I don't see the lull in rental housing affecting STL too much, especially if we manage to find a growing population. A lot of cities overbuilt and will obviously see a bit of a hangover, but our construction of new rental units has been glacial compared to many peer cities. My guess is that STL is still in the beginning stages of our own rental boom.
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First building permit issued! But its only for an estimated $1,000 interior demo job so don't get too excited!
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I'm still very skeptical that this will happen. I read a few months ago that Congress was considering dropping the visa program that our Turkish friend planned to use to fund this project. Apparently only a handful of individuals had taken advantage of it during the number of years it had been available.
I think the visa program in question has been used extensively but to very specific real estate markets and areas on the coasts like San Fran & LA on west coast and New York & Miami on the east coast.southcitygent wrote: ↑Jun 23, 2018I'm still very skeptical that this will happen. I read a few months ago that Congress was considering dropping the visa program that our Turkish friend planned to use to fund this project. Apparently only a handful of individuals had taken advantage of it during the number of years it had been available.
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We've worked on projects in MN and WI that have utilized the EB-5 program, however, it accounted for only a small portion of financing. From what I've read this guy's Dallas project was financed largely by the program. Or maybe I read that wrong.dredger wrote: ↑Jun 23, 2018I think the visa program in question has been used extensively but to very specific real estate markets and areas on the coasts like San Fran & LA on west coast and New York & Miami on the east coast.southcitygent wrote: ↑Jun 23, 2018I'm still very skeptical that this will happen. I read a few months ago that Congress was considering dropping the visa program that our Turkish friend planned to use to fund this project. Apparently only a handful of individuals had taken advantage of it during the number of years it had been available.
Nice! Time to get the ball rolling! So excited for this. Hopefully they can push the city towards calming Tucker, for the best of this project and Downtown and DTW as a whole.
Awesome news
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Surprised that this hasn't gotten any attention in the local business news, PD, bizjournals, so on or did I miss it? Or should we expect some more news this coming week? $50 million goes beyond a street level furniture store. Hotel and or some apartments moving forward?
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Biz Journal saying this project is delayed while developer seeks more financing. . . 
I do not have a subscription....... anyone have the scoop?
https://www.bizjournals.com/stlouis/new ... 2018-07-12
I do not have a subscription....... anyone have the scoop?
https://www.bizjournals.com/stlouis/new ... 2018-07-12
The redevelopment of the Jefferson Arms building in downtown St. Louis has been pushed back as the developer seeks more financing.
Although the city of St. Louis issued a $49.6 million construction permit for the project on July 3, Dallas-based Alterra Worldwide did not receive the Brownfield tax credits it sought from the state and is searching for a new source of funding to make up for the more than $10 million gap.
Alterra founder and President Mike Sarimsakci told the Business Journal that construction can’t begin until that final piece of financing is in place, and he expects it will take through December to identify a new source. (The July 3 permit is slated to expire Jan. 3, 2019, according to city documents.)
Alterra is still looking into using the U.S. Citizenship & Immigration Services' EB-5 program, an investor visa program that seeks to stimulate the United States economy through investments in U.S. companies by foreign investors. The Business Journal previously reported that Alterra planed to utilize $49.5 million in foreign investment for Jefferson Arms.
"We've spent millions of dollars (on the project) thus far. We're working hard at it," Sarimsakci said.
Alterra is also working hard on identifying potential tenants for the $104 million rehabilitation. In a recent post on LinkedIn, Sarimsakci has hinted at a possible collaboration with Patrick Stanley of the Charles P. Stanley Cigar Co. and Lounge for a private cigar bar at Jefferson Arms ("It was a handshake deal. But when two friends want to do something, it's going to happen," Sarimsakci said). He's also keen to have a restaurant from chef and Bengelina Hospitality Group owner Ben Poremba.
"I would love to have his concept in Jefferson Arms," he said.
An approximately 200-room Marriott-branded AC Hotel and more than 200 single-family apartments are planned for the bulk of the redevelopment. Nationwide, hotel demand dropped from 3.7 percent to 3 percent in the first quarter of 2018, while supply grew 2 percent, according to a CBRE report.
