Kadean Construction kicks off $2.3 million warehouse expansion

G.H. Tool & Mold, a division of Tooling Tech Group (TTG), has begun construction on a $2.3 million expansion at 423 W-W Industrial Park Dr. in Washington, Mo.

General contractor Kadean Construction recently broke ground on the metal warehouse project, adding 21,000 SF of space to the existing 40,000 SF-facility. The original space will remain the bread-and-butter of the company, who manufactures tooling for the die cast and aerospace industries.

"The addition will house two, 60-ton bridge cranes, which are used for moving materials in the manufacturing area within the building," said Scott Rakonick, senior project manager for Kadean Construction.

The addition will also include a large, double-column bridge mill with a 70,000-pound capacity.

"The Kadean team has been a pleasure to work with and our project is running right on schedule so far. They are a very knowledgeable group and are running the project very efficiently," said Dave Graves, president of G.H. Tool & Mold.

Other project partners include Washington Engineering & Architecture, Inc. and Varco Pruden Buildings.

The project is expected to be complete in the third quarter of 2020 and bring on approximately 25 more employees over the next five years.

Phase two renovations begin on Congregation Temple Israel

Congregation Temple Israel, a reform synagogue located at 1 Rabbi Alvan D Rubin Dr. in St. Louis, Mo., has started phase two of their three-phase renovation.

“This project is going to be really transformational. It’s a complete 40,000 SF interior remodel of the education building that will be ready just in time for school to start in late August,” said Barry Spiegelglass, co-owner of Spiegelglass Construction, the general contractor on the project.

Phase one renovations, which were completed in 2017, included $1.28 million of safety, security, accessibility and energy efficiency improvements; including updated light fixtures in the parking lot, security upgrades, pool playground repair, main office refresh, enhancement to the fire suppression system, installation of a new waterline and a complete renovation of the existing restrooms.

Phase two renovations include approximately $3.4 million of improvements including a new entrance canopy, new ADA accessible ramp, exterior paint, relocating and renovating administrative suite and creating two prototype classrooms.

The renovations will bring the building up to date with the latest in energy efficiency, sensory sensitivity and technology-based learning.

“It’s essential that we have flexible classroom and play spaces. Our facility must be reimagined and built to reflect the educational and social needs of children in the modern world,” said Leslie Wolf, director of family education for Congregation Temple Israel.

The $2 miilion third phase will include renovations of the remainder of the ECC classrooms and the K-12 classrooms as well as an addition of a new infant suite. Phase three will occur when funds are secured and could be as soon as 2021.

“There are so many families that have fond memories in this building that now see their children or their grandchildren attend. Our goal is to highlight the best aspects of the existing structure while enhancing the interior learning environment to make an impact for generations to come,” said Sue Pruchnicki, principal at Bond Architects, who designed phases two and three.

Other partners on the project include AALCO Wrecking Company, Inc., Sheet Metal Contractors, Inc., Akron Electric, Inc., Budget Glass and Flooring Systems Inc.

“It will look like an entirely different building and we can’t wait to see the reactions from the kids and their parents when they see it for the first time,” said Spiegelglass.

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.

Mission Rock Residential rolls into Soulard

Hamilton Zanze, a San Francisco-based real estate investment firm and new owner of Soulard Icehouse and Steelyard Apartments, has named Mission Rock Residential as the new property manager of the two communities --now jointly operating as Steelyard Apartments.

“Steelyard and IceHouse provided an attractive opportunity to buy a new property in the up-and-coming neighborhood of Soulard. The property features a robust amenities package, prime location near downtown St. Louis and offers residents the quality of life provided by the city’s energetic urban core," said David Nelson, Hamilton Zanze’s managing director of acquisitions.

Developed by Lux Living, the now combined Class-A, mid-rise community offers a mix of luxury studios, one-, two- and three-bedroom units averaging 784 SF in size. Amenities include, Nest thermostats, keyless entry locks and package delivery lockers.

Shared community amenities include a rooftop deck, a saltwater pool with sun deck, a pet park and spa, a karaoke lounge, two state-of-the-art fitness centers and more - all located in close proximity to the Mississippi River, providing views of the river and the famed Gateway Arch.

