ST. LOUIS—Core urban areas like Chicago have become well-known for attracting thousands of new residents to their respective downtowns, but the same phenomenon is occuring in many other Midwest cities. The former CPI Building, a 270,000-square-foot 1912 vintage office building in St. Louis, is just one of many such properties that will soon be converted to loft apartments. Revive Capital Development, LLC, a Kansas City-based investor, has just bought the nine-story building at 1706 Washington Ave. from 1706 Washington LLC. John Warren, a vice president with the St. Louis office of JLL represented the seller. The financial terms were not disclosed.
The vacant building was previously occupied by CPI for more than 50 years and sits in the heart of the Washington Avenue Loft district. The sale illustrates the changes taking place in the city's office market, as developers convert several older, class B buildings to hotel or residential use.
"The property attracted considerable attention from investors around the Midwest and nationally," Warren tells GlobeSt.com. "We also saw interest from several local investors who were focused on revitalization and being part of the next wave of downtown development. We had investors looking at a variety of redevelopment options, from boutique hotel space to, what ultimately will occur on the site, multifamily units. This is a great opportunity to take a unique vintage building and repurpose it to fit with the new dynamics of this market."
"This 'new urbanism' is playing out in St. Louis and many cities across the country, as owners and investors look for opportunities to repurpose historic buildings," he adds. "This project will play an important role in continuing to attract younger workers and, ultimately, additional employers to the downtown area."
The multifamily market in much of the US has been soaring as millennial-aged people have increasingly decided to put off buying homes. Instead, many now want to pay rent on units in downtown areas. In addition, many boomers have followed them into the cities in order to establish second-homes, or perhaps primary residences that won't require the upkeep that suburban houses require.
According to Downtown STL, Inc., the St. Louis downtown market currently has 4,705 apartment units and 1,691 condos. The demand for downtown living continues to grow and the existing apartments continue to maintain high occupancy rates, around 93%.
Washington Avenue anchors the northern edge of downtown and has many revival style buildings with unique architecture. The area was once home to warehouses forming the city's garment district as early as the 1870s. After the last of the factories closed by the 1980s, urban pioneers began to transform the former warehouses, shoe factories and hat manufacturers into loft-style condos and apartments.
The growing neighborhood now has a host of modern lofts, retail stores and restaurants. Other attractions in the neighborhood include: the City Museum; MX movie theater; America's Center Convention Complex and the Edward Jones Dome.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
