42 minute read
GUEST
In a Good Place
In conversations with some fellow Realtors, I uncovered how population trends favor our industry for the foreseeable future and found that Realtors are many times the quiet leaders in our community.
BY ROBERT K. H. STEVENS
WHILE THE THEME OF THE 2021 ECONOMIC & Real Estate Forecast Symposium this month (Oct. 19 and 20) is “Rethinking Real Estate, Adapting to the Changing Dynamic in New Orleans and Louisiana,” I suggest we not rethink too hard as we have seen a single-family residential market at demand levels not ever experienced in my lifetime, while commercially we have recently experienced a similar trend for smaller office and office warehouse properties.
A colleague of mine, Doug Bernard, a broker at REMAX Alliance, shared some great thoughts with me recently relating to our current demographics.
“First, the Baby Boomers who are now between the ages of 57 and 76 have hit or are reaching retirement age,” he said. “In fact, as of 2020 there are now 20 million more people over age 60 than in 2017. As such, it can be anticipated that their homes will be coming on the market, providing much needed inventory for the younger generation. As Baby Boomers become sellers, they will also become buyers, in many cases downsizing. By doing so they both relieve inventory shortages on one hand while putting pressure on supply on the other.”
Another group that represents a strong buying demographic are millennials — who are currently recognized as those between the ages of 29 and 40.
“Most people buy their first home in their 20s or 30s, and millennials as a generational group are now as large as the Baby Boomers were in 1984,” said Bernard. “In fact, there are currently 4.5 million more people between the ages of 30 and 39 than in 2010. This reality, coupled with Baby Boomers transition into retirement,
Robert K. H. Stevens
founded The Stevens Realty Group, Inc., in August 1994. The company is headquartered in Metairie and offers brokerage — both leasing and sales — property management and consulting services on commercial and investment real estate. He is a past president of the NOMAR CID and still serves on the CID Fall Forecast and Service to the Community committees. He has been in the real estate industry since 1978 and his approach is as a fiduciary with his clients. should result in increasing home sales well into this decade and continuing into the 2020s.”
But where to settle down? Another colleague of mine, Sheldon Harris of Turner Properties, is quick to express his passion for Kenner Rivertown and New Orleans East.
“Sometimes being lost in the shuffle while located on the outskirts of New Orleans provides much promise, especially if you will be actively involved with the community,” he said. “Akin to residents and city officials of Kenner and New Orleans, I see the potential for exponential growth and development in these communities.
“In November 2018, my wife and I purchased a clinic building in Rivertown — Family First Medical & Wellness Clinic — which she operates as a private practice primary care clinic. The surrounding area has many underserved patients but few primary health facilities. She is honored to provide superior medical care in her hometown of Kenner. In May 2021, we also purchased an event hall with business partners on Martin Drive in New Orleans East. We are in the process of renovating the property and will open as The Venetian Venue in January 2022. Our focus Is not only to bring a premier event space to New Orleans East, but to also engage the community through outreach programs and community events. I invested in these communities to put my fingerprints on them and be a part of rebuilding the infrastructure, attracting businesses and increasing both resident and community morale.”
Another colleague, Bryan Burns, a broker at Transwestern Properties, has found his passion project on the Northshore, where in 2017 he founded a faith-based, nonprofit organization called West 30’s Redemption Company (W30RC) with the goal of serving lower-income families with good-quality
affordable housing in the West 30’s, a historic neighborhood adjacent to downtown Covington.
“Demographically, the West 30’s is similar to New Orleans communities such as the 9th Ward and the 7th Ward,” explained Burns. “This 82-city block community has 350 houses, 300 vacant lots and 1,200 residents, many of whom have suffered from multigenerational poverty. Fifty-five percent of the houses are rentals and one-fourth of those are in significantly sub-standard condition.
Through W30RC, Burns is on track to serve 40 lower-income families with newly built or newly renovated houses by the end of 2021. “We employ a unique, 100% debt funding approach for our houses, which range from $90,000 to $150,000 with an average size of 1,100 square feet.
How is this venture funded?
“Each house is supported by a faith partner church and a business partner,” said Burns. “We’ve partnered with 18 churches, 13 community banks, 12 businesses and 25 individuals who have provided supporter loans totaling $550,000.”
And then of course there’s New Orleans, the love of which inspired another colleague of mine to become a Realtor.
“Why New Orleans?” is a question I have been asked many times since I moved here nearly a decade ago,” said Paige Devries, a realtor with TCK Property Marketplace. “The more interesting question is: Why have I, or anyone who moved here, decided to stay and make a life in New Orleans?
“The reason I love and cherish this city is because of the community I found here. In my first year here, I met my partner, who was born and raised in the 7th Ward. His friends, neighborhood and family became my friends, neighborhood and family. This tight knit group of people helped me realize that New Orleans’ greatest attribute is not a physical thing, it is its people and the unique and unpretentious way they communicate, celebrate and mourn together.”
This sense of community is not just the reason Devries stayed in this city, it is also the reason she became a Realtor.
