(Bloomberg) -- HRI Properties LLC, a New Orleans-based real estate owner, developer and manager, hired banks ahead of a potential initial public offering, according to people with knowledge of the matter.
Morgan Stanley is among the banks that will handle a possible IPO of the company that owns hotels, apartments and mixed-use properties, said the people, who asked not to be identified. HRI’s investors include StepStone Real Estate and Almanac Realty Investors, which have contributed as much as $87.5 million and $200 million, respectively.
HRI Chief Executive Officer Thomas Leonhard and a representative for StepStone declined to comment. A representative for Almanac didn’t immediately respond to a request for comment, and a Morgan Stanley representative wasn’t immediately available to comment.
Founded in 1982, HRI has focused on adapting historic buildings, which are often subject to tax credits as part of federal and state incentive programs. The company, which manages more than 64 properties across the U.S., has invested more than $3 billion in developing real estate, according to its website. Its hotel partners include brands such as Hyatt, Hilton and Marriott.
One of HRI’s most recently opened hotels in downtown New Orleans is an example of its investment strategy. The building, which was previously home to the Daily Picayune newspaper, the Gulf Baking Soda company, the Peters Cartridge shop and a Peychaud’s Bitters factory, is owned by HRI in partnership with Rockbridge Capital LLC. It’s now known as The Eliza Jane, named after the publisher of the Daily Picayune in the late 1800s.
In addition to StepStone and Almanac, HRI counts Prudential Financial Inc., Nationwide Mutual Insurance Co. and Aegon NV among its partners, according to its website.
--With assistance from Alex Barinka.
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