MetroWire Media STL launched its 2024 event series by showcasing St. Louis-area "Mega Developments," with input from seven local commercial real estate professionals. The event, led by moderator Todd Bundren, partner and principal at the Lawrence Group, unfolded at Cushman & Wakefield’s Pierre Laclede Center in Clayton, Mo.

“What has always been part of our corporate DNA is a love for this region and the opportunity to leverage our skills to make it better,” Bundren said.

Natasha Das, director of development at CRG, shared insights into two significant projects. Firstly, Wildhorse Village, which spans 80 acres in Chesterfield with an initial budget of $500 million allocated across 20 lots, some of which have been amalgamated.

"Our vision is comprehensive, incorporating various elements such as a 12-acre lake, indigenous flora, extensive walking trails, and a significant investment in public art. Our primary goal is to leverage accessibility to enhance community offerings, effectively crafting a suburban sanctuary," Das said.

Secondly, Riverpointe in St. Charles, which occupies 32 acres, comprising 12 lots, one of which has already been sold to Chicken N Pickle.

"We are endeavoring to obtain approval to dredge and activate a lake, providing residents with an opportunity to immerse themselves in nature," Das said.

Both endeavors are underpinned by a commitment to providing convenient access, catering to demographic needs, and delivering high-quality amenities.

Kristie Bailey, partner at Fireside Financial, provided insights into the ambitious Olia Village project situated on 96 acres in Creve Coeur, formerly occupied by Monsanto and Bayer properties.

"The site encompasses five existing buildings, all of which we plan to retain and repurpose," Bailey said.

Bailey outlined the distinctive features planned for Olia Village, including expansive walking trails encircling the property, fostering a sophisticated suburban environment complemented by smooth traffic flow. The development will also include a prominent big-box anchor store, nearly 1,000 apartments of various configurations, and water features to enhance the landscape.

"This project is a once-in-a-lifetime opportunity for both us and the Creve Coeur community," Bailey said.

Tim Lowe, senior vice president of development at The Staenberg Group, discussed the transformative vision for Downtown Chesterfield, highlighting the shift towards mixed-use retail spaces.

"The evolving landscape of retail trends towards mixed-use developments, a notion reinforced by the challenges faced by Chesterfield Mall. Recognizing the potential for competing projects, we made the strategic decision to acquire the mall."

Lowe revealed exciting plans for the redevelopment, which will include an initial phase featuring 2,363 residential units and 825,000 SF of office space interconnected with parks, pedestrian pathways, and bike trails. Additionally, there are plans to keep Dillard’s as well as integrate new retail offerings into the residential buildings.

Elaborating on the broader scope of the project, Lowe emphasized the expansive land ownership of 70 acres, earmarked for the development of 4.2 million SF of multifamily residences surrounding a central park. He highlighted the inclusive nature of the project, designed as a community gathering hub catering to residents, office workers, and visitors across generations.

With the impending closure of the mall in August 2024, construction is poised to commence shortly thereafter, with an anticipated completion timeframe spanning until 2027–’28.

Jim Mosby, vice chair of Cushman & Wakefield, offered insights into the state of office use, countering prevailing notions of a dire situation post-pandemic.

"Contrary to bleak assessments, the office sector remains resilient, particularly evident in Clayton where significant developments have redefined office utilization," Mosby said.

Highlighting the impact of remote work, Mosby noted the conversion of approximately 800,000 SF into Grade A office spaces. He emphasized Clayton's emergence as a regional leader in this shift.

"In the current landscape, structures under three stories serve merely as potential development sites," Mosby said.

Mosby underscored the evolving preferences of tenants, emphasizing the importance of amenities and nearby establishments.

"Tenants seek buildings equipped with amenities and nearby attractions, providing a compelling reason to remain or relocate."

Todd Spitzer, vice president of asset management at Bamboo Equity Partners, shared insights into the evolving preferences of clients in the commercial real estate market.

"Clients are actively seeking flight to quality projects, albeit with a reluctance to pay Class A rates," he said.

Spitzer highlighted the adaptability and value creation potential in projects like 717 Parkway, which undergo iterative transformations to merge Class B buildings with Grade A amenities. He cited examples such as repositioning office spaces into medical office buildings, demonstrating the capacity to enhance overlooked properties.

The shifting landscape of office use, influenced by the hybrid work environment, was also addressed. Spitzer acknowledged the growing appeal of hybrid work models among tenants, particularly among younger professionals seeking mentorship and camaraderie in office settings.

Echoing Spitzer's sentiments, Mosby emphasized the longevity of hybrid work arrangements.

“Hybrid is here to say, at least in the near term. Interior (office) space is more like hoteling. My bet is that people will get tired of working at home. To build a company, you have to create a culture; you have to meet in person,” said Mosby.

Mosby also noted that longer-term leases are starting to be seen, which is a good sign for the strength of the office market.

Mary Lamie, the executive vice president of Multi Modal Enterprises at Bi-State Development, emphasized the significance of the St. Louis region's geographic advantages in commercial real estate. She highlighted the accessibility facilitated by the Mississippi River, which remains navigable throughout the year, providing cost-effective transportation via the barge industry.

Lamie discussed upcoming infrastructure projects crucial for supporting the development of mega projects in the St. Louis area. These initiatives include lane additions to Interstate 70, enhancements to Interstate 270, and the planned construction of a new terminal at Lambert St. Louis airport within the next three to five years.

Central to these infrastructure developments is the alleviation of highway bottlenecks, which are pivotal for ensuring efficient transportation networks in the region. Lamie underscored the importance of these projects in facilitating the growth of the aerospace manufacturing sector, which accounts for 300,000 jobs across 17,000 businesses in the St. Louis area.

Lamie also emphasized the collaborative efforts between transportation departments from both states, highlighting the uncommon cooperation that enhances the region's appeal.

Final thoughts from each of the panelists included:

Natasha Das expressed optimism about the Rams settlement as a revolving loan fund, viewing it as a promising initiative. She highlighted the increasing hesitancy among tenants in downtown St. Louis and emphasized the necessity for innovative approaches in office spaces.

Todd Spitzer underscored the stabilizing trend in interest rates, presenting opportunities for regional development. He emphasized the growing importance of sustainability, particularly among younger demographics, in shaping real estate decisions.

Tim Lowe raised questions regarding the absorption capacity for multifamily projects, noting the prevalent inclination to incorporate multifamily developments in various initiatives.

Mary Lamie articulated her anticipation for the continued growth and recognition of the St. Louis region's value as a pivotal hub. She highlighted the collaborative efforts across municipalities, counties, and states, particularly in infrastructure development.

Kristie Bailey expressed eagerness for the return of individuals to office spaces and emphasized the importance of strategic development planning. She remained optimistic about St. Louis's growth potential, albeit with a call for patience.

Jim Mosby voiced hope for increased corporate mandates to return to office spaces, stressing the importance of fostering a cohesive workplace culture. He noted a shift away from cost-saving measures towards prioritizing the reintegration of employees into physical office environments.

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Feature photo credit: Drew Edelstein.

VIEW EVENT PHOTO ALBUM HERE.