“In becoming a Realtor, I was hoping to acquire skills to help the people in my community stay in the community that they grew up in, provide information about first-time home buying and establish generational wealth. This goal motivates me and is also a way I participate and contribute to the people and place that has already given me so much.” n
BY BIZ STAFF PORTRAITS BY GREG MILES DATA COURTESY 2020 ANNUAL REPORT FOR GULF SOUTH REAL ESTATE INFORMATION NETWORK, INC.
eEIGHTEEN MONTHS into the pandemic, we’re still seeing a residential real estate market that’s breaking records on many fronts. Interest rates remain at historic lows, but so does inventory — resulting in a marketplace where sellers are calling the shots and buyers are left scrambling to find a home and are often stuck in bidding wars. Affordable housing — already a major issue before the pandemic struck — has become even more of a critical need. On the commercial side, construction remains busy, especially in the healthcare industry, but construction on both the commercial and residential sides continues to be affected by higher supply costs and struggles to find and secure materials. If all of this wasn’t enough to contend with, the destruction and disruption of Hurricane Ida on the 16th anniversary of Hurricane Katrina is expected to exacerbate both supply chain and housing inventory issues. It’s no doubt a challenging time for the construction and real estate industries, which is why TOP REAL ESTATE we are especially grateful this year to have 10 top industry professionals share with us not only how they’re facing they’re biggest challenges right now, but what excites them most about the future. There are always bright spots to be found and opportunities to be embraced. May we continue to do both into 2022. INFLUENCERS
REAL ESTATE INFLUENCERS
2020 METRO HOME SALES
Pending sales increased 10.5 percent from 2019, closing 2020 at 16,268. Closed sales were up 7.1 percent to finish the year at 15,537. Total inventory of homes for sale was down 44.3%, with 2,590 active listings at the end of 2020. New listings decreased by 8.1 percent to finish 2020 at 19,697.
PENDING SALES
13,636 (+1.0%) 13,661 (+0.2%) 14.164 (+3.7%) 14,723 (+3.9%) 16,268 (+10.5%)
2016 2017 2018 2019 2020
TOP 10 AREAS
CHANGE IN PENDING SALES FROM 2019
70052.........................................+142.9% 70426.........................................+100.0% 70085..........................................+65.9% 70466..........................................+58.3% 70461..........................................+ 49.4% 70431...........................................+48.4% 70053..........................................+44.6% 70129...........................................+43.5% 70444..........................................+35.5% 70062..........................................+35.4%
CLOSED SALES
13,655 (+1.9%) 13,787 (+1.0%) 14,265 (+3.5%) 14,513 (+1.7%) 15,537 (+7.1%)
2016 2017 2018 2019 2020
TOP 10 AREAS
CHANGE IN CLOSED SALES FROM 2019
70426.........................................+128.6% 70052..........................................+62.5% 70041...........................................+50.0% 70075..........................................+50.0% 70053.........................................+ 45.4% 70085..........................................+36.4% 70431............................................+34.1% 70461...........................................+34.0% 70444...........................................+32.3% 70037.......................................... + 31.4%
NEW LISTING
20,295 (-2.2%) 20,626 (+1.6%) 21,546 (+4.5%) 21,426 (-0.6%)
2016 2017 2018 2019 2020
TOP 10 AREAS
CHANGE IN NEW LISTINGS FROM 2019
70041...........................................+50.0% 70052..........................................+50.0% 70112.............................................+18.5% 70080...........................................+15.4% 70125............................................+ 14.7% 70062...........................................+13.4% 70461.............................................+13.2% 70053............................................+11.0% 70075........................................... +10.2% 70129.............................................+10.1%
BOB BERGERON
PRESIDENT CRESCENT TITLE
FORMED IN 2003, Crescent Title, LLC is a full-ser-
fvice real estate title company handling both residential and commercial closings. With six offices across the Greater New Orleans area, and employing nearly 50 associates, it is the largest title company in the area. The company’s attorneys have helped developers create over 125 condominium regimes across the city. Crescent Title’s attorneys take pride in teaching hundreds of hours of continuing education credits to investors and real estate agents each year.
Having rebuilt after Katrina, we know that getting back can be challenging. We also know that a crisis can bring opportunities. While Ida was no Katrina, the cleanup and rebuilding following this storm will bring more people to our city along with money to help in the reconstruction. We anticipate that with continued low interest rates, the housing market will continue to be strong and robust.
One of the major challenges to our industry is the increase in out-of-state real estate closers handling closings in Louisiana with a lack of knowledge of the unique and complex laws and obligations of the closing process. This can adversely affect the integrity of the public records. A second, and continuing challenge, involves wire fraud and the systematic attempt to cause purchasers to wire money to fraudsters.
VP OF BUSINESS DEVELOPMENT // DONAHUEFAVRET CONTRACTORS
BRYAN HODNETT
DONAHUEFAVRET Contractors is a 42-year-old commercial general contractor serving the Gulf South. The company’s team of construction professionals excels at healthcare, hospitality/ mixed-use, assisted living and educational projects. Recently the firm has had a robust backlog of healthcare projects totaling over $100 million, including a new, ground-up cancer center, wellness/sports center and ICU/operating room expansions. The company has also put in place more than 700 beds of skilled nursing/assisted living in the past five years, in addition to more than 1 million square feet of healthcare facilities.
What are you most excited about for the coming
year? Over the years, our firm has become a distinguished general contractor in the region, and as a result we are leading more exciting new large-scale projects across the region. Some of our larger and longterm clients, particularly in healthcare, are in the process of expanding their facilities, so we’re seeing an increase in operations in that sector. Also, with the recent impacts of Hurricane Ida, we’re managing several disaster recovery projects, which gives us an opportunity to further rebuild our communities and make them more resilient.
