HRI Properties LLC in New Orleans is getting up to $150 million of growth capital from affiliates of Almanac Realty Investors LLC.
HRI said it will use the funds to acquire, redevelop and develop mixed-use projects, consisting of apartments and hotels within the urban core of top 25 metropolitan areas.
The funds also provide HRI with the flexibility to enter into joint ventures with other institutional partners and property owners.
Founded in 1982, HRI is a national developer that specializes in the reuse of historic buildings. The company is led by Pres Kabacoff, Eddie Boettner and Tom Leonhard.
“HRI’s unique in-house capabilities of developing and operating hotels and apartments nationwide represented a compelling opportunity for Almanac,” said Leonhard, HRI’s president and chief operating officer. “The projects that HRI creates fit well with Almanac’s investment criteria, particularly our work in urban centers and our ability to adapt and reuse historic buildings.”
HRI will primarily focus on historic buildings that leverage the use of federal and state government incentive programs such as Historic and New Markets Tax Credits.
The Almanac investment helps increase HRI’s prospects for becoming a publicly traded company, which is part of the company leadership’s long-range plans.
“When outside investors of Almanac’s status begin to make large investments in a local company, this is further proof that New Orleans has reached the inflection point,” said Michael Hecht, president and CEO of Greater New Orleans Inc. “Considering all the rebuilding energy and rapid growth in the New Orleans area, there is no reason why we shouldn’t have a publicly traded real estate company here. I think that HRI is well on its way to becoming our first.” HRI currently has five projects under construction in Louisiana, Virginia and Texas, with total development costs of $285 million, representing 702 apartment units and 359 hotel rooms.
Justin Hakimian, managing director of Almanac, said HRI has distinguished itself in “re-imagining and re-energizing downtown areas across the country” and has played a role in New Orleans’ comeback from hurricanes Katrina and Rita.
- The redevelopment of a 550,000-square-foot historic building in the CBD/French Quarter submarket of New Orleans into 192 apartments, a 188-room Starwood Aloft hotel and a 356-space public parking garage.
- The upgrade of a historic warehouse structure in the French Quarter to create the Holmes Apartments Project, featuring 97 luxury apartments with ground-floor retail.
- The redevelopment of the former Iberville Housing Development in New Orleans to create 227 units of mixed-income housing adjacent to the French Quarter.
- The redevelopment of a 500,000-square-foot historic building in downtown Dallas into 186 apartments, a 171-room Hilton Garden Inn and 350 parking spots.
- The conversion of a 500,000-square-foot former department store in Richmond, Virginia, into the Miller & Rhoads mixed-use project — a 250-room Hilton Hotel and 133 apartments with ground-level retail.