In a strategic and noteworthy move, Monroe-based businessmen and real estate investors, Eddie and Joseph Hakim, have added another jewel to their portfolio with the acquisition of the prominent green granite high-rise at 1615 Poydras St. in New Orleans. The 23-story building, currently named after its anchor tenant, DXC, was purchased from longtime owner and philanthropist Frank Stewart in a transaction that took place late Friday.
While the sale price remains undisclosed, the acquisition marks the Hakim brothers’ second venture into Poydras Street’s high-rise market. Their previous success in revitalizing the 20-story Orleans Tower in 2013, formerly known as the Amoco Building, showcased their ability to transform aging structures and elevate occupancy rates from 45% to over 80%.
Jeff Lahasky, Joseph Hakim’s son-in-law and a key figure in managing the family’s real estate assets, revealed that the Hakims plan to follow a similar playbook with their latest acquisition. The green granite high-rise at 1615 Poydras is currently only about 50% occupied, and the Hakims envision maintaining office use while building on its potential, mirroring their successful strategy at the Orleans Tower.
“We believe the path to success is to maintain office use and continue to build on office use like we did at the Orleans Tower,” Lahasky stated, emphasizing their commitment to a proven formula for success. However, he added that the family remains open to exploring different opportunities if they prove mutually beneficial over time.
The sale of the DXC building stands out as a bright spot in the local office market, especially considering the challenges faced throughout the year. The lingering effects of pandemic-era restrictions continue to impact large office towers across the United States, with occupancy in Central Business District high-rises averaging around 80%, lower than pre-pandemic levels.
Real estate broker Evan Stone of Dallas-based Goodwin Advisors, who handled the sale alongside Matt Taylor of Property One, highlighted the significance of the transaction. Stone noted that the sale demonstrates the faith of long-term investors with deep pockets in the New Orleans market, showcasing a belief in both the city’s Central Business District and the enduring value of office spaces.
The DXC building, erected 40 years ago, holds historical significance as one of the sleek office towers on Poydras Street, overlooking the Superdome. Originally serving as the headquarters for Freeport McMoRan until 2007, the building has undergone changes in ownership over the years.
Frank Stewart and his partners acquired the building in the early 2000s for $30 million, refinancing it for $34 million in 2017. Stewart, now 89, has been gradually downsizing his real estate portfolio, and the sale of 1615 Poydras became a focal point of his efforts in 2023.
While the specific details of the sale, including the purchase price, remain undisclosed, Lahasky assured that the Hakims secured an attractive deal. The family sees ample opportunity to make improvements and generate a return on their investment.
DXC Technology Co. currently leases the building through 2031, although it is trying to sublease four of its six floors. Lahasky emphasized that engaging with DXC to discuss the lease will be a priority for the Hakim family.
In a real estate landscape where caution prevails, the Hakims’ willingness to take calculated risks and think outside the box reflects their long-term, generational approach to smart business decisions. As they embark on this new venture, the Hakim brothers’ vision for revitalization sparks optimism for the future of 1615 Poydras St., setting the stage for yet another transformative chapter in their impressive real estate journey.
