Developer Pete Clements is selling the 24-acre downtown riverfront property just north of Hollywood Casino that was once the site of his proposed River Park mixed-use development, which envisioned hotels, restaurants, entertainment venues, retail outlets and residential space.
An offering memorandum circulated by a New Orleans brokerage, The McEnerny Company, notes that the property is zoned as a Planned Unit Development and is located in an opportunity zone. Offers are due November 15.
While the memorandum does not set an asking price, Clements needs to get at least $18.5 million for the parcel. In late September, his River Park Development LLC lost a four-year foreclosure battle in 19th Judicial District Court with Girod Loan Co., which acquired the debt on the property after the original lender, First National Bank of Commerce, was shut down by the feds.
According to a judgment issued Sept. 22 in the foreclosure case, River Park Development owes more than $9.8 million in principal on the property plus more than $8.7 million in interest.
Attorney Brett Furr, who represents Girod Loan Co., says his client is willing to work with Clements’ attorney and is hopeful a buyer comes through in the next few months.
Clements’ daughter Cosima Clements, who is manager of Riverpark Development LLC, says talks between the two sides have been amicable.
“They know we have the property listed and we have been working with them to try to resolve this,” she says.
While the property is a prime piece of real estate on the downtown riverfront, getting $18.5 million for a nearly 24-acre parcel, or $770,000 per acre, will be difficult, says appraiser Wesley Moore, who is not involved in the foreclosure suit and has not appraised the property.
Though recent downtown property sales have averaged out to $2.5 million per acre, Moore says, those sales have been for much smaller parcels and are zoned for high-density usage.
“Those were tiny tracts in the heart of the CBD,” he says. “A large tract further north is not going to fetch nearly as much.”
The recent judgment on the property could further depress its value.
“Title issues can scare buyers off,” he says. “Some of the best values I’ve ever seen have come from properties that were in foreclosure because they were so grossly discounted.”
Cosima Clements says she hopes a buyer will recognize the potential of the property and help realize her father’s dream.
“We’re hoping to find someone who can take this great piece of property and put it to good use in downtown Baton Rouge,” she says.
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