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ST. LOUIS-Behringer Harvard has acquired a majority interest in Chase Park Plaza, a 1.2 million-sf historic mixed-use property that encompasses most of a city block in the Central West End neighborhood here. The transaction, which is valued at more than $180 million, includes $95 million for a planned renovation of the property, a company spokesperson tells GlobeSt.com. James Smith, a longtime, local part-owner, operator and developer of Chase Park Plaza, is the minority owner.
Built in the 1920s, Chase Park Plaza comprises an 11-story, 251-room luxury hotel, a 29-story residential high-rise called Park Plaza, and a five-story parking garage. The complex also includes five restaurants, about 65,000 sf of banquet and meeting space, outdoor swimming pool, fitness facility, and about 60,000 sf of retail and office space.
The renovation of the property is transforming the 270-unit Park Plaza apartments into a mix of hotel suites, furnished corporate apartments and high-end condos. Plans also call for the refurbishment of existing hotel suites and common areas. "Once the planned redevelopment is complete, we believe it will reinforce the property's reputation as the destination and residence of choice in the Midwest while providing an attractive return to our investors," Robert Behringer, founder and chief executive officer of the company, says in a statement.
The first three floors of the Park Plaza residential tower, which is adjacent to the Chase Park Plaza hotel, will be converted into 89 additional hotel suites, which Behringer Harvard officials say will help meet the growing demand for hotel rooms. Another three floors will be transformed into 48 corporate apartments. The top 16 floors of the apartment building will become The Private Residences at The Chase Park Plaza, delivering 87 luxury condos.
The Private Residences at The Chase Park Plaza condos will range from 1,020 sf to 4,217 sf and list for $395,000 to $2.5 million. Amenities available to condo owners include 24-hour room service, concierge assistance, and catering and event support. Construction is slated to begin in March 2007. The first units will be delivered by summer 2008, and the entire project will be completed by fall 2009.
Chase Park Plaza, which has played host to US presidents and staged performances by the likes of Bob Hope and Frank Sinatra, fell into disrepair in the 1980s. Kingsdell LP purchased the distressed property for more than $26.5 million in 1997 and redeveloped it over several years. Smith is the managing partner of Kingsdell, which continues to serve as the property manager and developer of Chase Park Plaza.
The complex occupies about 80% of a city block at the northeast corner of Forest Park, a 1,371-acre urban park that houses the St. Louis Zoo, the St. Louis Science Center, the St. Louis Art Museum, a 27-hole golf course, a skating arena, jogging trails and cultural attractions. It is located about four miles west of downtown St. Louis and 11 miles southeast of Lambert-St. Louis International Airport. Major employers in the neighborhood include Washington University and Barnes-Jewish Hospital, the city's largest medical center and employer, according to Behringer Harvard.
The Chase Park Plaza, which was acquired for Behringer Harvard Opportunity REIT I Inc., is the company's second investment in St. Louis. The company also owns a significant interest in St. Louis Place, a 337,000-sf office tower in Downtown St. Louis. The firm acquired its stake in the 21-story building in June 2004.
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