We Need An Outsider....

 

Thanks to Time Magazine, for being able to see Downtown St. Louis and the many tremendous improvements as reason for inclusion as one of the Worlds Greatest 100 Places!

While I'm still anxious to see the traffic control barricades taken out of downtown,  I still get excited about the changes we've enjoyed in downtown St. Louis.   

It took an outsider to help me see the beauty in our urban core too.   I remember sitting in an office and meeting someone who moved to St. Louis from Florida.   I remember thinking, "why would someone do THAT?".   Typical suburbanite.   I'm glad I asked, because they had an answer, and it wasn't the standard.   Many times the answer is, "I met a girl from here... or my job moved me here.   Just the fact that she had an answer should have impressed me, because she knew more about my own city than I did.   It wasn't until that experience that I believed someone would want to live in the city.    It just hadn't occurred to me.

I'm excited about the things the folks at Time mentioned and more.   The website, St. Louis is a World-Class City  has more to say.  The Time article mentioned Brickline Greenway, which is still mostly in the works, but the work being done to expand trails in and around St. Louis is one of the most exciting things.   Interestingly thought, when I talk to many St. Louisan's, they aren't aware of the plans in the works to create trails from Downtown to Forest Park, and Forest Park to River des Peres, Clayton, U-City, Creve Coeur and even St. Charles County.  These are plans that have been going since 2000, and momentum has been increasing every year.

The past year has been a seller's market in many areas of St. Louis real estate, which I'm beginning to like because its in seller's markets when the boundaries of "the good areas" get pushed outward;  developers and buyer's start investing in areas that they wouldn't take on during more buyer-friendly markets.   Downtown's largest resurgence; from 2001-2008, took place in a seller's market, and residential redevelopment was the primary cause.  Currently downtown remains one of the few areas that isn't as much of a seller's market, but that won't be the case for long.  With all the great things being done in and around downtown, even St. Louisan's will find out.

End of an Era: New Construction Sales

Last week, the final developer owned condominium was sold at the Syndicate, which is the last building actively selling inventory built before the great recession in downtown.

In 2006, an article was written in the Post Dispatch about the number of loft projects scheduled to be completed in 2007 at that point.   I was reading it with my wifebosspartner at Flannery's pub, when we saw a loft developer walking down the opposite side of the street.   With abnormal courage, my lunch date left the table and walked across the street to confront said loft developer on the insanity of what we had just read.   

2006 was a great year for loft sales.   The MLS states that 230 lofts were sold, and there were about 100 more that were sold directly through the developers for a total of about 350 total closed units.   In 2007, there were approximately 2,200 slated for completion according to the article.   The loft movement was in full swing, but that was CRAZY!  

Overall, the real estate market started to level off somewhat in

April of 2006, the recession officially started in 2007, and the market overall was steady until the stock market crash of September 29, 2008.     At that point, new loft projects, including the Syndicate, really began to suffer.  Property values all over began to slide, and buyers, planning on selling the big home in the burbs, backed out due to diminishing home equity and 50% drops in their stock portfolios.  Luxury lofts were suddenly not fashionable as the market for real estate became foreclosure happy.   Many developers lost everything and folded.   Some, with no regard for their clients, converted the remander of their inventory to rental units (Ely Walker, Ventana, Bogen).   Many projects just never happened (Chemical Building, Skyhouse, Jewel Lofts, Switzer Lofts, etc.)   


The insanity stopped when developers stopped building condos in favor of apartments.  Banks got wise to the games (aka fraud) taking place on condominium construction loans across the country and started protecting themselves.  

I've always admired the Syndicate developers, both for the product they delivered and how they always kept focus on maintaining their buildings value with their previous buyer's in mind.   Condos at the Syndicate (floors 9-16) remained on the market the entire time.   Despite having 53 out of 102 units remaining, only a portion were rented (23).  Prices had to be lowered, but were never 'fire sale' pricing.  The building virtually sold out of its regular inventory in December 2013 (except 2 penthouse units), and began converting the condos in the rental pool the following year.  

The units that had been converted to rental were two by two, taken out of rental circulation, 'cleaned up', repaired, painted and sold as the market called for them, until last week on Friday, when the 102nd unit was finally sold.   In addition to the Syndicate, the same process just took place at the substantially smaller Packard Lofts in Downtown West. 

This has a major personal twist, since we were

Alive Magazine Ad for the Syndicate --2011

hired in September 2010 as the last of the salaried sales team left for greener pastures.   Having represented 10 buyers in the building previously, we were given another amazing opportunity.   Representing Sherman and Associates for 9 years, caring for and selling 44!   While the building was always more than half full, starting out in a building with 20 listings was a lot to wrap our minds around.   We had represented other builders in the same way, selling out Moon Brothers Carriage Lofts and Westgate Lofts, but those buildings, the process was much smaller and much faster.  

