$35 Million Co-Living Development ‘Two Saints’ Secures IDB Tax Incentive

by • April 16, 2018 • Development, Multi Family, Tax CreditsComments (0)5270

Last week, the Industrial Development Board (IDB) approved a payment in lieu of taxes(or ‘PILOT’) for Marcel Wisznia’s Two Saints project, a co-living concept in the warehouse district.

The PILOT will save Wisnia nearly $3.7 million over 15 years. (Check out the initial renderings here).  During the 24 months of construction, Two Saints will pay the current property taxes, or $69,100 per year.  Once open, they will pay escalated property taxes capped at $122,000 per year.  There is also a 15-year restrictive covenant that requires any future owner to maintain the income restrictions, preventing the redevelopment of the project into a hotel.

Two Saints would be New Orleans’ first co-living concept, which is essentially adult dorm rooms where each renter has their own room and bath room, but share common areas and amenities. The building will also offer weekly housekeeping included in the rent.

Two Saints will feature 143,000 square feet of apartments,  a pool, gym, steam room and sauna, laundry room, chef’s kitchen, and 12,000 square feet of ground-floor commercial space.

Two historic buildings at 867 and 857 St. Charles Ave. are to be incorporated into the design of the new construction.  The project will rise from the corner of St. Joseph Street and St. Charles Avenue.  Rents will range from $1,300 to $1,500, and are income restricted to between 75 percent and 110 percent of the area median income – between $33,200 and $48,700 for a single person.

Wisnia is also developing the nearby $49 million Stephens Garage project.   There are a ton of other developments happening in the immediate area as well, including the $50 million mixed-use building project by Woodward Interests and Boston-based Audubon Capital Partners at the corner of St. Charles and Julia Streets.

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