What is the biggest challenge facing your
industry today? Currently one of the biggest is construction material. From lead times to pricing, some of these challenges include securing lumber, managing volatile pricing, and delayed shipping of specific materials. In times like this, we have found that two things are extremely imperative: aligning yourself with clients and trade partners who are willing to achieve a project’s goals and maintaining transparent communication throughout all phases of a project. For example, our team had a recent project that built out 30 ICU beds due to the ongoing COVID-19 pandemic. The entire project team — including the owner, architect, contractor and subcontractors — pulled together to complete this project 75% faster than under normal circumstances all thanks to a solutions-oriented, collaborative process.
STACIE CARUBBA is a New Orleans-area real estate broker with six years of experience. She is partner and associate broker at Athena Real Estate, a boutique brokerage in the city. Boasting over $40 million in sales, Carubba was recently named in the top 1% of professionals in her field by Marquis’ Who’s Who in America.
What are you most excited about for the
coming year? I’m looking forward to expanding my role within the community during this difficult time right now, in the aftermath of Hurricane Ida and in the midst of the pandemic. Real estate can be emotional and difficult in normal circumstances, and especially challenging in our current situation, so it’s important to me to continue to strengthen and establish deep and meaningful relationships that extend past the deal. As a local with deep roots in the community, I feel that I am more than just a real estate agent for many of my clients.
ASSOCIATE BROKER/PARTNER// ATHENA REAL ESTATE
STACIE CARUBBA
What is the biggest challenge facing your in-
dustry today? The lack of inventory and availability of affordable housing is a huge challenge facing the industry. With interest rates at a historic low in the spring, the housing market was flooded with buyers. Coupled with changing needs and lifestyles due to COVID-19, buyer demand surpassed market supply and many listings were getting scooped up within hours of hitting the market, in most cases with multiple offers over asking price. Because of the competitive nature of the market, many properties and neighborhoods became unattainable for buyers. I think the lack of inventory will continue to be an issue for the foreseeable future in the New Orleans metro area, especially since so many homes were damaged or destroyed due to Hurricane Ida as many families are displaced and looking for housing.
PROPERTY TYPE
As demand for single family increased, do did pricing, climbing 8.6% in just one year. As condo/ townhouse demand flattened, pricing decreased in the same time period by 8.8%
DAYS ON MARKET UNTIL SALE
This chart uses a rolling 12-month average for each data point.
SINGLE FAMILY CONDO/TOWNHOUSE
75
70
65
60
55
1-2016 7-2016 1-2017 7-2017 1-2018 7-2018 1-2019 7-2019 1-2020 7-2020
56
Average Days on Market Single Family
74
Average Days on Market Condo/Townhouse
KATHY LABORDE
PRESIDENT GCHP (GULF COAST HOUSING PARTNERSHIP)
gGCHP IS A MISSION-BASED regional real estate development company based in New Orleans that focuses on the production of affordable and mixed-income communities and complementary commercial and community space. GCHP was established in 2006 when the devastation caused by Hurricane Katrina exposed the lack of affordable housing options in the Gulf Coast. Since then, the company has worked with 51 partners in 13 communities to develop or preserve more than 3,600 affordable homes and over 400,000 square feet of commercial facilities in Alabama, Louisiana, Mississippi and Texas.
We are excited about the continued advancement of our healthcare and housing work that combines affordable housing with accessible healthcare and applying lessons learned from our resiliency demonstration venture in Lockport. We have a great team, we are passionate about what we do and we are excited about expanding our work throughout the region.
It seems that the cost to construct and insure our developments is a forever challenge! Building the multilayered capital stack required to put units on the ground can take years, and it often feels like we are chasing our tails. Simply put, we need more resources to respond to the needs of the people we serve.
HOME PRICES
Home prices continued to rise in 2020 with the biggest change from 2019 to 2020 in average sales price found in Buras in Plaquemines Parish (70041) and New Orleans’ Storyville neighborhood (70112). The overall median sales price in the metro increased 7.1% in 2020 to $235,000. Sellers received, on average, 97.5 % of their original list price at sale in 2020, a year-over-year improvement of 0.3%.
MEDIAN SALES PRICE
$188,625 (+3.1%) $199,900 (+6.0%) $209,000 (+4.6%) $219,400 (+5.0%) $235,000 (+7.1%)
2016 2017 2018 2019 2020
TOP 10 AREAS
CHANGE IN MEDIAN SALES PRICE FROM 2019
70426..........................................+121.5% 70041...........................................+121.4% 70071...........................................+96.4% 70456..........................................+65.0% 70450..........................................+40.3% 70422..........................................+39.0% 70036...........................................+37.8% 70114............................................+36.6% 70031........................................... +32.8% 70057............................................+31.2%
AVERAGE SALES PRICE
$239,314 (+2.9%) $248,582 (+3.9%) $261,508 (+5.2%) $268,664 (+2.7%) $292,967 (+9.0%)
2016 2017 2018 2019 2020
TOP 10 AREAS
CHANGE IN AVERAGE SALES PRICE FROM 2019
70041...........................................+82.6% 70112............................................+60.9% 70426..........................................+53.8% 70071............................................+52.7% 70031...........................................+43.3% 70450..........................................+34.8% 70456...........................................+34.1% 70422...........................................+33.2% 70427.......................................... +32.8% 70036..........................................+29.9%
PERCENT OF LIST PRICE RECEIVED
96.8% (0.0%) 96.9% (+0.1%) 96.8% (-0.1%) 97.2% (+0.4%)( 97.5% (+0.3%)
2016 2017 2018 2019 2020
TOP 10 AREAS
CHANGE IN PERCENT OF LIST PRICE RECEIVED FROM 2019
70036...........................................+10.3% 70456.............................................+6.3% 70071..............................................+5.8% 70041..............................................+4.6% 70031..............................................+3.9% 70080.............................................+3.7% 70466.............................................+2.7% 70087.............................................+2.5% 70431..............................................+2.3% 70427..............................................+1.8%
CARLY PLOTKIN
COMMERCIAL ADVISOR STIRLING PROPERTIES
sSTIRLING PROPERTIES is one of the most comprehensive, full-service commercial real estate companies in the country, specializing in advisory services, brokerage, asset and property management, development and redevelopment and investments over a wide array of property types. As a commercial advisor, Carly Plotkin’s primary focus is on tenant and landlord representation, with a strong concentration on the retail and hospitality markets. She has worked with national, regional and local clients in marketing, leasing and sales capacities on projects including The Julia at St. Charles, Canal Place and The Garage and was on the team that brought new-to-market national and regional tenants like True Food Kitchen to New Orleans and Citizens Bank to Metairie.