In this case, the era that is ending, though personal, mainly focuses on the last of the "for sale" units described in that article in 2006 finally being sold.  It was unfortunate, after that article, and the ensuing financial crisis, caused a panic about downtown that was never accurate.   I'd hear people talk about the glut of unsold new construction in downtown St. Louis.   There obviously was a fair amount.   It was never as many as the public perception.  The most dramatic sale took place at the Dorsa building when Pyramid shut down, then Premier Bank, the note holder closed.   The FDIC took over and sold the building out quickly and with huge discounts.  Otherwise the number of unsold units was manageable.  

What's been good in regards to downtown, is that:   

1. Downtown continues to progress with major improvements
2. Whenever a building becomes 100% owner occupied, values improve.
3. The downtown market has reached equilibrium, and sanity returned a long time ago.

New Vision for Downtown West

The evening view from ground level looks like an art museum.  

Very few people are as excited about the impact on St. Louis that the current plans for the MLS Stadium presented last week.   For anyone plugged into Downtown St. Louis, its self evident.   While downtown overall has seen an amazing re-birth over the past 15 years, there are still a few spots overlooked.  

From Olive Street on the North, there are mostly smaller, under developed buildings and street level parking lots.  The biggest exception is the Police Headquarters to the north east of the stadium site.   The surface lot from the above pic 🙄shows the metropolitan police parking lot, which is going away.   My first question was, where are the police going to park.   My second question is, where's everyone else going to park?

The satellite view shows the current footprint.   HOK developer website doesn't mention parking.  Downtown has an abundance of parking spaces, but as a rule, they are several blocks east,  mostly near Busch Stadium and the Enterprixe Center. o.   This section of town has never really had people density requiring much parking.  The largest draw, historically, was Union Station, which has a fairly small enclosed lot for patrons.  With all the great improvements there, my guess is it will be filled.    

Despite any questions, this is still an awesome move for downtown, and for major league soccer.   St. Louis has always been a soccer hotbed at the youth level, but sort of fizzles after that.   Having it as a recognized sport once again at the major league level is huge.   

The impact on Downtown West has me hopeful.    My clients that closed on their great new space at the Lofts at 2020 we’re thrilled.  When we sold our first unit in that building in 2005, Downtown west was a wasteland in that area.   After all, they filmed the post apocalyptic drama “Escape from New York” around there.   Other than Schlafly’s and some office renovations, it was scary.   The buildings across the street looked like they had been bombed, and most of the prospective buyer’s we toured through the area were creeped out by the condition and tenants of the Tudor Building:   all of which have undergone total renovations.  

Rome Wasn't Built in a Day....

"Little Francis' teacher called home last week to talk to Francis's Mom & Dad about the progressive slide in little Francis' grades.  

"Darling Francis!" exclaimed his mother, "he can do no wrong!"  "Do something, Father!"

Mother and Father thought hard for nearly a minute before they confidently placed the blame where it truly belonged;  on anyone but Francis."  

Anyone with any longevity in Downtown St. Louis understands four consistent truth's with the St. Louis fear mongering media:   

1.  "Downtown is Failing" is an acceptable answer to any problem.   

2.  No other community faces the same level of scrutiny.  

3.  Responsibility rarely falls where it should.

4.  Use the truth as a last resort.

Seeing the news last night how Harry's was closing was obviously a disappointment.    When it opened, I remembered it was considered one of the top pick up bar's in the area for folks slightly older than me (now around 48-50 years old).  It was a classy place with good food.   Maybe Harry cited all the reasons for closing, and they news channel just cut everything out except his "Downtown is struggling" cliché.   When Harry's opened 23 years ago, Washington Avenue was a dive.   Old warehouses, rave parties and the 3am club scene for the young people, the slightly older, 'yuppies' went to Harry's.  

Now the world has changed.   

We can only hope that the 48-50 year olds have found their first and maybe 2nd or 3rd spouse by now.  The internet has changed how society communicates and online dating / social media has largely taken the primary reason that many people went to the bars back in the 80's and 90's.  My pals in bands tell me all the time, how we live in the different world, which is good, because I'm not in the bars to see for myself.  Harry's was becoming obsolete.  

This really shouldn't be anything earth shattering.  This has happened ever since restaurants really came into being.  A concept gets tired, stops performing, maybe some management or staffing problems take place, or some other outside factor like traffic changes or massive competition.   Sometimes, like young Francis, the place just isn't that good, or the business plan was to blame.  One of my other favorite restaurants on Watson rd, Stellina's recently shuttered.   Rather than blame Lindenwood Park, I would say that there were too few tables and not enough privacy.  I saw it coming, but enjoyed the business while it lasted.  

Like all of downtown, blame Ballpark Village.   That's fair.    Ballpark Village is a fresh concept by players with good strategy, good design, great location and deep pockets.   A tough competitor.   So tough, in fact, that they're blaming it for a closure in KIRKWOOD.  

