Culinaria Opens Tuesday

Looking at the week, the long awaited opening of the "new Schnucks" is a welcome milestone for downtown. Having a full sized grocer downtown will be great for the area and a long awaited convenience.

Growing up in suburban St. Louis, there was no grocer in my neighborhood. In fact, we drove over 2 miles to buy food. No one seemed worried about our inability to buy food.

For some reason not having a grocery store downtown was a lightning rod for controversy; even after City Grocers and several small markets opened, the controversy continued. It seems that the subject is appealing to the suburbanite base in our community. They like it. Aparently so does the Post Dispatch.

Today's article is titled such that a Tuesday's opening of Culinaria would test whether Downtown St Louis is "truly back".

This line of thinking is pervasive in "outsider's" downtown. Once while walking th e streets with a loft buyer downtown, they asked me if downtown was struggling because one restaurant had closed. Around that time, I posted on the subject and how business closings elsewhere didn't seem to cause the same negative bias. Today I was working in Suburban West County, and was not at all suprised to see many stores closing. My buyer's didn't ask why West County was faltering.

As a lifelong St. Louisan, I continue to be impressed with the growth and direction of the downtown neighborhoods. The popular negativity surrounding this positive phenomenon is a disappointing reflection on the negativity that our community has for positive change and our primary print news publications never ending inability to grasp the fantastic energy still helping downtown move forward.

Of course, when praising the progress downtown becomes the fashion, the Post, if its still in business, will be there to take some credit.

In the mean time, I hope to make it to the Grand Opening Tuesday. While I do applaud Schnucks for opening downtown, I would have been more impressed had they been willing to open up in the Century Building. It would have made a better grocery store than the lower levels of a garage. Of course, they are in the business of "We Make It Easy" and selling food--not renovating historic structures.

When its all said and done, I'm really curious to see what percentage of downtown residents stop driving to the grocery store.

See you at the Plaza

When we started working downtown in 2004, selling it wasn't much of an option. You either had an appreciation for the urban landscape, or you didn't. Despite the ongoing progress, the area was still desolate. The closest thing to a useful public plaza was the gathering of homeless folks in Lucas Park. The downtown population stood at about 9600. Half of which was below market rate housing and 92% was rental. Despite all that, there was hope and plans for the future.

As downtown continued to develop, it seemed as if each time a large project was completed, that a piece of the puzzle was set in place.

Today and through the weekend the Post Office Plaza will be having its grand opening. The ribbon cutting, scheduled for 4pm will undoubtedly be a crowd pleaser. There is entertainment and children's shows tomorrow.

For some reason, the work that's going on to enhance our public space downtown is exciting. In my travels, places that have nice urban plazas adjacent to a good mix of retail, entertainment, commercial and residential spaces seem to add a positive energy to the city. What appears to seperate this space from the many other spots around downtown is that its location fits the density profile of a good urban plaza. Time will tell.

In the mean time I'll be enjoying the festivities this weekend.

Clean & Green

Last week I was picking up a future loft buyer at the Hampton Inn downtown and noticed that activity was picking up at the adjacent Urban Garden 2200 Pine. Spring season is upon us and some of the coolest events to participate in are upon us. Operation Brightside and Gateway Greening team up for the Urban Roots project on May 9th and 10th. Getting out and beautifying the urban landscape does a lot for the neighborhood and the region in general.

Also on May 9th, Operation Brightsides clean up St. Louis Project Blitz will take place in Downtown.

Traditionally there has been a good turn out in Downtown for both of these events. There is also the opportunity to buy plants and donate to help make this year's event a success. Visit Operation Brightside or Gateway Greening for more information.

Loft Deals Scooped Up

I bought my first home in February. It was strategic. My thought was, who in their right mind would be running around in the snow looking at homes. With a prospectively lower demand, supply constant, prices would drop.

This February, prices were favorable too. Still not as good as the media seems to think. A sports reporter talking to Cardinals 3rd baseman made the comment that his house bought last year had dropped 50% in value. He should stick to sports. Real estate values look great compared to stocks. Bucking the trend elsewhere, only one sale was a foreclosure. Several banks seemed to stop accepting offers last month due to the larger forces of government stimulus and equity transfers.

Two Units sold were new construction. Favorably priced, but still above the resale market, pushing up the average pricing.

Click Here to see the February 2009 St. Louis Loft Sales

Love To Hate

Checking out the STLTODAY.com site tonight, I happened to notice the bottom right corner of my screen had the most commented upon stories. Whaddya know. LOFT DISTRICT was #1!

The story isn't new, but the article was from today. The Washington Avenue Apartments are housing veterans that were formerly homeless through some St. Patricks Center program[Project HERO].

The whole deal sounds good except for two small things. 1. When a group of any potentially risky people move into ANY neighborhood, there will be concerns and complaints. Inadequate notice and information seems to have been provided. 2. There is plenty of space in the City of St. Louis, Downtown has an inordinately large percentage of the special services for homeless.

All & all, the program sounds well thought out and managed. Not being an expert on programs to assist former homeless people, I was impressed with the operation as it was portrayed in the Post Dispatch article. There were several restrictions (no sex offenders, no dishonorable discharged veterans) and other checks and balances (weekly sobriety checks, on site supervision).

Unfortunately not all parties were portrayed in such a positive light.

The news stories that have been on the wire for the past
few days have the central theme that Downtown residents are outraged about this wonderful program for the formerly homeless veterans. Ironically, aside from the news stations & paper, the subject hasn't come up in any of my conversations with downtown residents this week.

What really inspired this post isn't my opinion of social programs for veterans but the negative perceptions that seem to exist for downtown residents. Read the comments after the story, its hideous! After a couple minutes, I was thinking that downtown residents need to hire downtown PR Firm Fleishman Hilliard or Weber Shandwick to improve thier image. Sincerely! Now, reading the comments after PD stories often makes about as much sense as what my 3 year old tells me. But I really started to question whether such a negative perception is common and if so, what affect it has on the growth and prosperity of downtown. Based on many of the comments, I would say the perception of Downtown St. Louis residents is an unpatriotic affluent yuppie with a sense of entitlement and a hatred for their fellow man.

Interestingly, I never thought of St. Louis as a 'military town,' but in my experience assisting people buying and selling downtown real estate, I've worked with 8 active military clients in the past, with two active military clients currently working with me and a few veteran contractors that work for the military as civilians. Statistically, the military is the largest employer of my clients, so the assault on downtown residents having "never served their country" is bogus.

Another total false-hood is that downtown residents as a whole can't live near the homeless. Obviously this topic isn't new. My very first client downtown lived in the Knickerbocker with a view into Lucas Park. Then and now; I've heard it all. Summing up everything though, most downtown residents are more concerned that 1. a small percentage of the homeless feel that rules don't apply to them, don't appear to be trying to improve their situation and are simply BAD NEIGHBORS, and 2. that as a society in general, and in several cases specifically, services to the homeless can be illegally handled and poorly appropriated. As an observer, things seem to have improved drastically since 2004, especially the overall appearance of Lucas Park. [Thanks, by the way, to all the Selfish entitled unpatriotic commie yuppie jerk downtown residents that spent thier weekends picking up trash and cleaning up after the homeless in Lucas Park back in the Fall.] (Had my bride and I not been in the middle of having our 3rd child, we would have helped.)

The bottom line, thanks again, in no small part to the Post Disgrace, people seem to "love to hate" downtown residents. Unlike T.O., in this case there's no basis in fact. (They were even ripping on Downtown residents for not having a grocer nearby. What's wrong with City Grocers?!?) Interestingly, the article cited two downtown residents that had opposition to the project. Both had business interests in downtown as well. Then two people that were in the Project HERO. So apparently that's all it takes to really get people ticked off and hating downtown is 2 people out of 11,000. I can't imagine that 0.018% of the population anywhere else has controversial opinion the Post can write about. Good luck to the men in HERO. Enjoy downtown!

