Thursday, September 22, 2011

Our Chemical Romance

Back in late March, Centrue Bank foreclosed on the Chemical Building with a sole bid of $3.36 million.  Its previous owners, Chemical Building Acquisition LLC, purchased it in 2006 for $6.6 million and owed Centrue a total of $7.8 million.  Recent appraisals peg the building's value somewhere between $4 million and $4.2 million.

At the time of the foreclosure, Centrue's CEO talked of the bank's plans to sell the 17-story building and was about to begin discussions with interested buyers.  Since then, we've heard nothing.  Are no suitable buyers to be found? 

Other projects such as the Leather Trades Lofts, The Laurel and the Park Pacific have either been completed or are nearing completion, and their rental units have been quickly leased.  As the downtown residential market continues to exhibit its strength despite the difficult economy, it's clear that it could easily accommodate another development of the magnitude of the Chemical Building, which was slated to include 91 units, along with office and retail space.  Whoever decides to renovate this beautiful building will undoubtedly be able to purchase at a much more attractive price than the previous developers. 

The building and its location facing the Old Post Office are incredibly attractive, and whoever decides to renovate it will undoubtedly be able to purchase it at a much more attractive price than the previous developers.

Soooo...will we be hearing any news about the Chemical Building soon?


Yet Another St. Louis Blog by Kevin B. said...

I'm hesitant to encourage turning buildings in the main portion of the central business district into full residential. It seems it could be better suited as renovated office space, and let the residential stay west and north.

But, it's better that something be done than nothing. The whole Alexa project's been a bit of a yank around. They bought out/kicked out all the tenants, modeled a couple of preview apartments and that's about it. At this point it's a big net-loss, both from business rates and revenue.

Dr. Sonny Saggar said...

I have to differ. We have an abundance of office space, but a faster growth in demand for residential units, especially for the 20 to 35yr old and 50 to 65 yr old age ranges. I know this because these are my fastest growing ages of new patients. They're coming in their droves, and their educated, ambitious and smart. I can see the writing on the wall.
I walk by the Chemical building, the Arcade and I fantasize about finding the capital to acquire and develop these places. Hey, I know I'm just a physician, but someone give me a chance and I'll make it happen! No really!