KEY TAKEAWAYS: Tulane signed a purchase agreement to become lead developer and future owner of the former Charity Hospital building. The $500 million project will transform the landmark into a bioscience, education and innovation hub with more than 650,000 square feet dedicated to Tulane. Cons truction is expected to begin after a financial closing this fall and be completed in 2029. Tulane projects the redevelopment will generate a $1.2 billion economic impact, create 7,300 construction jobs and support more than 2,400 permanent positions.   Tulane University has signed a purchase-and-sale agreement with 1532 Tulane Holdco LLC to lead the long-stalled redevelopment of the former Charity Hospital building, a nearly 90-year-old downtown landmark that has sat vacant since Hurricane Katrina. As part of the agreement, Tulane’s role in the project has changed significantly. Rather than serving only as a tenant, the university is transitioning into an ownership role and will serve as lead developer. Tulane and 1532 Tulane Holdco will now work toward financial closing, which is expected to be completed by the fall. During that phase, the parties will work through a development agreement and other remaining issues before major construction begins. The university is planning a fall groundbreaking to officially begin construction on a $500 million project, which would transform the building into a national hub for bioscience discovery, medical research, and innovation. Construction is expected to be completed in 2029. Tulane plans to dedicate more than 650,000 square feet of the building to education, health, research, and innovation initiatives. “This is a significant step forward in what would be the largest and most consequential effort of its kind in the history of Tulane and perhaps in the history of New Orleans itself,” Tulane University President Michael A. Fitts said. “While there is still much work to do to finalize this deal, this once-in-a-generation opportunity will reimagine a historic treasure as a new center for the latest breakthroughs and innovations in human health.” Pre-construction activity on the site is expected to begin in the coming weeks, followed by a groundbreaking after financial closing is complete. The effort to revitalize Charity is being supported by the state of Louisiana, the city of New Orleans, BioDistrict New Orleans, and the Goldring Family Foundation, which is providing the lead private gift for the project. Tulane also plans to seek additional private philanthropy. “This is an effort that has the potential to define Tulane as an institution and position New Orleans and Louisiana among the nation’s most forward-thinking,” the Goldring Family Foundation said in a statement. “The Goldring Family Foundation is honored to be a part of this historic moment and urges others to join it in what promises to be a new and exciting chapter for our university and hometown.” Tulane plans to use a significant majority of the 1 million-square-foot structure, marking a major expansion of the university’s downtown campus in the heart of the city’s growing biomedical district. The building will become the new home for Tulane’s Celia Scott Weatherhead School of Public Health and Tropical Medicine and the Tulane University Innovation Institute. Parts of the Tulane School of Medicine will also occupy the redeveloped structure, which will include classrooms, community spaces, and interdisciplinary labs for approximately 700 new researchers. Plans call for the remaining sections of the building to include residential living, a food hall, community gathering space, and other retail uses. “The concentration of scientists, students, and entrepreneurs in this revitalized space will result in cures and new treatments for diseases as well as vast economic opportunities for our city, state, and region,” Fitts said. “This project goes far beyond new laboratories and classrooms — it is about accelerating New Orleans’ shift toward an economy powered by advanced research, startups, and high-growth industries, and creating a vibrant neighborhood with housing, jobs, and community spaces where New Orleanians can live, work, play, and prosper.” Tulane currently has an annual impact of $5.2 billion on the state’s economy, supports more than 30,000 jobs, and contributes $88.2 million in annual state tax revenue. According to the university, the Charity redevelopment is expected to have a $1.2 billion impact on the state’s economy, create a one-time impact of approximately 7,300 jobs, and generate $10.5 million in state tax revenue. Once completed, the project is expected to create more than 2,400 permanent jobs and have an annual economic impact of $530 million. The university has 2,700 employees and more than 2,600 students based downtown. Over the next eight years, Tulane expects to add roughly 2,500 more employees downtown and increase its annual research expenditures to approximately $400 million. Tulane’s expanding downtown campus, including the former Charity Hospital building, is a key part of the city’s BioDistrict, which connects research institutions, healthcare providers, and industry partners to grow New Orleans’ biosciences sector and drive economic development. “This is a defining moment for Tulane and for New Orleans. The transformation of the former Charity Hospital building is about far more than restoring a building — it is about creating a new engine for discovery, talent, and economic growth,” said Patrick Norton, Tulane senior vice president, chief operating officer, and treasurer. Norton will serve as executive lead for the redevelopment project. “By bringing together researchers, students, entrepreneurs, and healthcare innovators under one roof, we are building a place where breakthroughs happen, companies are launched, and lives are improved,” he said. “We believe this project will become a cornerstone of New Orleans’ emergence as a leading center for bioscience, public health, and innovation, while honoring the extraordinary legacy of a building that has served this city and region for generations.” Tulane Senior Vice President for Academic Affairs and Provost Robin Forman said the repurposed building will reflect the mission of its original tenant. Tulane was founded in 1834 as the Medical College of Louisiana, and its partnership with Charity Hospital dates back nearly two centuries. “Charity Hospital stood as a symbol of our city’s commitment to public health,” Forman said. “We are proud that this powerful legacy will continue and this new space will be a monument to public health, as the scientists and students who call it home embark on path-breaking research and studies that will improve health and create the leading doctors, researchers, and cutting-edge cures of tomorrow.” A redevelopment stalled since 2018 In 2018, the LSU Real Estate and Facilities Foundation selected 1532 Tulane Partners Inc. – a partnership of Joseph Stebbins of CCNO Development and Israeli financier Yoel Shargian of El Ad Group – as the development team to transform Charity Hospital. The original redevelopment plan called for Tulane to occupy 500,000 square feet as part of its downtown campus expansion. Other proposed uses included offices for biomedical companies and life sciences tenants, The Shop coworking space, retail, 250 mixed-income housing units, an outdoor café, outdoor seating, and green space. But the project stalled because of several factors, including the COVID-19 pandemic, rising construction costs, inflation, interest rate increases, and funding challenges. In 2023, 1532 Tulane Partners began cleaning, testing, inspection, demolition, remediation, and abatement. In 2024, The Domain Companies and LMXD joined 1532 Tulane Partners to work on redevelopment plans. In July 2024, the project applied for, but did not receive, $16.2 million in federal Community Development Block Grant funds to help construct the apartment units. The project has stalled since. Through the development changes and delays, Tulane continued to publicly commit to the project. The university’s plans included occupying at least 500,000 square feet for a major expansion of its downtown campus within BioDistrict New Orleans, expanding research and educational facilities, housing the Tulane Innovation Institute, and relocating the School of Public Health and Tropical Medicine. Under the new purchase-and-sale agreement, Tulane will serve as owner and lead developer. 1532 Tulane Holdco is planning to convert about one-third of the structure into apartments. “We are grateful for the opportunity to be part of such a meaningful project and to work alongside Tulane in shaping the future of this iconic property,” said Glen Smith, CEO of The Magnolia Group, lead advisor to 1532 Tulane Holdco. “For generations, Charity Hospital has been woven into the fabric of New Orleans, and we recognize the responsibility that comes with helping to guide its next chapter.” Smith said the residential component is intended to complement the broader redevelopment. “As we move closer to bringing this vision to life, we remain focused on creating a residential community that complements the broader redevelopment and contributes to the continued growth of downtown,” Smith said. “This project is about more than restoring a historic building — it’s about honoring its legacy while creating new opportunities for people to live, work, and connect. We are proud to play a role in transforming this landmark into a place that will serve and inspire the community for decades to come.” ...read more read less