Kingfish Development II LLC, a real estate management and development company focused on the Gulf South office market, has announced the purchase of the former Rault Office Building in Kenner, La., for an undisclosed sum. The 133,312-square-foot office building at 2400 Veterans
Blvd. is the only Class A office space in Kenner, a submarket of Metro New Orleans. Parking for 456 cars, divided into an adjacent parking garage and two parking areas, was also included in the deal.
Built in 1982, the five-story, glass-façade office building will undergo a comprehensive renovation to both common areas and tenant space. Work is expected to wrap up in 2014. Leasing will be handled by Max J. Derbes Inc. CCIM Joe Gorman. Although a press release announcing the property’s purchase by Kingfish touted an 80 percent occupation rate and only 25,000 square feet of vacancy, according to the Max. J. Derbes website, a total of 35,905 square feet of space, or roughly 27 percent, was up for grabs a week after the purchase. Annual rental rates range between $18.5 and $19.50 per square foot.
The purchase of 2400 Veterans Blvd. could prove extremely profitable for Kingfish, as the property is located just one mile from New Orleans Airport, set to undergo an $826 million renovation and expansion process, designs for which have recently been released. According to data provided by the city of New Orleans mayor’s office, the project includes a brand-new 650,000-square-foot, two-concourse, 30-gate airport terminal featuring 2,000 parking garage spaces. The project also includes a $72 million power plant and a $17 million on-site hotel. Currently named the North Terminal, its design is signed by Cesar Pelli of Pelli Clarke Pelli, Manning Architects, Crescent City Aviation Team and Leo A. Daly/Atkins. Targeted for a 2018 completion, the North Terminal is expected to create 13,000 construction jobs and a $1.7 billion construction economic impact, as well as retain and expand the existing 12,471 jobs on-site and an annual $3.2 billion economic impact on tourism.
Images courtesy of City of New Orleans Mayor’s Office via Facebook and Max J. Derbes