Forsyth Pointe construction kicks off in Clayton

Construction of Forsyth Pointe, a mixed-use development in the central business district of Clayton, Mo., is underway.

The US Capital Development project includes two Class-A office towers, street-level retail and connected parking and will add nearly 1 million SF of prime space in the heart of Clayton, Mo.

As construction manager, McCarthy Building Companies is overseeing all construction work, including the delivery of self-perform concrete services on the cast-in-place building foundations, elevator cores and parking structure. The steel-framed glass structures will rest atop a post-tensioned concrete-framed parking structure.

“Forsyth Pointe will be a wonderful addition to the Clayton skyline and community,” said Michelle Harris, Mayor of the City of Clayton.

The 10-story, 265,000-SF east tower will occupy the corner of Forsyth Blvd. and Meramec Ave. And the 8-story, 210,000-SF west tower will reside at Brentwood Blvd. and Forsyth Blvd. More than 20,000 SF of street-level retail space will enliven the development’s street presence.

“The development will add prime office space and innovative retail space, increasing street vitality and the pedestrian experience on a prominent corner across from Shaw Park—one of our city’s crown jewels," Mayor Harris said.

A 7-level parking structure will connect both buildings and extend 2.5 levels underground. At the top level of the parking structure, a 45,000-SF open-air garden terrace will serve as a signature amenity and be available for public events.

Other planned amenities include a 10,000-SF fitness center and a ground-floor arts and entertainment venue.

“We’re honored to partner with US Capital Development and the design team to bring this incredible new development to life in one of the most desirable locations in St. Louis County,” said Jared Hites, vice president of operations at McCarthy.

From the project’s early design phase, McCarthy initiated an integrated virtual design and construction (VDC) process with the owner, designer and trade partners to drive efficiencies throughout the project. This includes the use of cloud-based building information modeling (BIM) collaboration platforms accessible by all team members.

Specific VDC applications include model-based design review, model-based field layout, 3D building systems coordination, laser scanning of as-built conditions and aerial drone photogrammetry to monitor and survey construction progress.

Forsythe Pointe is designed by Christner Architects (design architect, architect of record and landscape architect) and CEDERGREEN, LLC (design architect).

Other team members include Alper Audi (structural engineering), Stock & Associates (civil engineering), G&W Engineering (mechanical, electrical and plumbing engineering) and Randy Burkett Lighting Design (lighting design).

The project is expected to be complete in summer 2022.  

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.

The Barclay condos 'top out' in Kirkwood

Kadean Construction Company recently celebrated the topping out of The Barclay, a $12 million luxury condominium project currently under construction at 204 N. Clay Street in downtown Kirkwood, Mo.

The final roof truss of the four-story structure, developed by Savoy Investments, LLC., was hoisted into place by Cheltenham Construction Services, one of Kadean’s subcontractors, signifying that the structure has reached its maximum height.

“The entire project team has done a great job of keeping this job site safe for workers while responding to the site’s logistical limitations. I credit the collaboration of everyone involved for keeping this moving towards a successful outcome," said Mike Eveler, president of Kadean Construction.

The 40,000 SF building will feature fourteen luxury condominiums with underground parking and other luxury amenities.

“We are so gratified that this project has remained on schedule during the COVID-19 public health pandemic, which has adversely affected the progress of many other construction projects across the St. Louis region,” said John Pennington, partner and co-owner at Savoy Investments.

Construction began in November 2019 and is scheduled for completion in early 2021. Other partners on the project include Core 10 Architecture and KPFF Consulting Engineers.

This is the second new condominium construction project for the Savoy Investments and Kadean duo to build on the same block in downtown Kirkwood. In 2018, Kadean completed construction of The Madison Condominiums at 110 W. Madison Avenue.

Brinkmann completes Promise Christian Academy, Leonardo DRS

Brinkmann Constructors recently completed construction on a new school for Promise Christian Academy in Town and Country, Mo.

The 16,000 SF, special needs school includes eight classrooms, an occupational therapy room, speech therapy room, gym, teacher workspace and offices and a commercial kitchen. The space can accommodate up to 64 students.

Brinkmann worked closely with Promise to help design and manage the project to stay within the fundraising budget. Through constant communication and collaboration, the design-build team delivered a quality, alluring building, on schedule and within budget.

“The Brinkmann team used creative thinking to get this project under budget so the build could move forward. One of the biggest tactics implemented was the use of tilt-up construction. This eliminated exterior steel, metal stud framing and sheathing and a high dollar exterior façade, saving the client time and money. Working with ACI (Boland Architects), the new design provided a low-maintenance final product while keeping the desired curb appeal and exterior finishes,” said Wes French, Brinkmann project manager.

"Brinkmann Constructors not only employs the best of the best, but they also employ personnel who took the time to understand the special needs community and embrace our mission. This created top-notch teamwork that made the project flow seamlessly. Brinkmann Constructors has left a lasting impression on the hearts and minds of the Promise community. We will forever embrace them as a part of our family and a part of our story," said Meredith Heintz, head of school.

