Stinson Leonard Street Represents U.S. Bank's Community Lending Division in Conjunction With Financing for The Arcade Building in St. Louis
Stinson Leonard Street LLP advised U.S. Bank's Community Lending Division in conjunction with construction and bridge-loan financing for the Arcade Building renovation in downtown St. Louis, a project led by Minneapolis-based Dominium Development. The project will convert the historic building located at 800 Olive Street into 202 units of affordable housing, 80 units of market-rate housing, and more than 55,000 square feet of space leased by Webster University.
With the adjoining Wright Building, the 18-floor, 500,000-square-foot Arcade Building takes up half of a city block in downtown St. Louis. The building had been vacant for approximately 10 years. In June, Webster University announced it had agreed to a 20-year lease and would become the building's anchor tenant and house up to 1,000 students. The project is scheduled to be completed in 2016.
Leading the redevelopment of the Arcade Building is Dominium Development, one of the largest affordable housing development and management companies in the United States. Paric Corp. is the general contractor. Ebersoldt + Associates Architecture is the lead architecture firm.
The Arcade Building is divided into three condominium units. The first unit consists of the building's first floor, mezzanine and second floor, which will be leased by Webster University. Dominium financed this, together with a second unit containing 80 market-rate apartments and 130 underground parking spaces, with federal and state historic tax credits and New Markets Tax Credits through U.S. Bancorp Community Development Corporation, a loan from BMO Harris Bank, and financing from the City of St. Louis and Webster University.
The third condominium unit includes 202 affordable artist lofts on floors four to 14. This unit was financed by construction and bridge loans, low-income housing tax credits and federal and state historic tax credits through U.S. Bank, along with loans from Cornerstone Permanent Mortgage Fund LLC (Boston Capital Finance), the City of St. Louis and the Missouri Housing Development Commission.
“We were pleased to assist U.S. Bank's Community Lending Division and be involved in a transaction involving many participants who are bringing a historic building back to life,” said David Kelley, a Minneapolis-based partner in Stinson Leonard Street's Banking and Financial Services Division. “This is the third major project involving U.S. Bank and Dominium that we've been involved in recently, following the Schmidt Brewery redevelopment in St. Paul and the Pillsbury “A” Mill project in Minneapolis. We admire Dominium's approach to development projects because they always take great care to preserve the charm of landmark buildings and include an affordable housing component.”
Stinson Leonard Street's team in the transaction included attorneys from two of the firm's offices. In addition to Kelley, Lara Page, an associate in the Minneapolis office, played a major role. Other attorneys involved included Tom Smallwood, a St. Louis-based partner in the firm's Real Estate Division, and Evan Berquist, a Minneapolis-based associate.
About U.S. Bank Community Lending Division
U.S. Bank Community Lending Division, part of U.S. Bank Commercial Real Estate, provides financing to both for-profit and non-profit developers for the construction, rehabilitation and acquisition of rental housing for low- and moderate income individuals and families. One of the nation’s top lenders in this space, the group originated nearly $1.1 billion last year in loans to support the development of affordable housing across the country.