Top Real Estate Influencers

It’s happening, but it’s much more expensive.

Those seven words very succinctly describe the current market in real estate and construction. While supply costs still remain higher than pre-pandemic levels, they have been joined by a plethora of other increases. At the beginning of the pandemic, the Federal Reserve lowered interest rates. In February, 2020, the rate was 1.58%. In March, when the shutdowns began, the rate dropped to 0.65%, then in April to 0.05%. By early 2022, however, to combat inflation, the Fed switched gears and started raising rates. As of mid-September, 2023, rates were up to about 5.5%.

Thanks to multiple damaging hurricanes, Louisiana flood insurance rates have also risen on average by as much as 134%, and homeowners insurance premiums have skyrocketed, with Orleans Parish seeing average costs go up by 82% in 2023. Add to this the fact that property taxes have soared substantially in the wake of surging home prices during the pandemic, and the industry has hit a crisis.

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Building, borrowing, owning — all of it has become much more expensive over the past year. Will we see any relief anytime soon? Is there good news still to be found? This year’s Biz New Orleans Real Estate Influencers share their thoughts.

Re Iamtucker

ENGINEERING

Iam Tucker
Owner/CEO
Integrated Logistical Support Inc. (dha ILSI Engineering)

ILSI Engineering is a 100% female-owned, minority-owned, 8(a) certified civil engineering firm. ILSI’s infrastructure experts specialize in sewer, water, streets and drainage design projects, stormwater management planning, and program and construction management. ILSI is an award-winning firm with a strong performance record on multiyear, multimillion-dollar projects completed in the federal, state, municipal and private development sectors.

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ILSI is a family business that was started by the late Robert H. “Bob” Tucker Jr., who sold the company to his only daughter, Iam Christian Tucker, a former Baton Rouge police officer, in June 2008. Since then, ILSI has grown its team from nine to the over 55 people the company employs across the nation today. ILSI was the winner of the Morial Convention Center Authority of New Orleans’ 2023 Ernest “Dutch” Morial Small Business of the Year award.

Most Excited About in the Coming Year
We are most excited about our ongoing civil engineering and stormwater management work on The River District Neighborhood of New Orleans. We have also been invited to engage on the Top Golf project and a couple of other projects slated for this up-and-coming area that will be an economic boom for the riverfront area. It is very difficult for diverse companies to break into the private sector on projects of this magnitude, and we are proud that our reputation and work ethic has paved the way for our participation in such opportunities.

Biggest Challenge Facing Your Industry
Companies in engineering and technical fields nationwide face difficulties finding great talent at a reasonable rate to add to their teams. We face that same challenge as a small business competing daily with companies infinitely larger than us. Rising insurance and business costs are a real concern, especially while some public clients seek lower fees for highly specialized technical services. This is a real problem in the industry, and I ponder whether public clients are aware that they are hurting small businesses and driving a decrease in competition.

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I also profoundly worry for diverse businesses like mine in a country with a Supreme Court that ignores the very real statistics regarding inequity in our nation.

It’s a highly stressful time for minorities in America right now, and for disadvantaged business owners who need these programs to gain access to the marketplace.

There are forces dedicated to dismantling the programs that exist to seek equity. If you find yourself in favor of these types of efforts, it’s probably because you have never experienced inequity, and therefore cannot or will not empathize with those who have. I hope and seek to work with those that understand the verifiable fact that historic and systemic inequities do exist, and with greater humanity and intentionality we can heal the wounds of injustice.

Re Davidabbenate

MULTIFAMILY

David Abbenante
President
HRI Management

HRI Properties is a New Orleans-based, diversified, national real estate company engaged in the ownership, development, design and management of upscale-branded and independent hotels, apartment communities, and mixed-use, mixed-income properties in urban centers.

David Abbenante is president of the multifamily division, HRI Management, which manages a portfolio of 61 diverse properties made up of over 5,300 units, including market, mixed-income and affordable properties in a five-state area.

New Orleans projects developed by HRI Properties and managed by HRIM include The Strand Apartments and Aloft Hotel mixed-use development, the Hibernia Tower Apartments, and Bienville Basin Apartments, the latter being the result of the transformation of the former Iberville Housing Development into mixed-income housing.

