Stirling Properties Welcomes Drive Shack to New Orleans
Stirling Properties commercial real estate company is pleased to announce that Drive Shack is officially coming to the greater New Orleans area. This celebrates one of the first locations for the new golf entertainment concept.
Ryan Pécot and Saban Sellers, leasing executives with Stirling Properties, represented Drive Shack in securing the location.
Drive Shack is leasing the former Times-Picayune facility located at 3800 Howard Avenue, just off Interstate 10. The company is expected to demolish the existing building to make way for a three-story, 62,000-square-foot facility that will include 90 indoor driving range bays, a restaurant, corporate and group event space, additional lounge areas, and ample parking.
Demolition is expected to commence by June-July of this year with Drive Shack beginning construction shortly thereafter. Opening date of the facility is anticipated for late 2019.
Drive Shack is a new-to-market entertainment concept that is competing in the same space as the more established Topgolf brand. The first Drive Shack location opened in Orlando, Florida, this week. Drive Shack also has locations in the works in Richmond, Virginia; Raleigh, North Carolina; West Palm Beach, Florida; and Marietta, Georgia.
“Stirling Properties is thrilled to welcome Drive Shack to the greater New Orleans area. This deal has been in the works for quite some time, and we are happy to see it finally come to fruition,” said Sellers. “This is an exciting new-to-market concept—not just for New Orleans—but for the entire nation. The company is planning an aggressive expansion, and we are proud that they chose our market.”
“The greater New Orleans area is long overdue for major entertainment concepts such as Drive Shack. Retail and restaurant venues are evolving—consumers want to be entertained,” said Pecot. “We are proud to have had the opportunity to help Drive Shack find and secure this location, and we are confident that the company will perform exceptionally well in this market.”
Appreciation for Depreciation
The Tax Cuts and Jobs Act contains many major changes to the tax landscape that will affect every type of business entity, both large and small. The new tax reform creates significant opportunities to minimize a business’s overall tax burden.
Perhaps the most impactful—and favorable—legislation to the real estate industry is the changes and modifications to depreciation rules. Here we highlight key components that impact the commercial real estate industry and provide a comparison between the current and new tax laws.
Under prior tax law, most assets held in rental real property were required to be depreciated over periods typically ranging from 5-39 years. Assets with 20-year class lives or less were normally eligible for 50% bonus depreciation, which means we could deduct 50% of the asset in the first year and depreciate the rest over the remaining life of the asset. Under the new law, those same assets are now eligible for a 100% deduction in the year placed in service. Congress has also expanded bonus depreciation to acquisitions, which were not eligible in years past. This is a huge benefit for real estate in many ways, as it allows for significant tax write-offs in the first year for acquisitions, new developments, and redevelopments.
At Stirling Properties, we contract out a cost segregation study on all of our new acquisitions, developments, and redevelopments. These studies allocate the purchase price of the asset into its proper class life. The resulting history allows us to estimate what depreciation will look like on the project during underwriting. On the front end of our due diligence, we have an accurate idea of how much of the purchase price is going to be eligible for the new 100% bonus depreciation. For a $60 million acquisition or development, we estimate that as much as 20% of that investment can be expensed in year one, resulting in over $11 million in depreciation. As you can see in the chart below, depreciation expense has approximately doubled in year one as compared to the old law. The net present value (NPV) of the tax savings resulting from being able to deduct the additional depreciation in year one is over $500,000.
Similarly, ongoing operations of the property will be impacted considerably. To attract and retain high-quality tenants, landlords typically provide tenant improvement allowances which result in enhancements to the occupant’s space that revert to the landlord upon lease expiration. Under the prior law, these tenant improvement allowances were typically eligible for 50% bonus depreciation and the balance depreciated over 15 years. Under the new law, these allowances will be eligible for a 100% deduction in the year placed in service.
Investing in real estate can be a tax advantageous way to deploy capital, especially for individuals or companies that have significant recurring income tax burdens such as financial institutions. We anticipate that the new tax law will lead to higher demand for quality assets helping to keep deal flow robust, thus attracting more buyers and investors into the real estate arena. At Stirling Properties, we will continue to utilize this new tax law for the best interest of our properties and investors.
Disclaimer: The information contained herein is intended for information purposes only. Individuals should seek advice directly from a qualified professional before making any decisions or taking any action that might affect your personal finances or your business. Stirling Properties is not responsible for any investment or monetary decisions made based on the information provided above and is not a tax advisor. The information provided above was done so with the perceived intent of the legislation and not based on the actual regulations. The actual regulations could yield significantly different results.
Stirling Properties Welcomes Saltgrass Steak House to Fremaux Park in Slidell, Louisiana
Stirling Properties commercial real estate company is pleased to announce that Saltgrass Steak House is coming to Slidell, Louisiana, as part of Fremaux Park, a tract of acreage surrounding the Fremaux Town Center mixed-use development.
