NEW ORLEANS TIMESHARE COMING TO RIVER WALK

Source: Innovative Equities

February 23, 1999
New Orleans developers are building the first timeshare condominiums to be developed on the River Walk.

Called Riverside Suites, the condominium development is replacing the apartments at the Riverside Hotel building at College and Presa streets, purchased from former Texas Gov. Price Daniels last fall by Innovative Equities LLC, based in New Orleans.

Innovative Equities has opened a sales office and a model in the building, and are in the process of gutting the 1928 structure, which was designed by San Antonio architect Atlee B. Ayres. The historic structure, which was originally built for the Salvation Army and later hosted the first Luby's Cafeteria, is getting about $5 million worth of renovations, says Avrum Gaynor, CEO of Innovative Equities.

"Bar none, these will be the nicest suites on the river," he says.

Set to open in April, 1999, the property will have 46 units, including seven rooftop penthouses with private decks and hot tubs. Gaynor and his partner, Terrance Gomez, CFO and COO with Innovative Equities, say as part of the project the exterior fire escapes will be removed and replaced with private balconies. An additional interior stairwell will be constructed as well.

In an open space next to the existing building, six more stories will be added, Gaynor says. The property will be licensed as a hotel and will have hotel-like amenities such as an outdoor pool overlooking the River Walk, daily maid and linen service, a business center and 24-hour guest services. However, it will also offer timeshare amenities such as kitchens fully stocked with utensils and dishware, as well as washers and dryers.

"What we specialize in are boutique-size urban destinations," Gaynor says.

The partners plan to take the concept to other major markets such as Santa Fe, Los Angeles, San Francisco, Santa Monica, Boston, Georgetown and Philadelphia.

"We look for urban, tourist destinations with large convention bases and commerce," Gaynor says. "All a timeshare is is an economic way to own a vacation rather than rent it. Instead of receipts, you get deeds and tax write-offs. Instead of a room, you get a suite and a condo. It's a lot cheaper and more flexible."

Price tags for buying a one-week ownership stake at Riverside range from about $18,000 to $24,000, Gaynor says. The first few weeks of sales have been brisk, he says, but he declined to discuss specific sales figures. The project is affiliated with Interval International. II has given Riverside Suites a 5-star rating, Gaynor says, and 48 of the weeks available have been classified as "high season" by Interval. Gaynor says he expects about 75 percent of the Riverside buyers will be from Texas.

Gomez and Gaynor, collectively, have been involved in the vacation ownership industry for about 37 years, Gaynor says. He developed La Renaissance in Atlantic City and has been involved with several timeshare developments in New Orleans, including Chateau Orleans, The Quarter House and Hotel de L'Eau Vive.