I think we will see a renewed sense of hope and desire to support our local communities and businesses more so than ever before. Every new business opening is a mark of strength coming out of one of the biggest economic and health-related hardships in recent time. I am personally excited to be a part of a retail revitalization in the Gentilly-neighborhood along Chef Menteur Highway, as well as a grocery-anchored, ground-up development on the Northshore. Additionally, helping to represent local operators on expanding their businesses from online or commissary models to their own brick-and-mortar shops is incredibly rewarding.
The continuous setbacks with COVID-related restrictions have been very challenging for all commercial businesses and storefronts. While many have been able to adapt their business model, others are still struggling. Whether a local, regional or national tenant, we as consumers need to continue to support the industry. Physical stores have evolved over the years, and will continue to do so. Our support will ensure they stay around for the long term.
CEO // IRIS DEVELOPMENT
CURTIS DOUCETTE
IRIS DEVELOPMENT is active in new construction and substantial rehabilitation of mixed-income rental communities and affordable home ownership. Though delayed a few months by Hurricane Ida, the company is nearly finished with its Bywater development, which includes the construction of 70 apartments, 10 of which are permanently affordable, and 2,500 square feet of commercial space. Doucette touches every aspect of a project from deal sourcing to operations. He brings particular expertise to complex finance layering strategies, government relations, construction management and operational oversight.
What are you most excited about for the coming
year? I’m super excited about the opportunity to restore the historic Dew Drop Inn in Central City back to its former uses as a music venue, hotel and bar. This former Green Book site that featured performances by the likes of Ray Charles, Little Richard and Etta James, as well as local greats like Irma Thomas, Allen Toussaint and Deacon John, means a lot to the music community, the city, and even our region. People have longed for its reopening for many years. I believe that its revival will bring great joy and a sense of triumph that is much needed in these difficult times.
What is the biggest challenge facing your in-
dustry today? The biggest challenge right now is a confluence of problems brought on by the pandemic and now Hurricane Ida. Construction pricing and resources were already strained. That problem is exacerbated with the mass destruction from Ida in our region and as far away as New York that will leave us all competing for the same resources, which will increase prices and extend the time for recovering damaged properties. Less obviously, companies like ours will suffer the opportunity cost of rebuilding versus taking on new growth opportunities.
CELEBRATING 76 years in business, Gallo Mechanical’s footprint runs from Louisiana (New Orleans, Baton Rouge and Lafayette) to the Florida Gulf Coast and up toward the Carolinas. In the New Orleans region, projects include: The Four Seasons Hotel & Residence, Children’s Hospital, Superdome, New Orleans Convention Center Central Plant and Tulane National Primate Research Center. The company is also at work on Lafayette General Hospital and with Iredell Health in Charlotte, North Carolina.
What are you most excited about for the
coming year? We have seen significant growth across our family of companies. For example, Construction and Service in each of our offices throughout the Southeast has added 100 people since May 1, 2021, and has created incredible opportunities for our team. We are also getting started on several New Orleans projects that include: Charity Hospital
PRESIDENT/CEO // GALLO MECHANICAL
JP HYMEL
Redevelopment, Laitram Northshore Expansion, Audubon Aquarium of the Americas, the Superdome and Xavier University, along with Isle of Capri Casino in Lake Charles, an Amazon facility in Baton Rouge, Tyndall Air Force Base in Florida, and several projects in Raleigh, North Carolina.
What is the biggest challenge facing your
industry today? Some of the challenges we face are price escalation and availability of materials, over which we have no control. We choose to focus on what we can control: recruiting and retaining the best people in the business who, time and time again, regardless of the challenge, will deliver for our clients. During the toughest days of the pandemic, we stayed focused on our values: family, service and performance, knowing that if we continue to provide opportunity through growth and empower our employees, we are staying true to these values and setting up Gallo Mechanical to thrive for many decades to come.
PRICE RANGE
The number of homes sold in the $345,000 or more price range grew 20.3% to 4,171 homes in 2020. Homes sold for $148,999 or less were down 17.1% to 2,689 homes.
