D.K.A. ONE LLC, led by Darren Aschaffenburg, filed for Chapter 11 bankruptcy on May 5, 2026, pausing a planned sheriff’s auction for the 219-unit Metairie Towers located at 401 Metairie Road in Old Metairie. This move shifts the redevelopment of the long-vacant tower into bankruptcy restructuring, raising new questions about its future and creditors’ recoveries.

The bankruptcy was filed in the Eastern District of Louisiana, narrowly avoiding the auction and indicating plans to restructure a loan that has grown to approximately $22.1 million due to default interest. The property has been empty since Hurricane Ida in 2021.

The building, constructed in 1973 and known for its ~252,000 square feet, was purchased by Aschaffenburg in October 2024 for $24.5 million. Initial loans amounting to $19 million, also issued in 2024, have since accumulated additional fees.

This development carries significant implications for the local real estate scene, affecting housing supply and market dynamics in the New Orleans metro area. The halting of the auction opens a window for potential new capital investments or developers, which could alter the original conversion plans.

As the case proceeds through bankruptcy court, further clarity on the restructuring process and future plans for the tower is anticipated. No dates for hearings have been specified. The outcome will be closely watched by brokers, lenders, and local officials concerned with the redevelopment and neighborhood impacts.

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