News Summary
Four multifamily properties totaling 1,512 units in East New Orleans are up for sale after the bankruptcy of Crown Capital. With significant damage from Hurricane Ida and poor management, these properties represent a critical need for housing solutions in an area already facing shortages. Current occupancy rates are low, with many units offline. The sale could provide an opportunity for new ownership to revitalize the local housing landscape as offers are due soon.
New Orleans – Four multifamily properties totaling 1,512 units in East New Orleans are now on the market following the bankruptcy proceedings of their former owner, Crown Capital. This sale represents a significant portion, one-third, of the local housing stock in an area already facing a housing shortage.
The properties were previously owned by Moshe Silber, a principal at Crown Capital, who has recently been sentenced to 30 months in prison for conspiracy to commit wire fraud involving a financial institution. The current state of these properties has been severely compromised, as 412 of the units are currently offline due to a combination of neglect and damage from Hurricane Ida, which struck the region in 2021.
According to reports, significant capital investment, necessary for maintaining these properties, was not reinvested by the previous management. Steven Landgraber, a senior managing director at IslandDundon, noted that many units have remained in poor condition for an extended period. Although roofs were replaced post-Hurricane Ida, extensive interior renovations are still needed to bring the units back to a livable condition.
The sale process is being managed by Cushman & Wakefield alongside Larry G. Schedler & Associates, representing a court-appointed ownership entity tasked with overseeing the bankruptcy case. The four properties may be sold individually or as a complete portfolio, with prospective buyers required to submit their offers by September 10. There is currently no established sale price, which may allow for flexibility in negotiations with potential buyers.
Current occupancy rates across the properties vary, with three out of four experiencing rates in the upper 40% to low 50% range and one property nearing only 20% occupancy. These figures reflect the significant challenges the properties face concerning tenant attraction and retention in their current state.
Located within a 3-mile radius along Interstate 10 in the East New Orleans Opportunity Zone, these properties are critical to addressing the housing deficit in the area. The region lost nearly 4,000 housing units after Hurricane Katrina, increasing the importance of revitalizing these multifamily properties. The existing housing shortage in metro New Orleans enhances the potential attractiveness for buyers, especially those experienced in property renovation.
Notably, all properties in the portfolio include washer-dryer connections, positioning them as suitable options for workforce housing. This feature may further entice buyers who are looking to tap into the market for affordable rental units. There has already been interest from private buyers, with an anticipated demand for enhancements and improvements that could markedly benefit the area.
Ultimately, the overall condition of these multifamily assets has suffered due to a lack of effective management and capital investment under the previous ownership. The impending sale serves as an opportunity for new owners to rejuvenate these properties, potentially transforming not only their conditions but also the community’s housing landscape.
As the deadline for offers approaches, the interest in these properties underscores the critical need for affordable housing solutions in the post-Hurricane Katrina environment of New Orleans. The successful sale of the properties could lead to significant improvements in the living conditions and availability of housing in this vital area.
Deeper Dive: News & Info About This Topic
HERE Resources
New Orleans Affordable Housing Investment Announcement
Additional Resources
- Multifamily Dive: Crown Capital Bankruptcy
- Wikipedia: Housing in the United States
- Biz New Orleans: Sale of The Local on Severn
- Google Search: Affordable Housing in New Orleans
- Multifamily Dive: Affordable Housing Transactions
- Google Scholar: Multifamily Housing New Orleans
- Business Report: Commercial Property of the Week
- Encyclopedia Britannica: New Orleans Housing
- NOLA: New Orleans East Couple Battle Blight
- Google News: Apartment Vacancy in New Orleans
