^ I believe Chris may have mentioned seeing some previous plans. Nothing that was ever made public though.
I’ve seen a few of the previous plans for this site. I recall a lot of them would’ve required an incentive due to scope. Gras might have been shown the plan that came before Albion, but I’m unsure. I was shown plans back to before the Koman partnership was even a thing. If the hint is Roddy didn’t support incentives, I never heard that one but I know that for some of the plans, an incentive request would’ve been questioned even a decade ago for something that was envisioned. Roddy might have had reservations about a request for something of that scope back then.
I’m being vague on purpose but as I’ve said before, the Albion plan is appropriate in terms of design and height for the neighborhood. It’s flashy without being overly flashy.
Great news. Do you anticipate she will support it?
I believe Denis said her chosen representative on the Planning Commission backed the blighting request, so that could be a sign she will. But with the mayor being Tishaura, it’s hard to tell. At least 18 of Tina’s colleagues went against her. They know what the longterm benefit of something like this is.
^ Thank god that didn’t happen. Not only would that have precluded the One Hundred building (and cut off the street grid) they also look like cheap knockoffs of the American Century towers in KC:
Actually the KC buildings look like an even worse knockoff of that old Lindell proposal…still, I’ll take what’s there now and likely to be there in the near future over that ‘86 proposal…
^ Thank god that didn’t happen. Not only would that have precluded the One Hundred building (and cut off the street grid) they also look like cheap knockoffs of the American Century towers in KC:
Actually the KC buildings look like an even worse knockoff of that old Lindell proposal…still, I’ll take what’s there now and likely to be there in the near future over that ‘86 proposal…
Never liked that pair. Reminds me of Oakbrook in Chi. Wouldn't mind if the AT&T building was this color though.
St. Louis aldermen voted Friday to approve subsidies for a planned luxury apartment tower in the Central West End despite vigorous opposition from the area’s alderman.
The move, backed by the mayor, authorizes tax breaks worth an estimated $9.7 million over 10 years to support the $145 million project, which is slated to replace a parking lot at Lindell Boulevard and Kingshighway.
The concept prompted renewed debate over whether the city is doing enough to push development beyond its wealthy central corridor. It also marked another instance of the board overruling 17th Ward Alderman Tina Pihl’s objections to incentives on a project in her ward.
In the past, the board almost always deferred to aldermen on projects in their wards under a doctrine known as “aldermanic courtesy.” But that tradition has taken a beating since three board members were indicted last summer on bribery charges and accused of using that power for personal gain. That’s worked against Pihl, whose promises to get tough on tax breaks in wealthier areas of the city have gone further than even fellow progressive Democrats are willing to go
St. Louis aldermen voted Friday to approve subsidies for a planned luxury apartment tower in the Central West End despite vigorous opposition from the area’s alderman.
The move, backed by the mayor, authorizes tax breaks worth an estimated $9.7 million over 10 years to support the $145 million project, which is slated to replace a parking lot at Lindell Boulevard and Kingshighway.
The concept prompted renewed debate over whether the city is doing enough to push development beyond its wealthy central corridor. It also marked another instance of the board overruling 17th Ward Alderman Tina Pihl’s objections to incentives on a project in her ward.
In the past, the board almost always deferred to aldermen on projects in their wards under a doctrine known as “aldermanic courtesy.” But that tradition has taken a beating since three board members were indicted last summer on bribery charges and accused of using that power for personal gain. That’s worked against Pihl, whose promises to get tough on tax breaks in wealthier areas of the city have gone further than even fellow progressive Democrats are willing to go
Q4 just around the corner. Hope SC didn't mean Q4 '24!
Anyone hearing anything? Was just down at Forest Park for the free concert and to have multiple tower cranes bookending the CWE skyline would be an awesome sight.
Q4 just around the corner. Hope SC didn't mean Q4 '24!
Anyone hearing anything? Was just down at Forest Park for the free concert and to have multiple tower cranes bookending the CWE skyline would be an awesome sight.
There are many moving parts, so construction won’t start this year. Under the current rate environment, there’s no rush to start this or Magnolia Ridge. Expect construction to begin next year but as for a quarter, I can’t say yet.
I would be surprised if this project moves forward next year. Idk how they can make the numbers work, the simply missed the boat that 100 got on with interest rates.
Q4 just around the corner. Hope SC didn't mean Q4 '24!
Anyone hearing anything? Was just down at Forest Park for the free concert and to have multiple tower cranes bookending the CWE skyline would be an awesome sight.
There are many moving parts, so construction won’t start this year. Under the current rate environment, there’s no rush to start this or Magnolia Ridge. Expect construction to begin next year but as for a quarter, I can’t say yet.
The rate environment likely won't change much in the next 12 months. Investor expectations need to readjust for the normalized interest rate environment we are now in. Adjusted expectations more than rate will be the driver in this project getting out of the ground in my opinion.
The rates thing never made sense to me, as they wait for rates (coin flip) all other costs like labor (the biggest one) are going up and at the end it’s not even a savings. I just think they don’t have the funding
The rates thing never made sense to me, as they wait for rates (coin flip) all other costs like labor (the biggest one) are going up and at the end it’s not even a savings. I just think they don’t have the funding
Rates in large part dictate cap rate. Cap rate dictate project value. If rates are unstable, like they are today, it is difficult to determine the stabilized value after the project is completed. Especially one that takes 2 + years to complete. If you can't comfortably anticipate the value of a project once it is completed you certainly won't be able to raise the equity needed to develop it. Equity will invest in more stable less risky investments until rates have stabilized. All the current private apartment development that is currently in process in the St. Louis region almost certainly is locked into a 2021 or early 2022 rate. As rates stabilize and investor expectations are reset you will see multifamily starts increase. Rates are likely one of the biggest reasons if not the biggest that this project hasn't started. Thank your former alderwomen for delaying the project for years. Remember they were trying to get out of the ground during a much more stable time especially for interest rates.
