September 27 2017 | Posted in: Latest News
September 26, 2017
The rehabilitation of the Jung Hotel, one of the most historic hotels in the city, is nearing its completion, bringing the building back to its former prominence.
Developer and hotelier Joe Jaeger spearheaded the full renovation of the 17-story hotel at 1500 Canal St.at the cost of $140 million. The restoration began in the spring of 2015. Marc Becker, area director of sales and marketing for the New Orleans Hotel Collection, said the development is set to open its doors to the public in November.
The hotel will offer 207 rooms and suites that average 570 square feet and offer guests room service, free Wi-Fi and a welcome drink. Amenities for guests will include a rooftop poolside bar and spa, a restaurant and coffee shop.
There will also be more than 21,000 square feet of meeting space with 15 meeting rooms and a 12,000-square-foot exhibit hall. The development will offer 14,000 square feet of ground-floor retail. Becker said there are no confirmed tenants for this space.
Apartments have been incorporated into the development, with 113 one and two-bedroom units that range from 1,160 to 1,500 square feet and are set to come on the market next year. A seven-story parking garage with 357 spots will service residents, hotel guests and retail customers.
The total square footage of the development will offer 486,900 feet, and the parking garage will have 160,000 square feet.
The McDonnel Group of Metairie is the primary contractor for the development, which was designed by MCC Development. Jason Zuckerman, McDonnel Group vice president and a project manager for the Jung, said in an interview last year the project has come with its fair share of challenges in meshing old with new.
“Everything has to be approved by the State Historic Preservation Office and the National Park Service to ensure we achieve the requirements of securing the historic tax credits that make the project work,” Zuckerman said. “Injecting new construction into a building that wasn’t built under modern codes and tolerances is always a challenge.”
According to Orleans Parish sales records, Jaeger purchased the hotel in 2007 for an undisclosed amount through a company known as The Jung LLC. A group known as 1500 Canal St. Investors, which lists its business office in Dallas, had owned the building since 1992, when they bought it for $25.5 million.
The Jung Hotel first opened in 1907 and was expanded in 1925 and again in the 1960s. It had once been known as the largest convention hotel in the South. The building played host to Carnival balls, high school proms and a 1964 appearance by President Lyndon Johnson. In its prime, the hotel amassed 759 rooms.
The building was flooded after levee failures during Hurricane Katrina. Investors have taken note of this section of Canal St. in recent years, looking to take advantage of a growing demand for hotel and residential space downtown, particularly near the $2 billion Mid-City medical complex along Canal Street and Tulane Avenue.
At 1630 Canal St., local hotelier Michael Valentino is in the process of renovating the former Canal Street Hotel, which he purchased in 2015 for $4.8 million. The former University of New Orleans building at 1600 Canal St. is set to open as a “dual-branded hotel” under the Marriott flag early next year.
Directly across the street from the former UNO building, Provident Realty Advisors of Dallas and The Kroenke Group of Columbia, Missouri are partnering on an estimated $61 million development at 1535 Canal St. that will include a 400,000-square-foot, nine-story residential building with ground floor commercial space. The project will also include a 10-story, 187,000-square-foot, 500-space parking garage.