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ix surplus properties owned by the Orleans Parish School Board—including an Art Deco school in the Warehouse District—were sold at a fraction of their appraised value after the board approved bids at a recent auction. The portfolio, which includes the 87‑year‑old former L.E. Rabouin Memorial School at 727 Carondelet St., is expected to bring in $3.7 million for the cash‑strained board. Earlier this year the six sites were estimated to be worth more than $10 million.

    The board’s experience highlights the difficulty New Orleans schools, churches, and other institutions face when trying to liquidate unused, aging real estate. “We’ve held these properties for two decades and it’s time to move forward,” said School Board President Katie Baudouin. “There was interest, but the market decided the value.”

    The most prominent of the sites, the three‑story former Rabouin school, was appraised at $5.2 million but sold for $2.1 million. A group of Louisiana developers, led by partner Bear Cheezem, won the bid and plan to convert the building into a hotel. “Our hope is to turn it into a hospitality concept,” Cheezem said, adding that planning, permitting and financing remain uncertain. “Having it under contract does not guarantee anything.”

    The board accepted the bids after two earlier auctions in April and July failed to attract any offers. Those auctions had reserve prices; the September sale had none. Despite the low prices, board members felt the need to secure cash quickly.

    The former Rabouin school, built in 1937, served as a vocational‑technical school until it closed after Hurricane Katrina. It reopened a few years later as the International High School of New Orleans, a charter school that moved to Gentilly last year. The U‑shaped, 58,000‑sq‑ft building occupies most of the block between Julia and Girod streets, features a large courtyard, a parking lot on Baronne Street, and classic Art Deco details such as terrazzo floors and chrome molding. The building also appeared in an MTV‑era video of Bruce Springsteen’s “Human Touch.”

    Cheezem is partnering with New Iberia businessman Thomas R. LeBlanc Jr. on the project. Both have commercial‑real‑estate experience; Cheezem, a South Carolina native who now lives in New Orleans, spent nearly a decade at Woodward Interests, where he helped convert the World Trade Center into the Four Seasons. Preliminary plans call for a roughly 75‑room hotel, but no cost estimate or timeline has been released. The sale will close in late December, so the developers do not yet own the building.

    Preservation is a priority for Cheezem. “The most important thing is that we preserve the building—its architecture, detailing, and all the reasons it is special,” he said. “We do not want this to become another blighted, deteriorated building in New Orleans.”

    Other properties sold at the September auction included McDonogh #32 in Algiers (two buildings, $400,000), a vacant lot on St. Maurice Ave. in the Lower Ninth Ward ($120,000), and a vacant lot on Reynes Street in New Orleans East ($120,000). The former Jean Gordon Elementary School in Gentilly sold earlier this year for $977,000.

    The board owns nearly three dozen vacant or unused properties, many dating back to Katrina. Some could still serve educational purposes, while others no longer meet modern school needs. At Thursday’s meeting, board members signaled willingness to accept the recent bids for the Algiers school and two vacant lots, but three members questioned the $2.1 million bid for Rabouin. Nolan Marshall argued that the sale was a “fire sale” and that the board was leaving $3 million on the table. Carlos Zervigon suggested exploring sealed bids or a more strategic approach, noting the building’s uniqueness. Olin Parker cautioned against timing the market, stating that while a higher price would be preferable, reality must prevail.