DAYS ON MARKET UNTIL SALE BY PRICE
$148,999 OR LESS
$149,000 TO $223,999
$224,000 TO $344,999
$345,000 OR MORE 65
51
60
71
$224,000 TO $344,999
Price Range with the Most Closed Sales
SHARE OF HOMES FOR SALE $345,000 OR MORE
47.5%
45.0Z5
42.5%
40.0%
37.5%
35.0%
1-2017 7-2017 1-2018 7-2018 1-2019 7-2019 1-2020 7-2020
ANNE COMARDA
aAFTER WORKING AS A REALTOR since the mid-1990s, Anne Comarda started her own real estate company with her sister, Joyce Delery, in 2011. The company grew and in 2016 added a partner, Marty Brantley, and the three became the franchise owners of Engel & Voelkers, an international luxury real estate company serving Orleans and Jefferson parishes. Engel & Voelkers has two offices, one on Magazine Street and one on Martin Behrman Avenue. Comarda also serves as this year’s president of the New Orleans Metropolitan Association of Realtors (NOMAR), the voice of real estate for the region. What are you most excited about for the coming year? This year we are introducing a larger MLS (multiple listing service), which encompasses the NOMAR area as well as the Baton Rouge Association, Central Louisiana’s Association, and the Bayou Board of Realtors. The new company, called ROAM, VICE-PRESIDENT AND AN ASSOCIATE BROKER OF ENGEL & VOELKERS NEW ORLEANS AND 2021 PRESIDENT OF THE NEW ORLEANS METROPOLITAN ASSOCIATION OF REALTORS (NOMAR) will bring a greater value with more expansive access to information and more tools to enhance the capabilities of our members at no increase to member cost.
The biggest issue I see in the coming year in real estate in the New Orleans area is inventory. It is a delicate balance between the number of buyers and the available houses. The low interest rates have put more buyers into the market and those looking to move who already have homes are cautious about listing their homes for fear that they won’t find a house to suit their needs. I also see the continued growth of smaller boutique brokerages. Agents want to have more control of their business and get larger percentages of commissions, but they don’t want to give up the atmosphere of camaraderie and the security of having a broker who has their back. More recently, Ida brought somewhat different challenges from Katrina as there was more wind damage than flooding. Inspections and accurate disclosures are essential. Renovations, especially roof age, will now be dated from “Ida.”
BEDROOM COUNT
In 2020, properties with 1 bedroom or less saw the greatest decrease at 0.7% of list price received. The highest percent of original list price received at sale went to properties with 3 bedrooms at 8.9%.
MEDIAN SALES PRICE
2018 2019 2020
$167,575 $185,000 $183,750 $160,000 $168,900 $175,405 $182,000 $190,137 $207,000
1 BEDROOM OR LESS 2 BEDROOMS 3BEDROOMS
PERCENT OF LIST PRICE RECEIVED
This chart uses a rolling 12-month average for each data point.
98%
96%
94%
92%
90%
1-2016 7-2016 1-2017 7-2017 1 BEDROOM OR LESS 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS OR MORE
1-2018 7-2018 1-2019 7-2019 1-2020 7-2020
DAVID HECHT
f
Formwork Design and Development is an integrated real estate development company focused on mixed-use and urban infill projects, primarily in the Greater New Orleans region. Its work includes mixed-use buildings in the French Quarter and Warehouse District, the redevelopment of the former Brown’s Dairy site, and several housing- and hospitality-focused projects.
Formwork is developing a shared workspace in a historic warehouse along the Lafitte Greenway. We conceived this project almost like a hotel, in that we strive to create a unique sense of place and a high level of service. We also recently completed an affordable housing development in partnership with a shared-housing provider. By providing a higher level of service, we’ve removed much of the friction from living with roommates and delivered much-needed housing to our community, without public subsidy.
Cost. We’re getting hit from all sides in a way that increases the price of space, especially housing, and puts downward pressure on investment and innovation.
COVID-19 disrupted the supply chain, caused material cost increases, and led to a general increase in subcontractor costs. A tight labor market, a shortage of skilled workers and the rebuilding demands created by Hurricane Ida further exacerbate this challenge.
Policy also plays a role in in development costs. Given the cost to build, the resources in our region and the demand for additional supply — especially across most sectors of the housing market — supportive policy is critical to the viability of new projects. Measures such as the timely issuances of permits, coordination across agencies and land use policies that encourage housing creation can meaningfully reduce the cost of development.
MAMIE GASPERECZ is proud to continue her tenure as the first female chair of the Vieux Carre Commission, an 85-yearold agency responsible for oversight of the historic preservation of the French Quarter. The VCC was written into the Louisiana State Constitution in 1936 and charged with preserving and protecting the invaluable historic architectural heritage of the French Quarter. The commission advises and guides the process to ensure that the historic fabric of the Quarter is maintained to the highest standards of the National Historic Landmarks District. She is also the current president of the VCC Foundation, a nonprofit organization founded to specifically support and further the preservation efforts of the VCC.
What are you most excited about for the coming
year? In recent years, the foundation has taken on big projects like the Design Guidelines and the Vieux Carre Virtual
CHAIR // VIEUX CARRE COMMISSION (VCC) VP // GULF COAST BANK
MAMIE GASPERECZ
Library (digitizing all the VCC’s paper files to save them from natural disasters and make them more accessible to the public.) This resource was one of the only city websites that was unaffected by the cyber attack and Hurricane Ida. The foundation also works directly with engagement and education of residents, property owners and caretakers. Since the VCC is a city agency that ensures the permitting of new building projects, outreach and education is important work.
What is the biggest challenge facing your industry
today? The 2019 cyber attack on City Hall and COVID protocols drastically changed the manner in which the VCC conducts its public meetings — literally propelling us into the 21st century. Our virtual meetings have ensured the continued engagement of residents, property owners (local and out-of-town), and those who work in the French Quarter, and have allowed us to continue our important work.
The Hits
Just Keep on Comin’
Already beaten down from 18 months of shutdowns, mandates, staffing and supply issues, Hurricane Ida is just the latest hit to Louisiana’s restaurant industry, but optimism still endures.
