VOLUME 27 NUMBER 10
APRIL-JUNE 1997
SPECIAL
TCHOUPITOULAS
SELF-STORAGE
NEW ORLEANS, LOUISIANA
PROJECT TYPE
Adaptive use of a historic seven-building cotton mill into a
self-storage facility featuring climate-controlled units and
state-of-the-art electronic security. Redevelopment of the
180,000-square-foot facility, built in various stages beginning in the
1850s, required extensive review by local, state, and federal historic
landmark agencies. Ideal demographics in the surrounding area and a
dearth of land available for new construction led to the developer's
decision to redevelop the mill. Use of historic preservation tax credits
enhanced project feasibility.
SPECIAL FEATURES
Adaptive use
State-of-the-art security system
Climate-controlled storage units
Adjustable storage units
Historic preservation tax credits
DEVELOPER
Stor-All New Orleans, Inc.
4700 Tchoupitoulas Street
New Orleans, Louisiana 70115
504-899-2238
ARCHITECT
John Williams & Associates
365 Canal Street, Suite 3060
New Orleans, Louisiana 70130
504-566-0888
CONTRACTOR
Artique Construction
New Orleans, Louisiana
504-368-3732
GENERAL DESCRIPTION
Construction of the first phase of the seven-building manufacturing facility known through
most of its history as the Lane Cotton Mill was completed in the 1850s. Additions to the threeand four-story brick buildings were completed in various stages in the late 19th and early
20th century. After closing in the 1950s, the building went through a series of uses, including
use as a meatpacking plant, a print shop, and a part-time movie studio. Today the
180,000-square-foot National Register landmark houses a state-of-the-art self-storage facility
with more than 800 units. Completed in 1996, the project represents the first effort by
Stor-All, a self-storage facility developer, to convert an abandoned urban structure into a
modern storage facility. When completed the facility will contain nearly 1,000 units, including
an 8,000-square-foot section for wine storage that will maintain optimum temperature and
humidity for fermentation.
Stor-All was interested in the property because raw land in the uptown area of New Orleans,
which has desirable demographics, is limited and expensive. In addition to its location, the
property's placement on the National Register of Historic Landmarks made it eligible for
preservation tax credits. After carefully assessing the condition of the facility, in 1991 Stor-All
began the long, intensive process of planning the renovation. In order to secure preservation
tax credits, the developer had to secure approval of all redevelopment plans from federal,
state, and local historical agencies through each step of the renovation.
SITE HISTORY
The mill was constructed in 1856 under the name New Orleans Manufacturing Company, and
two years later it became the Lane Cotton Mill, the name that it has had for most of its
existence. During the Civil War the mill produced uniforms for Confederate troops until it was
confiscated by Union troops when Admiral David G. Farragut captured New Orleans in 1862.
Following the war the mill was purchased by a New York cotton broker and changed owners
numerous times over the years. It was expanded several times and continued to manufacture
cotton products until the late 1950s, employing as many as 1,400 workers. Increasing labor
costs as well as competition from new synthetic materials drove the mill out of business.
PLANNING/DEVELOPMENT
Stor-All first identified the site in 1991. The company already had developed two other sites in
New Orleans and was searching for a developable site in the uptown section of the city, which
market research had determined to be an underserved market. Indeed there were no storage
facilities in the area, and demographic research suggested significant pent-up demand.
However, a dearth of developable land made available sites too expensive.
The mill's location in uptown on Tchoupitoulas Street, one of the main arteries between
uptown and downtown, placed it well within an ideal trade area. The site also was included in
the Tchoupitoulas Corridor Redevelopment Plan, an infrastructure improvement plan to
upgrade the streets, sewer, and utilities along the corridor. Redevelopment would harm the
project in the short-term as traffic was rerouted, but eventually it would transform the street
into the main thoroughfare between uptown and downtown.
The site was owned by the National Tea Company, which had purchased it in the 1980s and
redeveloped one of the buildings into a supermarket. In 1991 National Tea agreed to sell the
complex for $1.1 million, a comparative bargain considering land costs in the area.