The Syndicate Motel

This weekend I left my home as some guy was hammering a sign at the corner, "RENT YOUR HOME FOR $5000 DURING THE ALL-STAR GAME". (My illustrious block captain has since removed the sign). The thought did cross my mind. Who couldn't use an extra Five Grand these days.

Then I got an email this morning from a client who had purchased a loft last year who had read the Post Dispatch story on how downtown residents are looking to cash in. "Can I rent my place out for the weekend?"

Having read through many condo by-laws, this subject is usually addressed early on. Having my own personal CONDOMINIUM DOCUMENT library, I thumbed through a few different associations. My question is where do they find people to write these things? Its almost like the same person writes it. "No Residential Unit may be leased or subleased for transient or hotel purposes or for an initial term of less than one (1) year for residential units;"
Each building had some form of that sentence.

The thought actually is scary what downtown buidings could be like if this activity were allowed. Hotels have 24 hour security, maintenance, and all kinds of administration to make sure that people can do what they came for. A loft building would be a whole different operation. It would be psycho!

Business is Business

Lately business hasn't been great. Not necessarily real estate, but any business. Consumer's are tightening their belts, businesses are doing the same, and a whole chain reaction follows. News of the present economic challenges are everywhere, why loftsinthelou?

Last week I was in two places I would consider prime business locations. At Meramec & Carondelet, adjacent to the St. Louis County Government Center and Courthouse in the heart of Clayton and at West County Mall in Des Peres. Noticing that J Bucks closed its West County Mall location and another restraunt closed at the corner of Meramec and Carondelet, it was a sign that the economic woes are everywhere. Even at arguably some of the best locations in the region, businesses are struggling.

Even some well managed businesses are failing. My rants are always about poorly managed companies or bad business plans. Some companies that are run successfully for many years just don't have the reserves to withstand the adverse climate.

What's the point? The businesses in Downtown need our support. Also, there still seems like there's a negative bias about the ability of stores to survive downtown and that when a shop closes downtown or moves out of downtown that its because of the area and not all the other factors.

One news source that seems to always represent downtown well is the St. Louis Business Journal. This weeks issue's special section "Doing Business Downtown" talked a great deal about some of the factors facing downtown.

One thing that was sort of annoying was an article talking about condo projects going rental. It does happen, but a quote from one developer talked about the tax credit advantages of going rental like they were really benefiting from the whole thing. Nutty really, considering the same developer had 5 or 6 mechanics liens published a few pages later for unpaid bills to a contractor. Condo buildings that have gone rental have done so ONLY to avoid eminent foreclosure. What would have been an improvement would be if they also addressed the implications that these developers actions had on their owner occupied units and thier ability to re-sell. I guess that every angle can't be covered. That may come up in next years issue.

Things keep moving forward though and downtown St. Louis will be one area that continues to grow during these tough times.

FHA Approval and Buying a Loft

We had our open house at the Ballpark Lofts yesterday and for a while it seemed as if the housing market was back in full swing! Getting so much interest there was almost enough excitement to make up for having to postpone our trip to Cancun scheduled for today.

Someone asked me a question that I take for granted as a realtor and someone who specializes in St. Louis lofts: "So how does this being 'FHA approved' benefit me?"

Back in May 2008, when all of the sudden FHA loans were a big deal in lending again, we did 2 posts to Lofts in the Lou (My Day at the FHA part 1, My Day at the FHA part 2 )that addressed some aspects of FHA financing and some of the flaws in the approval process.

The basics of getting any loan that seems to be more relevant today is that the money lender has to approve of 3 things before loaning money: the borrower, the buy, and the reason. To get any home mortgage, the bank begins the process by approving the borrower (checking credit, income, assets & liabilities). Once the buyer selects a home, regardless of it being a house or condo, the lender must approve the property too. This usually comes with an appraisal.

Condominiums can be complicated. Appraisers don't have the time or access to obtain enough information about the condominium association, its funding, etc. so the bank usually takes care of that. It can be difficult at times. There are several different types of bank reviews that occur when dealing with a condo, but the two basic options are "limited review" and "full review". Buying a condo or loft in a previously FHA APPROVED building helps the process because then your lender would be able to obtain a speedy approval through a limited review.

Most home sales take roughly 30 days to complete. Often times home buyer's think that the process of getting a loan mostly involves shopping for the best rate and everything else falls into place. NOT TRUE! The process of getting financing is only begining during the initial consultations. Usually a good lender can make the process seem like everything falls into place. Getting lenders not fully competent in financing condos can make the process seem like an arduous nightmare.

So my answer to the buyer's question: "How does FHA approval benefit me?" would be that having one fairly big piece of the puzzle already in place will give a borrower more options in financing, a smoother transaction, significantly less down-payment required, and an assumable loan (another story, but a great benefit when selling).

Get Down to the Ballpark!

Last month we were able to list the Ballpark Lofts! A Blue Urban project, these lofts were long thought to be sold out within 1 day. An NFL style draft was a great concept, but did, combined with the recession, didn't work out past the theory. As downtown specialists, never heard until recently that there were some units that didn't close that had come back on the market.

So today, the buildings completed. The units are spectacular, many having views of the stadium, Stan Musials statue and the Gateway Arch. Spring training starts next week, and in a short time the area surrounding Busch Stadium will take on a new life as it does every year.

We're holding the lofts open today for the first time and we have a special buyer's incentive! Any unit reserved today will receive a custom paint package at closing!

The open house will be from 12pm to 3! We hope to see you there!

Urban Oasis

Construction means different things to different people. In general, it pushes people away. Sidewalks are closed. Construction vehicles, dump trucks, cranes and fences take up the sidewalks and block off the area. Prior uses of a space come to a halt and the project takes over.

Right now, there are two projects nearing completion that are currently in the state described above. Thier eminent completion this spring/summer will revamp downtown in a much needed direction.



This weeks St. Louis Business Journal had an article about the Post Office Plaza and how its problems are being addressed. The unanticipated costs of construction is nerve-wracking. In this case, assuming a parking lot hadn't been the construction dump from a prior building at that location was the problem. Kudos to the Danforth Foundation and the Partnership for Downtown St. Louis in keeping the project moving forward. In order to repay a loan from the Danforth Foundation, organizations or idividuals can purchase "naming rights" to park benches for $7500, so businesses like mine who are just shy of buying naming rights to a sports arena can participate.

Just a few blocks away from the Old Post Office
is the nearly complete CITY GARDEN. Expected to be completed by mid summer, this park between 8th and 10th along Market will be another opportunity to showcase downtown and give residents and visitors an enjoyable hiatus. Unlike the plaza style of Post Office Plaza, the combination of art and nature is a welcome addition.

St. Louis City Sales Data 2007 & 2008

Last week, I put down a fair amount of information on the downtown real estate market and provided the sales information about the area. I also talked a bit about how the year of 2008 felt for a real estate professional (2008 Real Estate Sales Downtown ).

The post is something I've tried to do for a few years. Putting the year in perspective.

Of course, that was just downtown.

Hearing a news broadcast yesterday, I heard some remark about housing values and felt that the report was misinformation; exagerating the markets downturn.

