urbanSTL

STLAPTS wrote: ↑

Feb 11, 2022

MTaylorSTL76 wrote: ↑

Feb 10, 2022

chriss752 wrote: ↑

Feb 05, 2022

Not sure if it helps in finding a new owner, but Ivan Garcia told me via text that the building will be for sale for $500,000, which seems to be a very fair price for something like this. 

The listing is now active and includes a ton of interior pictures. It's quite rough but the bones are good. Chris and I were able to draw 22 apartments (6 studio, 16 one-bedroom) into the building + 2 retail spaces. Without an incentive, especially a historic tax credit, making the numbers work is a tricky task but imagine how beautiful this can be.
https://garciaproperties.com/mo-real-es ... s-22007599

What pro forma rents did you use?

The numbers were figured without rental rates for the two retail spaces and parking space fees. 
We averaged the rents of the neighboring Diplomat Apartments, 3172 Morgan Ford, 3600 Texas (phase 1 and 2), and 3530 Utah. The average ended up being $1044.5 for a one bedroom and $822.50 for a studio. We rounded the numbers up for each to $1100 for a one bedroom and $900 for a studio. If all apartments were leased, revenue per month would be $24,800 ($297,600 yearly). Since this would be a renovation with a lot of cool old features that would be preserved and recreated, we assume that the cost of the development, per unit, would come out to $245,666 ($5,404,652). Before you even figure out things like parking rates, retail space rates, and put 100% of the revenue from the apartments towards the debt from the project, it would take a little over 18 years to break even. Factor in necessary things like buying it ($500,000) and architecture fees (varies but we estimate at $200,000), the total cost goes to $6,104,652 (or about 20.5 years to break even going 100% in on rental revenue).

We didn't even factor in taxes and maintenance costs but so far, it's clearly a shaky situation. Revenue from the retail spaces and a monthly charge for parking would very minimally help the year count out. We didn't feel like a 20-year period to break even was wise or possible. We purposely made rents lower than they'd likely be because of the surrounding neighborhood, noise from Grand and so on.

It's likely our numbers are way off from reality but taking a stab at it didn't yield something very positive. 

Missing some important things like vacancy rate and reserve, capital replacement plan and reserve, regular maintenance and make ready costs, developer fee, construction loan interest, financing fees, property tax, insurance, management fees, public space and building paid utilities, more soft costs, and more, but I get that it  was just a back of the envelope exercise. On the plus side, state and federal historic tax-credits and potential City incentives could help defray the costs. It's not an easy building. It needs a champion to see it through. I'm disappointed that the Garcias are not going to be that champion anymore, because they are the type of people that put in the work to make projects work. But I understand their decision.

chris fuller wrote: ↑

Feb 11, 2022

eons ago I played pool there with a bunch of Asian gentleman

Did you see the story on NextSTL about the Chinese American chamber of commerce sort of organization that used to be in there? A Vietnamese contractor friend has invited me out for pool at a local coffeeshop, but I'm well content I'd get owned fast. I really need to get better at my pool game and I have zero excuse for failing to do so.

"Sale Pending"
https://www.coldwellbankerhomes.com/mo/ ... _47070022/

A developer active in the area has plans for the building for apartments in conjunction with another project that has secured financing, but is still working toward closing. Not sure if I should say any more yet.

^Well, good luck to them. That building is a gem.

MattnSTL wrote: ↑

Sep 24, 2022

A developer active in the area has plans for the building for apartments in conjunction with another project that has secured financing, but is still working toward closing. Not sure if I should say any more yet.

Lutheran Development Group announced, over Facebook, that they’re teaming up with Rise Development Corporation on “Marquette Homes”. This is a 60-unit affordable housing development in the neighborhood. This project will include the redevelopment of the Grandview Arcade into affordable apartments and retail space. Renovations should begin in the Spring.

I’m really happy to see this

I've seen movement over there recently and so I've been wondering if something might be about to get announced.

This is truly wonderful news. This makes my day. 

chriss752 wrote: ↑

Dec 12, 2022

MattnSTL wrote: ↑

Sep 24, 2022

A developer active in the area has plans for the building for apartments in conjunction with another project that has secured financing, but is still working toward closing. Not sure if I should say any more yet.

Lutheran Development Group announced, over Facebook, that they’re teaming up with Rise Development Corporation on “Marquette Homes”. This is a 60-unit affordable housing development in the neighborhood. This project will include the redevelopment of the Grandview Arcade into affordable apartments and retail space. Renovations should begin in the Spring.

I’m really happy to see this

Plans are now bidding. Plans call for:

• 5 commercial spaces
• 5 office spaces (two accessed from the street and the other three accessed from the arcade)
• 16 apartments (3 one-beds, 11 two-beds, 2 three-beds)
• 12 surface parking spaces on the south side of the building
• 16 parking spaces in the basement (5 of which seem impossible to access)

EM Harris is the general contractor. KPFF is the structural engineer. Core10 is the architect.

It really is a quite lovely building. Glad to see your new pictures. I hope they can manage to get it done this time. I'd love to see it alive again.

symphonicpoet wrote: ↑

Aug 26, 2023

It really is a quite lovely building. Glad to see your new pictures. I hope they can manage to get it done this time. I'd love to see it alive again.

The Arcade is a hidden gem. The amount of details in it that are covered in dirt are amazing. I’m hopeful those are preserved. And to have the outside back in pristine shape after all these years of looking like crap will be a big welcome. All the plan needs are some street trees on Grand.

$5.3M building permit application submitted for rehab!

^Fantastic news! Is there a development website yet?

Awesome.  We almost booked a wedding reception right there.  Getting this building back in working order would do wonders, even if a lot of other work is needed at that intersection.

Hearing for zoning variances July 10 at Board of Adjustment

lets try again hopefully this one is a go

quincunx wrote: ↑

Mar 09, 2024

$5.3M building permit application submitted for rehab!

Issued

quincunx wrote: ↑

Aug 20, 2025

The groundbreaking ceremony was today.

The groundbreaking was a couple weeks ago. Rise was just weirdly slow to share it themselves.

New windows going in.