Most Excited About in the Coming Year
What encourages me about the upcoming year is where we are right now vs. the same time last year. A year ago, we had more than 20 job openings at our company, and now we are back to single-digit open positions. During the first two quarters of 2023, we were still wrapping up Hurricane Ida repairs and closing out Ida insurance claims. The thought of entering a new year fully staffed, with no pandemic-related restrictions and all storm-related damages and claims resolved sounds very exciting to me and many others in our industry.

Biggest Challenge Facing Your Industry
Insurance, insurance, insurance! We are seeing the annual property insurance premiums on multifamily apartments double and in some cases triple the cost at renewal. Hit hardest are the owners of affordable or mixed-income apartments that are facing soaring premiums with limited or no opportunity to increase rents.

In addition to the increased premiums, the wind-storm deductibles are increasing along with insured values. For perspective on the deductible impact, if a mid-sized apartment community is insured for $30 million and has a 5% windstorm deductible, the owner is on the hook for a $1.5 million out-of-pocket deductible following a named storm. That was a reality facing many owners after Hurricane Ida. Without relief or some type of state or federal intervention, property owners will have to choose between insurance premiums and costs such as utilities or repairs because there will not be enough income to cover all expenses.

Re Jonathanleit     Re Mikegrote

AFFORDABLE

Jonathan Leit & Mike Grote
Directors
Alembic

Alembic Community Development is a mission-driven real estate company based in New Orleans and New York City that develops affordable housing, nonprofit and cultural facilities, and community-serving commercial spaces. The company has completed the adaptive reuse of several prominent historic buildings in New Orleans, including the Tate, Etienne & Prevost (TEP) Center in the Lower Ninth Ward, and Rose Collaborative campus in the Seventh Ward. Alembic is also co-developing the new construction of 192 affordable apartments and a federally qualified health center at the former Brown’s Dairy site in Central City. Mike Grote and Jonathan Leit have worked as directors at Alembic in New Orleans and on the Gulf Coast since 2007.

Most Excited About in the Coming Year
We’re working on two developments in Central City that co-locate early childhood education (ECE) centers with affordable housing. These projects are in direct response to New Orleans residents passing a new millage in 2022 that’s funding ECE for low-income families. Since state programs for ECE are regularly at risk, this new local funding source is critical for ECE centers and represents a monumental investment in equity and our city’s future.

The first project is the redevelopment of an historic firehouse on Louisiana Avenue that our nonprofit partner, People’s Housing+, was awarded by the New Orleans Redevelopment Authority through an agreement with the city. We’ll be creating an ECE center serving approximately 65 students and seven permanently affordable apartments upstairs. The second project is new construction: a flagship center on Washington Avenue for Wilcox Academy Central City, a leading ECE provider run by the indomitable Rochelle and Whitman Wilcox, that will serve up to 150 students along with four affordable apartments targeting educators.

Biggest Challenge Facing Your Industry
There are many: climate change and dramatically increased insurance costs, property taxes and interest rates. But we’ll focus on current state-level politics, which present a particular challenge for the city. With the socially regressive policies the Legislature has recently passed and/or debated, the issues that we care most about — affordable housing, criminal justice reform, women’s reproductive rights, equal rights for LGBTQ+ people, early childhood education — will be even further at risk. This is a major threat to New Orleans’ economy, and to all of us who care about basic human rights and decency.

Re Tracieashe

ARCHITECTURE

Tracie Ashe
Partner
practis (Formerly Studio WTA)

Practis is a multifaceted, woman-owned architecture studio based in New Orleans. Founded in the early ’90s as Wayne Troyer Architects, the firm evolved into studioWTA in 2013 to reflect its collaborative nature. Ten years later, practis has emerged as the newest iteration of the studio—led by longtime team members Tracie Ashe and Julie Babin—grown out of a desire to further solidify the firm’s ethos of collaborative, passion-driven work inspired by a true, synergistic spirit. The name itself is reflective of the actively innovative nature of our craft — always practicing, always learning.

