Nick Rizzo, managing director of New York City-based LoebPartners, says the JV acquired the lobby-sharing hotels from localowner and manager, Decatur Hotel Corp., to take advantage ofanticipated future performance. "We feel that assets in the NewOrleans hospitality market are incredibly undervalued right now,but think that's a temporary occurrence," he says. "We thinkperformance will exceed pre-Katrina levels in a matter ofyears."

Loeb is so certain of a performance increase that the new ownerwill soon begin renovations of guest rooms, keeping the Alexa Hotelat 119 Royal St. and Astor Crowne Plaza at 739 Canal St. openduring construction. Rizzo tells GlobeSt.com that the hotels willoperate under the Crowne Plaza flag. The overhaul will take aboutone year to complete. Prism Hotels & Resorts in Dallas is linedup to manage the properties. Decatur Hotel did not return telephonecalls by deadline.

Loeb Partners also owns two office high rises in New Orleans'CBD: the one-million-sf Bank One Center at 201 St. Charles Ave. and688,181-sf One Canal Place at 365 Canal St. Each one is 95%leased.