Feb 6, 2017
The site was previously expected to include several uses, including office, retail and multifamily. But now, according to multiple sources, the city appears close to advancing a plan that includes mostly multifamily.
An out-of-town developer is expected to receive approval on the plan, which would call for approximately 300 units with some retail on the ground floor.
Clayton Mayor Harold Sanger said the city is still working with developers who responded to a request for proposal for that site and that no decisions have been finalized. In May 2016, the Business Journal had reported four proposals were submitted for the property.
At least one proposal, from ElmTree Funds’ Jim Koman for a mixed-use project, was rejected. A hotel has also been rumored to be a potential fit for the site.
The property, owned by the city of Clayton, has a 2016 appraised value of $3.14 million.
Koman, through a business entity called 8027 Forsyth Acquisitions LLC, which lists ElmTree Funds’ General Counsel Stephen Schott as its registered agent, owns adjacent property to the parking lot that could eventually make up part of any development site.
8027 Forsyth Acquisitions, according to St. Louis County records, owns 8027 Forsyth, 8023 Forsyth and 8019 Forsyth. Combined, those properties have a 2016 appraised value of approximately $2 million.
Any new multifamily units on the site of the current parking lot would add to several new projects expected to be completed in that area over the next 12 to 18 months.
CA Ventures and White Oak Realty Partners, two Illinois developers, are nearing completion on a $75 million, 250-unit apartment tower at 212 S. Meramec Ave. Two other projects, a $41 million plan from Opus Development at 25 N. Central Ave. and Covington Realty Partners’ $55 million Vanguard apartment project, will add another 340 units combined.
The multifamily segment has been a darling among commercial real estate investors and brokers for the last couple of years, driven by more consumers renting by choice and attractive cap rates.
According to Matt Bukhshtaber, executive vice president of investment property sales at CBRE (NYSE: CBG), roughly $600 million in multifamily assets were sold in 2016, a record for St. Louis and up from $485 million in 2015.
According to Yardi Matrix research, which predicts the demand for multifamily assets (from investors and consumers looking to live in such developments) to remain strong for as long as a decade, St. Louis is expected to see some 1,800 new units be completed in 2017.
Bukhshtaber said he believes the St. Louis market could support another 1,500 apartment units before the market is saturated.