Today I pulled up the city wide sales statistics. Looking at single family residential, condominiums and multi-family homes, the report is included below, but the most notable data follows:

Year----Total Sales Number/$ Value----Average Price---Days on Market

2007--------5000 / $701,227,559---------$140,246---------------88

2008--------4532 / $515,009,046---------$113,638---------------99



city%20sales%202007%202008.pdf

2008 Real Estate Sales Downtown

This post is something I've been thinking about all year. After 2007, as a realtor, I felt kicked around. As we found out a few months ago, a recession started in December of 2007 and we could feel it. My annual Downtown St. Louis real estate sales post,was appropriately titled "To Forget or Not to Forget 2007." We were starting to notice problems on the horizon. Regardless of the hard work or the below market pricing, some listings just wouldn't sell. That was a new problem. Buyer's were surfacing into the market with a cut-throat mentality. Low-ball offers and walking away after the first counter.....another strange new anomoly. Despite the changes that were just appearing on the horizon, as things continued to get progressively more difficult and bizzare in 2008, that post came to mind.

Despite getting harder, the market makes sense today. A year ago, we were still waiting for over 2000 units to flood the market. Nearly all of those had to become rentals as demanded by the bank. Developer's had to start taking responsibility for the loans. Some couldn't.

Pyramids collapse in April was a dismal blow. Despite the numbers not making sense, John Steffen had a vision for our city that was adopted by many. "Paris on the Mississippi" was his line. His ability to do so much at one time was questionable, and ultimately a big part of the company's demise, but the end result was something worth believing in.

The financial crisis which played a big part in Pyramid's collapse has taken its toll on just about all projects downtown and elsewhere, from Ballpark Village to our listing at Westgate Lofts not being completed. Easy street is no more.

When the media covers the financial crisis, the stress always seems to be on foreclosures and personal finance, when the bigger news seems to be the effect on large scale commercial projects. Being out with a buyer a few days ago, they insinuated that the shift in scale of Ballpark Village was proportional to the ability of downtown to sustain that project. My thought and comment was that projects all over the world have been scrapped, delayed,reduced, or changed like Brown Shoe and more recently the Shriner's Hospital.

Foreclosures and relocation sales have taken thier toll on the sales prices this past year. Appraisals are supposed to take similar properties in similar sales conditions. Not using a distressed property to compare with a property being sold "at market" is the standard, but unfortunately, in some places, there aren't any sales taking place other than foreclosures or relocation sales. In this regard, downtown is fortunate. Foreclosures are prevalent, but not the majority of sales. Looking at the sales data though, seeing a loft sell for around $100 per square foot is just wild. The condition of these units are often times horrible.

To sum it all up personally, feeling "bashed in the face with a baseball bat" didn't feel good last year. Now the real estate market is all about getting "bashed." Interestingly though, it's not as bad as the media makes it out to be. We're having the best January as a company we've ever had. Interest rates are favorable and supply is good for buyer's. For seller's it can be horrible unless able to price extraordinarily low and STILL get low-balled.

Happy New Year! Here are the MLS sales from 2008.

Year--#Sold-------$/Sq Ft----Ave.Days on Market-------Ave.Price
2008----109-----------$163-----------------237-----------------$227,668
2007----178-----------$186-----------------181-----------------$240,252
2006----221-----------$164-----------------93------------------$223,063
2005-----121----------$156-----------------209-----------------$256,678
2004------84----------$141-----------------233-----------------$187,976
2003------53----------$135-----------------170-----------------$214,890
2002------25----------$121-----------------248-----------------$186,674
2001------19----------$104-----------------194-----------------$233,908

See The Whole Report Here

Down to the Ballpark

As a realtor, I've been asked lots of times about the Ballpark Lofts. There really wasn't much to say for a long time. Things started up with an interest list, followed by an event "the NFL Style Draft" where each and every one of the units on floors 3-5 were reserved. Up until a month ago, I'd never heard anything different.

When we got a call from Kevin McGowan to help out with the building, it really excited me for three reasons: its the only "for sale" development within 2 blocks of Busch Stadium, they're move in ready, and lastly that they weren't really made available to realtors to share with buyer's due to the draft style reservations.

Once we got to the building and inside each and every unit left, I was impressed with the views and the modern finishes. With Spring Training starting today, I'm thinking of how the landscape will transform with Cardinal red coming so soon. Also with Ballpark Village's recent approval and removed residential components, these spaces will be the only ones available in Ballpark Village.

Contact us to check out the Ballpark Lofts and get one of the best spaces for Redbird season today!

Do You Have to Sell Now?

I'm going out with a buyer this morning and am just blown away by the deals out there. Foreclosures, short sales, and just plain motivated sellers are pretty much all that's out there.

It begs the question that we ask all our prospective listings now; do you HAVE to sell NOW? In a bad real estate market, in the middle of winter, during a recession? Usually we get some derivitive of "yes" to that question. The bottom line, if you try to sell now, you're leaving money on the table--and having to compete for buyer's with those (especially relocation companies) that slash prices incredibly.

Unfortuantely for the buyers though, dealing with banks can be a nightmare. We work with them all the time in either foreclosures or short sales and they can really give the impression that they don't care about anyone.

Happy New Year Ward 6

In the past, the downtown area has been exempt from having to perform occupancy inspections at the sale or change of residency of a loft or condo. As a side effect from the rift going on at the King Bee Building, it was ordained that buildings downtown would begin to be incorporated into the city's HOUSING CONSERVATION PROGRAM

In November, I checked with the office in room 406 of City Hall. As a city landlord and resident, these inspections are familiar. Asking when they would be adding downtown buildings, they told me to check back.

So it was strange, last week, when I did look up the Terra Cotta address to find that they, along with all the other downtown buildings in the 6th Ward, were now assigned to Conservation district 54. (This presently includes 2020 Lofts, Terra Cotta Lofts, The Annex Lofts, Printer's Lofts, Railway Lofts, Windows Lofts, King Bee Lofts, Paris Style Lofts, Knickerbocker Lofts, Garment Row Lofts, Denim Lofts and Westgate Lofts) All the buildings are scheduled to require occupancy inspections by July 1.

Looking at downtown, it should be interesting. Just like any other situation, being able to get the occupancy inspectors into a building requires more leg-work than necessary in a house. Its also one more step in the process of selling or renting your loft.

Sick Buildings!

Nothing new to report here. Buyer's get freaked out when they see lots of places for sale in a given area. Drive down one street in a neighborhood and see two or three houses together with 'For Sale' signs and people start asking what's wrong with the area. Is the Love Canal flowing in back? Is there a crack house on the corner?

The funny thing about downtown is that some buildings go out of there way to force EVERY prospective buyer that walks into their building to see how many units are, or have been on the market based upon the number of lock boxes they see when they walk in the door or as they walk by the building. This is a problem that really should be fixed. Not only does it reflect on the building, but it reflects on downtown as a whole.

Of course, having a buyer's agent like myself, we can explain that there are a number of units that have sold and still have the box there. There are others that may be for rent, and there are still some that just need a lockbox for entry of a utility or service technician. We can also point out that in a building with 100 units, having 10 on the market isn't bad. In the mind of a buyer, no one would want to sell in the building they want. It would be too cool for that.

So this may be another post for the condo board members out there to consider. If the first message a buyer gets out of your building is that a bunch of units are for sale, you have a problem. At a time when re-sale value isn't something we even want to look at, its not a bad time to address the things that will hold back re-sale values in ANY market.

To Live or To Sell!

Last month at the Downtown Neighborhood Nights, we ran into one of our clients. With so much for them to do and see, we didn't spend too much time talking except for a few brief minutes. How's your life? Do you enjoy your space? etc.

We found out they had become the Association President too.

That brought up the subject of how they had chosen to implement leadership in the building.

One topic that seems to be coming up lately as a problem for people trying to sell is the creative RENTAL RESTRICTIONS have been implemented in some of the loft buildings downtown.

It seems that buyers, when faced with a decision between two or three lofts will choose one with less restrictive by-laws. Their "short list". That often times one of the determining factors is conveyed like this, "well if I ever needed to rent this one, I could." Of course some loft buyers have every intention of renting out their space at some point of their ownership.