The Lane Cotton Mill was on the National Register of Historic Landmarks. To make the project
work, Stor-All needed to take advantage of available historic preservation tax credits, which
required redeveloping the facility in a way that would satisfy federal, state, and local historical
agencies regarding its historical integrity and authenticity. Stor-All had determined to
redevelop the site in a historically accurate manner, but sometimes the company was given
conflicting requirements. In one instance each agency specified a different color for the roof.
Other requirements added considerable expense to the project, such as the agencies' refusal
to allow Stor-All to upgrade most of the facility's windows, instead requiring the developer to
replace expensive window panes. New windows also would have allowed for greater energy
efficiency, an important consideration since many of the units are climate controlled. Stor-All
eventually determined that the company could satisfy the requirements of the preservationists
and in December 1995 purchased the buildings for $1.1 million.
CONSTRUCTION
Analysis of the buildings revealed that they had suffered only moderate structural damage,
caused mainly by leaks in the roofs. However, ripping off the old roof would pose a
considerable expense in terms of labor and disposal costs, and there was a good chance that
doing so would release hazards such as asbestos into the environment. Instead, Stor-All opted
to seal the existing roofs with a lightweight foam compound.
In addition, four small sections of exterior wall of the facility had collapsed completely.
Instead of replacing the brick, the developer proposed covering the sections with sheetrock
and painting murals that depicted the history of the mill. The first mural is a portrait of
Admiral Farragut, who captured New Orleans and the mill in 1862. Three other murals have
been commissioned that will illustrate the mill interior in the 1870s, a steamboat unloading
cotton, and factory workers posed outside of the mill, as shown in an old photograph.
Inside the buildings foot-square wood piers made from old-growth cyprus and old-growth long
needle pine support the framing. The large majority of these beams were completely intact,
and in some cases the pine wood was so hard it could not be penetrated by nails. The flooring
is made of the same wood types. Some interior walls had sustained water damage, requiring
repointing of the bricks. Ramps that had been used by mules to haul cotton to the top floors
were removed, and three elevators were installed in the building, one in a tower that once
had housed a four-story cotton gin.
Significant renovation was needed to bring the buildings up to modern codes. New electrical
wiring was required throughout the facility, both to bring it up to code and to install modern
electronic access and security equipment and climate-control equipment. A sprinkler system
was installed to comply with fire codes, as were several sets of modern exit stairwells.
The galvanized steel self-storage units used a variable space partition (VSP) system. The VSP
system allows for unit sizes to be easily modified in response to changes in demand. The units
range in size from five feet by ten feet to ten feet by fifty feet. Some unique problems were
encountered in installing the units due to the age and design of the buildings. Because the
140-year-old hand-mixed concrete was difficult to penetrate without crumbling, special
fasteners were required to secure the units to the walls. In addition, the floors in many places
were intentionally bowed inward or outward to accommodate different industrial processes.
Each unit had to be custom measured to ensure that doors hung properly and walls were flush
with the floor.
Many of the storage units are climate controlled. Climatizing the buildings proved to be a
much easier task than anticipated. The two-foot-thick brick walls and floors constructed of sixto eight-inch-thick timber provided a high degree of natural insulation, keeping even the
non-climate-controlled areas of the facility surprisingly cool and dry.
Renovation of the buildings was tightly planned and controlled, and Stor-All made daily use of
sophisticated project management software to ensure that construction proceeded as planned.
Phase I of the project, which included 500 units in 50,000 square feet of space, was
completed on time and under budget.
MANAGEMENT
Tchoupitoulas Self-Storage is open to tenants from 7:00 a.m. to 7:00 p.m. daily, and a
manager is on site 24 hours a day. The entrance to the facility is on Tchoupitoulas Street, and
access is restricted by an electronic gate. Tenants are given an access code, which opens the
gate and records their time of arrival in a computer in the management office; their time of
departure also is recorded. At buildout the facility will be wired to restrict tenant access to
only the area of the facility housing their storage unit.
MARKETING/TENANTS
Marketing of self-storage facilities can be difficult, and the Tchoupitoulas facility is no
exception. Marketing to individuals is achieved largely through banners hung from the facility
and from advertisements in the telephone book. Direct mail advertising is employed as well,
but it can be expensive and inefficient; generally, for every 400 pieces sent, only one
response is received. Drive-by traffic and word-of-mouth advertising is most effective.
