Tag - commercial real estate

Old Shriners Hospital site to be developed

Old Shriners Hospital site to be developed

Old Shriners Hospital in Frontenac to be developed by the Desco Group

ST. LOUIS, MO/May 19, 2017 (STLRealEstate.News) The old Shriners Hospital for Children site, presently abandoned and looking rundown, has a new future just around the corner.  The Desco Group, commercial development company based out of downtown St. Louis, this week officially submitted its plans with the city of Fontenac to redevelop the site into a multi-building, mixed-used project.  The project, which would be a three-story undertaking, 36,000-square-foot office and retail building, will also include two 6,500-square-foot restaurants, as well as a Lifetime Fitness gym.  There will even be parking included onsite at eh 2001 S. Lindbergh Blvd. site address.

Overall, this is no cheap project.  The total investment on the project is expected to exceed $80 million, according to Scott Sachtleben, the present senior vice president of development and general counsel with the Desco Group.  This isn’t the first time the city of St. Louis is hearing about the project from Desco, however.  The group has had the land, which is currently owned by Shriners, under contract since May 2015.  According to the St. Louis County records, observed by the St. Louis Business Journal, the property has an appraised value of $11.7 million.

The site was left vacant two years ago when the Shriners Hospital for Children moved into a new $50 million, 90,000-square-foot specialty hospital located at the corner of Clayton and Newstead avenues in St. Louis.  Shriners today is one of the St. Louis’ largest hospitals with 2015 revenue of more than $37 million.

The Desco project has hired Stock and Associates to handle the design work, DG2 Design to manage the landscaping architecture, and Remiger Design to provide additional architectural work on the roll-out.

The Desco Group has been responsible for other development projects around downtown St. Louis, including the development of University Commons in St. Charles, and the Old Post Office in downtown St. Louis.

Gliks taking advantage of vacant retail stores

Gliks taking advantage of vacant retail stores

May 9, 2017 (STLRealEstate.News) As thousands of retail companies across the United States plan to close down their physical store locations and turn their attention to online marketing and eCommerce websites, there are a few oddball players coming in and snatching up the freshly vacant retail storefronts in the St. Louis region.  Glik’s is in the process of negotiating to take over storefronts vacated by Rue21 and Vanity in Emporia, Kansas, and Grand Island, Nebraska today.  Inside these vacated locations, the company is planning to open the 5,000-square-foot Kansas store in August and the 2,920-square-foot store in Nebraska this October.  The company reported that about 12 employees will be hired for each store.

If these stores prove to be successful and profitable where their predecessors were not, president and CEO Jeff Glik stated the company will effectively be saving $100,000 to $200,000 in what it would have spent to open other places.  Each time Glik’s invests in a new storefront, the company puts in $50,000 to $60,000 on each new location.  Swooping in to capitalize from vacated, inexpensive locations is saving them hundreds of thousands of dollars and countless time with back and forth negotiations.

A little background on the decline of the retail space: changes in consumer behavior, brought on by the growth of eCommerce, have caused declines in sales per square foot for retailers everywhere.  More than 3.5 million square feet sit vacant in St. Louis today, as marked by 2017’s first quarter findings.  Another 1.3 million square feet of space is leased but is actively marked for future tenants.  One of the previous tenants, Pittsburgh-based Rue21, announced this past April that it is closing 400 of its 1,000 stores, including a whopping four in the St. Louis region.  Though it’s not the best news for fashion retailers, it presents a new shining opportunity to for a service-based company like Glik’s.

Streets of St. Charles apartment have a new owner

Streets of St. Charles apartment have a new owner

ST. CHARLES, MO/May 9, 2017 (STLRealEstate.News) The 309-unit apartment complex at the Streets of St. Charles mixed-use development has been officially sold to a new owner this week, a Chicago real estate investment firm.  Trilogy Real Estate Group, a highly active Chicago-based agency that works to locate and snatch up promising real estate deals in nearby cities, called the Residences at The Streets of St. Charles, from Cullinan Properties.  Terms of the deal were not disclosed with the St. Louis Business Journal at this time.

