Lofts at the HUPP redevelopment begins on historic west downtown site

Construction began last month on the $21.5 million redevelopment of a former TireMart property - originally a Huppmobile dealership - on the downtown west historic automobile row, located at 1815 Locust Street in St. Louis, Mo.

When complete in August 2021, the new, three-story multifamily property will house 70 units consisting of one- and two-bedroom apartments. 

The 115,317-SF historic rehab project will include interior and exterior parking, solar panels on the roof, a clubroom and a fitness center.

Ebersoldt + Associates, the architect on the project, has given a nod to the original building design elements by incorporating sealed concrete floors, exposed concrete ceilings and exterior masonry walls, and large, historic aluminum windows that will allow for plenty of natural light.  

The project developer, Screaming Eagle Development, LLC, was issued approval by the Land Clearance for Redevelopment Authority of St. Louis County (LCRA) for two, five-year tax abatements.

"We are very excited to redevelop this property in the downtown west neighborhood. We identified this property two and a half years ago. It has been a long process to get here; but given what the building has shown us so far, the final product will be a beautiful asset to the community," said Matthew Masiel, principal with Screaming Eagle Development.

The project is slated to receive a five-year tax abatement based on 90 percent of the assessed value of incremental improvements; followed by another five-year tax abatement based on 70 percent of the assessed value of incremental improvements.

Other partners on the project include general contractor, Pinnacle Contracting, Inc. and lenders Gershman Investment Corp. and Midwest Regional Bank.

At the time of acquisition, the property was appraised at $1.1 million by the City of St. Louis.

Bond Architects receives WBE Certification

Bond Architects, a nationally-recognized St. Louis architecture and interior design firm, has been officially certified by the State of Missouri’s Office of Equal Opportunity as a Women-Owned Business Enterprise (WBE).

Since its inception in 1992, Bond Architects has been committed to promoting and supporting diversity in the A/E/C field. The firm has partnered with a wide range of MBE/DBE/WBE firms throughout its history and values long-standing relationships with diverse professional service firms and vendors.

“The Bond Architects team appreciates and understands the value diverse suppliers bring to the table and is honored to be a part of this community. We are thankful to have obtained our WBE certification and hope that it will also benefit our partners and associates for their continued growth and success," said Susan Pruchnicki, principal-In-charge at Bond Architects.

As a woman-owned business with 80 percent of their employees consisting of female architects and staff in 2020, Bond Architects prioritized obtaining an official WBE certification to not only solidify its commitment to diversity, but also sto upport clients in their mission to inspire inclusion, connection and collaboration in their professional service firms.

“Having our WBE certification not only allows us to better meet the needs of our clients but it also affirms our unwavering commitment to be a place of equal opportunity and employment in an industry that has historically lacked significant involvement of professional women,” Pruchnicki said.

Both firm partners, Susan Pruchnicki and Art Bond, remain actively involved with the firm and its day-to-day operations.

Bond Architects is located at 222 South Central Avenue, Suite 501, in St. Louis, Mo. For more information about Bond Architects’ commitment to diversity and its projects and services, visit BondArchitectsInc.com.

CRE project designs 'on point' for future

The evolution of commercial building design over the last few years to include more open space, rich amenities, safety and tech-driven concepts is proving to be a well-thought-out and timely choice, especially when considering the current and future demands and regulations resulting from COVID-19.

Building spaces, notably office and other shared spaces, are in the spotlight now more than ever before, prompting the focus of discussion for the St. Louis CCIM virtual meeting last week.

Tony Kennedy with Colliers International, moderated the meeting; panelists included Larry Chapman, president and CEO of Seneca Commercial Real Estate; Korey Baker, associate director of market development for Compstak; Toby Heddinghaus, president of Gray Design Group; Scott Haley, managing director of US Capital Development and Tim Gaidus, senior project designer at HOK.

“When Seneca embarked on the Edge series of buildings, the focus was on creating an environment that employees want to be a part of, which in turn, helps the companies that become our tenants compete successfully for, and to be able to retain the best and brightest talent. These designs easily adapt to the changing demands of the occupants and are highly compatible with the new COVID-19 paradigm,” said Chapman.

Edge at West Park, located just west of the I-270/Olive Blvd. interchange, provides a flexible, employee-centric environment which maximizes the building’s common areas to provide amenities critical to helping companies recruit and retain the best talent, regardless of market conditions. FM Global, a worldwide insurance company based at Maryville Centre Office Park, is set to move into the top floor of the four-story building in November.

“Edge at West and Forsyth Pointe are two of the more prominent office developments planned in St. Louis County right now. With some uncertainty in the market surrounding COVID-19, it's refreshing to see these projects advancing on schedule. I'm very confident that US Capital Development and Seneca will deliver top quality buildings to the market that adapt to the needs of the users, both in terms of the current pandemic and also their long- term ability to recruit and retain top tier talent, “ said Jim Loft, president of St. Louis CCIM and executive vice president of Gershman Commercial Real Estate.