With J. Bucks, it closed in Downtown.   It also closed in West County (2009) and in Clayton.  The sky is falling strategy used like a club against downtown didn't happen there, and the journalists in St. Louis really have to get real.  

THE BOTTOM LINE is that Downtown will always have challenges, but that growth and development are still going on and things will take time, but the direction Downtown is heading will continue to amaze.  

Vision Limited

STL Celebrates End of WWII on Washington Avenue

Kudos to Nick Pistor and the Post Dispatch for addressing the maintenance problems of the Washington Avenue streetscape in sunday's paper.  It highlighted the games that go on behind the scenes between the City and public utilities and how Washington Avenue's 'special' features are the victim.  To sum up; the agreement for a public utility to tear up the city streets is accompanied by an expectation to patch up the street, but not the extra effort and expense maintaining 'zipper and stitch' paving and 'runway lighting' down the middle of the street.  

What's particularly frustrating about the article is the reality that the city streets department was interviewed, Downtown Inc. CEO was interviewed, and the Neighborhood Association was interviewed.  The impression that the city leadership isn't concerned that the massive investment in Washington Avenue was evident, possibly due to the writer, and maybe its just the way it is.  No inclusion of comments from one of the many alderman for the downtown area or the mayors office was used.  Reading between the lines, this could be one of the many problems with downtown's lack of an exclusively committed alderman.  With downtown split between multiple alderman, the area just isn't important enough to any one of them to fight for what is necesary to keep things looking good.  

The article also addresses the lack of vision in the planning.    Not having funds set aside for maintenance is a common theme.   Its common knowledge that its easier to get millions for a new road or bridge than getting smaller amounts for maintenance and repair of what's already in use.

Hopefully this conversation keeps going.  

The last thing we need is a light shined on a problem downtown but no further action.  Between the neighborhood and Downntown STL, Inc., STL City leaders need to know that this issue isn't going away.   

Downtown Living Tour Today!

The 2013 Downtown Living tour is being held today starting at the luxury apartment building, Park Pacific at 1223 Pine.  

The Premier Team will be consulting prospective downtown buyers at the Syndicate Condominiums Penthouse at 915 Olive St in the heart of Downtown.  That upscale building has some of the most favorite amenities in all of downtown, with multiple roof decks, business center, onsite manager, fully appointed club room with kitchen, media room, artist workshop, dual art galleries, covered parking for everyone, plus access to the 9th street garage for additional parking and access to the Culinaria grocer.  Its the Syndicate Condominiums that define the word 'community' when it comes to downtown living.    

This years tour, as each year progresses, is more laid back than the last year with a theme of visiting only occupied units.  Our first Downtown Living Tour was in 2005 when relatively speaking, downtown St Louis was in shambles.  

We used to have an informational tent at street level and direct people to all our listings.  For several years, we put that tent next to Flannery's because the vacant building next door really looked creepy.  That building, like so many others, was transformed.  In this case into the Fitness Factory, now a sort of centerpiece for downtown residents.  Looking back, anyone involved in downtown can certainly say its come a long way!

One other thing about the tour that I remember was the energy and excitement for the number of projects going on.  In 2005, the Moon Brothers Carriage Lofts and the Ventana were announced on the day of the tour, in 2006, the Meridian was announced and tours of the vacant building were held at the tour before it was even closed on by the new developer.  For those in the know, there was always a lot of discussion with the mostly suburban crowd attending the tour about all the great things being built and conceived to make our downtown world class. As the years changed, so did the types of projects and scope of work.  

After the loft boom, getting a construction loan to redevelop a loft building was virtually impossible.  Since the Roberts Tower had already been started, it seemed to be the last building to be built, but at the prices it would take to justify the construction, prospects of completion were bleak.  Even a solid, reliable community institution like the St Louis Cardinals couldn't get the construction financing they needed to start Ballpark Village.  Projects were still completed and rental lofts and stylish apartments, the MX Exchange, and both the CityGarden and Old Post Office Plaza were completed during the scary days of the recession.  Despite the worst financial crisis since the great depression, Downtown St Louis continued to move forward, earning a distinction as the fastest growing neighborhood for young, college educated professionals.

It should be interesting to see how today's tour unfolds.  The drama and hype of the days when loft developer's ran the show are over, and left in their wake is a stable neighborhood that still has room to grow and thrive. 

Stop by and see the Premier Team at 915 Olive at the Syndicate Condominiums for a list of all our stylish downtown listings!  

Tour registration is $20 today.

The Return of the Street Car!

Downtown Dallas benefits from a Streetcar System

One of my pet peeves about St Louis is the tendency for St. Louisan's to complain about being in St Louis, but I'm going to do it for a second.

Yesterday I was driving through the former Gaslight Square area and I was thinking what I normally think:  "Why didn't St. Louis do a better job protecting its assets?".

I'm done whining.