We discussed that with our client. He cited some research that was provided regarding appreciation levels in comparable buildings. One building chose to "manage" its residents affairs with edicts and fines. Another similar building had higher fees with less restrictions. According to the study, in this situation price appreciation was higher in the building with less restrictions. Instead of being heavy handed, the condo association held parties and mixers in the building so that residents could get together and talk about issues in an informal setting.

Of course, I have no idea what study this is or the validity. There could be other factors not made clear in our discussion.

It seems interesting though, that the lofts we are trying to sell with the most difficulty have strict rental restrictions while the units that seem to sell faster have less absolute restrictions regarding rentals or other matters. Since the summer, we've actually sold more units in the Syndicate than any other building. While prices are drastically lower in resale units,

Also interesting to me is that often times condo board members we talk to only cite the negative problems that rentals can cause and seemingly have little or no interest in how restrictions can stiffle resale. Seemingly there are two sides to the matter, and those that believe having strict limits on rentals do so because they are entirely focused on the buildings livability and fear of renters. Selling and resale value tends to not be as high of a consideration. The minority of people selling seem to take up the issue of association restrictions at times, but as people leaving the group, they have little influence. As a realtor, of course, we'd like to think we focus on the "big picture" but my primary interest with buyer's is usually resale.

Condo assocations to have to consider the number of leases allowed in a building to keep the building "warrantable". Usually that number is a maximum of 40-49% leased units. The former giant Pyramid had a brilliant scheme: to only allow rentals for "original owners" creating a noble class within their buildings. This really was a scheme that allowed them to sell with less trouble, and to reduce competition for them down downt the road. Members of the noble class always seem to embrace this right. Sometimes those affected by strict rules talk lawsuit: forcing the will of one onto the many. That doesn't seem like the way things should be handled either.

No matter how this issue is viewed, or any other, one thing clear is that setting policy in condo associations can be a delicate matter. No training or education is required to be elected to the board or to lease, but having some collective wisdom or case studies available to those who serve would be nice.

Help Design Lucas Park TONIGHT!

In just 30 minutes from now, a "design charette" will be held at Crepes in the City, 500 N 14th St. It should last until about 9. Plenty of discussion has led up to this event in hopes to transform the current space into a more useful and welcoming park for all the city residents.

One Holiday Thought.........SHOP DOWNTOWN!

A Big topic of discussion this year is holiday retail shopping. Turn on the news. There's talk of the economy and its effects on how much a person will spend on gifts this season. Our thoughts aren't how much, but where our money is spent.

Growing up in suburbia, no one really had to worry where they shopped. Most shops were owned by big business paying minimum wage to its employees. My wife, on the other hand, grew up not far from me but had an entirely different outlook. There were the malls and all the big box retailers, but there were a few strip malls nearby her home with mostly independent businesses. It was important to her to support them because without LOCAL SUPPORT, the storefronts that made up that community would be empty.

Looking at the downtown streetscape, what's different? Particularly around the residential areas, take out the Sprint store and what's left? Small, locally owned and operated independent businesses; many of which are owned by downtown residents!

There was a big increase in store openings in the past year which really helps everyone. Turning around empty or unsightly street level retail does more to change public perception of an area than having 100 occupied lofts sitting above them.

Earlier in the year, we posted about shopping downtown. That was more about the city not being supportive of the downtown retail district.

This is the call to all city and downtown residents and workers. With the economy suffering and retail sales lagging, it's more important than EVER to take care of your own neighborhood by SHOPPING THERE! From my experience as a realtor, downtown residents always get excited by stores and restaurants opening up in and around their building. The thought of these same residents leaving the downtown area to shop would be a disappointment.

Last week, Mrs. G was out with a friend from Springfield MO, enjoying THE LONDON TEA ROOM and Sushi at Wasabi when they did a little window shopping at the new ladies accessory shop D'Elegance, someone pulled them inside and they began holiday shopping. Do your part by adding your "wish list" items from stores downtown and supporting them! Not only will it benefit the owners, the local residents but also will keep tax revenue in the city. SHOP DOWNTOWN!

Our National Audience

Last week, setting the record for audiences at the Gateway Arch Grounds was a nice day of publicity for our otherwise HO-HUM National Park.

Not that the Arch isn't great, but really, outside of some good scenery, what is it?

Today's cover article on STLTODAY.com talked a bit about the little struggle we have going over the hope for revisions of the arch grounds.

According to the NPS, they can't just listen to what St. Louisans want. It has to be opened up for a national competition, similar to the one that Eero Saarinen was in. Seems respectable, huh?

This was posted back in April, the last time the media covered it.


Three concerns I have now. 1. The Arch Grounds are a National Park and should be treated accordingly....BUT we have to live with it year in and year out. Plans should be something that takes into account the city's desire for a world class destination, not just a quick makeover.

2. The actual plan that Saarinen submitted for his original contest victory was more involved. What we have is a stripped down version. Original plans include a theater a levee restaurant, an architectural museum and a history museum. Also the grounds would be forested and the Old Rock House would have been re-built from original materials. The NPS had an opportunity to get it right already. It makes a hell of a fairground, but is it something that brings people downtown?

3. My hope was for a call to action from within the city. Contact your Congressman! Of course, saving the economy has been a bit more pressing, but this should be a close second!

Claims that its National Historic Site should prevent local pressure to make improvements is NONSENSE! I would understand if it was Arlington National Cemetery or something of historical significance but c'mon! Everything historic was razed for the modern art, grassy landscaping and westward expansion museum. Nice, but historic? I might even be swayed by a bit more history on the part of the city that was destroyed to plant the Arch.

Party in the Park

Lots of talks have taken place about what can be done with Lucas Park. What happened in the past month or so is really fantastic....the talk turned (quickly) to action. Who is to say what the best use of the park is, or how it figures into the neighborhood, but having it cleaned up is fantastic!

Support the efforts and show up!

Fearful?

Last week, Warren Buffet said something that really hit home with me about his investment choices. He said he follows a simple rule, to "be fearful when others are greedy and be greedy when others are fearful." As a believer in home ownership, it wasn't disconcerting back in 2004 or 2005 when many buyer's came to me wanting to find a home. Buying was a foregone conclusion in those days. At the Ely Walker Lofts release party, I remember some people that tried to reserve several lofts. Stories of huge profits from flipping lofts were legendary then and people wanted to cash in that night. I think about that evening often.

When the market really tanked in Florida, I thought about the launch party at Ely. I heard stories of people getting stuck with multiple units and not knowing what to do. Greed really reared its ugly side.

Despite the markets in many locations being turned upsides down and many of the builders downtown having to drastically change their business plans, the market isn't as horrible as we hear on the news.

One presidential candidate is going around saying that the housing market has "collapsed". When the stock market collapsed during the great depression, it lost nearly 90% of its value. In contrast, our housing appreciation has mostly just flattened out with slight drops or slight appreciation based on market demand.

Other things I keep hearing is that the credit markets are frozen. No one can get a loan. "You watch too much TV!!" was what one mortgage lender told me. I had called him to ask if they'd be able to fund a loan set for closing last month. Of course, there are limitations. Some good, some not so good. Most of what industry professionals called "exotic loans" are a thing of the past. Also, much of the lending going on is in the form of loans that can be sold on the secondary market or otherwise insured by FHA or VA.

So thoughts about the world today are that the news media is spewing bad advice, engendering terror and paralyzing the community. People that buy homes right now are following the most fundamental rule in investing: buy low and sell high. Had I not gone on my buying spree last year, I'd be greedy right now.

The End of an Era

The last time I had something stolen from me in Downtown St. Louis, I was different, downtown was different, and the scenario was different.

