A new source of financing has been secured for River House, a mixed-use development going up at the intersection of Nicholson Drive and Oklahoma Street.
CBRE Capital Market’s Debt & Structured Finance team secured $29 million in financing for the project, on behalf of its developers Marc Blumberg and Emanuel “Manny” Organek, after the failure of First NBC Bank in New Orleans.
The loan will be used to pay off the FDIC, complete construction of the multiuse property and serve as a bridge during stabilization, according to a news release. The bridge loan was provided by New York-based Benefit Street Partners.
First NBC was the River House’s main lender, but the bank was shuttered by the state regulators in April. It had faced a number of problems, including accounting issues, regulatory scrutiny of its financial conditions and investors urging management changes, Reuters reports.
Whitney Bank, now Hancock Whitney, absorbed all of the bank’s checking, savings, money market and other transactional accounts. The FDIC was named receiver of the bank.
Going up on the former site of the Prince Murat Hotel, River House includes 224 apartments, a 35,000-square-foot office building and 16,000 square feet of retail space. Organek and Blumberg broke ground on the development in August 2015. The developers listed the office building for sale in August.
