Plans to redevelop the Metairie Towers Condominiums have formally been scrapped, with the 50-year-old constructing now heading to public sale.

Developer Darren Aschaffenburg, a neighborhood actual property investor with 35 years of expertise, introduced on July 11 that the property at 401 Metairie Highway can be auctioned on August 25.

“After an exhaustive try, I simply wasn’t financially robust sufficient to safe the event financing,” Aschaffenburg stated.

Aschaffenburg bought the seven-story constructing for $24.5 million in October 2024, intending to rework the storm-damaged construction into luxurious condominiums with a brand new penthouse flooring. The constructing, which housed largely senior residents, has remained vacant since Hurricane Ida brought about vital injury in 2021.

The beginning bid for the property is $10 million.

Regardless of early momentum and refundable deposits collected from potential consumers, the developer stated securing the required financing proved insurmountable.

“The venture is certainly a house run, but it surely’s a lot bigger than something I’ve executed up to now. As they are saying, ‘You’ve received to know when to carry ’em, know when to fold ’em.’ It’s simply time for me to maneuver on, sadly.”

Aschaffenburg confirmed all deposits for the beforehand introduced “Tower Residences of Previous Metairie” can be absolutely refunded. The choice to promote at public sale comes because the property’s bridge mortgage approaches maturity in October.

“It’s been very costly to hold the property during the last yr whereas we put all of the package deal puzzle items collectively,” Aschaffenburg stated. “On a optimistic word, we’ve spent the final 18 months assembling a incredible improvement package deal. A brand new purchaser can hit the bottom operating and rapidly get the property again in commerce.”