Lots of people say the same thing about the Streetcars in St Louis.

Streetcars seem like the thing to do for an urban center.  Having a streetcar line for areas close to downtown would be nice way for people to get around. Independent studies support that. My recent visits to Dallas (above) and New Orleans both made excellent use of the street car within their urban areas.  People used them.  They're simple and clean, quiet and dependable.  In high density areas, they are the ideal way to help people get around the relatively small distances with ease, which allows people to stay in the city,  and not have to get in a car.

Other than Joe Edwards plan to connect the Loop with the History Museum, the Partnership for Downtown St Louis is doing their own research too.  Their event is coming up this Thursday Afternoon & Evening at the Moto Museum in Midtown.  I'm not sure I can make it, but would love to go and support this.  Having been active witness in the re-birth of Downtown, what I've learned is that we can not keep looking at St Louis and complain about the mistakes that have been made without doing our best in this generation to rebuild what we can and should.

When we started selling real estate downtown, we'd usually walk around with buyer's almost all the time.  All the development has done something wonderful for the region, but its spread out the area that we know as downtown (not as far as the press sometimes spreads it).The street cars will probably never be what they once were in St Louis, but having a few around where they would really make the most difference could be huge for the people that live, work and visit the downtown area and areas close by.

Curb Appeal for Downtown

Something we've noticed about major downtown developments is that their often times seems to be very little public awareness or talk about the project until its done.  And why should there be?  Unless someone is the developer, owner, or financier, they aren't involved and the long term project tends to carry less publicity unless there's something controversial.  Even then, as is the case of Northside Regeneration, there's talk and controversy, but still few hard facts about what will be done.

CityArchRiver could possibly be an exception.

So far, as a public project, there's been more open houses and meetings.  They've got me excited.  Now, the plan is to form a citizens board to assist in carrying out the plan.

What's really nice about that is that civic minded DOWNTOWN RESIDENTS, as well as citizens from the surrounding area can share their time to ensure the project is completed in the best interests of the community.

My fear is that good folks from Chesterfield, Arnold, St Charles (where they didn't even put the tax measure on the ballot) or elsewhere will dominate the decision process with a largely pro-tourist bias.  The Downtown neighborhood has the most to benefit, we need some downtown residents to participate!

Visit the CityArchRiver website to get an application for the Citizens Advisory Committee and build Downtown St Louis' curb appeal for your home today! 

Printable Application?  Click Here!

Coming Soon To a Neighborhood Near You

917 Locust was slated to be a Hotel Indigo

Today's Post-Dispatch has a couple articles about downtown buildings:  one about the former holdings of the Robert's Brothers, that changed hands in October, and a more recent sale of the former Peabody Coal Buildings new life as the ICC Engineering Headquarters.

Of the two articles, the subject of Chicago developer hopes to transform vacant Roberts properties has a larger impact on continuing the vision of rebuilding Downtown St Louis.   Focusing on the acquisition of Roberts Tower, Lofts on the Plaza, the Mayfair Hotel,  and the rest of 800-900 Locust, the Chicago developer Urbanstreets Group claimed to be excited about the opportunity.   

Some of the opportunities lack mystery.  The Roberts Tower will be turned into 132 Luxury apartments. The Mayfair will continue to be a hotel, the Lofts on the Plaza will hopefully be cleaned up a bit, and remain apartments.  

What's intriguing, is what they will do with the buildings initially slated to be another Hotel Indigo at 913-923 Locust.  Having 4 buildings adjacent in a downtown setting could be a fantastic development.  These buildings mostly have character and could be developed independently or in a group.  Walking access to the 9th Street Garage, Post Office Plaza, the Culinaria, Downtown Urgent Care, the Syndicate,  MX Exchange, Left Bank Books, and the Downtown Bicycle Station would be amenities that would be a perfect fit for a mid-sized company looking for a solid location in the heart of downtown.  The other article in today's Post describes just that;  except the company was already in the Downtown area, relocating to the lager 'Peabody Coal Building'.  

As one person interviewed, the question was put to me that with rental apartments going in at Roberts Tower, the Arcade, and the Chemical Building, would we be facing a 'bubble' in the number of rental lofts.  My first answer was "no".  Its always possible, but we have a tremendous opportunity for growth as defined in the Downtown Next plan if we continue to increase the density in downtown St Louis in all possible sectors:  housing, education employment, hotel, and recreation in reasonably proportional amounts.  

Highlighted area is 8-900 Locust

The Urbanstreet Group LLC website page for 913-923 Locust says that the developer is evaluating development opportunities.  Obviously, as a capitalist business, they are looking for what will pay them the most and spend the least.  My hope is that they also consider what will be the best fit for the area. By marketing the building to potential corporations looking for custom developed corporate locations, the area itself would be improved and a needed component of building downtown would also be met..    

