Real estate development and investment firm Industrial Realty Group, LLC (IRG) recently announced that work had begun on phase one of Propel Park, a new industrial and office development located within NASA’s Michoud Assembly Facility (MAF) campus. Notably, this represents the first facility of its kind to be built within the New Orleans city limits in more than two decades.

Upon completion, the Propel Park project is slated to encompass more than 1 million square feet of industrial and flex space, with target tenants including businesses operating in light assembly, manufacturing, distribution, and office space. IRG tapped Bill Boyer of CBRE and Leon Audibert of Property One to spearhead marketing and leasing efforts.

“This development will provide a unique industrial opportunity within New Orleans city limits that is ideal for last-mile distribution close to population centers,” Boyers said. “As e-commerce continues to drive unprecedented demand for warehouse and logistics space, Propel Park will provide a Class A distribution product that does not currently exist in the market.”

Located at 13800 Old Gentilly Road in the New Orleans Northshore submarket, the project spans 50 acres of developable land that IRG took under a long-term ground lease. Phase one will be a warehouse facility that incorporates nearly 260,000 square feet of New Orleans industrial space.

The park’s first tenant will be aerospace and defense development and manufacturing firm Textron Systems, which signed a 10-year lease to relocate from its existing space within an MAF building into a brand new distribution hub totaling a little more than 97,000 square feet.

“We are proud to expand our footprint in New Orleans East, as this project will provide a safe, secure, and efficient location to conduct our material logistics operations,” said Ryan Schaffernocker, vice president at Textron Systems. “We have enjoyed a long partnership with the Michoud campus, and this project will serve as an excellent complement to our shipyard operations.”

“There has been incredible momentum on-site,” said Stuart Lichter, president of IRG. “Our team has already begun the preliminary site preparations to ready the ground for construction. We anticipate more tenants will join the project in 2023.”

Officials from the city of New Orleans and state of Louisiana who participated in the groundbreaking ceremony alongside IRG’s construction partner, Impetus, recognized the economic and social importance of the project for the successful development of the greater region.

“At Impetus, we have an innovative approach to project delivery, much in line with the kind of innovation for which the NASA Michoud Facility has long been known,” said Nick Moldaner, COO at Impetus. “With Impetus self-performing more than 40% of the work at Propel Park to date and a significant number of local sub-contracting partners involved, the capability and talent pool in the greater New Orleans region has shined. The economic impact during construction has already been apparent and will continue to thrive as new tenants and job opportunities are added as the park expands.”

Director of Economic Development for Entergy New Orleans, Taurus Wright, also weighed in: “The development of Propel Park demonstrates the importance of community partnerships in attracting businesses and creating jobs in New Orleans, especially in New Orleans East. We all must have a seat at the table to help New Orleans continue to grow and thrive. This economic development project will offer vast opportunities for additional industrial growth with its proximity to the airport, highways, ports and the rich culture of New Orleans.”

“IRG and Textron’s investment in New Orleans East at Propel Park will indeed propel the campus forward, providing economic opportunity for a new generation and building on the foundation that the NASA Michoud Assembly Facility has stewarded for over a half century,” said New Orleans Mayor, LaToya Cantrell. “This project undoubtedly will create more jobs and spur additional investment in our community, and we look forward to continuing to support this development through all its phases.”

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