South Market’s $40M The Beacon Secures Financing, Begins Preleasing
- Dec 01, 2014
By Eliza Theiss, Associated Editor
New Orleans- and New York-based The Domain Cos. has secured financing for The Beacon, the $40 million third phase of the $250 million South Market District, the transformative mixed-use development underway in downtown New Orleans. Pre-leasing has also been kicked off for the 20,000 square feet of retail space that will be available at The Beacon.
Primary funding for the 126-unit asset was secured from Capital One Bank through a $28.4 million construction/permanent loan. While this is the first South Market project to receive funding from Capital One Bank, The Beacon is Domain’s third New Orleans project to secure equity from the banking institution. Domain also secured $4.5 million in bridge loan financing from Iberia Bank, which provided the initial acquisition financing for South Market’s sites. The Beacon will also benefit from a 12-year PILOT deal from the New Orleans Industrial Development Board.
With The Park boasting full occupancy and The Paramount more than 90 percent leased, as previously reported, retail space in The Beacon will most likely be snapped up quickly by businesses interested in a downtown clientele. While The Paramount focused on food and beverage retailers, The Beacon will target fashion apparel and home décor retailers. Retail leasing and consulting services are provided by Atlanta-based Terremark Partners.
The Beacon will feature 126 Class A apartments and amenities such as a state-of-the-art fitness center, resident lounge complete with chef’s kitchen and media center, concierge and valet service, and complimentary Wi-Fi throughout. Residents will also have access to South Market amenities such as bike and car sharing programs and electric car charging stations.
Designed by Eskew+Dumez+Ripple, the seven-story building will also feature a 4,350-square-foot landscaped courtyard situated at the center of the building on Girod Street. The courtyard will start at street level and slope up to a second-floor courtyard via a string of stepped landings with seating. The Beacon’s exterior, a mix of masonry and metal panels, offers a new take on the area’s warehouse and commercial architecture, without stepping out of context.
Expected to be completed in January 2016, The Beacon will connect to The South Market’s fourth building, which will kick off construction in late 2015.
Click here for further New Orleans market data.
Renderings courtesy of The Domain Cos.