Xing
Apr 7, 2007, 10:20 PM
New construction shows evolution of downtown marketplace
By Riddhi Trivedi-St. Clair
ST. LOUIS POST-DISPATCH
04/08/2007
http://images.stltoday.com/stltoday/resources/downtown0408.jpg
Plans for several large condominium towers are giving downtown supporters hope that the start of a new wave of residential construction is imminent. The new structures would complement a decade of renovation of historic buildings that has brought thousands of loft apartments to downtown.
That developers are willing to undertake new construction "shows that the downtown market has proven itself," said Jim Cloar, president of the Downtown St. Louis Partnership, a group that promotes living and working downtown. "New construction cannot use historic tax credits, and it's more expensive" than renovating older buildings, he said.
To Rodney Crim, executive director of the St. Louis Development Corp., the promise of construction says two things about the downtown market:
•Successful developers in the St. Louis area and in other parts of the country sense a business opportunity. The developers believe there is a good return to be made in investing downtown even without historic tax credits.
•The market is evolving. "Developers pay attention to other developers, and if one person sees someone else doing well they want to participate as well," Crim said. The new developments mean "we will see continued interest in downtown St. Louis, and that will have a positive impact on the area." The development corporation is the economic development arm of city government.
Although downtown has seen a residential development boom with the renovation of older buildings, the number of such properties is limited, opening doors to new construction.
In addition, developers believe that condos will attract a different type of buyer than lofts.
"In five years, new construction will be expected and accepted and a regular product in the downtown marketplace," said Steve Smith, a partner with the Lawrence Group of St. Louis.
Lawrence Group is spending $60 million to build a mixed-use development adjacent to its $125 million rehab of the old Missouri Pacific Railroad headquarters building at Olive and 13th streets. The completed project will be called Park Pacific condos.
Chicago-based Metropolitan Development Enterprises is proposing the Skyhouse, a 22-story condominium tower on the southwest corner of 14th Street and Washington Avenue.
Meanwhile, Roberts Brothers Properties is developing a $50 million, 25-story condo development on Ninth Street adjacent to its Roberts Mayfair Hotel.
Aiming at niche market
Each of the projects is aimed at what the developers believe is a niche market of consumers who want to live downtown but also want the amenities of a new building and don't want to live in a loft.
For example, all three development plans include multistory penthouse units.
The projects' planners are taking advantage of the design freedom afforded by new construction. Their plans have features to set their properties apart from existing downtown buildings. All are condo projects rather than lofts, and all promise to offer modern amenities that typically are unavailable in rehab projects.
Lawrence Group, for example, hopes to attract residents to its Park Pacific development by offering large — and in some cases multiple — balconies with each condo. Typically, rehab projects are not allowed to install balconies, especially in the front of a building, to preserve the buildings' historic integrity.
Smith also described plans for a large outdoor pool long enough for swimming laps. Installing such a pool is impossible in a large majority of rehab projects, Smith said.
The $67 million Skyhouse project will have a "sky club" on the 19th floor with a pool and sun deck, according to Nellie Donovan, marketing director for Metropolitan. That company is partnering with RileyWaldrop of St. Louis on the project.
"We will have grass growing on the roof," Donovan said. "The units will also have floor-to-ceiling windows with views all around. We can do all that because we are not constrained by the existing architecture of the building."
In addition, developers renovating historic buildings usually can make only limited architectural changes and still receive tax credits.
Some aid is available
Though the planned new projects won't receive historic tax credits, developers can get other forms of assistance. The Skyhouse developers have applied for $12 million in tax-increment financing, a locally provided tax benefit, while the Lawrence Group has received $22 million in TIF funding.
However, Roberts Brothers Properties isn't seeking tax breaks, according to Steve Roberts, its president. Instead, the company is banking on the growing going-green movement.
The Roberts' plans call for developing the first certified-green high-rise building in the Midwest. Called the Roberts Mayfair Tower on the Plaza, the tower will share its first floor with the hotel and restaurants and other amenities on the ground floor.
The condos will have environmentally friendly bamboo floors and high-efficiency insulated windows. They also will use geothermal energy for heating and cooling.
"We are going to try to have wind turbines on the roof," Roberts said.
Utility bills for residents will be as low as $30 to $40 a month, Roberts predicted.
