A group of local investors led by businessman David Schonberg has purchased the five-story office building at 110 Veterans Blvd. in Metairie that, for decades, was home to Stewart Enterprises, and is planning to upgrade the 52-year-old low-rise in hopes of attracting new tenants.
Schonberg’s group bought the building on Nov. 20 from Rault Resources Group, which had owned it since 2000. A sale price was not disclosed, and the building was not being listed for sale at the time of the purchase so did not have a publicly available asking price.
According to the Jefferson Parish assessor’s website, the building and its parking lot were most recently valued at $13 million.
The purchase comes as the office market, both locally and nationwide, continues to struggle from the hybrid work habits that were normalized during the COVID-19 pandemic. But experts say Metairie office buildings remain among the most desirable in the New Orleans metro area and continue to attract tenants.
The average occupancy rate for Metairie office buildings was 85% in 2023, compared to less than 80% in downtown New Orleans, according to Corporate Realty. The occupancy at 110 Veterans is just below 80%.
Schonberg could not be reached for comment and his partners declined to comment. But in a prepared statement Schonberg said, “I am confident our tenants and the Jefferson Parish East Bank business community will benefit from this acquisition.”
‘No shortage of ideas’
Schonberg is the owner of a Metairie-based elder care business that owns and operates assisted living and memory care facilities in Louisiana and Mississippi.
His partners in the building include several veteran real estate investors. They are: Ryan Gootee, CEO of Ryan Gootee General Contractors; Michael DeGruy, president of Ryan Gootee General Contractors; Michael Henican, Managing Partner of Henican Properties; Shaun McCarthy, principle of McCarthy Group Realtors; and, Richard Roth, managing member of Roth Law Firm and a tax credit attorney.
The building, located at the end of Veterans next to the 17th Street Canal, dates to 1972, when a then-young Frank Stewart developed it and made it the corporate headquarters of his Stewart Enterprises. Over the next three decades, he would grow Stewart Enterprises into the largest death care company in the country.
In 2000, Stewart sold the building to Rault. For several years in the 2000s, it was anchored by Eustis Insurance. But that company was purchased in 2018 and subsequently moved out. Currently the building doesn’t have an anchor tenant.
The group has tapped Stirling to manage and lease the 127,000-square-foot building, which has a has a first-floor cafe, 24-hour access and reserved parking.
At 52 years old, the building is eligible for historic building tax credits, which the new owners could use to renovate or upgrade the property.
In a prepared statement, Henican said the group has “no shortage of ideas” about future upgrades but that, for now, the priority is to focus on building a strong foundation for maintenance and daily operations.
“We want to ensure that any future improvements align with what existing and future tenants truly need and value,” he said.