Wednesday, October 14, 2009

One City Centre Renovation Plans Moving Forward?

The financing of renovations to One City Centre may be taking another step forward soon.

The city of St. Louis is requesting a $5 million loan from the Missouri Development Finance Board to help pay for improvements to the 25-story Class A tower. $4 million in New Markets Tax Credits have already been allocated to help pay for improvements to the building; the price tag for the planned improvements could total $25 million.

Lewis Rice is reportedly considering moving to One City Centre from its current space at 500 N. Broadway. If this happens, it should have a nice impact on downtown's Class A vacancy rate, while delivering a blow to the Class B rate. However, Lewis Rice would be leaving behind a large block of very affordable, well-finished space that, combined with existing vacant space at 500 N. Broadway, could be very attractive for a budget-conscious large tenant.

The area around St. Louis Centre is in desperate need of help. Renovating the office tower and attracting new tenants would be a great first step toward revitalization. Demolition of the St. Louis Centre skybridge and construction on The Laurel would hopefully come next, with the renovation/repurposing of St. Louis Centre itself following.

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