"This project is going to have a lot of firsts for this part of the country," he said. "We can design everything from the bedrock to the top floor and put in anything we want, be as creative as we want to be."
rtstclair@post-dispatch.com | 314-340-8206
By Riddhi Trivedi-St. Clair
ST. LOUIS POST-DISPATCH
04/08/2007
http://images.stltoday.com/stltoday/resources/downtown0408.jpg
Plans for several large condominium towers are giving downtown supporters hope that the start of a new wave of residential construction is imminent. The new structures would complement a decade of renovation of historic buildings that has brought thousands of loft apartments to downtown.
That developers are willing to undertake new construction "shows that the downtown market has proven itself," said Jim Cloar, president of the Downtown St. Louis Partnership, a group that promotes living and working downtown. "New construction cannot use historic tax credits, and it's more expensive" than renovating older buildings, he said.
To Rodney Crim, executive director of the St. Louis Development Corp., the promise of construction says two things about the downtown market:
•Successful developers in the St. Louis area and in other parts of the country sense a business opportunity. The developers believe there is a good return to be made in investing downtown even without historic tax credits.
•The market is evolving. "Developers pay attention to other developers, and if one person sees someone else doing well they want to participate as well," Crim said. The new developments mean "we will see continued interest in downtown St. Louis, and that will have a positive impact on the area." The development corporation is the economic development arm of city government.
Although downtown has seen a residential development boom with the renovation of older buildings, the number of such properties is limited, opening doors to new construction.
In addition, developers believe that condos will attract a different type of buyer than lofts.
"In five years, new construction will be expected and accepted and a regular product in the downtown marketplace," said Steve Smith, a partner with the Lawrence Group of St. Louis.
Lawrence Group is spending $60 million to build a mixed-use development adjacent to its $125 million rehab of the old Missouri Pacific Railroad headquarters building at Olive and 13th streets. The completed project will be called Park Pacific condos.
Chicago-based Metropolitan Development Enterprises is proposing the Skyhouse, a 22-story condominium tower on the southwest corner of 14th Street and Washington Avenue.
Meanwhile, Roberts Brothers Properties is developing a $50 million, 25-story condo development on Ninth Street adjacent to its Roberts Mayfair Hotel.
Aiming at niche market
Each of the projects is aimed at what the developers believe is a niche market of consumers who want to live downtown but also want the amenities of a new building and don't want to live in a loft.
For example, all three development plans include multistory penthouse units.
The projects' planners are taking advantage of the design freedom afforded by new construction. Their plans have features to set their properties apart from existing downtown buildings. All are condo projects rather than lofts, and all promise to offer modern amenities that typically are unavailable in rehab projects.
Lawrence Group, for example, hopes to attract residents to its Park Pacific development by offering large — and in some cases multiple — balconies with each condo. Typically, rehab projects are not allowed to install balconies, especially in the front of a building, to preserve the buildings' historic integrity.
Smith also described plans for a large outdoor pool long enough for swimming laps. Installing such a pool is impossible in a large majority of rehab projects, Smith said.
The $67 million Skyhouse project will have a "sky club" on the 19th floor with a pool and sun deck, according to Nellie Donovan, marketing director for Metropolitan. That company is partnering with RileyWaldrop of St. Louis on the project.
"We will have grass growing on the roof," Donovan said. "The units will also have floor-to-ceiling windows with views all around. We can do all that because we are not constrained by the existing architecture of the building."
In addition, developers renovating historic buildings usually can make only limited architectural changes and still receive tax credits.
Some aid is available
Though the planned new projects won't receive historic tax credits, developers can get other forms of assistance. The Skyhouse developers have applied for $12 million in tax-increment financing, a locally provided tax benefit, while the Lawrence Group has received $22 million in TIF funding.
However, Roberts Brothers Properties isn't seeking tax breaks, according to Steve Roberts, its president. Instead, the company is banking on the growing going-green movement.
The Roberts' plans call for developing the first certified-green high-rise building in the Midwest. Called the Roberts Mayfair Tower on the Plaza, the tower will share its first floor with the hotel and restaurants and other amenities on the ground floor.
The condos will have environmentally friendly bamboo floors and high-efficiency insulated windows. They also will use geothermal energy for heating and cooling.
"We are going to try to have wind turbines on the roof," Roberts said.
Utility bills for residents will be as low as $30 to $40 a month, Roberts predicted.
"This project is going to have a lot of firsts for this part of the country," he said. "We can design everything from the bedrock to the top floor and put in anything we want, be as creative as we want to be."
rtstclair@post-dispatch.com | 314-340-8206