BY KIM SINGLETARY PHOTOS BY CHERYL GERBER
“Basically, you just want to cry uncle. I think we’ve all had enough already.”
These were the first thoughts of Stan Harris, president and CEO of the Louisiana Restaurant Association (LRA), when asked about how Hurricane Ida has affected Louisiana bar and restaurant owners, a group already severely challenged over the past 18 months by COVID-19.
“I talked to a guy yesterday who told me he’s been forced to close one of his restaurants permanently and just heard from another person on the Northshore that they have to do the same thing,” he said. “For every big restaurant in this state there are 20 small ones that employ maybe 15 people or less and they just don’t have the capacity to adapt as quick to all these changes.”
The LRA represents 4,500 members across the state, including 1,200 in the New Orleans metropolitan area, where the restaurant industry is the largest employer. Harris said member restaurants were already struggling with the shutdowns before mask and vaccine mandates created more obstacles — and then came Hurricane Ida.
“We had talked to [Mayor Cantrell] about [vaccine mandates] in regard to making a mandate for guests, but she decided to make it for staff too,” said Harris. “The fact is, there’s a good amount of people who don’t want to get the vaccine and they can easily just go outside of Orleans Parish and get a restaurant job, and we’ve been seeing that happen, which is hurting Orleans Parish businesses.”
Harris said he also worries that changing mask and vaccine mandates will cause visiting large groups to take their business elsewhere.
“We’ve already lost two large trade shows, one for the chiefs of police and another solar energy show, and I think there’s a real concern among some of these groups that the city could impose additional mandates on them with limited time to prepare,” said Harris, “maybe enough that it would change the way they look at New Orleans and look to one of our competing markets that doesn’t have the same factors.”
The loss of big events is something Frank Gagliano Jr. said is top of mind right now. His family’s business, Frank’s Restaurant, has been serving Italian food on Decatur Street in the French Quarter for 55 years.
“Being located where we are, we live off the big events and festivals Downtown,” said Gagliano. “And I can tell you, after all the shutdowns people were so excited to get back out again that we had the best July I’ve ever seen. But now, with this hurricane, it was like going into the war zone again.”
Gagliano said his restaurant received some damage from Ida but he was able to make the necessary repairs himself, so he felt fortunate to be able to reopen his doors on Sept. 9, nine days after the hurricane hit.
“We were one of the first restaurants to open all the way from Decatur to Esplanade, and then Decatur to Canal,” he said. “All of our three cooks are back, and we got it open. Now we’ve just got to build things back up.”
Another family-owned business with over 80 years in business, Felix’s — one of the oldest oyster bars in New Orleans — said they’ve definitely had staffing struggles throughout the pandemic.
“Being in the French Quarter, we have a lot of competition when it comes to staffing, just in a fiveblock radius, said Tony Saltaformaggio, general manager of one of Felix’s Restaurant Group’s two New Orleans locations. The company also operates a restaurant in Mandeville and in Gulfport, Mississippi, and is set to open another in Pensacola Beach, Florida, in October. After being forced to close the French Quarter restaurant for over six months early in the pandemic, Saltaformaggio said 2021 sales were looking really good.
“We were actually doing 30% over our 2019 sales,” he said. “Employees and guests were returning. But then the vaccine mandates hit, and everything just stopped dead. Suddenly, we had zero guests coming in the door.”
Saltaformaggio said the company quickly moved to offer a $200 bonus — $100 for each shot — to encourage staff to get vaccinated, and it worked for 75 of the restaurant’s 104 employees. Business, however,
he said, didn’t pick up for the next week and a half, and then Hurricane Ida hit and the restaurant was forced to shut down again, this time for a week and four days before opening to limited hours.
“We’re optimistic, though,” he said. “We usually get great crowds for the Saints and LSU games, so we’ll have to see.”
Pike Howard, director of finance and development for Felipe’s Taqueria, another local family-owned business that started 15 years ago and now includes seven restaurants — three in New Orleans — also noted vaccine and mask mandates have created an added struggle.
“Almost every time there is a new restriction, the restaurant industry is a poster child for it,” he said. “It’s really gotten so that the hurricane was almost just another thing for us to contend with.”
While Howard said he feels fortunate that 80% of his staff — which includes approximately 125 people across its three New Orleans locations — are vaccinated (in large part likely due to the fact the company offers $750 bonuses to employees who choose to get fully vaccinated), he still expressed concern over OSHA requirements announced last month mandating that employers of over 100 people show that all employees are either vaccinated or undergoing weekly tests.
Howard said staffing issues were a problem prior to the first mask and vaccine mandates, so the restaurant has also raised wages by about $2 an hour.
Frank Gagliano Jr., owner of Frank’s Restaurant
“Our employment costs have risen by 15 to 20% over the last six months — which in the restaurant world is essentially overnight — and then add to that our commodity costs have also risen by 20 to 30%. That’s a 30 to 40% increase we’ve seen in our two biggest dollar items.”
Securing supplies has been a huge issue for the restaurant, whose menu items are packed with fresh produce and proteins.
“Our main supplier is Performance Food Group out of Houma, and they got hit so hard we can’t get anything from them right now,” said Howard just a week out from the storm. “So, I’ve gone to Restaurant Depot seven or eight times in the last 12 hours just trying to get as much product as I can get my hands on. Chicken has basically been almost impossible to find.”
After being forced to close for a week and a half due to Hurricane Ida, Howard said it was an extra hit to find that all of the food in three of the restaurant’s walk-in freezers had spoiled.