Promise Christian Academy is a private, faith-based school that takes a therapeutic approach to special education with specific programs designed to meet all of its students’ individual needs.

Brinkmann Constructors also recently wrapped up construction on a new 170,000 SF engineering development and light manufacturing facility in Bridgeton, Mo. for Leonardo DRS, a U.S.-based defense contractor.

This Leonardo DRS facility will be home to the business unit headquarters; housing leadership, management and a centralized back office functionality. The space will give the organization the flexibility to expand with minimal impact to the current workforce.

Brinkmann served as the GC and also provided interior build-out for the warehouse, including a best-in-class engineering, research and development laboratory and office space. Construction finished two weeks ahead of schedule and included a phased schedule to allow for DRS to begin installing furniture before the building was completed. The architect on the project was TR,i Architects.

CDC selects McCarthy as CM for biosafety lab

McCarthy Building Companies, Inc. has been chosen as the construction manager (CM) by the Centers for Disease Control and Prevention (CDC) for a new High Containment Continuity Laboratory (HCCL) at the Roybal Campus in Atlanta, Ga.

The new facility, which is part of the CDC’s 2025 Masterplan, currently is in the pre-construction/design phase with construction planned to begin in early 2021. Post completion, the HCCL will be one of three facilities in the world designed and certified to facilitate diagnostic research on specific, select viruses.

The new 160,000 SF, multi-story research building will increase the CDC's research capacity to sustain its diagnostic mission and support its public health mission by helping communities prepare for, detect and respond to consequences of all public health hazards. The HCCL building will be a Biosafety Level-4 (BSL-4) facility, a designation reserved for the highest level of biological safety and it will accommodate approximately 80 laboratory researchers.

“For the past two decades, McCarthy has been the premier high containment laboratory builder in the nation and we are thrilled to have been chosen to build this new addition to the expanding CDC Roybal campus,” said Bobby Campbell, executive vice president of McCarthy in Atlanta.

As a BSL-4 laboratory, the new facility will feature high-efficiency particulate air (HEPA) filtered supply and exhaust air, air pressure resistant doors, pressure cascade zoning, effluent collection and treatment, and pressure decay tested coatings and penetrations, as well as high purity breathing air and chemical decontamination showers for research staff. In addition, there will be connections to the existing Roybal campus utility systems with below grade utility tunnels and a two-level bridge connection.

“McCarthy has constructed the majority of the BSL-4 laboratory space in the United States, including the completion of the BSL-4 Emerging Infectious Diseases Laboratory on this campus 15 years ago. We are looking forward to bringing our experience full circle back to the CDC to build an efficient, functional, and technologically advanced research laboratory,” Campbell said.

As a leader for the past two decades in constructing facilities that conduct research related to infectious diseases, biological agents, and other sensitive scientific and medical research facilities, McCarthy Building Companies has built more than 25 percent of the BSL-4 facilities in the United States, including more than 50 percent of the gross square feet.

In addition to the CDC, McCarthy’s biosafety projects have included Boston University and the U.S. Department of Agriculture locations in Ames, Iowa and Manhattan, Kan.

The CDC has selected Flad Architects, Page Southerland Page and WSP to plan, program and design the HCCL. Part of the project management team is from McCarthy’s St. Louis headquarters.

With extensive knowledge and experience in biosafety projects, both Flad and McCarthy are also currently working together on the National Bio and Agro-Defense Facility (NBAF) in Manhattan, Kans., the only BSL-4 large animal facility in the nation.

Landco launches home office upgrade service

As months of pandemic work-from-home arrangements start to show the strain, St. Louis-area commercial contractor Landco Construction has a solution: REMOTivate yourself and your employees with home office makeovers.

Landco president Linda Bernhard said its new service can help companies lean into an uncertain situation with improvements that keep employees motivated and efficient.

“It could be a long time before we get back to normal. Everybody has people working from home - sitting at their dining room table or down in the basement surrounded by 2x4 studs and raw insulation. A proper home office can make them more productive,” Bernhard said.

Landco specializes in constructing contemporary, effective and environmentally aware workspaces for many St. Louis companies and campuses, including several Fortune 200 organizations.

Bernhard says that when the coronavirus struck earlier this year, it quickly became clear that the shelter-in-place orders were putting many clients’ construction plans on indefinite hold.

“They didn’t know how long they’d be keeping employees working remotely,” Bernhard said.

So, her team came up with REMOTivate, a service it could offer to both employers and employees to improve the work environment for the remote workforce.

Landco’s bundled offerings bring home office functionality to work-from-home locales. They range from the very simple -- a desk and chair -- to more premium packages that could include a sit/stand desk, executive chair, acoustical panels, even light construction such as installing a privacy door.

“We can make this package work for everybody. Employers can offer it as a perk to their workers, maybe to help transition them to permanent remote work. “They may be looking at downsizing their campus, giving up some rental space to save on their rent,” Bernhard said

Employees may treat themselves in order to be more efficient and comfortable in their home offices -- or may upgrade an employer’s offered renovation with extras of their own.

