Thompson Coburn represented U.S. Bank in a recent financing transaction for a major housing redevelopment in New Orleans’ historic Treme neighborhood.
The $22.2 million bridge loan is part of U.S. Bank’s significant involvement in a 23-acre project that will transform the former Ibervillle public housing project, one of New Orleans’ last deteriorating housing projects, into a $663 million mixed-use development. The development was featured in the Wall Street Journal’s March 5 “Deal of the Week” column.
“The conversion of a long-shuttered office building into apartments for low-income senior citizens is almost complete and soon will start accepting residents, marking a milestone in the city's efforts to transform one of its poorest neighborhoods,” writes WSJ reporter Donna Kardos Yesalavich. “Key to the plan is the conversion of the 23-acre Iberville public-housing project, adjacent to the Marais, into a mixed-income property.”
The entire project will provide 880 units of mixed-income housing, schools, health care facilities, retail space and a transportation plan that would bring back a streetcar line called “Desire.”
Thompson Coburn partner Jim Dillon led work for U.S. Bank’s bridge loan, which was rolled out in two phases. Bill Metzinger assisted on the transaction. Phase One was a $13.5 million loan for 152 units of low-income housing. Phase 2 was an $8.8 million loan for another 75 units. According to U.S. Bank, construction on the housing development started in November 2013 and is expected to be completed by early 2015.
Last year Thompson Coburn also represented U.S. Bank in a $20 million bond financing for another housing redevelopment project in New Orleans — the B.W. Cooper Apartments, which dated back to 1941 and were also mentioned in the Wall Street Journal column. Jim and Bill worked on that transaction with Thompson Coburn public finance attorneys Steve Mitchell and Ali Tilghman.