urbanSTL

I would love to see this on the site. I really dont understand why Mills cant get the financing for this.

Alex Ihnen wrote:^ But what about apartments? Rents are up and places are full. Last I heard, the Mills project was going to be rentals.

Exactly. The problem I see is that our local banks have reduced lending limits, and/or they're only funding on 50% LTV's. At least Mills didn't build something 'just to build something'; thats the worst.

The growth of BJC and CORTEX should help his case with funding. We'll see.

RobbyD wrote:I would think that would change the equation...I guess lenders would have to consider the long term rental trends and the existing inventory as well right? Governments have historically encouraged ownership...will that continue?

What I took away from the 15 min conversation I had with the banker (mentioned above) as well as conversations with two midlevel bankers in my MBA class is that only sure things are getting money...however really there is no sure thing...at some point tho it will become riskier to hold onto cash than to make it work and grow ...that's the next force that will come into play from what I've read...so who knows...

Personally, I blame it completely on Federal monetary policy. The reality is that bankers are not taking any risk holding cash as they can essentially get a risk free return on treasury notes while borrowing money from feds at near 0%. It was interesting to read WSJ letter to the editors this morning in that regards. Half the letters were pensioners and older fixed income folks ripping on the Feds. Will leave my poltical statement and couch potatoe banking analysis at that.

What is unique to note is that all recent multi residential development has included a HUD loan or funding from a union pension plan or tax credit or all of the above. I know they were hoping for a HUD load on this development but only so many will be spread around. What surprised me, we don't see any financing from BJC/Wash U real estate arm or an union pension fund on this project. I think it would be one of the better projects to finance in the region

This project would do a lot for the neighborhood. It has to come on line sooner or later. We should focus more on rental units until the economy improves anyway!

stlien wrote:

Alex Ihnen wrote:^ But what about apartments? Rents are up and places are full. Last I heard, the Mills project was going to be rentals.

Exactly. The problem I see is that our local banks have reduced lending limits, and/or they're only funding on 50% LTV's. At least Mills didn't build something 'just to build something'; thats the worst.

The growth of BJC and CORTEX should help his case with funding. We'll see.

More like 75% LTV, If they're lending. I've personally been told by several banks that they simply are not adding real estate investment loans to their in-house portfolio. I'm more of an average joe real estate investor so I thought this didn't apply to the bigger fish. Perhaps not? Revolving credit is out there but you wouldn't use it to fund the buildout of this project.

I think your 50% LTV number is way off. Commercial real estate development such as this is/was VERY leveraged.

I have it on good authority that Whole Foods is planning to put a store in the ground floor of an 8-story building on that site. TIF negotiations underway.

I really hope it is an 8 story building on this site. The area can definitely support the density.

^Man do I hate that clock tower.

159 will be a good add for the area. Always hoping for more, though. Having WF sign on as a tenant would surely speed up the financing on this one, no? I would assume that would basically greenlight the project. Apartment financing is still (barely) easier to come by than condo financing, as well.

(Totally OT, but I am still holding out hope (based on nothing but my own personal desires) for the Drury's to build something spectacular in the CWE as opposed to their bleh project that is (aparently?) dead for the area across 40. A 32 story all glass hotel would really liven up the CWE skyline and add even more life to the area. Anyone work for Drury?)

Is Whole Foods for sure interested in this location? Or is it just speculation at this point?

Thanks

I'm very excited about this project moving forward, including the Whole Foods, but can they PLEASE improve the design?!
The hideous clock-tower, the EFIS walls at the top- are those even permitted in the CWE? The design looks like something that belongs at west port plaza circa 1992. Other cities get far better designed infill buildings. Even conrads and opus' infill developments in the CWE are far superior. I think this site is far beyond the "we'll take anything to have it developed" concept.

Welp, looks like this is as close as we've come yet to a done deal.

http://www.stltoday.com/business/local/ ... 81fff.html

I certainly don't claim to be an architecture expert, but I don't think the building looks all that bad (unless the photo in the P-D is updated from the original design? I didn't look into that at all)

I'm surprised people aren't freaking out about this more. Whole Foods is an enormous addition to the CWE and the City, and 176 apartments is two times the size of the Park East Tower. This is a huge step toward creating a continuous retail corridor from Forest Park Parkway to Maryland. This will significantly help support property values, drive interest in the neighborhood, and spur new developments. Hopefully the NE, SE, & SW corners of Lindell & Euclid are redeveloped in short order.

wabash wrote:I'm surprised people aren't freaking out about this more.

Probably because its still rather far away from beginning construction. Once it starts, people will be excited.