Cassidy Turley Markets Historic Butler Bldg.

ST. LOUIS—Cassidy Turley has just been chosen to market the historic Butler Brothers building in downtown St. Louis to buyers who may transform the former regional warehouse into hundreds of residential units or possibly a hotel. The 718,660-square-foot building located at 1717 Olive St. in St. Louis' CBD is listed in the National Register of Historic Places and has already won approval for state and federal historic tax credits to support its redevelopment.

“We're seeing a lot of interest nationally,” says Michael Hanrahan, a senior managing director with Cassidy Turley, who, along with Paul Hilton, will handle marketing for the property. "The whole central corridor in St. Louis is redeveloping," from the downtown west to suburban Clayton. Ikea recently decided to establish a major outlet in the corridor, along with many other businesses, thousands of residents have settled in area lofts, and the regional real estate market, especially the office and industrial sectors, has shown some bright spots. “This is an incredible opportunity for an investor to own an entire city block in Downtown St. Louis.”

“It was primarily a garment district,” he adds about the surrounding neighborhood. Built in 1906 and designed by Muarhan, Russell & Gasden, Butler Brothers operated it as a mail order catalogue wholesaler serving local retail stores. In 1927, the company opened the iconic Ben Franklin Stores, one of the first retail franchises, and the property was used as a regional warehouse that supported the stores.

Cassidy Turley has a preliminary redevelopment plan that calls for 342 multi-family units, 397 garage parking spaces, two retail spaces and an additional two-story penthouse of about 71,277-square-feet. “We're just offering an idea and seeing what the market tells us,” Hanrahan says.

“Since 2000, the Downtown market has added 4,100 multi-family units,” says Hilton. “Even with significant inventory increases, the vacancy rate has stayed around 10% with the core submarkets around 5%. Investors seeking an opportunity in this hot multi-family market will find the property attractive.”

Cassidy Turley has not set an official price for the offering, but Hanrahan says that based on similar properties in the area he would not be surprised to see the Butler building will go for about $18 million, or somewhere between the low $20s-per-square-foot and the low $30s-per-square-foot. “It's not a formal asking price.”

Some work already has been done to the vacant eight-story building to prepare for renovation and restoration. The first floor and basement currently serve as a parking garage with 200 spaces. The second through eighth floors of the building retain an interior light court. The property, located on 2.10 acres, also offers easy access to Interstates 64 and 70.