Marketing to Stor-All's business tenants is more direct. In general, commercial tenants lease
more space for a longer period of time than individuals. Stor-All uses the door-to-door
approach in marketing to businesses, a time-consuming but effective technique. Currently
about 50 percent of the tenants are commercial.
Having a multilevel building often can be a drawback in marketing a self-storage facility.
However, in New Orleans, where the entire city is below sea level, the upper levels of a facility
provide tenants with added protection against sudden flooding due to stormwater runoff.
Stor-All felt that this fact, along with the sheer number of units the facility could hold, would
ensure the project's marketability and feasibility. The facility had been leasing 150 to 200
units per month when it first opened. Shortly afterward the corridor redevelopment project
began, disrupting traffic along Tchoupitoulas Street and temporarily slowing down business.
But the developer is confident that leasing will resume its former pace following completion of
the redevelopment plan.
EXPERIENCE GAINED
Multilevel self-storage facilities are feasible, particularly in areas prone to flooding. At
180,000 square feet, Tchoupitoulas Self-Storage is considerably larger than typical
facilities, which average about 48,000 square feet. The number of units is expected to
make this facility the most profitable of Stor-All's properties.
Detailed planning and strong project management are essential in redevelopment
projects. The developer, who served as project manager, used sophisticated project
management software to keep the project on schedule and under budget. Each aspect of
the redevelopment was broken down in detail, and competitive bids were solicited. The
developer undertook specialized training in order to take full advantage of the project
management software available.
A historic redevelopment property should not be closed on until plans have been
approved by all agencies with oversight. Conflicts among them can cause unanticipated
delays in the redevelopment process.
In projects requiring long-term planning and approval, assessment of the structure's
condition should be ongoing. Serious problems such as roof leaks can continue to cause
damage and require further reconstruction planning.
PROJECT DATA
LAND USE INFORMATION
Site Area: 3.5 acres
Gross Building Area: 180,000 square feet
Net Rentable Area: 116,000 square feet
DEVELOPMENT COST INFORMATION
Site Acquisition $1,100,000
Hard Costs
Lighting
$9,086
HVAC
42,783
Alarms (storage and sprinkler)
53,425
Enclosures (brick and block)
62,498
Office equipment
20,114
Sprinkler system
85,685
Gate access equipment
5,350
Landscaping (front)
4,010
Signage and stripes
9,029
Elevators and lifts
131,493
Office and apartment
198,571
Partitions and unit doors
333,472
Electrical
133,020
Building doors
18,340
Windows
94,598
Stairs (fire chases)
Paint removal
146,111
20,255
Paving and drains
154,030
Roof repair
160,255
Structure support
112,455
Demolition/clean up
114,133
Contingency/miscellaneous
overruns
4,110
Floor repair/replacement
44,879
Fence
32,999
Total
Soft Costs
$1,990,701
Utilities/permits/deposits
$30,613
Architect/engineer/appraiser
206,213
Loan fees/interest
142,693
Construction management
163,599
Insurance/taxes
Total
92,538
$635,656
Total Development Cost $3,726,357
STORAGE UNIT INFORMATION
Non-Climate-Controlled Storage: 664 units
Climate-Controlled Storage: 225 units
Total Storage to Date: 889 units
DEVELOPMENT SCHEDULE
Site Purchased: December 1995
Planning Started: September 1994
Construction Started: December 1995
Sales Started: April 1996
DIRECTIONS
From the Airport: Take Airline Highway to Tulane Avenue. Turn right on North Broad Avenue.
Stay to the right until the road becomes Napoleon Avenue. Stay on Napoleon Avenue about 2
miles. Turn right on Magazine Street. Turn right on Valence Street to the entrance of the
facility.
Driving Time: Approximately 20 minutes in non-peak-hour traffic.
The Project Reference File is intended as a resource tool for use by the subscribers in improving the quality of
future projects. Data contained herein were made available by the Development team and constitute a report
on, not an endorsement of, the project by ULI - The Urban Land Institute.
Copyright 1997, 1997, by ULI - the Urban Land Institute
1025 Thomas Jefferson Street, N.W. Ste. 500w, Washington, D. C. 20007-5201
DOCUMENT IMAGES
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