacoff and partner, Sallie-ann Glassman.  Hear how Sallie-ann conceived the idea of bringing these services to the St. Claude community and how this project came together. 

These services and businesses are designed to bring healing, and revitalization to an under served and under utilized area of the city.  Listen to the broadcast and learn about exciting businesses such as the New Orleans Food Co-op, Cafe' Istanbul, Crossroads Arts Bazaar, Fatoush Restaurant, Coffee & Juice Bar, and many, many more.

This is one of the most unique real estate and business ventures in New Orleans.  Hear the guest talk about this project and its impact on the surrounding community and how it is Flipping This City.

Click Here for the podcast:

Join them for the Grand Opening this Sunday, August 28th from 10am-10pm.

Thursday, August 18, 2011

Architect Developer Flipping the CBD

You have seen these buildings many times, driven past them, and will recognize them from their facades.  However, what was once there is no more.  They were offices, part of the economic fabric of New Orleans, home to businesses which made up the business engine of the CBD. 

Now they are part of a new fabric, nice 2000 thread count fabrics to be exact, which are going into new their new home, which are actually homes.  The conversion of these buildings to residential represents the continuation of a trend that has been underway for several years.  But these properties in particular demonstrate what the early developments predicted, which is the second generation of residential conversion of the New Orleans downtown. 

To witness this transformation is truly inspiring, and this interview will show you why.

Click the link above to hear the interview.

Friday, August 12, 2011

The Manhattan Theory

If you are in commercial real estate sales, you have heard this more than once form an out of town real estate rep....."we are going to open 14 stores and we want our flag ship store to be at Veterans and Causeway". And the expectation is that we just make a phone call and owners will fall over themselves to sell us their property.

My response was always "Did you do that in Manhattan? Did you get the corner of 5th and E 59th St.?" Then I proceed with my rant about the island that we call New Orleans. If the island of Manhattan is surrounded by water and the real estate rates are in the stratosphere, then the same metrics would apply to New Orleans. And we ARE surrounded by water, lake to the north, river to the south, gulf to the east and the spillway/swamp to the west. This ain't Texas, you can't just move to the next interstate interchange(there are only 5 eastbound in Metairie, and they are all taken). You could go west on I-10, but you won't reach dry "develop-able" land until Gonzales.

Commercial real estate buyers(and some developers) not familiar with our pricing can not comprehend the values placed on local real estate. And this "value" is represented in many different ways. With some properties it represents a family and the heirs' birthright. It may not be producing a large return, but it may represent decent cash flow if you don't have a mortgage on it.

Or, with most families, the patriarch of the family may have one vision of the future of the property and the heirs another. These are easy to spot. If you see property that has not had a change in use, or updates, repairs, etc. and then one day its gone. Well, guess who inherited the property.

To fully understand the value of good real estate in a densely populated geographical area, such as Manhattan......... or New Orleans, you have to look at the basic fundamentals of commercial real estate investments. First, TIME. These are not flip properties. No one is going to sell for less so that someone can flip it to another buyer. The buyer will find the property and owner without any help. Therefore the cost needs to be analyzed over a longer hold period than the average investment. Look at most of the major properties on the island. Most have been here since the roads were built. Lakeside SC has gone through many changes, but its still there in the same spot, and will most likely be there through our grandchildren's children's life time at a minimum.

Second, current use vs. future value. Of course a snow ball stand on a valuable piece of real estate will not appraise for what the owner is asking, but that's not what they are selling. They are selling the future value of the site. This is the most difficult hurdle for buyers, and me, to understand. We realize that if you put a building on this site, its worth more, but you don't have a building, you have a snowball stand. And this goes back to the "no mortgage" seller motivation. Plus, do know what the mark up is for snowballs? They can afford to wait.

And waiting is usually the game that is played. If you want to be on St. Charles Ave., well, there is only one St. Charles Ave., so if you want to be there, you pay what is asked. Just like there is only one 5th Ave.

The similarities between Manhattan and New Orleans are not measured in square foot rates, but in demand for limited space.

© Mark Subervielle 8/12/11

Monday, August 8, 2011

Flip This City now on the air!

Flip This City has taken many twist and turns since its inception.  and now, its on the air.  The kick off show is Wednesday, August 17, 2011, at 3:00pm.  The show highlights individuals and companies who are making things happen.

Want to know who is doing what?
What companies are growing/expanding?
Who is starting up?
What is under construction?
Who is opening up in your neighborhood?

We will discuss this and more. Join us and help Flip This City.