NEW ORLEANS (WVUE) – The One Canal Place office tower in Downtown New Orleans has been sold to Skysoar Capital Partners, a New York-based investment group, officials confirmed Tuesday (March 31).<\/p>\n
\u201cYes, One Canal Place has been sold to new owners — Skysoar Capital Partners,\u201d the Downtown Development District said in a statement. \u201cNo official building plans have been announced, but Corporate Reality has said the new ownership has selected them for management and leasing and has additional improvement plans. <\/p>\n
\u201cThis investment reflects continued confidence in Downtown New Orleans and the Canal Street corridor. One Canal Place is a key anchor at the intersection of the Central Business District and the French Quarter, and ongoing investment in the property supports the area\u2019s long-term vitality, occupancy and economic activity.\u201d<\/p>\n
Seth Knudson, president and CEO of the Downtown Development District, said, \u201cThis is really the first time in the post-pandemic era that we\u2019ve seen that kind of inflow of capital from outside the local and regional market into our office, Class A office towers.\u201d<\/p>\n
Knudson said the mostly leased Class A tower is expected to remain office space for now.<\/p>\n
He said the DDD was not involved in the sale talks, but has been working with the mall side on filling the former Saks Fifth Avenue space. The retailer announced in February that it was pulling out of its anchor spot in The Shops at Canal Place by the end of April.<\/p>\n
Saks Fifth Avenue to close Canal Place store after decades<\/a><\/p>\n New Orleans office space goes for an average of $25 per square foot, compared to $50 per square foot in cities such as Miami, Knudson said.<\/p>\n \u201cWe have really outstanding occupancy on both the residential and retail side, both in the mid-90 (percents). \u2026 Our office occupancy as a whole is around 88 percent,\u201d Knudson said.<\/p>\n The DDD says vacancy and blight remain a focus, with a new survey now underway to get a clearer picture of which buildings are sitting empty.<\/p>\n Michael Hecht, president and CEO of Greater New Orleans Inc., said, \u201cThe sale of One Canal Place is a vote of confidence in Downtown New Orleans. When billionaire investors put capital into Class A office space in the heart of our city, it signals that New Orleans is on the radar of sophisticated commercial real estate players who see long-term value here.<\/p>\n \u201cGNO, Inc. looks forward to supporting the new ownership as they build on the building\u2019s legacy that has made it one of the premier locations in the Gulf South.\u201d<\/p>\n See a spelling or grammar error in our story? Click Here<\/a> to report it. Please include the headline.<\/p>\n