On this downtown New Orleans corner, a second high-rise is now falling into disrepair

Two Lafayette businessmen bought the former Archdiocese of New Orleans office building on Howard Avenue in 2022 with plans to convert the mid-century midrise to a hotel or short-term rental complex.

But 18 months later, those plans have stalled and the city has slapped the new owners with nearly a dozen code violations for allowing the 12-story building to deteriorate.

A city code enforcer on May 29 issued 11 violations. They include allegations of unkempt weeds and plant growth and problems with sanitation, grading, exhaust vents and accessory structures. The enforcer also found alleged issues with fences and walls, exterior walls, stairways, windows, doors, and boarded up doors and windows, according to the city website Onestop.

The city declined to comment.  A hearing on the matter is set for June 24.

The property at 1000 Howard Avenue joins The Plaza Tower — its more prominent neighbor directly across the street — as the latest troubled building on the edge of downtown at a time when the city is trying to clean up the Central Business District ahead of the Super Bowl next year.

Sam Mohd and Rohan Dawra, who purchased building in November 2022, declined to comment on the recent citations or why their hospitality project went off the rails. But some members of the local real estate industry aren’t surprised the project ran into trouble, given the high costs of borrowing money and converting old buildings into new uses.

“We’re kind of in that mode where it is not feasible to develop or redevelop much, even if you can get tax credits,” said Bush Benton, a local commercial real-estate appraiser with Stegall, Benton, Melancon and Associates. “It is a challenge with high interest rates and construction costs.”

Weeds and trash

Built in 1962, the building was first home to an insurance company and once held a large branch of the old First National Bank of Commerce. In more recent decades, it housed Catholic Charities and other offices of the local Roman Catholic archdiocese.

But when the nation’s second-oldest diocese filed for bankruptcy court protection in 2020 amid mounting claims of child sex abuse by local clergy, the building — which had closed during the pandemic and never fully reopened — was among the first properties listed for sale.

Mohd and Dawra bought the building and its attached parking garage, which total more than 115,000 square feet, for $8.3 million or about $106 per foot. According to documents filed with the city, plans called for converting the building to a 195-room hotel.

Interior demolition got underway in early 2023 but by last summer the hotel was looking less certain. At the time, Mohd said the partners were reconsidering their options and might sell the building as a “vanilla box.”

In the months since, work has stalled. A construction hoist stands in front of the building, which is surrounded by fencing. Windows are boarded up with plywood and debris and trash are scattered about the site. A man was sleeping at the foot of the shaded entrance to the building Monday afternoon.

In a prepared statement, the Downtown Development District said it is working with the city to provide stepped up code enforcement and hold property owners accountable.

“We believe code enforcement is a valuable tool we have in our tool box to spur development and redevelopment activity, which, Howard Avenue is in prime position for,” DDD spokesperson Ashley Mills said.

It is unclear how much Mohd and Dawra could be potentially be fined.

Fits and starts

The property is a setback for the Howard Avenue corridor. In recent years, there have been hopeful signs things were turning around for the stretch of commercial properties that connects St. Charles Avenue to Loyola Avenue near the Union Passenger Terminal.

In 2021, the Museum of Southern Jewish Experience opened in the 800 block of Howard Avenue in a newly renovated building acquired by New York real estate developer Jeffrey Feil.

In October 2022, an entity owned by Miami-based Southern Glazer’s Wine and Spirits acquired the three-story iHeart Media building in the 900 block of Howard Avenue, though plans to redevelop the property appear on hold.

Then there’s the 45-story Plaza Tower, which remains in limbo after Mayor LaToya Cantrell’s administration said recently the $27 million cost to demolish the blighted high rise is too expensive for the city to fund.

Instead, the city continues to try to work toward a solution with developer Joe Jaeger, who has owned the building for years.

Benton said there is still reason to be hopeful about the long-term future of the area, and points to the nearby South Market District as an example of new growth.

But he said the current economic climate is making all commercial redevelopment difficult. 

“And the Plaza Tower definitely doesn’t help,” he said.