Most Excited About in the Coming Year
In the coming year, we’re excited for the completion of a new construction hotel in Bywater, construction of new residential dormitories on Tulane’s Uptown campus, renovations to the Harry Tompson Center (a facility that provides support services to our unhoused New Orleans community, which our firm designed in 2006), and a conversion of the Alois J. Binder Bakery complex for JAMNOLA’s new immersive exhibit experience. Beyond New Orleans, practis was awarded the contract to complete the final phase of design for New Jersey’s 9/11 Memorial, “Empty Sky.” Originally designed in 2004 by longtime practis colleague Jessica Jamroz, this significant monument project is scheduled for construction in early 2024.

Biggest Challenge Facing Your Industry
|The biggest immediate, local challenge is financial burden. Undertaking projects is always costly, but it’s spiraled in recent years. Along with higher interest rates and rising prices of real estate, property insurance, and flood insurance, we now have dramatic increases in property taxes across the city. Add to this the cost of many building materials — which rose aggressively starting in 2020 and will likely never return to their pre-pandemic levels. Taken together, these make projects extremely expensive for everyone: homeowners, small business owners, larger developers.

The most important global industry challenge is addressing sustainability and building performance efficiency as we see a significant acceleration of the climate crisis. Cost savings decisions, pressured by financials, impact the ability of designers to address this, as less expensive (less environmentally responsible) alternatives are substituted for better and more sustainable materials and systems.

Re Liztardo

NOMAR

Liz Tardo
Co-Owner and Managing Broker, Nola Home Realty Group
President, New Orleans Metropolitan Association of Realtors (NOMAR)

Nola Home Realty Group is a boutique brokerage established in 2019 by co-owners Liz Tardo, Melissa McClendon and Nick Underwood. Tardo has more than 25 years of experience selling real estate in the Greater New Orleans area and is the managing broker of the Mid-City firm. She is the 2023 president of the New Orleans Metropolitan Association of Realtors and a board member of Louisiana Realtors. She was NOMAR Realtor of the Year in 2021.

Most Excited About in the Coming Year
I am most excited to see the growth of our firm. We have several newer agents, and to see them performing at high levels has brought me tremendous joy. I enjoy creating classes and providing content that motivates and inspires.

Biggest Challenge Facing Your Industry
The biggest challenges we face are rising interest rates and insurance costs. This has impacted both buyers and sellers and created a bit of a shift in the market. I am hopeful we will soon see new insurance carriers coming into the marketplace and I do believe interest rate stabilization is around the corner!

Re Billyburk       Re Gigiburk

BUILDER AND DEVELOPER

Billy Burk
CEO

Burk Construction & Development

Gigi Burk
Broker/Owner
Burk Brokerage

Burk Brokerage real estate company is made up of two core departments, Real Estate Brokerage (led by GiGi Burk, broker) and Construction and Development (led by Billy Burk, CEO). The mission at Burk Brokerage Real Estate is to provide each client with an exceptional experience resulting in enthusiastic referrals and repeat business, with a vision to be the most respected, successful and referred real estate company in the region. At Burk Construction & Development, the mission is to create exceptional development projects that enhance communities and improve the lives of customers, with a vision to become one of the region’s leading reputable developers of various categories of residential, commercial and industrial projects.

Most Excited About in the Coming Year
Returning to growth in the housing cycle. In 2024, we are looking forward to the housing market coming out of its own recession and leading the general economy into a growth cycle which, while modest, will be a much-welcome change to a market that will see more opportunities due to improved affordability for buyers and sellers alike. Guiding our real estate clients with informed, accurate and reliable information is paramount for GiGi and her team. We are also gearing up on the development side to increase inventory of new construction homes for the coming market, all the while intently focused on our luxury custom home and renovation client base with exceptional projects big and small.

Biggest Challenge Facing Your Industry
Adjusting to the new variables of affordability is probably the biggest challenge for our clients today. These include interest rates, insurance, taxes, construction costs and economic conditions. All of these variables have changed drastically in the past 12 months, causing many to either exit the market or postpone their investments, improvements, listings, or home purchases. We work closely with our clients and market experts to ensure that current and accurate information is at hand to help discern the decisions necessary in today’s market. Knowing that all markets adhere to cycles, and knowing where we are on that cycle, is so important these days. It’s the key to helping our clients make great decisions.

 

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