“By combining these two apartment communities under one consistent name, Mission Rock hopes to establish cohesiveness and a strong sense of community with its residents between the two buildings. The impressive amenities and historic roots make us confident that current and future residents will continue to experience tremendous benefits in this already-desirable neighborhood in St. Louis," said Patricia Hutchison, president of Mission Rock Residential.

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About Soulard: One of the oldest communities in the city, Soulard today is a largely residential neighborhood with many businesses including restaurants, bars and the North American headquarters of Anheuser-Busch.

In a recent Brookings Institution study of 70 older industrial cities, St. Louis ranked among the strongest economies that are making progress on the road toward renewal and reinvention.

New construction has also expanded steadily in the market thanks to the continued growth of the region’s remote workforce.

Restaurant and gym to anchor next phase of The Junction in Wentzville

Junction House, an upscale, full-service restaurant and bar will anchor the next phase of The Junction, an 18-acre Mia Rosa Holdings development located at the intersection of Lodora Drive and I-70 in the heart of Wentzville, Mo.

The 9,400 SF multi-level eating and drinking establishment restaurant with a twist on casual sports dining includes a main restaurant area, a large covered outdoor patio, and a 1,500 SF open-air rooftop suitable for both public use and private events. All three areas of the restaurant will be equipped with a full-service bar and seating for dining.

F45, a new fitness gym, will occupy the remaining 3,000 SF of retail space in the new building and will be located adjacent to Junction House.

The Junction House concept was developed by local entrepreneur and restaurateur, Keith Horneker, along with a group of five other St. Louisans with more than twenty years of combined experience in the local food and beverage industry.

“Our vision is to redefine casual sports dining through handcrafted foods and signature mixed drinks to be enjoyed in an atmosphere like none other in the very fast growing Wentzville area,” Horneker said.

“We will offer more of an upscale type menu showcasing a wide variety of unconventional burgers and flatbreads along with traditional bar cuisine such as sandwiches and pizzas and an assortment of pastas and entrees that are attributed to my Italian heritage.”

The new restaurant and gym will join Holiday Inn Express, which opened last year, Junction Apartments, set to open in May 2020, Sugarfire Smoke House, which opened a few months ago, multiple sand volleyball courts and 10,000 SF of retail space with open availability for additional tenants.

“It’s a really exciting time to be developing in this area, and we’re very excited to finally be able to bring our vision to life and do so in a great city such as Wentzville,” said Horneker, a Wentzville area resident.

Both the restaurant and the gym are scheduled for completion in August 2020.

Sullivan Bank is providing $4.3 million in construction financing for the project. Other project partners include LayneCo Construction Services, Gray Design Group and Patrick Wittenbrink of Carmody MacDonald P.C.

Chesterfield's $80 million Wildhorse development progressing

Construction continues on the $80 million Wildhorse development located at the southwest corner of Chesterfield Parkway and Wild Horse Creek Road in Chesterfield, Mo.

General contractor, Brinkmann Constructors, kicked off Phase One of the 22-acre, mixed-use development in August 2019, breaking ground on The Pearl at Wild Horse Creek apartment complex and the first retail component, Ruth’s Chris Steak House, an upscale steakhouse chain.

Steel is erected and over half-way complete on wood for level one of the apartment complex, according to Brinkmann Constructors.

The 4-level, 200-unit apartment complex includes 24,500 SF of retail and restaurant space above structured parking. One- and two-bedroom units range from 650 SF to 1,244 SF. Amenities include a dog park, swimming pool, fitness center, two courtyards, clubhouse, library and Wi-Fi. On-site parking includes 418 combined spaces of structured and surface-lot parking.

Phase Two is set to begin later this year and includes AC Hotel by Marriott, a 128-room luxury hotel and conference center, along with 12,500 SF of retail space, leased by Pace Properties.

The Pearl at Wild Horse Creek apartment complex is projected to open in January 2021, with the hotel and restaurant to follow.

NorthMarq arranged $54.5 million in debt and joint venture equity financing for project developers, Tegethoff Development (formerly Pearl Companies) and Great Lakes Capital.

Other project partners include architect, TR,i Architects and investment firm, Reinsurance Group.