City Foundry- $340M Lawrence Group Plan

Construction activity, major renovations, office projects, etc. in the Central Corridor -- defined by the area south of Delmar Avenue and North of Interstate 44/55.
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City Foundry announced office leases this morning as reported by PD and Biz Journals. Link to PD article. Not sure if existing space or new office building along/next to the Vande entrance

http://www.stltoday.com/business/local/ ... 7f6ab.html


The $187 million CityFoundry STL development in Midtown has signed leases with two lead office tenants: digital publishing and technology firm Multiply and DNA tech company Orion Genomics.

Combined, the two companies will lease 30,000 square feet of space for almost 100 employees, CityFoundry's developer, The Lawrence Group, told the Post-Dispatch. Multiply, whose digital publications include HealthyWay, FashionBeans and Urbo, is currently based in University City. Orion Genomics is based in the Central West End.
dredger wrote:
Thu May 17, 2018 9:00 am
Not sure if existing space or new office building along/next to the Vande entrance
Existing i'm sure. I don't think we'll hear about any phase 2 tenants for awhile, unless someone huge from the county relocates or an out of towner.
^^ I didn't realize this until just now (after reading last month's Biz Journal article on the announcements) but Multiply is the former Answers.com.
STLrainbow wrote:
Thu Jun 07, 2018 12:03 pm
^^ I didn't realize this until just now (after reading last month's Biz Journal article on the announcements) but Multiply is the former Answers.com.
Interesting. Did some work back in the day for them. They were really exploding for a bit there and were poised to move downtown. Unfortunately, they didn't become the next BuzzFeed.
So if you want to open a restaurant or retail at the foundry, apparently after paying high rent relative to rest of stl market you’re only get $20 per sq foot for tenant improvements and Foundry gets to keep 10% of your sales on the back end.

I know a very well know regional brand that has a outpost in the county and is looking at Foundry but $20 sq foot for tenant improvement is a non starter for them
dbInSouthCity wrote:
Tue Jun 12, 2018 11:14 am
So if you want to open a restaurant or retail at the foundry, apparently after paying high rent relative to rest of stl market you’re only get $20 per sq foot for tenant improvements and Foundry gets to keep 10% of your sales on the back end.

I know a very well know regional brand that has a outpost in the county and is looking at Foundry but $20 sq foot for tenant improvement is a non starter for them
Is that normal for a place to take part of the retailer's sales?
^A percentage of sales as part of the lease terms is not uncommon for retail and restaurants.
Percentage rent isn't unheard of, but not terribly common these days. It's also an accounting headache for both sides as rents are always fluctuating. $20psf in TI is actually a fairly competitive number for retail in St. Louis, although coupled with high rates and percentage rent, I can see the pushback.

Restaurants obviously want more because of the heavier improvement costs, but that's a hard line to straddle for Landlords because you're effectively investing in their business and the food business is notoriously high in turnover.

I think one interesting aspect of the food hall concepts is how the developers balance the market rates w/ a roster of local tenants. I've seen similar projects where on paper the idea of featuring local food users, vendors, etc. looks great, but then they roll out rates on the space that quickly price out most of the tenants they said they wanted. And I don't see any way that a food hall concept sees much momentum in the city if it's loaded with chains.
Out of curiosity, when will we see some more movement on this site? I drive by this daily and I can’t wait for it to finally get underway.
Chalupas54 wrote:
Mon Jun 18, 2018 1:47 am
Out of curiosity, when will we see some more movement on this site? I drive by this daily and I can’t wait for it to finally get underway.
A date I keep hearing is July 1st (but probably realistically the 2nd). I think they're still working out some office and retail leases and securing the financing. Sounds like they had another investor jump on board recently and got the banks to release some money for "pre-construction" site work and demo before going full steam when all the financing is secured.
dbInSouthCity wrote:
Tue Jun 12, 2018 11:14 am
So if you want to open a restaurant or retail at the foundry, apparently after paying high rent relative to rest of stl market you’re only get $20 per sq foot for tenant improvements and Foundry gets to keep 10% of your sales on the back end.
I was at the Chefs Panel that the Foundry hosted yesterday featuring some out of town chefs that are operating in Food Halls. I think Denver, Seattle, and Dallas. Couple interesting figures that I head from the Dallas chef, he's expecting to make 900k this year out of 175sf. Started in a food truck, and said within the first month of being in the Food Hall he made the same as a year in a food truck. The Food Hall he is at is charging a 26% fee, which makes the Foundry's 10% seem pretty low. This is just for Food Hall stalls, not sure about their numbers for retail and full service restaurant.
Yeah, I think the whole food truck thing is cooling off.
Demo seems imminent. Been passing by the site recently this week and been seeing a lot of SM Wilson trucks and sub contractors parked in front of Byco on FPA. Hoping to see some equipment on site next week!
^ I am a bit confused... I thought everything already was demolished?
STLrainbow wrote:
Thu Jul 12, 2018 4:24 pm
^ I am a bit confused... I thought everything already was demolished?
The work that was already done was just the Environmental Remediation with the Brownfield credits. Removing all of the contaminated junk. Which is why they only excavated a little bit, to get to clean soil. They basically just did a big gut and power wash to remove all the nasty stuff. Which was a lot. Something like $10mil worth.

Demo will consist of removing the warehouse building where Alamo is going to be built, probably the remaining site excavation, removal of roof that needs replacement, new openings in existing walls, foundation work, removal of existing windows to prep for replacements, etc etc.
^thanks... I didn't realize another warehouse was coming down.
STLrainbow wrote:
Fri Jul 13, 2018 5:11 pm
^thanks... I didn't realize another warehouse was coming down.
Hmmm I only got a glance at it this weekend but I thought the entire Alamo site was a grass field. Which also makes me think that it'll be a while before construction starts on phase 2. I'm surprised they didn't make it a surface lot.
Speaking of parking, I went to Ponce City Market in Atlanta last weekend. We paid $5 to park for 2 hours. And don't even try and tell me that "people drive everywhere is St. Louis" but not in Atlanta. Makes me frustrated once again that Ikea set a bad precedent of free parking in the Central Corridor. Union Station did not fail because of the lack of free parking, Union Station failed because of St. Louis County's cannibalistic thirst for sales taxes.