The recently completed EDGE@BRDG (BioResearch & Development Growth) Park, an innovative 160,000 SF, four-story lab and office building on the Donald Danforth Plant Science Center campus in Creve Coeur, Mo., is now finished and its first lead tenant, Benson Hill Biosystems, one of the fastest growing leaders in the field of plant sciences, has just moved in.

Forsyth Pointe, located on Forsyth Blvd. between Brentwood Blvd. and Meramec Ave., consists of two towers totalling nearly 1million SF of space, half of which will be dedicated for office use and the other half to a 1,250-spot garage. The west tower is slated to have 202,054 SF of space across 14 floors and the east tower to have 255,114 SF of space across 16 floors, two floors of which will be for the underground parking garage. Over 24,000 SF of retail is planned.

Other forward- thinking design elements mentioned that are currently being implemented in building design include:

• Walkable environments- fresh air spaces with plenty of distance

• Wide open staircases

• Refuge areas

• Phone booths

• Huddle rooms

• Roll up (garage) doors

• Touchless automatic door opening

• Restroom doors with no handles

• Plasma filtered air

• More robust cleaning services

• Anti-microbial coatings

• Hand sanitizer stations

• Biometrics instead of touchpoint

• Robotics and automation

• Holograms/virtual reality

The next St. Louis CCIM event is scheduled for September 15th from 11:15 am - 1:00 pm at the St. Louis Club in Clayton, Mo. For more info, please visit https://ccimstl.com/events/.

Centene Community Ice Center's time to shine

It's time to shine for Centene Community Ice Center, the first new indoor ice complex for the St. Louis region in decades.

The $82 million facility, which opened to the public in September 2019, is prepared and excited for the recent spike in the area’s youth hockey programs, driven, in part, by the St. Louis Blues’ “Hockey STL 2020” campaign.

Led by the not-for-profit St. Louis Legacy Ice Foundation as a catalyst for the development of the Maryland Park Lake District, the public-private initiative was launched to help bring much-needed ice skating facilities to the region, provide recreational opportunities and drive economic growth through sports tourism. 

"The Centene Community Ice Center is the result of legacies and countless other efforts to create a collaboration between four state, county and local governmental agencies, five major not-for-profit tenants and the NHL’s St. Louis Blues Hockey Club. A unique and massive collaboration of public funding, private donations, tenant contributions and industrial revenue bonds were pooled to make this vision a reality. And in the end, over 1 million visitors will visit our facility annually bringing over $20 million in economic impact each year,” said Patrick Quinn of the St. Louis Legacy Ice Foundation.

The collaborative effort to create the multipurpose home for the St. Louis Blues and the surrounding community included design-build partners Mike Kress and Tom Proebstle with Generator Studio and John Komlos, Matt Sander and Jeff Cook with ARCO Construction.

In addition to three indoor sheets, the fourth outdoor rink is multipurpose, intended for winter pond hockey and year-round community events. In warmer weather the rink transforms into a covered 4,400-spectator amphitheater operated by Live Nation.

The center houses the new Mercy Medical Sports Performance Center, the Bauer Skills Training Center, a restaurant, a grab-and-go market, concession stands for every rink and separate locker rooms for the public, Lindenwood and the Blues. 

To increase inclusivity, ARCO and Generator ensured the center was accessible for a broad range of abilities with all three fully adaptable indoor ice rinks. St. Louis Blues Sled Hockey, Blues Blind Hockey and the St. Louis Blues Special Hockey, all call the ice center home. 

“At any point in time, our facility could be playing host to 2,500 fans for a college hockey game or international figure skating event in the main arena, while in another arena we are hosting the highest levels of amateur hockey while a learn-to-play session is happening on yet another ice sheet and all the while a live-band plays rink-side for 500+ kids, teens and adults enjoying a public skating on the expansive covered, outdoor rink,” Quinn said.

The multi-sheet facility is home to multiple tenants including the Blues, Lindenwood University men’s and women’s hockey teams, the AAA Blues and the St. Louis Lady Cyclones.

With a strong emphasis on being a community asset, the majority of available ice time at Centene Community Ice Center will be dedicated to residents, youth, high school and college teams. 

Centene Ice also offers public skating and lessons, various hockey programs for kids, youth and adults and may be rented out for special events. For more information, you may visit their website at www.legacyice.org.

Fashion retailers enter COVID-19 tailspin

Fashion retailer J. Crew Group Inc., along with subsidiary, Madewell, filed for Chapter 11 bankruptcy protection this week in the midst of the COVID-19 crisis.