Landco is working with its partners, CI Select, Golterman & Sabo (G&S Architectural Products), Request Electric Inc. and Automated Data Systems, to put together a menu of standardized offerings that can be ordered easily and delivered quickly.

“We need products that are turnkey -- that we can turn around in three to five days,” Bernhard said.

Landco employees will observe stringent safety protocols, maintaining social distancing when they deliver and assemble the REMOTivate orders.

And it’s a service she believes will continue to be attractive to some clients, even when the initial COVID-19 crisis abates.

“What we’ve been encountering over the past few months has opened everybody’s eyes to a new way of working. If employers can save rent, if employees can work from home, I do see a need (of) continuing for this," Bernhard said.

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/.

9-Mile food truck garden set to bloom July third

Missouri’s first food truck garden, 9 Mile Garden, is set to open on July 3, 2020 at 9375 Gravois Rd. in Affton, Mo.

Developed by Guerrilla Street Food co-founder Brian Hardesty and Seneca Commercial Real Estate, 9 Mile Garden brings a family-focused entertainment district to the St. Louis area; offering local foods and drinks alongside outdoor movies, live music and performances, community events and more.

Previously known as Chapman Ventures, the company redeveloped Affton Plaza and began working on ideas for phase two of the project — which turned into 9 Mile Garden.

The garden plans to host five trucks for lunch, seven trucks for dinner and nine trucks for special events, according to Hardesty. The garden is also equipped with its own bar, The Canteen, who plans to serve 40 taps of local craft beer, wine, small batch cocktails, cold brew coffee, kombucha and more—all on draft.

“It’s such a cool concept and will truly be great for the area.  BEX really overcame the inclement weather challenges of late winter and early spring to get this project completed on time. That meant capitalizing on the good days we had and working overtime and weekends (to deliver on schedule),” said Ethan Bruckerhoff, superintendent for BEX Construction Services, who was responsible for the GC on the structural components of the project.

The full list of participating food trucks includes Balkan Treat Box, FarmTruk, Seoul Taco, Guerrilla Street Food, Doggie Mac’s, Sugarfire 64, Essentially Fries, Wok and Roll, The Saucy Iguana, Ukraft, Truckeria del Valle, Burgers STL, Wayno’s, Blues Fired Pizza, Spud Shack, The Crooked Boot, Honest to Goodness, Sedara Sweets, Zia’s on the Hill, Super Smokers, CJ’s Deli, Tastebudz Express, Heavy Smoke BBQ, Fire & Ice Cream Truck, Truck Norris, Scoops & More, Poptimism, Graze, Smokey’s Q, and Twisted Tacos.

Live bands will play every Friday night and a jumbo outdoor movie screen will show movies every Saturday night during warm weather months. Family-friendly games, such as pickleball and air hockey, board games and theme nights will all be included. The garden grounds and The Canteen can also be rented for private events.

The grounds of the food truck garden will open for lunch on Friday, July 3rd, and continue operating for both lunch and dinner service through the weekend. The grand-opening week will feature several live musical performances and charitable events. The garden and its staff will follow health and safety guidelines set by the Center for Disease Control and Prevention and St. Louis County, officials said.

GARDEN HOURS

Lunch: Mon-Sat, 11am-2pm

Dinner: Tue-Sat, 5pm-9pm

Special events every Friday & Saturday night

CANTEEN HOURS

Mon-Thu, 11am-midnight

Fri-Sat, 11am-1am

Other partners on the project include KOLB Contracting and Coralic Architecture.

Keystone Place at Richland Creek rolling along

Keystone Place at Richland Creek rolling along

Drone image of a senior living community under construction in O’Fallon, Ill., courtesy of Holland Construction Services.

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.

St. Louis area's supply chain prime for global market reach

St. Louis area's supply chain prime for global market reach

In August 2019, Bunge Limited, a leader in agriculture, food and ingredients, announced that it is relocating its global headquarters from White Plains, NY, to the St. Louis metropolitan area (Chesterfield, Mo.), citing the move allows the company to leverage shared capabilities and enhance collaboration.

St. Louis positioned for continued growth amidst COVID-19 climate

St. Louis positioned for continued growth amidst COVID-19 climate

“As long as consumers continue to buy products online, and as long as we continue to expect delivery in a day or less, we’re going to see e-commerce as a trend for a long time.” -David Branding, JLL

River City Industrial Park acquires second tenant

River City Industrial Park acquires second tenant

Telecom equipment supplier, SoTel Systems, is the second tenant in River City Industrial Park's first building. Photo courtesy: Green Street St. Louis

Delmar Divine vision to begin transformation in June

Delmar Divine vision to begin transformation in June

The area formerly known as Delmar Divide will begin the transformation into Delmar Divine mid-June 2020. Above and below rendering credit: Lamar Johnson Collaborative

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.