“We tried to give away as much as we could before the storm, but we still took about a $250,000 loss,” he said. “And I’m not expecting anything from anyone at this point, even insurance companies. We’ve done spoilage claims before and the deductibles are so high with a named storm that we don’t come close to meeting them.”
Howard was, however, hopeful that Felipe’s would receive aid from the Restaurant Revitalization Fund, a $28.6 billion national program set up to provide assistance to restaurants, bars and other qualifying businesses impacted by COVID-19.
“I applied,” he said, “but I never heard back.”
According to Harris, it’s an all-too-common scenario.
“We asked for $120 billion for the fund and got $28.6 billion, so we knew there was going to be a large hole from the start,” he said. “For the first 21 days, the money was set aside for veteran and minority- and women-owned businesses and basically the money didn’t even cover that group. Many people who got approved never got funded.”
Among them is a local woman-owned business, Happy Raptor Distilling. Co-owner Meagen Moreland-Taliancich said the company was approved and were counting on the money.
“We opened just before COVID-19 hit, so we’ve been basically battling since day one,” she said. “And that money, it would have solidified our ability to keep going. Now, instead, especially with this hurricane adding to things, we have had to really go into crisis mode. We’re definitely taking things one day at a time.”
Harris said the LRA is currently hard at work trying to get companies like Happy Raptor Distilling and Felipe’s Taqueria the money they need, and in many cases, were already promised.
“We have been working on the Entrée Act, which is a couple of bipartisan bills that seek to take $45 billion that’s already been appropriated for COVID relief and use that to get everyone funded who has already applied for the RRF and is qualified,” he said. “We’re not asking for more money, we’re just asking to use what’s already there.”
Harris said the key now is to build up as many co-sponsors to the act as possible.
“We’ve got [Sen. Bill] Cassidy and [Sen. Steve] Scalise and [Rep. Troy] Carter, who have all signed on,” he said, “but we’re going to have to build a bigger tent. The hope is that the bills could be up at the end of this year.”
Harris noted, however, that even with all the struggles and uncertainty that have slammed the industry over the last 18 months, restaurants continue to give back to the community.
“You see them out there, cooking for the people who need it most, because that’s just what they do,” he said. “If you think about it, the restaurant industry is an essential part of our philanthropic community. There is no charitable event in which they don’t participate.”
Even as it struggles to hold on each day, for example, Happy Raptor Distilling helped feed approximately 160 people in its neighborhood over Labor Day, and they are far from alone. After the hurricane, social media was packed with announcements of area restaurants out providing food.
Among those restaurants determined to give back is the Mosquito Supper Club, a farm-to-table offering on Dryades Street in Uptown run by owner and founder Melissa Martin. The restaurant specializes in the kind of Cajun food Martin said she grew up on in Terrebonne Parish. She said seeing her home so devastated after Hurricane Ida, she knew she had to do whatever she could to help.
So, Martin — along with her brother and two sisters (three of her five siblings) — began strategizing and making lots of phone calls.
“We started a Go Fund Me called BayouFund.org in partnership with friends from Chauvin and the Helio Foundation with the goal of getting money directly into the hands of the people who need it,” she said. “We’ve got people there, on the ground, making lists of what’s needed and then we go and hand out cash. We’re also providing ice, water and gas and cooking up hot meals.”
Martin said she’s been focusing on getting big brands that have long benefited from and promoted their ties with bayou communities, including Yeti, Salt Life and Community Coffee. She added that local companies have also stepped up.
“French Truck Coffee just gave us $10,000 yesterday,” she said.
As of Sept. 14, the fund had over 3,500 donors and had reached $371,706 of its $400,000 goal.
“These are people who are sleeping in tents outside their homes because they will not leave their home,” she said. “In the restaurant industry we’ve all been in the hell fire for the last 18 months but so many of us get so much from the bayou, including our seafood, and it just feels right to recognize that and give back.”
Martin added that while her restaurant has had a lot of staffing and turnover issues during the pandemic, she is one owner that is grateful for the mask and vaccine mandates.
“We’ve definitely lost some staff because they didn’t want to get vaccinated,” she said. “But the thing is, I don’t want to work with anyone who is not vaccinated or be around anyone who isn’t, so I thank God the government is doing this.”
Even in the face of so many challenges, the message from many restaurant owners is, maybe surprisingly, still one of optimism. In the ultimate act of optimism, there are some owners that are even expanding right now. Among those is Magasin Café owner Kim Nguyen. Nguyen opened Magazine Street’s first Vietnamese restaurant 12 years ago and has since expanded, opening Magasin Kitchen in Downtown in 2016 and a restaurant in Oklahoma in 2018. Her latest offering, Mukbang, aims to bring a Vietnamese take on Cajun seafood to Oak Street.
“We were supposed to open the beginning of September, but obviously the hurricane changed all that,” she said. As of Sept. 10, Nguyen said she was waiting on electrical work that needed to be done at the new restaurant and dealing with spoilage issues both at Mukbang and her other two New Orleans restaurants.
Not only is Mukbang a new concept for Nguyen, it’s also her largest restaurant to-date — by far.
“We’re taking over the space that was formerly Chiba and, at 3,500 square feet, it’s easily double the size of our other restaurants, so we’ll see how it goes,” she said. “We’re hoping to open the end of September.”
If there’s one word you could use to describe Louisiana’s restaurant industry it would be resilient, but Harris said it’s a word that’s started to really irritate him.