The property, according to St. Charles County records, has a market value of $32.7 million, though it’s believed the price is well above that figure for the deal that went on this week.  Officials with Cullinan also elected to not disclose the purchase price at this time.  Though coverage on the closing began this week, the deal was closed on April 12 and paperwork for the transaction was not yet filed with St. Charles County.  Sean Fogarty, Mary O’Connell, and Wickliffe Kirby of Holliday Fenoglio Fowler represented Peoria, Illinois-based Cullinan and produced the buyer in the deal.

This is officially the first sale for the property, which Cullinan developed for $150 million in 2014.  The 27-acre complex also includes 500,000 square feet of retail space as well as medical and office units.  Since the opening, the development has manage to attract both the Drury Plaza and Tru by Hilton hotels, we well as a plethora of new restaurants and shops.  Trilogy, another player in the deal, has the 194-unit Reflection Cove apartments in Manchester to their name in addition to this new deal.

Multifamily development units appear to be on the rise in St. Louis County today.  More developers are eyeing the prospect of their build out as a lucrative cash-in when the project is completed.  Stay tuned for deal disclosure updates.

New hotel planned for midtown St. Louis

New hotel planned for midtown St. Louis - STLRealEstate.News

ST. LOUIS, MO/May 5, 2017 (STLRealEstate.News) Downtown St. Louis’ Habitat for Humanity has been officially acquired in pursuit of developing a brand new hotel, sources reported to the St. Louis Business Journal this week.  Maryland Heights-based Midas Hospitality has acquired the location with plans to redevelop it into a $25 million hotel. Midas bought the property, a campus that includes 3763, 3745, and 3755 Forest Park Ave for $2.4 million.  Midas stated they plan to eventually demolish the buildings in order to construct an Element by Westin hotel, an eco-friendly, extended-stay concept that will feature more than 150 rooms, and 10,000 square feet of retail space along with a rooftop lounge.

The project will take place directly across the street from Steve Smith’s St. Louis Foundry project, which is situated between Saint Louis University campus the Cortex innovation district.  “We were looking for a site in this part of St. Louis for a number of years and with the demand generators around us, like SLU and SLU Hospital, along with Washington University and Cortex, this is a perfect fit for that type of property,” said CEO David Robert of Midas Hospitality.

Hotel analyst at HVS and a St. Louis-based managing director for the company, Daniel McCoy, said that extended-stay hotels typically look to open near hospitals and areas of development for the outpouring of individuals in tricky situations.  McCoy went on to state, “I think it’s a good fit for that neighborhood.  It will also fit well with the Aloft Hotel in Cortex, which is a lot of times Starwood tried to pair together to work with each other since Aloft is more transient-oriented and Element is extended-stay.”

The Aloft project is part of a $100 million phase of development in Cortex that will also include a 180,000-square-foot office building being built by Wexford Science & Technology.

Childrens Learning Adventure has opened in Ellisville featuring prime real estate

Childrens Learning Adventure has opened in Ellisville featuring prime real estate

ELLISVILLE, MO/April 29, 2017 (STLRealEstate.News) Today, Saturday, April 29, 2017, Childrens Learning Adventure Center opened in Ellisville, MO at 15677 Manchester Rd hosting their Grand Opening giving tours to parents interested in the facility.

Under construction for months with much anticipation and excitement in the community for such a child care alternative.  The company is privately owned and operated, therefore, information about the financial operation of the company is not available to the public.

However, you can tell from the building and its many options that there has been millions invested in this property and business.  It is a beautiful addition to the Ellisville community.

Ellisville has been attracting multiple new companies and properties to the area over the past couple of years, but it is easy to assume that this is one of the most expensive and impressive properties developed yet.

Unconfirmed information suggest that Childrens Learning Adventures has been approved to accept some 500+ children in their Ellisville center.

Childrens Learning Adventures has 40+ facilities around the country with more in the planning stages.  Speculation does exist that there might possibly be other St. Louis area locations in the next few years, but that has not yet been confirmed by the company.