The rates thing never made sense to me, as they wait for rates (coin flip) all other costs like labor (the biggest one) are going up and at the end it’s not even a savings. I just think they don’t have the funding
Rates in large part dictate cap rate. Cap rate dictate project value. If rates are unstable, like they are today, it is difficult to determine the stabilized value after the project is completed. Especially one that takes 2 + years to complete. If you can't comfortably anticipate the value of a project once it is completed you certainly won't be able to raise the equity needed to develop it. Equity will invest in more stable less risky investments until rates have stabilized. All the current private apartment development that is currently in process in the St. Louis region almost certainly is locked into a 2021 or early 2022 rate. As rates stabilize and investor expectations are reset you will see multifamily starts increase. Rates are likely one of the biggest reasons if not the biggest that this project hasn't started. Thank your former alderwomen for delaying the project for years. Remember they were trying to get out of the ground during a much more stable time especially for interest rates.
This person gets it. You can apply this principle to nearly every infill project that was in the pipeline: 1801 Washington (also held up over tax abatement), the Locust timber high rise, 4120 Lindell, The Bridge (Delmar and Euclid), etc. If investors aren't confident in the exit strategy/valuation, there is no equity investment. There are at least a dozen "shovel ready" projects around the city that are sitting idle due, either directly or indirectly, to interest rates.
Albion has secured $102M in financing (Pacific - Life Insurance) for the first of two previously announced 'site-linked' towers in Nashville (Tower #1 29 stories-458 units, Tower #2 20 stories-392 units). Construction starts immediately. Nothing said about how/when the the costs in excess of $102M are to be financed, but Albion has a big pocketed 'daddy' - Compatriot Capital. 'Albion in the Gulch', a 20 story-415 unit tower ($140M) opened in Nashville this year. Neither the "Gulch" project or this new one "Albion Music Row" received tax incentives. If a city is vibrant and growing, as is Nashville, there is more certainty on projected income for such projects and therefore more certainty on meeting projected cap rates.
No doubt they will negotiate financing for Tower #2 in 2025.
Raises the question as to how, or if, this will affect the Koplar project. Is it likely that Albion will initiate the Koplar project with these two consecutive towers on their plate for the next four years? They have the Koplar site, at least for some defined time, wrapped up and stored away at little or no cost (they paid $31M for the Nashville site). Seems possible they will use the Koplar project as a fill-in project if they find no 'more attractive' high-rise projects elsewhere over the next few years - or simply walk away when, and if, their contract with Koplar expires. They can always use the Koplar design work done to date elsewhere (or sell it).
Meanwhile Albion keeps rolling along on less risky lo-rise projects in less risky cities. They recently purchased a building site in
Pittsburgh.
Developers still 'committed' to building 30-story Central West End apartment tower, but it's on hold for now
The developers of a $145 million apartment tower at a prominent intersection in the Central West End are still pursuing the project despite a lengthy delay in the start of construction, while navigating a challenging capital environment.
The 30-story residential tower proposed for the vacant parking lot across from Forest Park at 4974 Lindell Blvd., a project of St. Louis-based Koplar Properties and Chicago-based apartment development firm Albion Residential, is in a holding pattern due to interest rates and the capital environment, said Sam Koplar, president of Koplar Properties. The firm owns the property where the project would be built at the corner of Kingshighway and Lindell boulevards, on one of the last open lots overlooking Forest Park.
The modern, mostly glass skyscraper project, to be called Albion West End, has city approval for tax incentives for 293 market-rate apartments, 1,500 square feet of retail space and 340 parking spaces. “We’re committed to getting this thing done, and it’s taking longer than we’d hoped, but that’s the way it goes,” Koplar said. “We’re going to see it through. It’s just what I don’t know is when. That’s what we’re working on right now.”
Developers across St. Louis have said that the complicated capital environment created by higher interest rates and higher construction costs has delayed or ended their projects, and some of them have had to get creative with financing in order to make deals happen. The difficulty in getting huge projects to the finish line most recently was seen in St. Louis-based apartment developer Midas Hospitality’s decision to drop its proposed $119 million hotel tower in downtown Clayton.
Even as the development team behind the Albion West End navigates a challenging environment for massive new projects, Koplar said that the developers are a step ahead of other projects because Koplar Properties owns the land it wants to develop outright, with no financing necessary to secure the real estate.
Incentives finalized for the project, granting it 10 years of property tax abatement based on 75% of the assessed value of incremental improvements, will be extended beyond the initial timeline due to the delay, Koplar said. The Albion West End team is working with the city’s economic development agency, St. Louis Development Corp., to extend the allowed timeline if necessary, Koplar said. The bill language requires construction to start within three years of bill approval, which occured in March 2023, and finish within seven years of that approval. The bill language says that the city urban renewal board, the Land Clearance for Redevelopment Authority, may alter the schedule while following city policy on time extensions. A spokeswoman for SLDC didn't immediately respond to a request for comment. The developers haven't publicly identified lenders who could finance the project.
