St. Louis-area CRE professionals gathered at Le Meridien Hotel in Clayton, Mo. on February 8 for a CCIM-St. Louis panel about a “Mid-County Renaissance” that includes $750 million in construction in Clayton, Olivette and University City as the new year ramps up.

Grant Mechlin, CCIM, managing director, Sansone Group-Commercial Real Estate, and president of CCIM-STL, provided that statistic in introducing the program and speakers Greg Yawitz, Keat Properties CEO/owner, managing director, discussing Keat Olivette Gateway Olive Crossing at Olive and I-70; Caroline Saunders, marketing partner, Schott Hamilton, LLC, who addressed U. City LLC — Market at Olive; and Doug Weber, vice president and project executive, Holland Construction Services, who represented Bemiston Place.

Olive Crossing, originally slated as a low-density project with six, one-story retail buildings and 85,000 SF “completely reliant on retail sales,” is now not feasible because of site challenges, Yawitz began. The project is now 0.5 million SF —30,000 of which is retail, at a higher density.

“We increased the tax impact. This is more aligned with city goals of reduced reliance on retail, complementary uses, and a full live/work/play/stay ecosystem. It’s a dynamic mix of uses. We’re activating a critical corner,” Yawitz said.

Elements will include a multifamily apartment building of 181 luxury units, a dual flag hotel (Courtyard by Marriott and Element), a parking garage, and 180,000 SF of office space with a club-like atmosphere — “the first of its kind in Olivette.” Apartment amenities will focus on wellbeing. The mixed-use aspect of Olive Crossing resulted from a push by the city and was “not inexpensive,” according to Yawitz.

Drilling for the piers in a parking garage began in early February, while other elements are scheduled to begin between August and November 2022. The project should be complete in spring 2024 — 10 years from the date it began.

Market at Olive, at the northwest and southwest corners of 1-70 and Olive, commonly known as the Costco Wholesale project, has gone through changes in lenders and ownership, according to Saunders, who said that the lenders now own the project.

Understanding the nature and requirements or limitations of pooled cities was an important element of the project. “Pooled cities want residents,” Saunders said, citing retailers and towns often want more parking than they actually need other than during the holidays.

The Costco lot is 16+ acres, with the company constructing its own store with its own contractors, and opening on the fast track for fall 2022. The remaining parcels are 11.263 acres on the north, 20.430 acres on the south, with a 1% CID sales tax and about $73 million in TIF/CID support.

The project represents “a lot of history with the site; a lot of people not supporting the project, especially residents; various deals; relocations; and utilities,” said Saunders. One of the biggest struggles has been earth-moving, most of which was done at night and created noise issues that led to offering neighboring residents hotel rooms.

Backfilling has been needed because Costco wants a level pad, she noted. Some of the project is going more vertical, with stacking and drive-thrus reflecting changes driven by the pandemic. The project called for about 200,000 SF of retail, but that may change, according to Saunders.

Local contractors include Holland, Grimes Consulting, CBB, SCI Engineering Inc., TR,I Architects, ABNA and Clayco.

“It will be a remarkable transformation,” Saunders said.

The design for Bemiston Place came from a design competition and required that the exterior skin of the existing building not be touched or changed, Weber said. The budget has increased, with a 2.8% loan and a HUD funding mechanism.

The project will include 237 units with 10,000 SF of retaining and parking underneath the platform so it is completely hidden, which Weber said is very important in Clayton. Also, a value for that community is units that are slightly larger than standard layouts because owners are expected to be downsizing from sizable homes.

The five-story building is next to a historic property that residents will be able to use for office space. Bemiston Place is approximately a $100 million project with $70 million and two years’ duration for construction.

In a question-and-answer session, speakers noted that apartment rents in mid-county can be between $250 and $300/SF/month. Featured rendering credit: Hord Coplan Macht.

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Upcoming CCIM-STL luncheons include:
“Return to Work,” April 12
“The Western Expansion,” June 14
“Venture Capital,” August 23
"Chesterfield Mall/Future Home of Downtown Chesterfield,” October 11
The 2022 "Building Crawl” will be from 3:30-6:30 p.m. on September 29.

Spring professional development programs include:
"CREN – Commercial Real Estate Negotiations,” March 21, 2022
"CI 104: Investment Analysis for Commercial Investment Real Estate," March 25

Visit https://ccimstl.com/events/ for more event details and to register.