Fischers in Belleville Back on the Market

Fischers in Belleville Back on the Market

Asking $940K for Shuttered Belleville Restaurant – Fischers

Belleville, IL/April 28, 2017 (STLRealEstate.News) – Fischers Restaurant is back on the market after an $800,000 auction bid was rejected.  The family-owned restaurant at 2100 West Main Street in Belleville has been a fixture in the community since it opened.  Ardel and Inez Fischer bought the site in 1941 after outgrowing their Okaw Dairy ice cream shop a few blocks away.  The new restaurant, a malt shot, was originally called The Dutch Girl when it opened in 1941.  It was renamed Fisher’s when the Jubilee Room (a wedding reception venue) was added in the 1950’s.  There have been a number of renovations and additions over the years since then.

Fischer’s closed in February after, a little more than a year after the death of longtime proprietor Ken Fischer (son of Ardel and Inez) in January 2016 at the age of 84.  Ken Fischer’s daughters, Annette Allan and Kathy Bingheim continued to operate the restaurant for just over a year, but it closed February 15, 2017.

The restaurant was then offered at auction March 2nd.  Allan Auction Service, which conducted the sale, had tried to open bidding at $1.5 million, but there were no takers.  One person did offer a bid by telephone, offering $800,000 for the restaurant, land, and fixtures.  But there was no sale because Bingheim and Allan were unable to work out a deal with the bidder.

The restaurant is now listed for sale with BarberMurphy Group of Shiloh with an asking price of $940,000.  The nearly 32,000 square foot restaurant and banquet facility sits on a 3.04-acre lot with paved parking for more than 200 cars.  The facility includes multiple private party rooms, bars, storage areas, and laundry facilities.  According to BMG, the turn-key restaurant has seating for 250 along with two private dining spaces.  The 11,000-square foot banquet facility has a private entrance, large dance floor, and seating for 700.  It can be divided into two smaller banquet halls, each with its own bar.  The sale price includes all furniture, fixtures, and equipment—including the large commercial kitchen.

Fischer’s Restaurant has been a landmark along West Main Street near downtown Belleville for decades.  What began as a malt shop, evolved into the community’s favorite family dining and private party destination.  Only time will tell what will be next for this storied Belleville establishment.

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Contributing Editor: Susan Smith-Harmon

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Picture courtesy Belleville News-Democrat

MidAmerica Airport to get rid of free parking soon

MidAmerica Airport to get rid of free parking soon

April 27, 2017 (STLRealEstate.News) It was inevitable that at some point MidAmerica Airport would vote to take away the free parking it has become so famous for offering travelers.  Though the plans are not set in stone yet, the airport director Tim Cantwell stated the St. Clair County Public Building Commission, which oversees the facility, voted this past Thursday to consider charging travelers to park at the airport.  Cantwell stated that if the airport’s lots charged $3 to $5 per day (a significantly cheap fare compared to most airports), then between $780,000 and $1 million a year in revenue could be raised for the community.

This revenue, he argues, could help the long-struggling airport’s financial situation and reduce the amount of county subsidy needed.  But, he did go on to state that though this is under consideration, no final decision has been made on what price to charge and whether they are actually going to go ahead with payment for the lots.  “I want to give the commission a flavor of what we’re talking about,” said Cantwell.  He went on to state that the panel asked him to put together a request to send to private parking companies asking for their qualifications and track records.

Once these firms respond to Cantwell, he stated the commission would look at the list and ask the remaining companies to submit their specific proposals.  Mark Kern, a county board chairman, was the one who came up with the parking fee proposal at this month’s meeting, stated Cantwell.

They went on to state that they came to their revenue estimation based off of the data stating that 200,000 passengers come through the airport as long-term parkers.  With Allegiant Air adding more flights this year, that number could increase, resulting in even higher charging revenues.  Stay tuned here for details.

6 million jobs created by commercial real estate development last year

6 million jobs created by commercial real estate development last year

April 19, 2017 (STLRealEstate.News) We often think about what commercial real estate construction can do for business activity and the economy, but do we ever stop to consider what kind of job creation it can contribute to in our country?  According to an annual study, Economic Impacts of Commercial Real Estate, by the NAIOP Research Foundation, the development, construction, and ongoing operations within commercial real estate supported 6.25 million American jobs and contributed to $861 billion in the U.S. GDP during 2016 alone.