“It’s hard to keep being resilient when you’re paddling against the current all the time,” he said. “But we do stretch better than any other community I know of.”
Howard agrees.
“As a group I know we’re just going to figure this all out,” he said. “We’re in this ever-changing landscape right now that requires so much planning and energy and all we want to do is what we love — feeding people.”n
Senior Solutions
From enjoying luxurious amenities like meditative spaces, yoga studios, art rooms, and libraries to savoring New Orleans-style meals and relaxing views, area seniors are benefitted by the variety of quality retirement living communities available in Greater New Orleans. Award-winning and innovative programs and approaches distinguish the area’s top choices for community living that allow older adults ways to stay active and engaged while relieving the pressures of maintaining a home.
Meanwhile, home care services also provide solutions for seniors and families who prefer their home environment and its familiarity and comforts. When it’s time for added assistance, both home care professionals and retirement communities can bring relief to aging parents and their adult children who want the best care for mom and dad. If you or a loved one is needing more help with daily activities, there are plentiful resources available for maintaining an active and healthy lifestyle while receiving needed support.
Retirement Living
Poydras Home
With its ongoing expansion, Poydras Home will soon become Louisiana’s first Green House® Project community—this revolutionary care approach is focused on the fundamental principle that each resident should be the central decision maker in his or her daily life. With this expansion and transformation, Poydras Home will offer two new buildings with three homes each. The
Green House model groups a smaller number of residents sharing each house led by a dedicated Care Partner highly trained to make each day meaningful. This smaller community setup within the larger community has the added benefit of limiting COVID exposure.
Homes will feature open floor plans and increased access to Poydras Home’s beautiful grounds. Poydras Home’s Historic House will be rebuilt as the Center for Healthy Living, where all residents will enjoy yoga, a therapy gym, a library, meditative space and more. Poydras Home is pleased to be working with Eskew Dumez Ripple architects to ensure the structural changes will be progressive and rooted in established, aesthetic traditions.
Lambeth House
Lambeth House, a trusted leader in upscale retirement living located in Uptown New Orleans, offers Independent Living, Assisted Living, Nursing Care and Memory Support. But, it’s much more than a place to live; it’s a more inspiring way to live, where you can trade the challenges of maintaining a house for a lifestyle that is more fulfilling—carefree, in the company of friends, plus an astounding array of services and amenities that fill each day with choice and possibility. After all, you’ll always want to laugh, learn, contribute and celebrate, and Lambeth House offers a community where you can do just that.
At Lambeth House, you can attend musical events, join in a history discussion group, or nurture your mind and body with an exercise program designed just for you. Residents also enjoy fantastic cuisine prepared by the community’s Executive Chef and are able to take in breathtaking views over Audubon Park and the Mississippi River. Above all else, Lambeth House is committed to your safety. One hundred percent of staff and residents have been vaccinated for coronavirus.
Home Care
Home Care Solutions
Home Care Solutions is a locally owned and operated company specializing in compassionate in-home sitting services, including Alzheimer’s and Parkinson’s Care as well as Aging Life Care Management™ services to help your elderly loved ones extend their independence at home. “Our mission is to help our clients age in place gracefully while maintaining as much independence as possible,” says Rachel Palmer, Business Development Coordinator. “During the pandemic, many families have been under additional pressure to provide care for an aging loved one—as many of them are also coping with massive changes to their own schedules and lives, we can step in and provide an extra arm of support that provides less risk of exposure than at a retirement community while allowing for continued connection with family.”
Caregivers are carefully matched to meet your loved one’s needs and personality, and their familiarity with local resources saves you time and often saves you money while their compassionate understanding of the aging process relieves you of unnecessary distress. For more information, call 504-828-0900 or visit HomeCareNewOrleans.com.
Home Instead Senior Care
Seeing the signs of an aging parent who needs help can be overwhelming, but with Home Instead Senior Care, caring for an older loved one doesn’t have to be a struggle. From individualized help around the house to advanced Alzheimer’s care, Home Instead CAREGivers enhance the lives of aging adults and their families by working to help keep seniors safe and sound at home. With a sincere passion, CAREGivers are special people genuinely dedicated to helping make a difference in seniors’ lives.
A local franchise owned by New Orleans native Lisa Rabito, Home Instead offers the added benefit of staff who understand New Orleans’ culture and hospitality. CAREGivers provide support through non-medical services like meal preparation, transportation, personal care, medication reminders, and more, while working in tandem when needed with healthcare providers, home health, and hospice. CAREGivers are available from 20 hours a week to 24 hours a day. Aging adults no longer in the home can also request Home Instead services at the retirement community or nursing facility where they reside.
Planning & Arrangements
Jacob Schoen & Son
Jacob Schoen & Son has been providing affordable pre-need and funeral services to families in Greater New Orleans since 1874. Whether you are looking for burial, cremation, or memorial services, the Schoen family and staff are committed to listening to your needs and creating a personalized funeral that is both memorable and uplifting. They bring together decades of experience caring for families of all cultural backgrounds and diverse walks of life. They pledge to treat you and your loved ones just like family, and they guarantee to offer services that meet your specifications while exceeding all of your expectations.
Located at 3827 Canal Street, Jacob Schoen & Son invites you to come see the difference and compare the value. Stop by or call 504-6050342 to learn more about their one-of-a-kind space, discuss what options they have available, and learn more about how they can help you or a loved one fulfill their wishes. In-person and virtual accommodations are available with complimentary, seamless live streaming. P
From The Lens
SOUTHEAST LOUISIANA BUSINESS IN FULL COLOR