Post Election Politico

After election day, the last thing I want to see for a long time is a political comercial.  Despite my wishes, the Annual Downtown Residents Association Meeting will be on Wednesday, and one of the attendees (or more, not mentioning any names) is just beginning his run for office in next years election.  

The topics of the evening appear to be updates on many of the exciting things going on Downtown, but nothing new.  The topic, Revitalization of Downtown St Louis, is something we sort of take for granted.  Its almost cliche.  There have been strong, consistent forces at work for over a decade to turn around the St Louis Downtown, starting in 1999 when Clarence Harmon's administration launched DOWNTOWN NOW.  

With the economic and commercial real estate slow down starting to fade more into history, projects that have been in formation for years are coming out of mothballs and being reformed for today's world.

Watching these Downtown St Louis Residents Association meetings go on for years, the interesting thing is that the meetings content can be useful, productive, and extremely important at all times.   For whatever reason, having the Mayor as a guest seems to pull up the attendance.

Two large, but less publicized topics to be addressed that I want to see is the development of the Chemical and Arcade Buildings.  Interestingly, the Syndicate Trust project was a collaboration of a Minneapolis developer and St Louis based Loftworks.  Steps away, we'll now have two other Minneapolis area developers investing into the St Louis area.  How well these projects are handled will have a major impact on the Downtown St Louis are for decades.  A good mix of vibrant street level retail and updated office or residential in these locations will serve as the anchor for the downtown economy.  We should hear some information on those places Wednesday.

This downtown meeting is a must.  Not just to sit and listen, but to build synergy in a neighborhood where residents participate in the success of their surroundings.

Arcade Building: Round 3

For Downtown St Louis, few buildings could have as much impact on our city as the Arcade Building at 8th and Olive.   

The project made the news again yesterday with the SLDC being presented with a plan from out of state Dominium Development.

Sharing a block with the Paul Brown Lofts, this high rise has a fantastic arcade running through the building from Olive to Pine.  A well thought out and managed commercial development could really compliment the area and  surrounding downtown buildings such as the Syndicate and the Old Post Office.   
The added residential and retail density would be a welcome addition to the area. 

The project described the first 3 floors as commercial / retail, artist lofts in the middle, and the remainder of the building being high end residential rental homes.

Last weekend, I was in Omaha Nebraska.  Between events we were able to get out and check out their downtown area.  We asked around and heard that Howard Street was the place to be, so we headed that way.  What they were talking about was the part of downtown Omaha known as the Old Market District. Even though it seemed more like Soulard Market than our downtown, it seemed like a very successful implementation of concentrated urban retail and restaurants in a downtown area.

           

Another St Louisan commented about it being great to have that in St Louis.  Knowing that we have so much more to offer in our own downtown, we talked about it.  Our friend, being less familiar with urban St Louis, was an example of what many St Louisans don't know about downtown St Louis. 

Old Market did have some advantages. It was a concentration of destination restaurants & shops, many with protection from the elements,  with stylish lofts and plenty of parking.  They also had a nice advantage in that there wasn't nearly the competition in the surrounding areas like we have in St Louis.  This place was a catch all.  

Our downtown retail districts are spread out, can be isolated, and also compete with Soulard, Lafayette Square, Grand Center, Central West End, South Grand and more urban centers in the burbs. (Kirkwood, Maplewood, etc.).  An "anchor destination" like one created inside the Arcade Building could serve as a great starting point for shoppers looking for a better shopping experience than what we have now.

CPI Building "Jumped"

News broke today that the struggling CPI Corporation agreed to sell it's downtown real estate - including its headquarters building to investor Dave Jump.  Parking lots between Kingbee and Moon Brothers, between the CPI Building and Ely Walker, and a few other parcels were sold to help the struggling company in restructuring as ordered last month.


Every time this company's struggles make the news, we look at this fantastic building and wonder what could become of it.  Not that it would be feasible to turn it into lofts, but having it be converted to first level retail with commercial on top could add a nice element to this part of Washington Avenue.  The surrounding buildings would likely benefit.


Full terms of the July 12 agreement weren't publicized, but its likely that the CPI Corp has a lease-back provision in the sale and will remain in business at that location.  Hopefully for a long time.

What to do with Roberts Tower

This morning I was contacted, unexpectedly, by a Post-Dispatch reporter about the Roberts Tower. 

At the Syndicate, we have a gorgeous view of Roberts Tower from our display unit. I've had clients over the years inquire about the tower, along with condo buyers at open houses, with no response from the Roberts Brothers sales office.

It makes perfect sense to me. If I sunk as much into the Roberts Tower as the Roberts and their banker did, I'd be hesitant to put it on the market now.

One thing really threw me though. The Building Blocks author asked me a stumper. He asked me what they should do with the building if they don't use if for condos.

Not that I hadn't thought of it before. A few meetings I've attended there really made me think of how nice it would be as part of the Mayfair Hotel, but that's as far as it went.