Back in 1994, I was a student at UMSL. It was finals week and I was studying all afternoon and evening. I stopped off at Club EVOLUTION to relieve some stress, parked at 13th and Washington and returned about an hour later to find my car window was smashed and my backpack with all my books and notes had been stolen. ON FINALS WEEK! I searched around for at least 30 minutes looking in dumpsters until I found my books strewn across a dumpster full of broken beer and liquor bottles. Wearing only my well worn Birkenstocks, I climbed in and retreived everything except a microcassette recorder. My encounter that morning was likely caused by a person looking to survive in abject property.

Last night, I was enjoying myself at a table set up on Washington Avenue, about 3 blocks from where my last incident occured so long ago. A call came in from Howard McCauliffe, an agent with us that was holding open the City Museum Loft 509W (incidentally, one of the best deals around). He said a middle age, brown hair but balding man, about 5'9", came into his open house and told him that he wasn't allowed to hold an open house that evening. They discussed it, they seemed to agree that it was acceptable to hold an open house (who ever heard of a building that prevented you from reselling your loft?) Then about a half an hour later, a fellow loft owner came in and told him that his(our) sign had been taken.

After a day of calling trying to get our sign back the only option was to call the police.

The funny thing is that in the current market, these lofts probably won't sell anyway. They're priced above market and are in a building that has limited financing options. Even getting a loft to appraise out at over $200 per square foot would require an exceptional space in a building that supports that type of sale. Lastly, in this market or any, it seems odd that anyone wanting to sell housing inventory would shoot themselves in the foot by (allegedly) conducting such a selfish act directed at someone who specializes in selling their product.

As for crime in the city goes though, our last sign to be stolen was a month ago in West County. Go figure.

Downtown Neighborhood Nights

A couple weeks ago, the idea of hanging out downtown in the evening at the first ever "Neighborhood Nights" seemed idiotic. Sleep deprived, wanting to watch Sarah and Joe duke it out from Wash U. I could think of too many reasons not to be there. Afterwards, all I can say was that I was wrong.

Traditionally the Downtown St. Louis Partnership (recently renamed "Partnership for Downtown St. Louis")held a spring and fall loft tour. Each year, the tour became bigger and wider--going from the small cluster of a few buildings to sprawled out between Jefferson down to Broadway taking two full days to see everything. Still, even with all the hoopla that surrounded the loft tour, it just seemed like something was missing. Tours were usually held during weekends downtown where there wasn't much happening. Residents seemed like they wanted to avoid the whole thing. Whether the crowd was good or not, the normal hustle and bustle of the city seemed to be slowed down and covered up.


At the first Neighborhood Nights, covering the Old Post Office District east of Tucker, I saw what I wanted to see at the preceding tours, the typical buzz of downtown. City lights. A different feel.

This Thursday we'll be there again. The starting point will be at the English Living furniture store at 15th and Washington. Our table (weather permitting) will be a block west on the Corner. We have some great listings at the Printers Lofts open as well as several downtown agents to provide information.

We hope to see you there!

"Is Now a Good Time to Buy?"

Lately I've become a bit of a CNN junkie. All the politics and economy talk seem to get me every time.

With the economy on the ropes people are looking for serious advice.

Well don't start stuffing the mattress just yet.

Based on the news, I wouldn't think it was feasible to get a home loan right now. "You watch too much TV!!" was what one lender told me when I asked if they had any money to lend. The question made sense. All we hear about lately is frozen credit markets, blah blah blah. Restrictions and changes keep coming, yes. So far though, it seems like qualified borrowers haven't been denied.

Rates continuet to drop. Lenders are still lending and home prices, though fairly stable, do continue to favor buyers. The way it looks, the housing market may help pull us all out of the recession.

The Boom Downtown

Loft style has become mainstream in America. Black Granite, high ceilings, slab cabinets, modern decor. Tre Chic. Many loft buyers take this modern style and make their loft space into an attempt at self-expression. Stylish artwork, photos, great designs and modern furniture.

A few years down the road, a different style can evolve. Cool ultra modern stuff begins to share the space with more pastels. Bright colored objects stashed around the floors. Mobiles. Rubber duckies in the spa-like master baths. They become "baby-fied".

With our traditional St. Louis values, some people decide to move away. But what if they don't? Is it acceptable to have children in downtown St. Louis?

Fair housing laws were established in 1968 to protect the rights of people to live where they want regardless of who they were. Race, Color, National Origin, Religion, Sex, Familial Status, or handicap are the "protected classes" in the US.

Recently I heard of a couple that was being harassed by neighbors due to their child crying at night. The condo president got involved, trying to be helpful and resolve the matter. What actually resulted was clearly discriminatory.

They decided to sell their loft because they didn't feel welcome in their building.

One thing about downtown St. Louis, we have our very own office of the Department of Housing and Urban Development (HUD). Discussing this situation with the investigators, they advised that any attempt to control the behavior or living conditions of an individual or couple based on the fact that they have a child is discriminatory and violates the rights of a protected class of people (familial status). Regarding this situation, they told me that the intent of the person making discriminatory actions was less important than the perceptions of the persons being discriminated against.

In light of this situation, it might not be a bad idea for several of the downtown loft condo boards to hold a joint informational meeting on this topic. The folks at the HUD office seemed very open to meeting to talk about Fair Housing matters and to educate those who may be involved. While downtown residents may establish expectations about fellow residents, they should always remember that the neighborhood is open to everyone and the last thing a condo association needs is for its board members to waste time and money dealing with complaints from HUD.

So That's What's Happening?

Working in many city neighbhorhoods gives me a picture of St. Louis that is optimistic. I remember in my former occupation when a client of mine was buying a home in Lafayette Square. He was excited about all the development and changes going on. It was 1997. I just didn't see it.

Now Lafayette Square is a vital urban neighborhood that has stimulated progress in surrounding areas (Old City Hospital, the Gate District, etc.).

Urban sprawl still takes place, but at a much less forceful rate than it has in the past. Also, the people I've worked with looking in places like Wentzville are generally in the entry level price range where the average suburban home buyer in the 1970's was often time able to afford significantly more than what home prices were going for in the urban core.

Other than gentrification, revitalization or adaptive re-use, there is a term that is used to describe what has been happening in St. Louis and other inner city areas in the past few decades. This article in the New Republic describes the process as "demographic inversion". It was a good read; worth sharing. In a times like today when massive amount of development drastically slows down, the false conclusion that there is a problem with downtown. This article reminds me that the trends underlying the shifts in population are still active, and are much more subtle than the amazing transformation that has taken place in such a short time downtown and elsewhere in the city.

The subject of demographic inversion isn't always perceived as positive though. So much talk of displacement of the poor disenfranchised citizens seems to be present when areas are gentrified. The problem (poverty, crime) still remains but just moves elsewhere. Some agree on this point, but another observation is that while gentrification often gradually changes the demographics of a neighborhood, the areas where the poor relocate vary and are never as concentrated as what took place when the inner cities were summarily abandonded by the middle class.

More will be revealed as time goes on. Progress in St. Louis keeps moving.

Today's Action

Between the Cardinals game this afternoon and my open house at the Banker's lofts from 12-2, one wouldn't think there was room for anything else downtown, but what does one know?

Metropolis is an organization that is hosting "The Lot" and a worthy event it is. Who would want to miss the Funky Butt Blues Band?

Really though, the mission of Metropolis has always inspired me in that St. Louis should never have become a place where entire generations sole focus is to move away. While it seems that the city and downtown's re-birth seems to be happening naturally by participation of several types of entities (government, quasi-government, developers, businesses and residents), the voice of Metropolis has been a positive force throughout the past decade worth hearing.

