The mood is somber at the Regions Center in downtown Shreveport. All day Thursday, businesses worked on possible emergency plans in the event of an impending power outage.
On Thursday afternoon, Public Services Commissioner Foster Campbell contacted SWEPCO President and Chief Operating Officer Brett Mattison and asked the company to delay the power shutoff until Thursday, August 29. Mattison agreed.
Tenants told the Shreveport-Bossier City Advocate they were surprised by notices posted on Wednesday, August 21, warning of an impending power shutoff until “Monday, August 26 or later.”
Several people said that these notices were the first time they learned that the building owed more than $450,000 in arrears to SWEPCO, with the last bill from SWEPCO due on the 21st.
As of Thursday afternoon, no payment had been received. Sources in the city of Shreveport have since confirmed that the building’s water bill was also overdue, but was only one month overdue and had not yet set off alarm bells.
SWEPCO employees posted power outage notices in the Regions Tower on August 21, 2024.
Birmingham, Alabama-based Regions Bank sent out an alert Thursday morning to clear up any confusion about ownership of the buildings and responsibility for paying any bills. The alert said:
“It is important to note that although Regions Bank is on the tower, it does not actually own the facility. In other words, we are not responsible for the building’s electric bill or other building costs. As one of many tenants in the tower, we are actively monitoring the situation and remain hopeful for a resolution from the building owners.”
The 24-story Regions Tower, the 16-story Regions Building and the atrium that connects them are owned by the Hertz Investment Group of Sherman Oaks, California. Repeated calls from the Shreveport-Bossier City Advocate remained unanswered.
The two buildings and the 800-space parking garage make up the Regions Center in the 300 block of Texas Street in downtown Shreveport, Louisiana.
Hertz is no newcomer to the Shreveport market and Louisiana in general. The company purchased the Regions property in September 1999 for $24,968,507. The company also owns five properties in New Orleans, including the distressed Energy Center on Poydras Street.
The 22-story Capital One Tower in Lake Charles, owned by Hertz, has been vacant since it was severely damaged by Hurricane Laura in 2020. Hertz has notified Lake Charles authorities that it plans to demolish the building on Sept. 7.
A 9-story building owned by Hertz in Jackson, Mississippi, the Pinnacle Building, was foreclosed on in April 2024.
New Orleans and Jackson are two of Hertz’s most important markets. In both cities, the company owns a large portion of the large office skyscrapers.
In addition to the Energy Center, Hertz owns four of New Orleans’ 10 other prime office towers, including the largest: the 1.25 million square foot Hancock Whitney Center on Poydras Street. In total, Hertz owns more than 3.6 million square feet of office space in the city.
Hertz owns six office towers in Jackson, including the city’s largest: the 22-story Regions Building.
Hertz has struggled with lower office occupancy rates and downward pressure on rents post-COVID. The company has also struggled with other issues, including repaying a $65 million financing package that affected properties in Jacksonville, Florida, Birmingham, Alabama and Cleveland, Ohio.
According to CoStar data, Hertz is ranked 25th.th The largest owner of office buildings in the country’s Central Business District and until recently owned about 46 office properties.
Even though the Regions Center in Shreveport is neither the company’s largest nor most valuable property, the bills still have to be paid, said Shreveport Downtown Development Authority interim director Janie Landry.
SWEPCO employees posted power outage notices in the atrium of Regions Tower on August 21, 2024.
“Regions tenants pay their rent on time. The owner should also pay his bills on time. This is a management issue, not a downtown location. The tenants of this property have a right to be able to conduct their business without interruption.”
Landry’s opinion is shared by tenants and property managers at the local Regions Center.
“We’ve been doing everything we can to prevent this from happening for some time now,” said Aundray Bryant, Regions Center’s assistant property manager. “This is my life; I’ve been here for 15 years.” Bryant said he started out as a part-time security guard and the people in the building mean a lot to him.
Forrest Fegert, property manager at Regions Center, agreed. “I love our tenants, that’s what bothers me the most.”
