Case Study: Hyatt House
With over 25 years of Corporate Tenant Brokerage experience and collaborating with Robert Hand of Louisiana Commercial Realty, LLC, together we represented ENI USA, Inc. an international petroleum company corporate based in Houston, Texas with their needs to sublease over 75,000 sqft (4 floors) of brand new, fully furnished plug and play office space located within the low rise elevator bank of 1250 Poydras, immediately adjacent and connected to the Hyatt Hotel via a sky bridge, the Louisiana Superdome, Champions Square and other major attractions at the gateway to downtown New Orleans. This space became available after ENI USA, Inc. relocated their operations to Houston in 2009 with 8 years remaining on a 10 year master lease.
Working unsuccessfully to market the space for re-leasing, Robert Hand, an investment brokerage listing specialist secured the relationship and the contract to sublease the remaining space. After over 2 years of a heavy marketing campaign locally, regionally, nationally and internationally the building owner approached us to buyout 3 of the 4 office space floors for conversion to a new hotel brand to be introduced to New Orleans by The Hyatt. After intense negotiations, ENI USA, Inc. was able to terminate its remaining lease term on 3 of their 4 office floors. The 20th floor, which was the Executive floor for ENI USA, Inc., remains available at the top of the low rise elevator bank, fully furnished and ready for occupancy at below market rents with substantial concessions.
Because of our marketing efforts and the timing of New Orleans’ need for additional hotel rooms in anticipation of the Tri-Centennial celebrations in 2018, we were able to assist our client in saving a substantial amount of money in present and future lease rent obligations. The furniture, fixtures and equipment on the converted floors were donated to LSU in Baton Rouge.
Today, the Hyatt House Hotel is the first partial Class A High-Rise Office Building office floors conversion for Hotel use in New Orleans as developers continue to search the City actively seeking remaining Historic and non performing properties for hotel, retail and apartment/condominium conversion.
Maria McLellan Real Estate
Principal Broker, Commercial and Corporate Services
Member-New Orleans Commercial Real Estate Women (CREW)