A building along Canal Street that was nearly destroyed by a fire almost three years ago is in the process of being put back into commerce.

Officials held a groundbreaking ceremony at 1016 Canal St. on Monday to signal the start of a $10 million renovation of the historic property. The building, which dates back to the early 20th century, nearly collapsed after a six-alarm fire in January 2016.

The developers, spearheaded by Sonder New Orleans general manager Peter Bowen and Quarter Holdings CEO Aaron Motwani, plan to convert the four-story structure into 47 short-term commercial rentals on the top three floors, with commercial space on the ground floor. The development team estimates construction will take around 18 months.

“The city has struggled to find viable options for the upper floors of Canal Street properties for decades,” Bowen said in a news release. “We’re excited to be part of the solution to a problem that has hampered progress on this historic thoroughfare for so long.”

Before the fire, a cell phone store, beauty supply shop and fashion outlet occupied the ground floor while the upper three stories were vacant and used for storage. The blaze left little but the façade of the property intact. The building has been vacant since the fire.

San Francisco-based Sonder, a firm that operates other commercial short-term rentals in 13 markets throughout the world, has a master lease on the property that provided the stability to secure financing for the mixed-use project. Motwani’s family owns multiple properties in the CBD and French Quarter through Quarter Holdings.

City Council president Jason Williams said in the news release he hopes to attract high-end national retailers such as an Apple store, Crate & Barrel and Restoration Hardware. He said the vacant upper floors of many Canal Street buildings have been a large deterrent to attracting this type of commercial investment.

Sonder also has plans to revitalize other Motwani-owned properties along the prominent thoroughfare at 623 Canal St. and 444 Canal St., known as the Sanlin Building, into similar mixed-use developments.

Canal Street has seen a flurry of activity from local and out-of-state investors in recent years. Construction is underway on a 350-room Hard Rock Hotel at 1031 Canal St. next to the Saenger Theatre. Nearby, work is progressing on Canal 1535, a 330-unit luxury apartment complex with ground-floor retail that has been rebranded from its previous name, Canal Crossing.

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