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Dear all,
Thank you for your continued interest at Jefferson Arms Project. Community Support is essential for this amazing project through all its stages. We are trying to have our baby walk at the moment in essence. JA needs more patience from us to be able to walk. Denial of $10 million Brown Field Tax Credits requires us to identify other source of funding.
We are ready to start construction, but I need to make sure we have all the funds in place before I move forward. I appreciate your involvement and bringing up good discussion points.
Greetings from Barcelona, urbanist paradise!!
Thank you for your continued interest at Jefferson Arms Project. Community Support is essential for this amazing project through all its stages. We are trying to have our baby walk at the moment in essence. JA needs more patience from us to be able to walk. Denial of $10 million Brown Field Tax Credits requires us to identify other source of funding.
We are ready to start construction, but I need to make sure we have all the funds in place before I move forward. I appreciate your involvement and bringing up good discussion points.
Greetings from Barcelona, urbanist paradise!!
Just curious, why did the developer apply for a building permit before having all the financing in place?
I don't think "we" (some or most people on this forum) or the media really understand the process of real estate development. So what I think happens is, any movement we see, we think the project is a go and the media just reports whatever the developer feeds them.
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This. Heck, there are instances where people here mistake "ideas" or "what should be's" that are posted in the UrbanSTL threads and think that they're news or progress. It's very very easy for development rumors to spread, even when they're out dated or simply pie in the sky ideas. People get excited and many people want to be the person who "breaks" the news so that they can receive the likes, credit, clicks, site traffic, etc. I think it would be good for everyone to simply take a few steps back every time news, rumors, or renderings are leaked or released. Until construction has started, no project is a "sure thing".
I'm optimistic that this project will happen but it is crawling at a snails pace. Alterra hasn't returned calls of emails I have sent regarding this and there is no office here to go in and say "hey!". You are right though in this sentence Wabash. 3 of the 4 buildings you mentioned are nearly complete or complete and the Chemical building is supposed to start In December. I'm optimistic about the Jefferson Arms but the silence is deafening on this since the tax credits fell through over the Summer.
Jefferson Arms Apartments - 415 North Tucker Blvd
Viewing this building it looks to be a huge project The building is big and will require big monies to re-do
Viewing this building it looks to be a huge project The building is big and will require big monies to re-do
Well said.chaifetz10 wrote: ↑Jul 20, 2018This. Heck, there are instances where people here mistake "ideas" or "what should be's" that are posted in the UrbanSTL threads and think that they're news or progress. It's very very easy for development rumors to spread, even when they're out dated or simply pie in the sky ideas. People get excited and many people want to be the person who "breaks" the news so that they can receive the likes, credit, clicks, site traffic, etc. I think it would be good for everyone to simply take a few steps back every time news, rumors, or renderings are leaked or released. Until construction has started, no project is a "sure thing".
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Dear All
Article from today STL Biz Journal.
Alterra Worldwide said its $104 million redevelopment of the Jefferson Arms building in downtown St. Louis will kick off in April.
The Dallas-based developer is planning to turn the historic property into a 200-room Marriott-branded AC Hotel with over 200 single-family apartments and ground-level retail. Alterra aims to wrap up the project by summer 2021, the company said.
Alterra has tapped GHJ Construction, a California-based unit of
Beijing Construction Engineering Group, as general contractor
and Kwame Building Group as construction manager. A senior lender has not yet been selected, officials said.
Alterra closed on its acquisition of the 13-story, Classical Revival structure in mid-2017. The redevelopment was delayed after the state of Missouri declined to issue it more than $10 million in Brownfield credits this year. The company is in ongoing discussions to have GHJ and its parent company provide the financing, officials said.
St. Louis-based Raineri Construction was attached to the redevelopment but declined to get involved because of Alterra’s past performance and approach, Director of Business Development Tony Raineri said in an email to the Business Journal. Raineri did not respond to a request asking for elaboration.
"Tony is a fine man. He is simply misinformed. I personally would never speak on someone’s back especially after I break bread with them. Am I too naive to expect the same courtesy from others?" Alterra President Mike Sarimsakci told the Business Journal. "Alterra's previous track record speaks for itself. Facts are facts. Rumors are rumors. "
Alterra also invited other St. Louis-area companies to submit a bid for the redevelopment, according to documents obtained by the Business Journal. BSI Constructors, Paric Corp., S.M. Wilson, HBD Construction and Holland Construction declined to do so citing a shortage of workers. S.M. Wilson said it would consider the project under a different contract format.