Happy Birthday to Metropolis and Come on out and enjoy the LOT!!

Buy Here!

Homevestors, a nationwide company working mostly in residential real estate ranked St. Louis as the eight best city for real estate investment according to this weeks Business Journal Update. This is really no suprise. Predicting the success of any investment is tough, but with the combination of low home prices and tremendous amount of infrastructure improvements in the area, the opportunity to find great investments is definately out there.

It's a Neighborhood Stupid!

There was plenty of stories about downtown in this weeks St. Louis Business Journal. Downtown's biggest critic (Post Dispatch parent co Lee Enterprises) has hit an all time low, Ballpark Village might be coming together, a new branch of Lindenwood College is coming to
1409 Washington

The article that stood out for some reason was about the decrease in loft sales over a record 2007.

Its not a bad article, really. It just states the facts. It talks about how some builders plans are changing in response to the market.

What's nutty, is that there is an implication that lofts are supposed to be like barrels of Budweiser. "Condo Sales Lag". Building lofts and condos downtown should be more about quality than quantity. Stories about the neigbhorhood should focus on how things come together, and how they add to the area, not look at homes sold like they're a commodity.

Most strange is that everyone knew the day would come when the developers would fade away and refocus on other types of construction or other areas. Most people knew that all the condo units projected to be built would be limited by the market. By comparison, the city of Creve Coeur has a larger population of approximately 16,500. Creve Coeur only had 307 homes sell last year (per the MLS). Why no write-up for Creve Coeur? The reasons are obvious: 1. Sales of homes everywhere are lagging and 2. It's ok for a neighborhood to stabilize.

It's great to hear about Ballpark Village and Lindenwood College. Downtown progress isn't over by a long shot. The great surge in owner occupied residences in since the turn of the century may be coming to an end, but the foundation has been laid for much growth and prosperity in the future.

Online Free Downtown

I heard on KMOX this morning that the new free wireless access was available today. I didn't see any news online about it, so I decided to log on when I had a chance.

Having just been on a trip, I really value having this service here.

It only took me a couple minutes while parked at 9th and St. Charles to not only create an account but to add this post. In adding the account, look for "STLMETROFREE" networks. There were about 5 of them to choose from. There's also the opportunity to buy a membership for faster access, VPN ability and no ads. (although the ads are just a large bar on the top of the screen, hardly a nuisance).

Only 19 hours left, but still nice for the occasional need to access the web while on the run in downtown St. Louis.

My Day at the FHA: part 2

Finding out that the Knickerbocker lofts are the only lofts in downtown St. Louis that have undergone the full FHA approval process was disconcerting. It makes perfect sense though.

A visit to the FHA office in the Robert A. Young Federal Building would clear up all my questions about getting more loft buildings FHA approved.

Getting an FHA loan on a condo doesn't require it to be previously "FHA Approved". The "spot approval" process works to get an individual unit approved. This usually means less work for the lender and a speedy resolution; both important when obtaining financing.

The only problem is that the next time a lender tries to get an FHA loan in that building, the 'spot approval' process must be done again, and again.......

Discussing the situation with lenders, its been said that if one unit in a building is approved, in a perfect world, all other units would also be FHA approved. Unfortunately, this isn't always the case.

So that's the problem in a nutshell.

My first thought is, if the buildings and the residents benefit from easier, smoother or more available financing through FHA, can they participate in getting thier buildings on the FHA approved list?

That was a question that seemed to confuse our friends at the FHA office. "The lender gets the buildings approved, " is what I was told. My reply, "why are lenders choosing to do "spot approvals then?"

The truth is, lenders don't have the time, money, access to condo association records, and really, any motivation to get buildings approved unless it adds to their bottom line. That's just how the system works.

My second thought involes adding to the workload of the condo board members and board presidents out there. The last thing I would want to suggest. Being on a condo board is often a thankless job that must be done for the good of the building. Adding the task of assisting an FHA approved lender at getting the qualified buildings on the FHA Approved Condo List may mean more "up front" work but may reduce the overall workload down the road.

With an increase in market share projected in the neighborhood of 45%, it makes sense for condo associations to start working with lenders and encouraging them to approve the building.

It also is worth a call to your local Congressman to find out why FHA financing is limited to condo projects with less than 30% commercial use. That provision is biased against urban "mixed use" projects and is not something the fine folks at the FHA are even able to explain.

FHA loans are a program that got left in the dust of the mortgage boom of the past decade. Its terms weren't as easy to deal with and there were better options available in the conventional marketplace. With FHA streamlining its programs and making them more "user friendly" combined with the current lending crisis on our hands, it just makes sense to hop on the bandwagon or else suffer the fate of buyer's being steered away from downtown.

My Day at the FHA; part 1

Rapid changes in the financing markets have me thinking quite a bit lately. Last week a lender advised a client that if she wanted a loft downtown, she should check a list of FHA Approved Condominium projects in St. Louis FHA%20approved%20St.%20Louis%20Condos.pdf

"FHA loans" are really bank loans that are insured by the federal government. They were created in the great depression as a way to encourage home ownership by those unable to make the substantial downpayment required to own a home (providing 97% loan to value (LTV) instead of 80% loans to value). For about the past 8 years, FHA loans were nearly obsolete with the availability of "piggyback" loans that allowed for two loans equaling 100% of the purchase price. Due to the corrections going on each day in the lending markets, the Federal Housing Administration estimates that the percentage share in the market of FHA loans will jump from 2% in 2007 to 48% in 2008.

With conventional lenders pulling most loan products off the shelf and the federal government anticipating the increase in FHA loans, one interested in downtown real estate may wonder why only 1 Loft building is FHA approved and what can be done about it.

That information to follow.

Coming Soon To MacroSun

Gil Williams, owner of Macrosun, stopped in the Washinton Ave Post on Friday. He spoke of his long trip to the far east. Buying jewelry apparel and home furnishings from places like Indonesia and Tibet has a tremendous amount of logistics involved. He expects his large cargo shipments to be arriving with some great new material starting in late May or early June. Check it out!

What's up with Tony's?

The last month, news about the floundering Busch's Grove in Ladue has suggested that Vince Bommarito saving the historic restaurant with hints of uncertainty for downtowns Tony's.

This week, Vince made an offer and hinted about the possible changing of the guard at Tony's in an article that included talk about suitors to Pyramid's projects.

Developing the Arcade under a different plan would be a great thing for the city for several reasons. For starters, the ultra-luxury plan envisioned by Pyramid wasn't marketable. Even the developer's have to remember that St. Louis is still a conservative midwestern city. Many "high end" buyer's start out looking for the penthouse and end up spending less.

The next phase of developers that take on downtown will hopefully stick to a more realistic business plan. As admirable as John Steffen and Pyramid are, it seemed that the past year or two that operations were more based on a fantasy than on a business plan. Many other developer's seemed to be caught up in the same notion. Of course, that's just an outsider's perspective. It was an issue that came up with each buyer and seller I worked with.

With the brakes slammed on so many projects downtown, it will give the market a chance to settle down. Despite all the hoopla, progress is being made and downtown is still in business!

The True Lofts

The history of lofts is fascinating. Not a SOHO History expert, past reading talks of the starving artist--unable to afford residential apartments--rents out "space" in the largely abandonded structures zoned and equipped for commercial use. So began the attraction of the loft. A subversive element. A Soho Lofts website had this to say about the original lofts, "Most of these spaces were also used illegally as living space, being neither zoned nor equipped for residential use, but this was ignored for a long period because the occupants were using space that would probably have been dormant or abandoned..."

The beauty of these spaces involves personality.

In the mid 60's and into the 70's, getting a loft space in soho took on the personality of the occupant. The challenge was to make the space "yours" without having to add traditional building of walls and halls. Creativity and unconventional style was born and nurtured. The concept in various forms has spread and evolved.