Saltgrass Steak House closed on the acquisition of 1.58 acres of property at the intersection of Town Center Parkway and Levis Lane, adjacent to LA Fitness. Construction on the site is anticipated to commence within the next couple of weeks. The Texas-themed steak restaurant will occupy 7,127 square feet of space. Ryan Pécot and Rhonda Sharkawy, Stirling Properties’ Senior Retail Leasing & Development Executives, handled the transaction.
Saltgrass Steak House currently operates five restaurants in Louisiana. This marks the 1st location for the Northshore of the greater New Orleans area.
Fremaux Town Center, anchored by Dillard’s, Dick’s Sporting Goods, Kohl’s, and Best Buy, is part of the roughly 350-acre regional mixed-use development located at the southwest corner of Interstate 10 and Fremaux Avenue in Slidell, Louisiana. The retail center includes more than 640,000 square feet of shopping and restaurant options. The adjoining Fremaux Park includes Springs at Fremaux Town Center’s 296 luxury residential apartment units and Springhill Suites by Marriott soon under construction. Additional phases are coming soon with added residential, retail, and office park.
Tenants include Albasha Greek & Lebanese Restaurant, Allure Spa, Aveda, Bath & Body Works, Bellagio Nail Spa, Best Buy, BJ’s Restaurant & Brewhouse, Books-A-Million, Buckle, Capital One, Carter’s, Charlotte Russe, Cheddar’s, Chico’s, Chipotle Mexican Grill, Claire’s, Dentists of Slidell, Dick’s Sporting Goods, Dillard’s, dressbarn, Exit 16 Boutique, European Wax Center, Five Below, Five Guys Burgers & Fries, Forever 21 Red, Francesca’s, GNC, Goodyear, Great American Cookie Company, Journeys, Kay Jewelers, Kirkland’s, Kohl’s, LA Fitness, Lane Bryant, LensCrafters, LOFT, Longhorn Steakhouse, Luxe 83, Marble Slab, Massage Envy, Mattress Direct, Michaels, Off Broadway Shoe Warehouse, Panera Bread, Payless Shoes, PetSmart, Pier 1 Imports, Pizza Platoon (coming 2018), Rack Room Shoes, Red Robin, Rock N Roll Sushi, rue21, Saltgrass Steak House (coming soon), Smoothie King, Sports Clips, Springhill Suites by Marriott (coming 2018), Starbucks, Tesla (charging stations), T.J.Maxx, Torrid, ULTA Beauty, Verizon Wireless, Versona, Victoria’s Secret, Which Wich, and Zales.
Fremaux Town Center is currently 98% leased, and jointly owned and operated by CBL Properties and Stirling Properties.
For leasing information, contact Ryan Pécot at 337.572.0246 / rpecot@stirlingprop.com or Michael Oswald at 423.490.8272 / mike.oswald@cblproperties.com.
Stirling Properties Breaks Ground on Hammond Square Self Storage
Stirling Properties commercial real estate company has broken ground on the development of Hammond Square Self Storage in Hammond, Louisiana.
The 3-story, 93,902-square-foot storage facility will be located on the corner of US Highway 51 (SW Railroad Avenue) and West Minnesota Park Boulevard behind Walgreens. It will include 641 climate-controlled units as well as RV and boat storage areas.
Construction has commenced on the project, with site work and foundation work already underway. Anticipated completion is scheduled for the end of July.
Stirling Properties is developing the facility and will handle daily management upon completion. The architect is Houston-based Edgecomb & Associates, a firm that specializes in self-storage facilities, and Kent Design Build is the general contractor for the project.
“Stirling Properties is excited about the development of Hammond Square Self Storage. This project marks our first ground-up, climate-controlled storage facility development,” said Townsend Underhill, President of Development for Stirling Properties. “Tangipahoa Parish is experiencing significant growth, creating a high demand for this type of service. The strategic location in close proximity to Hammond Square and I-12 will provide easy access and convenience for customers.”
Underhill continued, “We’ve assembled a very talented team—with tremendous experience in the storage industry—to work on the development of Hammond Square Self Storage. Stirling Properties currently manages and operates several climate-controlled storage facilities within our existing portfolio that were redevelopments of previously occupied retail space.”
Stirling Properties also redeveloped the neighboring Hammond Square shopping center located on the northwest corner of Interstate 12 and Hwy. 51. Hammond Square is Tangipahoa Parish’s premier shopping destination. Anchored by Dillard’s, Target, Sears, JCPenney, Academy Sports+Outdoors, and AMC Theatres, the 903,000-square-foot retail center offers a dynamic mix of national and local retailers, shops, and restaurants.
Hop On Over To Hammond Square!
Join us for the annual Easter EGG-stravaganza at Hammond Square on Saturday, March 24th from 11:30am-1:30pm. The festivities will take place on Hammond Square Drive next to Target. This FREE event is open to the public and fun for the whole family!
Come visit with the Easter Bunny. Guests will also enjoy pony rides, a petting zoo, face painting, and a live radio remote with great prizes from Kajun 107.1. Don’t forget your Easter baskets—the egg-citing Easter Egg Hunt will begin at 1:00pm featuring more than 4,500 candy-filled eggs. (The egg hunt is limited to children ages 0-12 years.) Professional Easter photographs are available for a fee at Hammond Square with Becky Blount Photography (appointments are recommended).