Because the redevelopment will utilize $17.4 million in tax increment financing (TIF), Alterra has to use at least 25 percent certified minority-owned companies and at least 5 percent certified women-owned businesses. (New rules governing the city’s inclusion mandate have not gone into effect yet.
Subcontractors have till Jan. 15 to submit bids for various contracts. GHJ officials said they are seeking proposals that offer the best value, not necessarily the lowest price.
GHJ worked with Alterra on a more than $100 million redevelopment of Dallas' Butler Brothers building that features a Marriott dual-branded hotel, office space and a 237-unit multifamily component that Sarimsakci said has 93 percent occupancy. Alterra also selected GHJ for its $150 million, 22-story residential tower in San Jose, California. Separately, GHJ Construction is captaining a roughly $68 million construction of the TMC Intercontinental hotel in Houston.
Industry publication Engineering News-Record listed Beijing Construction Engineering Group among the top 50 contractors in the world with $6 billion in annual revenue, 29 global offices and 2,000 employees. The Chinese company built several venues for the Beijing Summer Olympics in 2008.
Article from today STL Biz Journal.
Alterra Worldwide said its $104 million redevelopment of the Jefferson Arms building in downtown St. Louis will kick off in April.
The Dallas-based developer is planning to turn the historic property into a 200-room Marriott-branded AC Hotel with over 200 single-family apartments and ground-level retail. Alterra aims to wrap up the project by summer 2021, the company said.
Alterra has tapped GHJ Construction, a California-based unit of
Beijing Construction Engineering Group, as general contractor
and Kwame Building Group as construction manager. A senior lender has not yet been selected, officials said.
Alterra closed on its acquisition of the 13-story, Classical Revival structure in mid-2017. The redevelopment was delayed after the state of Missouri declined to issue it more than $10 million in Brownfield credits this year. The company is in ongoing discussions to have GHJ and its parent company provide the financing, officials said.
St. Louis-based Raineri Construction was attached to the redevelopment but declined to get involved because of Alterra’s past performance and approach, Director of Business Development Tony Raineri said in an email to the Business Journal. Raineri did not respond to a request asking for elaboration.
"Tony is a fine man. He is simply misinformed. I personally would never speak on someone’s back especially after I break bread with them. Am I too naive to expect the same courtesy from others?" Alterra President Mike Sarimsakci told the Business Journal. "Alterra's previous track record speaks for itself. Facts are facts. Rumors are rumors. "
Alterra also invited other St. Louis-area companies to submit a bid for the redevelopment, according to documents obtained by the Business Journal. BSI Constructors, Paric Corp., S.M. Wilson, HBD Construction and Holland Construction declined to do so citing a shortage of workers. S.M. Wilson said it would consider the project under a different contract format.
Because the redevelopment will utilize $17.4 million in tax increment financing (TIF), Alterra has to use at least 25 percent certified minority-owned companies and at least 5 percent certified women-owned businesses. (New rules governing the city’s inclusion mandate have not gone into effect yet.
Subcontractors have till Jan. 15 to submit bids for various contracts. GHJ officials said they are seeking proposals that offer the best value, not necessarily the lowest price.
GHJ worked with Alterra on a more than $100 million redevelopment of Dallas' Butler Brothers building that features a Marriott dual-branded hotel, office space and a 237-unit multifamily component that Sarimsakci said has 93 percent occupancy. Alterra also selected GHJ for its $150 million, 22-story residential tower in San Jose, California. Separately, GHJ Construction is captaining a roughly $68 million construction of the TMC Intercontinental hotel in Houston.
Industry publication Engineering News-Record listed Beijing Construction Engineering Group among the top 50 contractors in the world with $6 billion in annual revenue, 29 global offices and 2,000 employees. The Chinese company built several venues for the Beijing Summer Olympics in 2008.
Definitely not!!!debaliviere wrote: ↑Dec 11, 2018Not dead, apparently:
https://www.bizjournals.com/stlouis/new ... start.html