NEW ORLEANS-Developer Domain Cos. has secured financing to the tune of $38.3 million to develop the 209-unit Paramount at South Market. The developer worked with Oak Grove Capital to obtain the HUD 220, 40-year loan, which carries a 40-year amortization period.
The apartment complex, which will also boast 22,000 square feet of retail space, has an estimated all-in construction cose of $48.4 million, and will occupy a block bordered by Girod, Rampart, Lafayette and O’Keefe streets. Construction started on the project on June 21.
Paramount at South Market is part of a larger project, the South Market District, which, upon completion, will consist of luxury apartments, retail space, restaurants and entertainment venues in New Orleans’ CBD.
According to the South Market District’s website, the HUD loan is part of a federal program supporting rental housing in areas that are designated for urban renewal. “This project is the perfect example of an urban, mixed-used district with high-quality housing that will help support the growth of New Orleans’ economy,” says Tim Leonhard, managing director at Oak Grove Capital in a press release. “HUD clearly recognized the need for such a community in the area and we were happy to leverage our various HUD relationships to help facilitate this financing. We are very pleased to have provided this loan for a valued repeat customer.”
Read more about the South Market District project here.