Hammond Square is a proud sponsor of The Daily Star’s Easter Coloring Contest for children ages 7-10 years. Complete your coloring sheet and bring in to The Daily Star by Wednesday, March 23rd at 3:00pm to be eligible to win an egg-cellent prize pack from Hammond Square.
Come on out to celebrate with us—and the Easter Bunny—during the annual Easter EGGS-travaganza! We hope to see you there. Be sure to check out all the great stores at Hammond Square for your Easter and spring supplies.
Visit HammondSquare.com or “like” us on facebook.com/hammondsquare for a complete list of retailers and events.
Have a Hippity Hoppity Easter from Hammond Square!
We are Evolving!
Stirling Properties celebrates 20th Annual Stirling Honors.
Stirling Properties celebrated its 20th Annual Stirling Honors last Friday at the beautiful NOPSI Hotel in New Orleans. The yearly event recognizes and distinguishes the successes of Team Stirling and the company over the past year. A Commercial Celebration was also held to honor the Commercial Brokerage Division and to grant Commercial Production Awards.
To kick off the morning, Dancing Grounds performed an outstanding tribute to New Orleans in honor of the city’s 300th Anniversary with African drums and a second line rendition. The overarching theme of the day was EVOLUTION. Much like the City of New Orleans, Stirling Properties—and the entire commercial real estate industry—has evolved over the years to keep pace with the changing landscape.
Stirling Properties’ President & CEO, Marty Mayer, served as the event emcee for the day and encouraged team members to think about how technology and industry advancements will continue to impact the company moving forward. “Our industry is changing, the way we communicate and position ourselves is changing, technology is changing… and as a result, the way we do business is evolving. It’s imperative that we are proactive and adaptable,” said Mayer.
He went on to say, “We don’t know exactly what the future holds, but we can be certain it will hold significant transformation. I challenge each of you to be creative and explore new and innovative opportunities. We will need fundamental change to get from where we are now to where we need to be—and it will take all of us working together as a team to get there.”
Zach Strief, Former New Orleans Saint
Former New Orleans Saint, Zach Strief, closed out the program with an inspirational message on the importance of supporting and giving back to our community. He shared his love for New Orleans and his passion for philanthropy through numerous local nonprofit organizations including Café Reconcile, Team Gleason, and Dream Big Foundation. At the end of his presentation, Stirling Properties presented Strief with a $5,000 donation in support of Team Gleason.
The Team Stirling awards ceremony was held in the afternoon. Jan Kinard, Roslyn Rogers, and Jeff Barnes were acknowledged as recipients of Stirling Properties’ most prestigious honor, the Exceeding Excellence Award, presented for extraordinary employee actions that exemplify the values necessary to further the success of the company. Exceeding Excellence Award recipients are nominated and selected by their co-workers. Commercial Division Award recipients received recognition for Bronze, Silver, Platinum, Diamond, and Ruby production levels based on individual adjusted gross commissions from 2017. Special acknowledgment was also given to Rhonda Sharkawy, Senior Retail Leasing and Development Executive in New Orleans, for achieving the Top Commercial Producer Award—this is the 4th consecutive year she has earned this accolade.
Thank you to everyone who joined us for a great day of inspiration, company insight, delicious food, and camaraderie!
COMMERCIAL DIVISION AWARDS
Ruby Award
Diamond Award
Platinum Award
Gold Award
Silver Award
Bronze Award
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Also recognized were employees and agents who achieved special anniversaries with the company. Service Awards were given for 5, 10, 15, 20, 25, and 35-year milestones.
SERVICE AWARDS
5 Years of Service: Mike Alexander – Lafayette, Karen Bachemin – Covington, Mac Bauer – New Orleans, Ryan Juneau – Baton Rouge, Samantha Marshall – Covington, Karen McElroy – Shreveport, Stacy Odom – Shreveport, Mel Sayler—Covington, Mike Seago – Gulfport, Denise Tatum – Baton Rouge, Kelly Vargas – Westpark, Kelly Wellmeyer – Covington, Robin Zemke – New Orleans
10 Years of Service: Seth Citron – Lafayette, Kayla Davis – Covington, Joe Gardner – New Orleans, Justin Landry – Covington, Reid Richardson – Covington, Gaines Seaman – New Orleans, Townsend Underhill – Covington
15 Years of Service: Will Barrois – Mobile, Mike McDougall – Covington, Cyndie Quave – Covington, Sonia Shoemaker – New Orleans, Ashlee White – Covington
20 Years of Service: Beth Cristina – New Orleans and Rhonda Sharkawy – New Orleans
25 Years of Service: Paul Mastio – Covington and Harold Staub – New Orleans
35 Years of Service: Grady Brame – Covington
Team Stirling proudly sponsored the Heart Walk, stepping up for […]