It seemed like a good idea for a poll. We know there's a demand for them to finish the building as condos.  Otherwise no one would be asking about it. Undoubtedly not enough demand to justify the cost of the building.Would today's buyer's be likely to sustain that type of builidng?

Hopefully things will settle out favorably with Roberts Towers when all of the other struggles are dealt with. Just like hundreds of thousands of homeowner's out there, a loan modification would help the Roberts brothers immensely.

New Wave of Development Downtown

Syndicate Condos Open This Sunday 1-3

This weeks St Louis Business Journal is all about Doing Business in Downtown and the exciting progress being made this year.

Back when developers were trying to turn abandoned refrigerator boxes into loft condos, things seemed imbalanced.  It seemed like every every vacant building downtown had plans for new luxury lofts, and the "Doing Business Downtown" pages of those years business journal spoke almost entirely about more Downtown lofts.  Even without a recession, things would have needed to change.  

Now its been almost 5 years since a hammer has been picked up for loft condos and downtown is still moving forward.  It seemed that more and better residential construction was just the beginning for downtown.  St Louis loft dwellers would have told you what was needed all along:  stuff to do.  CityGarden, Old Post Office Plaza, tons of restaurants and cafe's, Peabody Opera House, have all added to the livability factor that was missing when the loft boom started.

This weeks paper talks about the next phase, with MX adding the National Blues Museum, Pi, and a cool new concept-an upscale adults-only movie theater.  This takes adds life to the area east of the convention center, which is long overdue. 

Syndicate Condominiums include large artist workshop

Lastly, there was an article about how downtown is developing as an arts center by providing 'artist friendly' housing throughout downtown.  Having the Syndicate Condos listed for over a year, one of the cool things about it is the huge artist workshop and 2 art galleries in the building.  Having a place to both create and show art is big for an artist.  I know lots of artists that live in single family homes that have their work just stacked up in closets and hidden from the world.  Just having those things is nice, but seeing the art community active in the building by hosting art shows and using the building in the process of creation is a buzz that no other condo building can boast.  Overall though, working to foster a better artists community will be attractive in many ways for the downtown community.

As the real estate market seems to be coming back to life and the downtown market is picking up, its nice to see the momentum continue with more things happening and better livability than what the first bunch of 'loft dwellers' could enjoy. 

Syndicate 4th & 5th Floor Galleries

The 'build it and they will come' philosophy works to a point, and what we're observing with downtown is consistent with much of life:  improvements were made to downtown streets that stimulated investment and residential developement.  Residential development stimulated retail, public spaces & restaurants.  More retail &  restaurants is stimulating more office use.

The renaissance continues and Downtown St Louis is coming together nicely.

100% Participation Required

Downtown residents and all St Louisan's should be at the Ferrara Theater tonight at 6 for the public presentation of the Arch Grounds plan update. 

Considering the Ferrara Theater only seats 14,000, it may be a challenge, but a good opportunity to get acquainted with the community.

The meeting was announced  last week.  The public interest in something so important to the future of St Louis is disappointing.  I know the story though. St Louisan's want to get home to have a quick dinner before American Idol comes on, still working like me, or whatever.  What's clear though, is that the public response to changes in the original plan, and knowledge of the finances of the project are key to completion.  Its how we may be judged as a community, and it does affect our opportunity for growth in the future.

I was talking to a transplant buyer recently who had made the comment about St Louisans being more negative about St Louis than anyone else.  (I did run into a fashion designer several years ago that challenged that assertion).  The way we see it though, is that some folks just miss the boat when it comes to being a part of a process, then stand back and complain about the results after the fact.

DON'T MISS THE BOAT!!

6pm Tonight, January 25th
Ferrara Theater - America's Center
701 Convention Plaza
St Louis, MO 63101


Looking for a Downtown Loft For Sale, Visit our new St Louis Lofts page at 4SaleStLouis.com!

Cassilly Memorial

I went to Downtown St Louis back in the spring of 1996 to see an art show at this "weird museum" downtown.    It was my first experience in seeing the City Museum and my first chance to see a downtown loft.  We've been back to the City Museum with kids, to list the lofts, to rent them and with buyer's, but I never had the opportunity of meeting the late founder Bob Cassilly, or know much about him.   Working in the same neighborhood and benefiting so much from his contributions to the area, it was nice to see such a long article in this months (January) St Louis magazine about the life of Bob Cassilly.  The online article isn't the complete 4 page article that's in the magazine.

Normally, when someone contributes so much to an area, there are ceremonies and notoriety that comes along with it.  The absence of that almost makes it seem like Bob was taken for granted.  That could be the case, but from the article and everything else, it seemed that type of recognition was avoided while Bob was alive.

1.  At this point, my first wish is that City Museum stays what it is and somehow the vision for Cementland is completed.  It may take years, but in seeing what contributions have been made downtown and elsewhere in St Louis, its just what the doctor ordered for the north riverfront area.

