urbanSTL

$21M Leather Trades project gets financing
St. Louis Business Journal - by Evan Binns
Date: Wednesday, December 15, 2010, 2:54pm CST



The financing is in place for the $21 million rehab of the Leather Trades Lofts, the vacant eight-story building at 1604 Locust St. in downtown St. Louis.

Over the past year, Dominium Development and Acquisition of Minneapolis has been working to redevelop the historic building, a former Pyramid Cos. property, to create a residential building geared toward the urban artistic community.

The rehab will add another 86 apartment units to an area that had already seen significant redevelopment, according to Jeffrey Huggett, vice president and project partner for Dominium. Immediately across the street are Orchard Development Group’s 99-unit Terra Cotta Lofts at 1501 Locust St. and its 77-unit Annex Lofts, next door at 1511 Locust.

Huggett expects to close Thursday on financing from U.S. Bank and Royal Bank of Canada for the project.

U.S. Bank and Royal Bank of Canada are providing $14 million in equity. U.S. Bank also is providing the first mortgage and bridge financing for the project. Other sources of financing include the Missouri Housing Development Commission, the city of St. Louis, and federal and state historic tax credits.

"It's exciting that, even during the recession, investment in downtown continues to grow," said Rodney Crim, executive director of the St. Louis Development Corp. "The more than $500 million in development underway downtown such as Peabody Opera House and the old St. Louis Centre has caught the attention of national developers who want to be a part of the city's progress."

The 124,000-square-foot Leather Trades building, constructed in the early years of the 20th century, is listed on the National Register of Historic Places.

Dominium had the building under contract for an undisclosed amount from Workers Realty Trust, which provided John Steffen’s Pyramid Cos. a mezzanine loan for $2.5 million in 2006 to acquire the building.

Workers Realty Trust assumed ownership of the building in July 2008, three months after Pyramid ceased operations. Workers Realty Trust is a real estate investment fund managed by Chicago-based Commonwealth Realty Advisors Inc.

Pyramid planned to convert the Leather Trades Building to 59 condos priced between $200,000 and $350,000 but never completed the project.

Dominium is the developer on the Leather Trades project and will manage the property, and Paric is the general contractor.

Renovation of the building is slated to begin immediately after financing closes and to wrap up within 10 months.

Once renovated, Leather Trades will feature 58 one-bedroom units with monthly rent starting from $675, as well as 28 two-bedroom units with rent starting at $825, according to Huggett. The building also will feature common areas specifically designed for resident artists, including more than 5,000 square feet of studio space on the ground floor. Plans also include a dance studio, pottery studio with a kiln and an entertainment room on the second floor.

Dominium’s redevelopment of the Leather Trades follows the company’s other successful projects that have catered to artists, such as the Carleton Artist Lofts, a historic redevelopment of three warehouse buildings in the Midway area of St. Paul, Minn. That project “won a bunch of awards and made the neighborhood and the city very happy, and we felt we could replicate that same sort of project in St. Louis,” Huggett said. “We feel there’s a vibrant and underserved artistic community here.”

Dominium also became general partner and manager of 253 of Pyramid’s residential units in four properties in 2008: the Grand South Senior Apartments in south St. Louis; the Mount Vernon Senior Apartments in Mount Vernon, Ill.; and the River Roads Senior Apartments and the River Road Family Apartments, both in north St. Louis County.

Dominium’s portfolio includes more than 170 apartment properties in 18 states, primarily in the upper Midwest.


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RobbyD wrote:Now that Cityview, the PD George and my building Blu are filling up, this addition will further solidify what will be a neat little neighborhood...There will be a developed residential corridor from Wash Ave to the Gateway Mall/Union Station...Its not going to be Times Square hustle and bustle, but will have 24 hour residential presence that will change the feel and reality of these blocks...

Now if Mills Prop. can sell the other two units of the old Plaza Square and we get the 7/11 to stop selling single serves,...

metzgda wrote:Lots of hardhats on site yesterday with at least 5 contractor trucks parked outside. Construction fence is up and looks like construction is definitely underway. Great to see!

framer wrote:Er, they've got their guitar upside-down.

the count wrote:

framer wrote:Er, they've got their guitar upside-down.

They're Hendrix lovers.

tuff-turf wrote:It is looking good. I'm impressed with how fast and furious they are working.

Join us for an Open House and Hard Hat Tours on Thursday, June 9th from 4:30pm to 7pm. We'll have live music, snacks, drinks and staff on hand to talk about living and working at Leather Trades! The party is at Wiz Tech at 1629 Locust, right across the street and just west of Leather Trades.