NEW ORLEANS, LA | Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has completed the sale of Fountainebleau Self Storage & Apartments in New Orleans, Louisiana. The property features approximately 602 storage units, 100 apartment units, 85 music studios, three cell towers and a Burger King ground lease.The LeClaire Group consisting of Chico LeClaire, Senior Vice President Investments, and Adam Schlosser, Vice President Investments both of Marcus & Millichap’s Denver office represented the seller and procured the buyer. The broker of record in Louisiana is William M. Hoffpauir.
“The complexity of the property created unique challenges and opportunities”, says Schlosser, “We had to find a buyer savvy enough to understand and manage the diversity of the many revenue streams and gritty enough to put the work in to realize the upside.”
This mixed use multi-story development located in the heart of New Orleans was originally built as the Fontainebleau Motor Hotel in 1966. Nearly 27 years later in 1993, the property was redeveloped to its current mixed use state. The property features primarily indoor climate controlled units with elevator access, security cameras, digital gate access, an onsite manager’s office and automated magnetizing security gates. The top three stories of the self storage building house 85 music studios that average approximately 500 square feet.
There is a four-story apartment building that features 100 one-bedroom, one-bath apartments that average approximately 600 square feet. Amenities include private patios and balconies with downtown views, 24-hour video surveillance, perimeter fencing and a laundry room.
“This was a great opportunity to acquire a multi-purpose property with tremendous upside for the right buyer”, said LeClaire. “The seller was exiting the market and the property had lost some of its luster over the past several years.”