2.  My second wish is that we honor the persistent requests of rock legend, Carlos Santana, and build a statue of Miles Davis.  I would say wish #2 should be to build a statue to honor Bob Cassilly, but Carlos Santana has been asking for St Louis to recognize Miles Davis for 2 decades.

3.  Build a statue of Bob Cassilly.  This request goes to the Partnership for Downtown St Louis and to the Downtown St Louis Residents Association.  Someone needs to pick up the ball.    Why this seems urgent to me is that if it doesn't happen Downtown, it will somewhere else.  From reading the magazine article, Bob seemed to have roots all over town:  Kirkwood, Lafayette Square, Webster Groves, Dogtown.  His work was all over town, and across the country.  

  

We can do better than this!

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City+Arch+River Y2K+12

Good public monuments can be international attractions!

Visiting National Parks has always been a favorite experience for many.   The Jefferson National Expansion Memorial has its "ups and downs".  


One plus is that its not a park that someone has to visit in order to experience it.  Having one of the best expressions of modernist architecture as part of the St Louis landscape can be seen for miles around.  


My thought is that could be why the park superintendent took the original Saarinen site plan and stripped it down; removing several key elements which would have contributed to public enjoyment..  Maybe he felt that the Arch and the Museum of Westward Expansion was all that was needed.


From some of the latest press conferences, it seems that may be happening again.  Fair enough.      The economy is still lagging.  Budgetary concerns are hitting the government.  


My wish is that more people would take an interest in what is happening with the City+Arch+River project and its tremendous implications to Downtown St Louis.   When the events were held to unveil the contest winner back in August 2010, I was amazed at how sparse the attendance was.  Fewer people than a high school football game.  Sad.


My trip 18 months ago to the City of San Antonio wouldn't have been the same if it hadn't been for the visionary regional leadership that helped create the San Antonio Riverwalk.  As a result of having a major attraction in its downtown area, the City has become a top convention destination, which has led to more development and economic growth.  When City+Arch+River competition was held, that was the vision I had for the Arch grounds.  Maybe its a crazy thought in these times, this awesome project for downtown shouldn't have to just be a government hand-out.  If enough St Louis residents get behind this project, alternative funding sources could fill in where government falls short.  The plan shouldn't have to be altered.  


Get behind it! by attending the REPORT TO THE COMMUNITY next Wednesday 1/25 from 6-7:30 at the Ferrara Theater at America's Center.   

Downtown Loft Sales Increasing!

When the year wraps up and we're celebrating another year gone by, many folk are drawn to the numbers of what's been done that year. While it may not be my first inclination, I'm interested to see how things stack up for the downtown lofts and condos sold. 


 This year was looking up. 


 When the stock market and housing market slid into the tank back in 2008, one thing was clear: it would take time to climb out of "this mess." Since then, we've seen a process. A backlog of lofts, and pent up demand to sell. 


Much of this demand isn't as much because of the market itself, but because the conventional wisdom of buying homes for the 'long run' was abandoned by many home buyer's during the housing boom. It wasn't uncommon to hear buyers talk about living downtown for a few years, then finding some place bigger in Lafayette Square, Tower Grove or a suburban area like Kirkwood or Webster Groves. 


 Unfortunately, the drop in home values changed the plans of many downtown residents.


Preparing the numbers to look at the current downtown real estate market, I couldn't help but think that many readers wouldn't have the proper perspective about our market without first looking at a basic analysis of the inventory of downtown lofts.


In 2007, my partner and wife confronted a developer on Washington and 14th Street because of her concern about the over-development being unveiled that year.  Over 2,200 loft condos were supposed to be built and added to the inventory in 2007-08.  The graph below shows the numbers from the MLS of the total number of listings per year (based on expired listings, cancelled listings and sold listings) and the numbers sold.

In 2004-5, there was a housing shortage in Downtown.  Even in a perfect market, some homes don't sell;  price too high, bad smells, dirty, or ugly finishes will kill some sales.  In 2005, 62% of the listings sold.  What makes that even more exeptional, is that in this case, a majority of the lofts sold were newly built condos and were sold pre-construction, so they weren't even on the MLS.    It was almost pure growth.  


The percentage of lofts sold in Downtown dropped quickly from that point.  The low point of 2008, only 18% of the inventory was sold.  It was a tough year.  


From that point on, the percentage of total inventory has risen steadily.  In 2010 we saw a 20% increase in loft sales!  Good news for the neighborhood and downtown residents.


I'm comfortable with that steady increase.  For 2012 I anticipate a drop, only because the 2011 market was influenced greatly by the FDIC sell-off at the Dorsa Lofts.  


With no condominiums being built downtown completely since 2007, and with a steady increase in both residency downtown and in condos sold, we should achieve a more balanced market soon.  


What does that say to me?   Now is a fantastic time to buy, before prices start to creep upwards.  


