urbanSTL

They're one floor up at this point:


I like this one (despite the terrible quality/lighting) because you can see the College of Pharmacy crane and topped out building in the background:

When you see cranes your city is alive. They are so awesome to look at

They're working on the second floor with it's arched windows.

hebeter wrote:

One year ago today. Can't wait to see it next year.

^ Second floor almost "complete" and elevators have been built to the 4th floor.

What is with the vacant retail space at the bottom of the Forest park (formerly hotel) apartments? Perhaps it will finally get leased with whole foods going in across the street..

It's been vacant since at least 2005. I don't see how they wouldn't have found someone willing or attempted a lower rent, at least for a few years, to make a few bucks. That's a pretty busy intersection to just sit empty. The longer it sits empty, the more it looks like it's a problem property/landlord/location.

dweebe wrote:

ricke002 wrote:It's been vacant since at least 2005. I don't see how they wouldn't have found someone willing or attempted a lower rent, at least for a few years, to make a few bucks. That's a pretty busy intersection to just sit empty. The longer it sits empty, the more it looks like it's a problem property/landlord/location.

It might be longer than that. I want to say the last solid tenant of that space was the Forest Park Deli that closed in the early 90's. Am I forgetting anyone?

Harold's deli - It was a great pre-21 hangout for county high school kids who wanted to check out a little of the bohemian CWE in the 1980's after cruising West End Wax and Euclid records looking for the new Smiths album -

Not sure when it closed, but that old Forest Park hotel was vacant for years before the rehab in 2003 or 04

No first hand experience but I have been told that the are asking a fortune for the space and they cut it up a bit to provide more services during the rehab

dweebe wrote:[That's me except it was New Order's album "Brotherhood" on vinyl.

Whoa. Post-punk? Don't be afraid of Joy Division either.

roger wyoming II wrote:^ There could be some problems with the layout/condition of the retail space, but I believe the property itself is managed well and underwent some renovations not too long ago. Anyone know the what/when regardingthe last time the retail spot was occupied?

It's been a while since I've inquired on the space, so the situation may be different now, but the retail space there is on a master lease to Peter (maybe Paul - something like that) George. So, the fee simple owner -- Jeff Smith doesn't have control of the retail portion of the property.

This presents a multitude of problems with leasing the space since the master lessor/sub lessor is paying a base rent of XX PSF and the market is YY PSF. Let's say he's paying $15 psf to Jeff Smith and the market rent here is $30 psf, then he's really only profiting $15 psf. Most full service restaurants will require a vanilla shell delivery (lets say $20 psf in construction above current conditions) plus a large tenant improvement allowance (lets say in this case of $60 Psf). 10 yr lease. Add in soft costs of $8 psf for commissions/attorneys/permits, etc. It will cost the master lessor about $88 psf to make the deal. Let's call it $100 psf even when you add 10 yrs of debt service expenses on that investment. On a 10 yr lease, that $10 psf a year he needs to recoup to break even on the investment. Plus the base rent of $15 psf on the master lease. So, on a market rent deal of $30 psf, he's only profiting $5 psf to take on a risky restaurant deal (unless he can find a national restaurant with high level credit). I think the space is 4800 SF. $480,000 investment to make $25,000 annual profit doesn't jive especially for a building you don't own.

So basically, he needs to find a tenant that will take the space as is with no or little tenant improvement allowance (rare, unlikely) or find a national restaurant with good credit to take the space (rare, unlikely for the CWE). Or someone that will be a over market, huge rent (unlikely).

Lastly, this all fails to mention how difficult it will be to get a bank loan on $88-90 psf to build a restaurant in a building the master lessor doesn't even own.

Nonetheless, great space....hopefully the Whole Foods deal will be the catalyst to find a fit for this space and situation.

Hadn't heard those two properties were getting redeveloped...by whom?