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.