So that is my non-economists analysis of the downtown residential inventory.  Seeing that downtown is weathering the sluggish economy, I'm excited to see what happens when things really pick up.  


If you're looking to get a better grip on the downtown loft market....stay tuned for the 2010 Loft Sales here at loftsinthelou.com

State of the Market: 2011, Coming Soon!

My annual market review is a pretty deal at LoftsintheLou.com, so what can I do to prepare.   A day at the City Museum, of course!  Other than several stiff drinks, nothing helps me to forget the real world better than hanging out with kids at the City Museum.   


Suprisingly, the real estate market is busy now.  Usually things slow down quite a bit at some point between Thanksgiving and Christmas.  This year we were running all the way up to the later holiday.  Despite that, the idea of showing all the loft sales for the year makes me nervous.


Back in the glory days of downtown real estate, I remember telling other agents that my seller's were "motivated".  That's a generic way of saying they want to do a deal.  


I say that about all my listings.  


In reality, I didn't know what 'motivated' meant back then, when seller's were making money, selling lofts they owned for a few months or more.  2011 was the year of the motivated seller.  


Of course, being the year of the motivated seller wasn't all that bad.  From 2008-2010 these same sellers may have been waiting to sell, and just rented their place out, or maybe went into foreclosure as they just didn't see the market rebounding quickly enough.  In 2011 some St Louis loft owners just lost patience and decided to sell......whatever it took.    Prices will reflect that.  


We've also seen some banks go this year.  


At the end of 2010, the bank that owned the remaining Dorsa Lofts went under and the FDIC took over where they left off in selling the remainder of the building.  The FDIC is a motivated seller.  Prices were slashed.  They weren't messing around.  The building was such a great deal, that it sold out quickly, which was good for the building and for Downtown.  


Some of the other bank owned sales were priced low.  Too low.  One that comes to mind was a 2 bedroom 2 bath in the Terra Cotta Lofts that went on the market on July 3rd.  Despite being on a holiday, the unit had 3 offers on it within days.  It was priced a hideously low $124,900.  I understand foreclosures, but that space had no business being priced that low.  


The rental market was the real hot spot in Downtown this year, with the completion of the Laurel and the Park Pacific.   Adding several hundred new rental units to the Downtown St Louis market had very little impact on demand or rental rates.   It did, as it always does, seem to give a shot in the arm to many of the Downtown businesses with more popularity and more residents.     I anxiously await the opening of the National Blues Museum at 601 Washington sometime in 2013.   The first event of the future Washington Avenue venue was last August and was a fantastic time!  We had a staycation planned Downtown for that weekend, and had given up on the Cardinals for the year, so the Bluesweek was the high light of the weekend.  


Another hot spot for 2011, on a personal level, was being interviewed by the St Louis Business Journal,  Post Dispatch and also for an article on "How to Buy a Loft" in Time.  


Of course, didn't I feel like a jerk when the Cardinals I had left for dead came back and won the Fall Classic?  Talk about great events and a shot in the arm for Downtown.  

So as soon as we can close out the books for downtown real estate in 2011, look for my breakdown of sales for the year here at LoftsintheLou.com.   For a quick look at what's available in the St Louis real estate market, including great deals on foreclosures, visit our new and improved site at www.4SaleStLouis.com.

Got Junk?

As I type, the City's Preservation Board is re-considering the question of Cupples 7. 

Normally, I side with the preservationists. Buildings that can be salvaged should be.

In real estate though, we sometimes see the result when buildings that should be bulldozed but are salvaged.

Whether its economically not viable, or the building remains in shambles after the renovation; there are limits to what can be done.

Take Cupples 7. This has been a hot topic for years.

There was a thread on UrbanSTL back in 2005 that talked about the damage done to the building during its possession by Bank of America. Having a gravity fed sprinkler systems water tank crash through the roof and 5 floors would lead some to believe that the buildings structural integrity was questionable.

The same issue came up when we listed Cupples 8 (Ballpark I) in the early part of 2009. Uncertainty about what would be necessary to fix the structure was plaguing the developer.

In the case of Cupples 7, timing is everything. If there was more life and viability in the real estate market, both residential and commercial, we may be in business. If 300 lofts per year were being scooped up, or the vacancy rate on commercial office space was extremely low right now, there would be developer's lining up to take a crack at it.

Unfortunately that is not the case.

One other new factor is the tightening up of historic tax credits and other

subsidies. While there are still some buildings downtown that aren't being utilized, its not what we were faced with a decade ago. Lawmakers have to balance the need for the subsidy with other, more pressing needs. Downtown is not the charity case it used to be. After 5 billion in investments and a growth surge in population, many believe that downtown projects should be able to hold their own.

So while I would normally take the side of the preservationist, its unrealistic to disregard the position of the owner.

All we can ask, is PLEASE....Don't give us another parking lot!!!