“Given the historic building's extensive environmental remediation and rehabilitation costs, the execution of $20 million in tax increment financing was essential to successfully fund the development of this transformative project,” says Jose Quesada, Alterra's chief investment officer.

Alterra has recent experience using such financing. The company financed its renovation of the Butler Brothers Building in Dallas, for example, with historic tax credits, senior construction loans and mezzanine debt. Alterra also successfully obtained $23.9 million Property Assessed Clean Energy Programs financing, the second largest PACE transaction in the US. The company will use all of these tools for the Jefferson Arms redevelopment.

The 18,603 square feet of commercial space located on the first floor will include a variety of retail and restaurants. Additionally, Alterra will convert the existing ballroom into a collaborative office space which may include a national incubator. Koleksiyon, a European furniture manufacturer, will open its fourth US location at Jefferson Arms, following New York, Chicago and Dallas. A leading kitchen cabinet producer from Europe, Linea Décor, will open up its largest US showroom in the new development, as well.

Alterra anticipates that Aimbridge Hospitality will serve as the hotel operator and Merriman Anderson Architects from Dallas as the architect. Additionally, Kwame Building Group from St. Louis will assist and augment Alterra's construction team.

ST. LOUIS—Like many secondary markets, downtown St. Louis has a number of underused historic buildings, and with CBDs growing more popular as destinations, some developers see opportunity. Alterra Worldwide, a Dallas-based commercial real estate developer, recently jumped into the downtown St. Louis market by purchasing the century-old Jefferson Arms building.

The company plans to renovate the landmark at 401-15 N. Tucker into a mixed-use building with 240 apartments, a 220 room AC Marriott-branded hotel and commercial space with restaurants, retail and creative office spaces with basement valet parking.

“We are proud to be converting this outstanding property into a space for forward thinking and creative living, carrying the torch into the future for the downtown St. Louis community,” says Mukemmel (Mike) Sarimsakci, Alterra's chief executive officer.

Built in 1904 in anticipation of the first World's Fair, the 520,000 square foot Jefferson Arms development is a short walk from the Cardinals Busch Stadium, America's Center Convention Complex, Keiner Plaza and the historic, newly renovated Arch Grounds.

“Given the historic building's extensive environmental remediation and rehabilitation costs, the execution of $20 million in tax increment financing was essential to successfully fund the development of this transformative project,” says Jose Quesada, Alterra's chief investment officer.

Alterra has recent experience using such financing. The company financed its renovation of the Butler Brothers Building in Dallas, for example, with historic tax credits, senior construction loans and mezzanine debt. Alterra also successfully obtained $23.9 million Property Assessed Clean Energy Programs financing, the second largest PACE transaction in the US. The company will use all of these tools for the Jefferson Arms redevelopment.

The 18,603 square feet of commercial space located on the first floor will include a variety of retail and restaurants. Additionally, Alterra will convert the existing ballroom into a collaborative office space which may include a national incubator. Koleksiyon, a European furniture manufacturer, will open its fourth US location at Jefferson Arms, following New York, Chicago and Dallas. A leading kitchen cabinet producer from Europe, Linea Décor, will open up its largest US showroom in the new development, as well.

Alterra anticipates that Aimbridge Hospitality will serve as the hotel operator and Merriman Anderson Architects from Dallas as the architect. Additionally, Kwame Building Group from St. Louis will assist and augment Alterra's construction team.