- Strong Historic Occupancy During Economic Downturns
- In Place 12% Cash on Cash Returns
- Excellent Visibility from Interstate 10 with Daily Traffic Counts of 132,954
- Recent Property Upgrades to Include New Roofs, Elevators and HVAC Renovations
- Two Miles West of the Famous French Quarter
- Strong Demographics – 181,848 People within a Three Mile Radius
- Three Cell Towers On-Site that Generate an Additional $92,274 Annually
- Favorable Square Foot Per Capita of just 3.84
- Currently 87.7 Percent Physically Occupied with Economic Occupancy Upside Potential
Fountainbleau Self Storage & music studios is a mixed-use multi-story conversion located in the heart of New Orleans’s Mid-City neighborhood. Built originally as the Fountainbleau Motor Hotel in 1966, today this unique property features 620 self-storage units, 98 music studios and 99 outdoor parking spaces most of which were redeveloped within the original hotel grounds in 1993. Ancillary income streams include three roof mounted cell phone towers and a new five-year ground lease to a waste management/trucking company located at the rear of building.
The original building was constructed on a 5.89 acre parcel and currently offers a total of 147,129 net rentable square feet with approximately half of the square footage dedicated to music studio/suite space. The developers utilized the top three floors of the eight-story self storage building to construct 98 music studios that average approximately 500 square feet. Due to New Orleans vibrant music scene and creative culture, past and present owners of the building have experienced great success in capitalizing on the lack of competition for this unique niche market. There is often times a waiting list for these spaces even in economic downturns. The music studios are accessed via two service elevators and one freight elevator at the rear of building. The entryways are secured by gate access with automatic locking mechanisms and there is a community bathroom on each floor.
The facility features an onsite management/leasing office, perimeter fencing secured via two digital gates, security cameras, five elevators, automated magnetizing security gates, climate controlled units and outside parking. The storage units are a mix of traditional indoor metal construction and converted hotel suites with man doors. The current owners have invested millions into the property since purchase including the improvement and replacement of many of the building’s critical components including a new roof, parts of the elevators and HVAC systems as well as cleaning up and subdividing the original parcel that used to include other uses.
The subject property is located approximately two miles west of the famous French Quarter and just outside New Orleans CBD in the Mid-City neighborhood. The neighborhood has recently undergone a revitalization with the opening of the new one billion dollar Southeast Louisiana Veterans Medical Hospital as well as numerous Class “A” multifamily projects. The immediate area is a collection of mature residential neighborhoods, office and retail with over 79,000 households within a three-mile radius of the property. The Fountainbleau sits on the southeast corner of the Tulane Ave/S Carrollton Ave intersection which experiences over 47,000 passing cars a day. The property has excellent visibility from Interstate 10 (Pontchartrain Expressway), one of New Orleans’ primary arterial highways. Notable attractions close to the property include the Mercedes-Benz Superdome/Sugar Bowl (2.2 miles), Xavier University of Louisiana with over 2,500 students (0.2 miles), New Orleans Country Club (0.5 miles) and New Orleans Central Business District (3 miles).
Fountainbleau Self Storage and music studios is a unique opportunity to own one of New Orleans’ historic buildings in the Mid-City neighborhood with immediate double-digit cash on cash returns day one. The project has continued to maintain steady occupancy during the recent pandemic in both the self storage and music studios alike further proving up the resilience and profitability of this project moving forward. Recent large scale capital improvements to the property’s essential components will set the next investor up to focus more on revenue generating upgrades such as exterior/interior paint, lighting and rental office renovations to capture additional upside.