Sunrise Realty Trust, Inc. Commits $44.0 Million to a Senior Loan for Shell Plaza at the River District in New Orleans, Louisiana
Rhea-AI Summary
Sunrise Realty Trust (SUNS) has announced a $44.0 million commitment to a $74.5 million senior loan for the construction of Shell Plaza in New Orleans. The project will serve as regional headquarters for Shell USA Inc. The remaining $30.5 million is syndicated to TCG Real Estate platform affiliates ($20.5M) and another lending partner ($10.0M).
The build-to-suit property, developed by Lauricella Land Company and Cypress Equities, will be an 8-story building featuring 117,941 square feet of Class-A office space and 6,407 square feet of retail space. Located on a 1.6-acre parcel on Convention Center Boulevard, the LEED-certified building will include amenities such as a 3,101 SF fitness center and in-building parking. The project is expected to reach substantial completion in September 2026.
Positive
- Secured major tenant (Shell USA) with pre-signed lease agreement
- Strategic location in downtown New Orleans with premium amenities
- Risk sharing through $30.5M loan syndication with partners
- Class-A office space with LEED certification adds value proposition
Negative
- Significant construction risk with completion 2.5 years away
- Large single-tenant exposure increases vacancy risk
News Market Reaction 1 Alert
On the day this news was published, SUNS declined 2.50%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WEST PALM BEACH, Fla., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. (“SUNS” or the “Company”) (Nasdaq: SUNS), a lender on the Tannenbaum Capital Group (“TCG”) | Real Estate platform, today announced that it closed on a
With substantial completion anticipated in September 2026, the 8-story Shell Plaza will include 117,941 square feet of Class-A office space on floors 5-8 and 6,407 square feet of retail on the ground floor.
Adjacent to the Ernest N. Morial Exhibition Hall Authority in the River District neighborhood of downtown New Orleans, the Project offers expansive views of the Mississippi River and convenient walking access to downtown and residential neighborhoods like the Garden District. On-site amenities will include a 3,101 SF fitness center and in-building parking on floors 2-4. With column-free floorplates (~30,000 SF) in a Gensler-designed, LEED certified building, there are no comparable properties in New Orleans.
“Shell Plaza reflects the desire for modern, efficient workspace with wellness amenities and high-quality technology infrastructure. Shell Plaza combines New Orleans' vibrant culture with the comfort and sophistication sought by professionals,” said Brian Sedrish, Chief Executive Officer of SUNS, adding “We’re proud to support a property that represents a rare and unique opportunity for New Orleans, furthering our dedication to investing in high-quality, premier locations across the Southern U.S.”
About Sunrise Realty Trust, Inc.
Sunrise Realty Trust, Inc. (Nasdaq: SUNS) is an institutional commercial real estate (“CRE”) lender providing flexible financing solutions to sponsors of CRE projects in the Southern United States. It focuses on transitional CRE business plans with the potential for near-term value creation, collateralized by top-tier assets in established and rapidly expanding Southern markets. For additional information regarding the Company, please visit www.sunriserealtytrust.com.
About TCG Real Estate
TCG Real Estate refers to a group of affiliated CRE-focused debt funds, including a Nasdaq-listed mortgage REIT, Sunrise Realty Trust, Inc. (NASDAQ: SUNS), and a private mortgage REIT, Southern Realty Trust, Inc. The funds provide flexible financing on transitional CRE properties that present opportunities for near-term value creation, with a focus on top-tier CRE assets in primary and secondary metropolitan areas of the Southern U.S.
Forward-Looking Statements
Certain statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. The Company’s forward-looking statements are generally accompanied by words such as “intend,” “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. Statements, among others, relating to the Company’s beliefs with respect to the Project’s positioning in the market and are forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company disclaims any obligation to update these statements unless required by law, and the Company cautions you not to rely on them unduly. The Company has based these forward-looking statements on its current expectations and assumptions about future events, which the Company considers reasonable. However, these forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and beyond the Company’s control. Certain factors, risks and uncertainties discussed under the caption “Risk Factors” and elsewhere in the Company’s filings available on the SEC’s website could cause actual results and performance in the future to differ materially from those set forth in or implied by such forward-looking statements.
Investor Relations Contact
Robyn Tannenbaum
561-510-2293
ir@thetcg.com
Media Contact
Profile Advisors
Rich Myers & Rachel Goun
347-774-1125
srt@profileadvisors.com
FAQ
What is the total value of the Shell Plaza loan commitment by SUNS?
When is Shell Plaza expected to be completed in New Orleans?
How large is the Shell Plaza development in New Orleans?
Who are the development partners for SUNS's Shell Plaza project?
What amenities will Shell Plaza feature?
