The trust is providing $63 million to the mixed-use redevelopment of the Missouri Pacific/Union Pacific headquarters at 210 N. 13th St, to be called Park Pacific. The developer, Parkside Tower LLC, is working on a $98 million reuse project that will convert the 24-story property into 230 residential units, retail, offices and a new parking facility.
The other $45 million from the trust will be used for the residential portion of the Laurel development, which includes the redevelopment of the Dillard's department store in the downtown. The 205-unit Laurel, which will also have retail and hotel rooms, is part of a $165 million mixed-use project that is still trying to gain its legs following the recession and a former developer, Pyramid Cos., declaring bankruptcy.
Ted Chandler, COO of the trust, tells GlobeSt.com that while his main job is to gain a good return for investors, the trust's secondary mission is to help provide construction jobs to the struggling industry. St. Louis officials say that the construction trade is suffering from about 40% unemployment.
"There has been no better time where it is more important for us to accomplish that mission than right now. This is the worst degree of depression ever for the construction trades," Chandler says.
He says his trust, a $3.7 billion fund, specializes in investing in multifamily projects that are backed by the federal housing administration. "At this time in the economy, the only source to make construction lending happen is if it's federally insured," Chandler says. The trust has invested more than $430 million in 24 projects in the St. Louis area. The trust made the recent funding announcement at an event hosted by Productivity and Responsibility Increase Development and Employment (PRIDE), which promotes construction activity in the St. Louis area.
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