$70M Luxury Development Green-Lit by City Council

Following almost a year of negotiations and hammering out of details, the New Orleans city council has given its final approval to the development of 1031 Canal St., a 240-unit luxury mixed-use project.

Following almost  a year of negotiations and hammering out of details, the New Orleans city council has given its final approval to the development of 1031 Canal St., a 240-unit luxury mixed-use project.

According to the project’s Web site, the building will feature 225 rentable residences and 15 penthouses for sale, with amenities such as three rooftop decks, two swimming pools, two private lounges, two full size gymnasiums, a movie theater, an elevated dog-walking park and a banquet room complete with a catering kitchen. The development will also feature 65,000 square feet of retail area and 550 parking spaces.

According to a report by The Times-Picayune, Praveen Kailas of Kailas Cos., one of the largest owners and operators of commercial real estate in Louisiana, hopes to break ground on the project in 2013 and finish sometime in 2015. Leasing has already started, but rental rates have yet to be announced.

The 190-story building has a price tag of around $70 million. Kailas has said there is strong interest for the commercial element of the project from both local and national brands.

Though well above the neighborhood’s 70-foot height limit, the project was approved after the residential element was scaled back from the initially planned 307 apartments, while parking was increased from 486 spaces to 550 and the commercial surface almost doubled from the initially planned 38,000 square feet to 65,000. Though French Quarter preservationists disapproved the 190-feet height and tried to push a 120-foot limit, pressure from neighboring residents and businesses, as well as Kailas, tipped the scale in favor of the developer. Neighboring businesses and residents expect a commercial rebirth of the area with the development, which according to some sources would have an economic impact of around $200 million. Kailas cited the inability to line up financing for a much smaller-scale project, as it would not be economically feasible.

Architect Hank Smith is reportedly responsible for the design-development drawing of the property.

Photo courtesy of 1031 Canal Street

Chart courtesy of Larry G. Shedler & Associates, Inc.