Southern Realty Trust Commits $20.0 Million to a Senior Loan for Shell Plaza at River District in New Orleans, Louisiana
WEST PALM BEACH, Fla., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Southern Realty Trust Inc. ("SRT" or the "Company"), a lender on the Tannenbaum Capital Group ("TCG") | Real Estate platform, today announced that it closed on a $20.0 million commitment to a $74.5 million senior loan originated by the TCG Real Estate platform for the construction of Shell Plaza (the "Project" or "Shell Plaza") in New Orleans. Located on Convention Center Boulevard and Henderson Street on a 1.6-acre parcel, the build-to-suit net lease property will serve as regional headquarters for Shell USA Inc. (the "Tenant"). The remaining $54.5 million of the loan was syndicated to two affiliates on the TCG Real Estate platform (comprising $44.5 million) and another affiliated lending partner (comprising $10.0 million). The sponsor is a partnership between Lauricella Land Company ("Lauricella") and Cypress Equities ("Cypress"), leveraging Lauricella's long-standing relationships with the Shell team in New Orleans and Cypress' demonstrated expertise in large build-to-suit developments.
With substantial completion anticipated in September 2026, the 8-story Shell Plaza will include 117,941 square feet of Class-A office space on floors 5-8 and 6,407 square feet of retail on the ground floor.
Adjacent to the Ernest N. Morial Exhibition Hall Authority in the River District neighborhood of downtown New Orleans, the Project offers expansive views of the Mississippi River and convenient walking access to downtown and residential neighborhoods like the Garden District. On-site amenities will include a 3,101 SF fitness center and in-building parking on floors 2-4. With column-free floorplates (~30,000 SF) in a Gensler-designed, LEED certified building, there are no comparable properties in New Orleans.
"Shell Plaza reflects the desire for modern, efficient workspace with wellness amenities and high-quality technology infrastructure. Shell Plaza combines New Orleans' vibrant culture with the comfort and sophistication sought by professionals," said Brian Sedrish, Chief Executive Officer of SRT, adding, "We're proud to support a property that represents a rare and unique opportunity for New Orleans, furthering our dedication to investing in high-quality, premier locations across the Southern U.S."
About Southern Realty Trust Inc.
SRT was formed in 2023 to originate commercial real estate ("CRE") debt investments in the Southern U.S. and provide capital to high-quality borrowers and sponsors with transitional business plans collateralized by top-tier CRE assets with opportunities for near-term value creation, as well as recapitalization opportunities. SRT intends to create a diversified investment portfolio, targeting first mortgages, B-notes, mezzanine loans and debt-like preferred securities across CRE asset classes. For additional information regarding the Company, please visit: www.theSRTgroup.com.
About TCG Real Estate
TCG Real Estate refers to a group of affiliated CRE-focused debt funds, including a Nasdaq-listed mortgage REIT, Sunrise Realty Trust, Inc. (NASDAQ:SUNS), and a private mortgage REIT, Southern Realty Trust, Inc. The funds provide flexible financing on transitional CRE properties that present opportunities for near-term value creation, with a focus on top-tier CRE assets in primary and secondary metropolitan areas of the Southern U.S.
Forward-Looking Statements
Certain statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. The Company's forward-looking statements are generally accompanied by words such as "intend," "will," "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "plan," "goal" or other words that convey the uncertainty of future events or outcomes. Statements, among others, relating to the Company's beliefs with respect to the Project's positioning in the market, and cash flows and returns related to investments in hospitality real estate projects are forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company disclaims any obligation to update these statements unless required by law, and the Company cautions you not to rely on them unduly. The Company has based these forward-looking statements on its current expectations and assumptions about future events, which the Company considers reasonable. However, these forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and beyond the Company's control. Actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements.
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