|
|
|
|
|
|
|
|
|
| Determining whether storm damage is from wind or flooding will affect insurance payouts. CNN's Chris Huntington reports (September 7) |
Play video
|
|
|
|
NEW YORK (CNN/Money) -
Hurricane Katrina may have altered the face of New Orleans permanently but one real estate mogul says he's upbeat about the city's real estate market, according to a new report published Wednesday.
After plunking down $200M on office space and commercial property within the past few years, Judah Hertz, the president of Hertz Investment Group, is bullish to be exact, the Wall Street Journal reported.
"I am very, very bullish on New Orleans," Hertz told the paper.
An industrial warehouse conversion in the late 1980s might have been Hertz's foothold in the city, but it was in the last three years that he began to flex his muscle.
Buying two downtown office buildings in the past four months for $49 million and $45 million each and the New Orleans Centre, which is home to 65 stores, Hertz built his company's holdings up to 3 million square feet of property. (See correction.)
Hertz's Santa Monica, Calif.-based company now oversees 3 million square feet of office space in New Orleans, according to the paper.
Bruce Rutherford, a managing director of real estate firm Jones Lang LaSalle Inc., believes that despite the fact that much of the city is under water and clean-up is months away, the city's real estate market will rebound because of what history dictates and its role as one of the most important ports in the U.S.
It is very likely that many buildings in New Orleans will not be rebuilt, Rutherford told the Journal, creating a tighter market for office space.
In addition, Rutherford told the paper that since the city is one of busiest ports around the world, shipping and commodities companies will likely return.
Until then, Hertz is having his property assessed for damage and is taking some comfort in knowing that his insurance provider will cover the cost of damages, the Journal reported.
Hertz told the paper that his confidence in the future of the city is not just based on insurance policies and historic trends -- there's something intangible that he believes in.
"It has a very special way of life and there is no question in my mind that once they get the water out and the sewer operating, the city will come back even stronger than it was," Hertz told the paper.
Correction: An earlier version of this story incorrectly said that Hertz built the New Orleans Center. CNN/Money regrets the error. (Return to story.)
___________________________
What's Katrina's impact on the job market in the U.S.? Click here.
|
