APF and TMGOC Provide $120M for New Orleans Hotel Conversion

Access Point Financial and TMGOC Ventures co-originated a $120 million bridge loan and preferred equity package to recapitalize the adaptive reuse conversion of a 31-story downtown New Orleans office tower on behalf of Kailas Companies [1]. The project brings together the 250-key Fairmont New Orleans, the 216-key Element by Marriott New Orleans Downtown, 150,000 square feet of office space, and Emeril’s Delmonico restaurant [[1], [2]].

What does the $120 million financing package cover?

The co-originated $120 million transaction consists of a bridge loan and preferred equity investment structured directly for Kailas Companies [1]. As reported by Hotel Business, the capital recapitalizes the conversion of a historic high-rise office building into a multi-use hospitality destination anchored by two distinct hotel brands [2]. Russ Schildcrout of Ackman-Ziff brokered the debt and equity transaction between the parties [[1], [2]].

What hotel brands and commercial assets make up the project?

The development integrates luxury and extended-stay flags alongside commercial space within a single high-rise asset [1]. According to Asian Hospitality, the property houses the 250-key Fairmont New Orleans alongside the 216-key Element by Marriott New Orleans Downtown [1]. Beyond lodging rooms, the mixed-use tower integrates 150,000 square feet of Class A office space and the on-site dining venue Emeril’s Delmonico [2].

What is the development history of the 31-story tower?

The building was originally constructed in 1970 as a 31-story commercial office building designed by architecture firm Skidmore, Owings & Merrill [[1], [2]]. Kailas Companies acquired the property in 2014 with plans to convert the tower into hotel space [1]. Initial conversion construction work on the asset began in January 2024 [[1], [2]]. Hotel Business noted the recapitalization follows the completed conversion of the tower [2].

Who are the primary partners behind the transaction?

The borrower, Kailas Companies, is a Louisiana-based development and investment firm founded by Mohan Kailas in 1990 and led by Chief Development Officer Naveen Kailas [1]. Kailas manages and operates an office, residential, retail, and hospitality portfolio exceeding two million square feet across Louisiana [1]. Capital providers APF, represented by Chief Investment Officer Dana Tsakanikas, and Boca Raton-based private equity firm TMGOC Ventures, led by founders and managing partners Sunju Patel and Glenn Alba, co-originated the structure [[1], [2]]. TMGOC previously partnered with an institutional investor in May to purchase the 455-key Bethesda North Marriott Hotel in Maryland [1].

Where is the property situated relative to local demand generators?

The tower is located in the New Orleans central business district, positioned one block from Canal Street and a few blocks southwest of the French Quarter [2]. Asian Hospitality and Hotel Business both detailed that the site sits within walking distance of Caesars Superdome, the Biomedical District, Tulane University, and LSU Health Sciences Center [[1], [2]].