The developer behind the Butler Brothers building’s planned renovation has closed on funding for the US$130M project. This milestone allows for the start of the redevelopment of one of downtown’s largest unoccupied structures built back in the 1900s for a turn-of-the-century distributor.
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As part of this project, the building will be converted into 384 flats with 400 subterranean parking spaces, room for a street-level restaurant, and maybe a second eatery or bar with rooftop access. Only two blocks from the under-construction Major League Soccer stadium, around half of the apartments, are planned to open by next summer, with the remaining projected to be completed by early 2024.
The team behind the Butler Brothers Building Renovation Project
Development Services Group (DSG) paid US$ 6M for the building a year ago, its first entry into the St. Louis market, which was assisted by a loan from Greater St. Louis Inc.‘s real estate arm to pay a portion of the acquisition finance.
DSG has years of expertise renovating major historic properties in other cities, complex projects that can present unexpected structural challenges. A past owner was given US$ 24M in Missouri Historic Tax credits, which are now eligible for use on the project, and another US$ 18M in federal historic tax credits are filling the finance gap.
The construction finance is being led by Bank of America, with Meta Real Estate Partners serving as the junior construction lender.
Commentary on the project
Gary Prosterman, president and CEO of DSG in Memphis, Tennessee, said that they’ve obtained the permit for the execution of the Butler Brothers Building Renovation Project and that they will be mobilizing this week.
“Everything is in order for the implementation process to begin. Because of its size and the fact that 380 people are moving to the neighborhood with decent jobs and money to spend, it should be considered a catalytic initiative,” explained Prosterman.
“We’re excited to collaborate with DSG to renovate this landmark building in Downtown West, which underscores our commitment to St. Louis,” Marilyn Bush, president of Bank of America St. Louis, said in a statement.