Most of today's lofts from St. Louis loft builders don't have as much in common with the spaces in Soho. Here, the developer is the main source of creativity. Modern elements are produced in mass. Most loft dwellers today don't have the time for the creative lifestyle. The mostly open large spaces are being carved up into classy apartments with more conventional 2 and 3 bedroom units. The loft concept has evolved into the mainstream here and in many other towns.

Enter the King Bee Building. Located at 1709 Washington, the building resembles a converted commercial structure because that's what it is. Spaces rented out as office or artist studios were subdivided and sold as condos. The building and the lofts within are the closest thing to the Real Thing that downtown has to offer.

This weeks RFT highlighted a long brewing controversy within the building in its typical melodramatic and one sided approach. The article seemed to paint the "King Bee 9" as blameless victims. They may be. What seemed evident was the details conveniently left out of the story.

One thing that has been evident is that not everyone should live downtown. High density living favors people that can "play nice in the sandbox" with the patience and sincerity to work towards resolution. Various disputes in condo associations everywhere repeatedly confirm this fact.

Good luck to all at the King Bee for a amicable end to the story.

Urban Beauty

The Urban Roots planting days are today and tomorrow.

According to the Downtown St. Louis Residents website, meeting location for tomorrow is at the South sidewalk along Kiener Plaza. Show up at 8 and put in some time to make Downtown St. Louis a more attractive place to live, work and visit!

Another event set up to make downtown more beautiful is a fundraiser tonight at
Railway Lofts unit 901. For a long time, there have been various grass roots attempts at beautification of Lucas Park. One group was more or less dismantled after Pyramid (in its free time) was going to use MODESSA state tax credits to recreate the landscape of the park. The next group is fully active and organized to get things moving.

Lastly, yesterday the story broke that the National Park Service is beginning the process to re-evaluate the use of the Arch Grounds. The St. Louis Business Journal article discussed the process in the most detail. Most importantly, the public is being asked for its support and guidance throughout the process. Meetings will be held and input is being solicited. As has been said all along, good public support will go a long way into turning the riverfront into a world class destination.

If you love downtown, now is the time to remember we're in the "Show Me" state.

The Calmer Tour

This year's loft tour was 'right sized.'

Each year it seems the loft tour is more and more hyped, with more and more new projects to see. Gimmicks, promotions, and lots of hooplah surrounded the fact that a neighborhood is being built. This year was calmer, except for the street level tension of having so many misguided cubs fans walking our streets.


According to Matt Schindler at the Downtown St. Louis Partnership, 900 people officially registered for the tour. My guess, based on the number of wrist-bands and blue bags full of information, was that about half the people "touring" had registered for the tour. Many people were just down, walking around, and trying to hit all the open houses. The overall experience is that as each year passes and downtown surges forward, more of the attendees are seriously considering a move downtown. I guess now that there's a Schnucks, its not such a novelty.

Also shared was that the fall tour will most likely be a 1 day event. Welcome news.

This year, my take on the tour changed slightly after being more actively involved with the Downtown St. Louis Partnership. The tour represents a big welcome mat, even for Cubs fans, to see what our downtown living in St. Louis has to offer. I take for granted that people know how great it is to be downtown and what urban living is like. In reality, people judge "what downtown is like" based on experiences they might have had decades ago. Just like being born a Cubs fan, that's just not fair.

St. Louis Loft Sales in April

Lately it seems like things have really been picking up. Downtown is buzzing, sidewalk cafe's are going, foot traffic is increasing, the Cardinals are playing. All the things I love about Spring in Downtown St. Louis.

Loft sales may have been a drop off from last month. More will be revealed as the next few days go by.

Speaking of the next few days.....The Annual Spring Downtown Living Tour is being held this Saturday and Sunday. It should be a great tour this time. Weather will be ideal for long walks and downtown will put its best foot forward.

We hope to see lots of friendly faces this weekend!

Here are the current sales for April. (Updated 5/5)


210 N 17th St #308------------427-----79,900
210 N 17th St #1408------------------82,400
210 N 17th St #1106------------------139,140
1123 Washington #710-----------------144,000
2020 Washington Ave #307---1198----155,000
2020 Washington Ave #413---1300----157,000
721 N 17th St. #405------------1285----182,500
2201 Washington Ave #302---1358----192,635
314 N Broadway #1108-------968-----239,900
901 Washington Ave #411-----1711----242,500
1619 Washington #201-------2268----267,000
1611 Locust #703-----------2062-----312,000
1015 Washington #702-------2532----558,535

"Did You Hear....."

The month of April 2008 will henceforth be known as the "Did you hear about Pyramid?" month. I must have been asked that question 500 times in 3 days, followed of course by "What do you think?".

There are a whole lot of bad things about Pyramid closing. I can go on forever. Seeing so many really good people with such dedication and vision finding themselves out of work in these times is terribly depressing. I hope and pray that they all land on thier feet.

Aside from the personal side, I can't help but say that the whole thing happening wasn't a big suprise. How it happened yes. Anyone following downtown development was skeptical about their ability to pull off so much work. My thought all along was that they had a good "poker face" and that they would eventually shelve or change plans. The way things were going was just too wierd. It didn't make sense.

When John Steffen was quoted in the St. Louis Business Journal, saying that he was just doing deals because banks wanted to work with him, I was confused. Banks are always wanting to do deals with me. I get 20 credit card offers per week it seems. When I bought my first multi-family apartment building, I was approved to buy 6 of them. That would have been a recipe for disaster for sure.

As far as downtown real estate goes, despite the way things happened, its a good thing for these projects to slow down or go away for a time. Getting more focus on improving the quality of life downtown and attracting more businesses is best for downtown and the region. Getting more residences is needed, but not yesterday. Having hundreds of vacant condos sitting around won't help anyone.

Yesterday I was working with a buyer wanting to live downtown. We spoke of the advantages to living downtown as we walked into the Printer's Lofts building. As we walked in I saw a medical transport van from Mt. Vernon Missouri parked out in front. "Steve must be coming back home!" I thought. Today I read his blog post. Hearing his simple endorsement of downtown living is a wonderful focal point to consider regarding downtown development. That's what is important to me.

Propaganda Dispatch

The biggest failure downtown is the continued failed attempts at journalism coming from the Post Disgrace.

The old saying, "maybe if we ignore them, they'll go away" seems apropos here.

Down By The River

Talk has gone on about the state of the riverfront, but not enough.

The topic that sporadically comes up in the news was brought up again a few weeks ago on the Mayor's Blog Hoping to wrest control over some of the 91 acres in order to establish a better landmark that, in the words of Former Senator Danforth, "We want something that transforms our image of ourselves and transforms the rest of the world's image of St. Louis."

Presently, the Gateway Arch grounds are controlled by the National Park Service. Most St. Louisan's have been there at some point or another. The Museum, a trip up to the observatory. The visit would normally take a few hours. Without sounding too critical, it doesn't really transform the image of St. Louis much.

A tremendous landmark, the Arch can become the focal point of so much more that it presently is.

Currently, local Mayors and the Danforth Foundation are calling for more local control of the arch grounds. Even the ability to control and enhance a fraction of the arch grounds could benefit the city and our central focal point. Gaining this local control of the Arch grounds won't be easy.

According to the article from the Post Dispatch, gaining local control will require broad level support from the community, not just a few in power.



William Lacy ClaySt. Louis City office:
625 North Euclid Street, Suite #326
St. Louis, MO 63108
Phone: (314) 367-1970
FAX: (314) 367-1341
Office Hours: 9 a.m. – 5 p.m.
Contact

Out Like a Lion

As busy as things were in March, it was looking like the monthly sales were not going to reflect the newly active market. Seven lofts closed on the last week of the month.