In an agreement with its lenders, J. Crew will restructure its debt to convert $1.65 billion of debt into equity and will receive $400 million in debtor-in-possession financing from lenders including Anchorage Capital Group L.L.C., GSO Capital Partners and Davidson Kempner Capital Management LP.

“The significant deleveraging contemplated by this agreement, coupled with J. Crew Group’s strategy to strengthen its robust e-commerce platforms to drive continued growth in its direct-to-consumer segment, will position the company for future success,” said Kevin Ulrich, CEO of Anchorage Capital Group.

The preppy clothing retailer has four St. Louis-area locations, including Saint Louis Galleria, Plaza Frontenac, and two outlet stores in Chesterfield.

Neiman Marcus is also battling against the effects of COVID-19. The debt-laden, Dallas-based company shut all 43 of its sites, including the Plaza Frontenac location, roughly two dozen Last Call stores and its two Bergdorf Goodman stores in New York.

The luxury retailer is in the final stages of negotiating a loan with its creditors totaling hundreds of millions of dollars, which would sustain some of its operations during bankruptcy proceedings, according to Reuters, and has furloughed many of its roughly 14,000 employees.

“I think the Neiman situation is an example of what’s really going on in retail right now. These companies first were facing major liquidity issues, now they’re facing what it’s going to look like to open and then what are (their) sales going to be like,” said former Saks Fifth Avenue CEO, Steve Sadove.

Other retail stores with St. Louis locations that are struggling under the weight of the COVID-19 crisis include:

-Pier 1 – Filed for Chapter 11 in February 2020

-Art Van Furniture – Filed for Chapter 11 in March 2020

-Macy’s – Closing stores and cutting corporate staff

-Forever 21- Filed for Chapter 11 in 2019

-JC Penney- Contemplating a bankruptcy filing -Reuters

-Nordstrom – Borrowing against some of its real estate to stay afloat

-Sears – Filed Bankruptcy in 2018; Has lost $12 billion since its last profitable year in 2010.

“These stores are looking at reopening with issues like buyers not wanting to buy inventory that’s been sitting for three months. I think we could see 23% of mall stores not reopen. There could be 400-500 US malls fail over the next year, post-corona virus,” said retail expert, Jan Kniffen, CEO of J Rogers Kniffen WWE, LLC.

The retail graveyard is filled with companies that emerged from bankruptcy with plans to continue to operate but soon went out of business. These include Payless Shoes, Gymboree, American Apparel and RadioShack.

Retail stores awaken in the midst of COVID-19 shutdowns

Simon Property Group, the largest shopping mall operator in the United States, plans to reopen 49 malls and outlet centers starting Friday through Monday for the first time since their March 18th shutdown.

Three of the malls are located in Missouri and will open on Monday, May 4, including St. Louis Premium Outlet in Chesterfield, Battlefield Mall in Springfield and Osage Beach Outlet Marketplace in Osage Beach.

Best Buy also recently announced reopening plans, which include allowing customers to schedule in-store consultations in about 200 of its U.S. stores beginning in May. During the pandemic, the big-box retailer temporarily shut stores and switched to a curb-side pickup model.

According to a study done by Coresight Research, 45% of consumers expect to avoid shopping centers and malls even after the lockdown ends, citing more people will avoid malls than movie theaters or public transportation.

However, the pandemic has not slowed down area retailers; who are renewing their leases - and in some cases - even opening new stores.

In Hazelwood, Mo., a new Dollar Tree is opening this summer in the Village Square Center. The low-cost retailer will occupy approximately 11,000 SF of the once defunct shopping center located at Lindburgh Blvd and Interstate 270.

New York based, Somera Road Inc., bought the dilapidated, mixed-use shopping center in December 2018 and has invested more than $1 million in renovations.

"Dollar stores are continuing to open new locations in this challenging market. The affordability of their product makes them resistant to market downturns. We were thrilled to recently sign Dollar Tree to a long-term lease at our (Village Square) property," said Michael Ervolina, senior associate at Somera Road.

Other occupants include Concentra Urgent Care, Axes Physical Therapy and Millstone Weber, who all signed new lease agreements with Village Square.

It’s important to note, most retailers are adhering to CDC guidelines upon reopening. Simon Property Group, for example, has implemented CDC recommendations and precautions including:

·     Handing out CDC-approved masks and hand-sanitizing packets (at no cost to shoppers)

·     Mandating all employees to wear masks and wash their hands frequently

·     Taking customer temperatures using infrared thermometers

·     Encouraging social distancing in restrooms (tape will be placed over every other sink and urinal)

·     Directing traffic flow with decals on the floor

·     Limiting food court seating

·     Closing children’s play areas

·     and closing public drinking fountains.

Operating hours will be limited to 11a.m - 7 p.m., Monday through Saturday, as well as 12 p.m. - 6 p.m. on Sunday to allow for cleaning and sanitization, according to a Simon Property Group company memo.