KEY TAKEAWAYS: VPG Holdings acquired the 23-story 200 Carondelet for approximately $27.2 million. The 189-unit property is about 90% occupied, with 40% of units reserved for income-qualified residents. The deal marks New Orleans-based VPG’s first high-rise acquisition. VPG plans approximatel y $2 million in building improvements and is exploring new uses for the historic former banking hall. VPG Holdings, a New Orleans-based, vertically integrated multifamily investment and development company, has acquired 200 Carondelet, the 23-story former National American Bank Building in the city’s Central Business District. The approximately $27.2 million purchase marks VPG’s first high-rise acquisition. 200 Carondelet has 189 apartment homes, of which approximately 90 percent are occupied. Forty percent are set aside for residents earning 60% of area median income or less. Under VPG’s ownership, the property will continue to serve as mixed income housing for people who work and live downtown. Andre Lewis Michael Merideth VPG was founded in 2010 by former Tuskegee University classmates Michael Merideth and Andre Lewis, and the two have grown the company to a portfolio of more than 1,300 units across the Gulf South.   “There are only a handful of buildings that define the New Orleans skyline, and 200 Carondelet is one of them. Becoming its steward is a real milestone for our company,” said Merideth, CEO and co-founder of VPG Holdings. “This is our first high-rise, and it reflects what we have been building toward since we started: the ability to take on complex, historic properties and do right by the people who call them home.” VPG Construction, the company’s general contracting affiliate, will lead a phased improvement program of approximately $2 million that begins with the building’s central cooling plant and core mechanical systems, followed by upgrades to common areas and resident amenities. VPG Management will oversee day-to-day operations, giving VPG direct control of ownership, construction, and property management under one platform. “Because we own it, build it and manage it ourselves, we can move quickly and we hold ourselves accountable for the outcome,” Merideth said. “Our first job is the systems residents rely on every single day. Once those are solid, we will invest in the spaces that make 200 Carondelet feel like home, while respecting the craftsmanship that made this building a landmark in the first place.” VPG is also exploring new uses for the building’s nearly 10,000-square-foot former banking hall, which has 26-foot ceilings and frontage on both Carondelet and Common streets. “A strong downtown needs people living in it at every income level,” Merideth said. “Keeping these homes within reach in the heart of the CBD and eventually bringing that historic banking hall back to life is how we want to help write the next chapter for downtown New Orleans.” Completed in 1929 and designed by Louisiana architect Moise H. Goldstein, 200 Carondelet rises 325 feet and is crowned by a six-story octagonal tower that has been part of the downtown skyline for nearly a century. The building was listed on the National Register of Historic Places in 1986 and was converted from bank and office space into studio and one-bedroom apartments in 2008 as part of an approximately $36 million renovation. The acquisition was financed by Home Bank, with Longwell Reiss serving as legal counsel and advising on the transaction structure. The Obsidian Catalyst Fund provided equity for the transaction. “A transaction like this only comes together with partners who are willing to dig in and solve problems alongside you,” Merideth said. “Home Bank, Longwell Reiss and Obsidian each played a critical role, and our team at VPG did the hard work to get us across the finish line. We have big plans for this building, and we are just getting started.” ...read more read less