So things are starting to pick up; most notably in the price column. Sales in the range of $250,000 to $600,000 accounted for eight of seventeen sales last month.

Maybe all the flooding is starting to encourage vertical moves. Here are the St. Louis Loft Sales from March 2008

210 N 17th St #1410----------427----------$84,890
210 N 17th St #210------------419----------$87,650
507 N 13th St #209--------------------------$131,000
210 N 17th St #912--------------------------$135,400
1501 Locust St #501-----------980---------$139,000
2201 Washington #307--------911---------$140,203
2020 Washington #307-------1198---------$155,000
1511 Locust St #302----------1235---------$160,000
1501 Locust St #903----------1053---------$161,000
1511 Locust St #106----------1343---------$190,000
721 N 17th St #502------------1236---------$202,000
1015 Washington #309-------1499---------$211,372
1635 Washington #312--------1105--------$229,000
2201 Washington #310--------1442--------$248,306
1123 Washington #513----------------------$255,000
1619 Washington #604--------1595--------$260,000
314 N Broadway #1602-------1126--------$285,000
1015 Washington #604--------1965--------$325,000
507 N 13th St #410-------------2700--------$395,000
1015 Washington #701--------2109--------$459,825
1015 Washington #703--------2523--------$486,604
1015 Washington #702--------2532--------$558,535

St. Louisans Bitch

The concept of Ballpark Village was one that was tough to understand. So we have this stadium with about 80 games per year--then we have a entertainment, retail living center nearby. Baseball heaven maybe?

So the whole idea has gone through some changes. First Condos, then corporate headquarters, who knows what's next. A corporate hub seemed to be the most attractive of the options.

The day Centene announced it's intentions to move downtown, we rejoiced. One big pat on the back for the downtown revitalization. No one seems to know their plans today. They could stay in Clayton, they could move out of state, they could find another place to move downtown.

What sort of baffles me is the whining and negativity surrounding this deal not coming together.

Who really cares if Centene and Busch Stadium are neighbors? Sure it would give some useful density to the project, but is it vital to the project? It wasn't originally in the plans, so it mustn't be that important.

Listening to Charlie Brennan on Thursday the skeptics were crawling out of the woodwork. Maybe they're always out of the woodwork, talk radio is rarely in my schedule. Suddenly, the City, the Cardinals, Cordish, and anyone else involved was corrupt, spineless, failures that should be banished. The fact that so many people needed Centene to be a part of Ballpark Village was confusing. Should it have been re-named "Health Care Village?"

Bill McClellan put his usual anti-development spin on his column and made some good points about local business not getting the same favoritism being granted to Ballpark Village. The comparison to Ballpark Village to St. Louis Center is a tired cliche though. He should just come out and admit that he prefers the downtown of 1990 over the one of today.

After reading Bill's column though, something seemed to come into focus that had never been so clear about Ballpark Village. It's being built for him. Ballpark Village is being created as a suburban oasis in the heart of the City. It will bring comfort to those looking for a bit of home in downtown. It will still happen.

While the naysayers still ponder the fate of Ballpark Village, downtown development moves on. I can't shake my optimism about the right thing happening for the beloved "hole by Busch stadium". St. Louis shouldn't be so impatient and cynical. It casts a negative shadow on the immense progress and the bright future of our downtown. These major projects deserve time, attention, and the opportunity to tweak the plans until the right concept evolves.

Let's face it, the Cardinals are easily the number one attraction (besides work) downtown. Let's stand behind their goals to make the baseball experience more fulfiling in Downtown St. Louis.

Shop Downtown!

Right now there's an underlying competition going on. It's been going on for a while now.

In April 2006, the previously slated "Ballpark Village" plans were unveiled. Bill DeWitt III of the Cardinals and Chase Martin of Cordish explained a new city center with entertainment and upscale shopping. "National Brands" without a presence in St. Louis would be there. It would be a thriving part of the revitalized downtown-a destination point for shoppers. Sounds good.

Last year, John Steffen and the Pyramid Crew came up with a similar sounding plan, Mercantile Exchange. At the lunch meeting promoting the project, it was described as a mix between local independent stores and national brands with entertainment and free parking. A very impressive plan, but I couldn't help but draw parallels with Ballpark Village.

Shopping Downtown is how it should be. For years, downtown was the focal point for local area shoppers. Generations of St. Louisan's remember big shopping trips in downtown. St. Louis was a relevant major city then.Enter suburban sprawl, overall decline of downtown and the major shopping mall. Most attempts (St. Louis Centre) to reverse the trend were unsuccessful. Many argue that St. Louis Centre's attempt to bring suburbia into the inner city was what killed it. It's overall lack of authenticity.

Now, the building blocks are in place. Downtown is growing. People really want to be here to live work and play. They are wanting the services and opportunities that Ballpark Village and the Mercantile Exchange will offer.

Who could possibly screw this up? Enter in City Government.

OK, so nothing has happened yet. But in an article in today's Post, it describes a clandestine real estate acquisition by the city that city development leaders have planned for a new shopping center. As Rodney Crimm (viewed above at the Lee J's expansion ribbon cutting) put it, so residents can shop in the City instead of going to the county. It cites the projects location, having good interstate access between 40/64 and 44 (doesn't downtown have good enough highway access?)

The thing that is disturbing is not that downtown projects have competition. Obviously we live in a society where competition is a central paradigm. What is frustrating is that this appears to be a project not born out of free enterprise, but some secret deal between the city and MSD that no one seems to be asking for. Why should bureaucracy compete with free enterprise? As Mr. Crimm puts it, to compete for the tax dollars that are lost to the county. Why can't the city just work hard to be a great city and stop trying to be a suburban knock-off?

St. Louisan's are ready for a "5th Avenue" (New York) or "magnificent mile" (Chicago); an authentic urban shopping area. We just have to be ourselves and work to build our great city.

Anti-Frigid Sales

So the winter months aren't supposed to be the ideal time for home shopping. Winter was over this weekend when almost 30 people came to our open house, but now winter must be back.

That could really be ok.

This year the real estate market was alive and well during the winter months. The market has changed, buyer's are more savvy and demanding. Writing an offer doesn't always mean a buyer is committed to a property. Things are different but they keep moving forward. Looking at properties under contract, it appears that seller's are allowing buyer's to extend closing dates for longer periods. Much of the winter activity still has yet to officially close.

The Syndicate has started move ins since the beginning of the year. While those sales weren't all included in the MLS, it's great to see a long dormant building with a new life.

Here are the Downtown St. Louis Loft Sales for January and February 2008.

210 N 17th St #309----------------------------------------------------79,900
210 N 17th St #307----------------------------------------------------81,200
1501 Locust St #902--------------------------------------------------125,000
210 N 17th St #305---------------------------------------------------126,100
1511 Locust #104-----------------------------------------------------160,000
2201 Washington Ave #504---------------------------------------------164,600
1709 Washington Ave #801---------------------------------------------165,000
901 Washington Ave #508----------------------------------------------195,000
314 N Broadway #1704-------------------------------------------------199,900
1015 Washington Ave #301---------------------------------------------213,436
2201 Locust St #305--------------------------------------------------222,000
1123 Washington Ave #707---------------------------------------------232,500
1015 Washington Ave #403---------------------------------------------240,900
1015 Washington Ave #501---------------------------------------------243,153
1136 Washington Ave #605---------------------------------------------260,000
315 N 11th St #801---------------------------------------------------270,000
901 Washington Ave #607----------------------------------------------272,000
1015 Washington Ave #406---------------------------------------------273,600
400 S 14th St #1115 -------------------------------------------------535,000