Marcus & Millichap Exclusively Lists Joint Venture Equity Investment Opportunity in New Orleans
January 31 2023 - 11:00AM
Business Wire
Marcus & Millichap (NYSE:MMI), a leading commercial real
estate brokerage firm specializing in investment sales, financing,
research and advisory services, announced today an exclusive
representation agreement with Deep South Studios LLC to secure
joint venture equity in connection with the development of Deep
South Studios Phase I. The project is a 262,560-gross-square-foot,
full-service motion picture and television production facility in
New Orleans, Louisiana. Upon completion the facility will be the
largest of its kind in the Southeastern United States. The
remaining 85% construction is expected to take 12 to 18 months.
Eric Michael Anton and Henri M. Kessler of Marcus & Millichap’s
Global Capital Division are representing the sponsor, Deep South
Studios LLC.
Kessler stated: “In 2022, $220.2 billion was spent globally to
make and acquire new feature films and TV programming industrywide.
Louisiana is the fourth-largest entertainment market in the United
States. We are seeking an investment of over $100 million for Deep
South Studios Phase I, which will be completed and managed by a
talented team of professionals with many years of motion picture
industry experience.”
Deep South Studios is led by CEO Scott Niemeyer, who has over 30
years of experience with all aspects of film production. The
facility’s major utilities are in place and three buildings are
operating and generating income. The site is fully entitled and
ready for construction. Upon completion the project will contain
six sound stages ranging in size from 16,500 to 30,000 square feet,
two production offices and related vendor buildings totaling 99,000
square feet. There will be a construction mill for building
world-class sets, a grip and lighting building and up to 1,000
parking spaces.
“Deep South Studios Phase I is projected to generate $10.4
million in net-operating income, which equates to approximately
$173 million at a 6% cap rate and 20% internal rate of return,”
said Anton. “The $119.2 million in construction costs translates to
an 8.72% return on cost.”
The facility is located on a 20-acre site that forms the largest
contiguous undeveloped land-assemblage in central New Orleans.
Located on high ground on the west bank of the Mississippi River in
the Algiers neighborhood, the site is easily accessible from Louis
Armstrong New Orleans International Airport and Interstate 10. The
city’s central business district and French Quarter are close
by.
“Deep South Studios will address Louisiana’s under-served, yet
highly lucrative film and television production market,” said Brian
Hosey, first vice president and division manager with Marcus &
Millichap’s Global Capital Division. “As the only full-service
solution for Louisiana media production, Deep South Studios will
provide economies of scale and scope to capitalize on a growing
production ecosystem fueled by the 2002 Louisiana Motion Picture
Tax Incentive Act, which offers incoming productions a 25% tax
credit on qualifying in-state expenditures and up to 40% on
in-state labor costs.” Chris Shaheen is Marcus & Millichap’s
broker of record in Louisiana.
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm
specializing in commercial real estate investment sales, financing,
research and advisory services with offices throughout the United
States and Canada. As of December 31, 2021, the company had 1,994
investment sales and financing professionals in 82 offices who
provide investment brokerage and financing services to sellers and
buyers of commercial real estate. The company also offers market
research, consulting and advisory services to clients. Marcus &
Millichap closed 13,255 transactions in 2021, with a sales volume
of approximately $84.4 billion. For additional information, please
visit www.MarcusMillichap.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230131005525/en/
Gina Relva, VP of Public Relations
Gina.Relva@marcusmillichap.com 510-999-1284
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