When broken down further, the report showed that this activity spurred the creation of 410 million square feet of office, retail, warehouse, and industrial properties with the combined capacity to host more than 1 million new workers whose salary, when put together, created $57.6 billion in revenue.  Among these states contributing to this turnover, New York led the pack with the highest level of commercial real estate development spending in 2016, at $24.8 billion, followed by Texas at $18.5 billion and California at $14.3 billion.

The report then looked at the different sectors of commercial real estate.  It found that office construction expenditures totaled $36.6 billion in 2016, increasing by 28.7 percent from 2015 and warehouse construction totaled $13.6 billion in 2016, registering a sixth consecutive year of increased expenditures. It gained 12.7 percent from the 2015 figure.

Not surprisingly, retail expenditures were down seven percent from 2015, while industrial construction spending also decreased a second year to $15.5 billion – a massive 29.9 percent decrease from 2015.

Thomas Bisacquino of NAIOP went on to state after the report release, “The importance of commercial real estate development to the U.S. economy is well established, and the industry’s growth is critical to creating new jobs, improving infrastructure, and creating places to work, shop, and play.  We look forward to the results for the end of 2017’s growth.”

Better Homes and Gardens Real Estate adds St. Louis franchise

Better Homes and Gardens Real Estate adds St. Louis franchise

ST. LOUIS, MO/March 28, 2017 (STLRealEstate.News) Better Homes and Gardens Real Estate, a full-service national real estate brokerage determined to expand its operation and clientele hold in 2017, this week announced they have added their latest St. Louis, Missouri-based brokerage, Properties West, to their franchise network.  Now called the Better Homes and Gardens Real Estate Preferred Properties, led by brokers Charles and Laura Davis, they are poised to take on any kind of real estate demand in the St. Louis metropolitan area.

The owners went on to state, “It is rare to find a partnership with a completely aligned set of values, but that is how we immediately felt with Better Homes and Gardens Real Estate,” said Laura Davis.  “We are going to continue to support our affiliated agents as we always have as a small company, but with great resources from a recognized brand.”

Better Homes went on to state they have such passion and energy when it comes to providing an authentic and personal experience to every single real estate customer they support.  Sherry Chris, president and CEO of Better Homes and Gardens Real Estate LLC stated, “This mindset is fully embraced by the entire company and makes them a perfect fit for our network.  We are thrilled to be working together to serve the St. Louis region, and can’t wait to get to work.”

The newly formed entity will move into a new location this April.  They have not, at this time, disclosed their intentions for where they plan to move, what sized office they are looking at, and if they have any expansion plans in the near future.

This isn’t the first St. Louis real estate partnership formed in 2017.  The area has proved to be a hotbed for buying and selling of property today, so companies from around the country are eyeing the region for a regional office.

Upcoming office vacancies in St. Louis

Upcoming office vacancies in St. Louis

ST. LOUIS, MO/March 28, 2017 (STLRealEstate.News) Though, as a whole, St. Louis has been performing incredibly well with regards to tenants in commercial space today, there are still those “clouds” on the horizon, particularly the announced ones in 2017 for upcoming office vacancies.  As part of the commercial real estate nature, vacancies are imminent, and we are going to discuss the known ones expected to rock the St. Louis region in 2017.

Since Centene has big plans this year, like opening new office space in downtown Clayton as part of its massive campus expansion, they are going to leave a big vacancy in the heart of the city of St. Louis by doing so.  They also announced they are planning to consolidate about 1,000 positions to its new campus when it is complete.  These consolidating plans point to a lot of previous vacancies for an exodus to Clayton.

Downtown St. Louis is going to get rocked with another big vacancy rate when the AT&T Center is scheduled to finish emptying out this fall.  It will put one of the largest office buildings in the region on the market.  The problem with the design of this building is that it’s going to need significant renovations to accommodate more than a single tenant.  “It is a challenge and that is one of the tings we’re having discussions about,” said Otis Williams, head of the St. Louis Development Corp., the city’s economic development arm.

Additionally, Scottrade’s sale to TD Ameritrade, expected to close by the end of the year, likely points to the downsizing of about 1,000 local staff while also putting several large buildings on its Town and Country campus up on the market.  There is also a chance Monsanto could offload some its Creve Coeur buildings as corporate functions are consolidated with Bayer.

It will be interesting to see how these vacancies are balanced with the 2017 St. Louis commercial real estate market.