U.S. Bank announced today that it closed on several tax-credit
financing packages of more than $77 million with Dominium, a
leading apartment development and management company, to develop
the century-old Arcade Building into a mixed-use space for
university classes and 282 market rate and affordable-housing
apartments.
The renovation of the 18-floor, 500,000-square-foot building at
800 Olive St. includes 202 affordable and 80 market-rate
apartments, ranging from one to three bedrooms. The
affordable-housing units are specifically designed to meet the
needs of artists, offering one- to three-bedroom apartments as well
as over 13,000 square feet of artist studio space.
“Tremendous persistence, commitment and a deep desire to support
the emergence of downtown St. Louis as an arts and innovation
community kept our team motivated to make this development come to
fruition,” said Zack Boyers, chairman and chief executive officer
of U.S. Bancorp Community Development Corporation (USBCDC). “The
Arcade Building is in the heart of a now-thriving neighborhood that
USBCDC is proud to have been working to reinvigorate for many
years.”
Dominium plans to market the affordable housing units to
artists, based on its record of successfully leasing loft space in
the Leather Trades and Metropolitan Artist Lofts buildings in St.
Louis and Schmidt Artist Lofts in the Minneapolis/St. Paul
area.
“This is the third artist loft project in St. Louis that we have
partnered on with USBCDC, and, without a doubt, no other investor
in the U.S. would have made such a complex deal happen except
them,” said Jeff Huggett, vice president and project partner for
Dominium of Plymouth, Minnesota. “We are excited to provide the St.
Louis region with a development that attracts artists to the area
and gives them work and performance space to spur their creativity.
Cities with flourishing artist communities attract other artists
and new residents seeking a vibrant cultural environment. Our
experience has proven that artist lofts are economic development
drivers. ”
The Arcade’s first two floors and mezzanine of 55,000 square
feet will be leased to Webster University for classes, a 170-seat
auditorium, community kitchen and an art gallery. This expands the
Webster University campus downtown to 85,000 square feet from
33,000 square feet, including its presence in the Old Post
Office.
Dominium projects that Webster University will be able to move
in as early as December 2015 and construction on the remaining
space will finish in January 2016. The renovation is a major part
of the much-desired redevelopment of the Old Post Office
Square.
“Redevelopment of the historic Arcade Building wouldn’t have
been possible without the partnership of these organizations and
the availability of tax credits, especially New Markets Tax
Credits. Breathing new life into this century-old building will
move the city forward in our goal of making downtown a hub of
residential and commercial activity for the region,” said St. Louis
Mayor Francis Slay.
U.S. Bank invested $77 million raised through its investments in
federal New Markets Tax Credits, federal and state historic tax
credits and a separate investment arranged from federal low-income
housing tax credits.
U.S. Bank Community Lending Division provided a $44 million
construction loan, partially bridging the equity provided by
USBCDC. BMO Harris Bank provided bridge and permanent construction
financing, Cornerstone Permanent Mortgage Fund (Boston Capital
Finance) provided a permanent loan and the City of St. Louis
provided a $4.8 million loan.
New Markets Tax Credits for the project were allocated by U.S.
Bank, St. Louis Development Corp., Enterprise Bank & Trust,
National Trust Community Investment Corp. and Central Bank of
Kansas City. The low-income housing credits were allocated by
Missouri Housing Development Commission, which also provided a
federal HOME loan and Affordable Housing Assistance Program tax
credits.
About DominiumFounded in 1972, Dominium is a
Minneapolis-based owner, developer and manager of apartment
communities nationwide. With more than 21,600 owned and/or managed
units at 192 sites in 18 states, Dominium is known for creative
solutions to unique and challenging development projects and
management expertise. For more information, visit
www.dominiumapartments.com.
About Webster UniversityWebster University, founded in
1915 with its home campus based in St. Louis, Missouri, USA, is the
only Tier 1, private, nonprofit university with campus locations
around the world, including metropolitan, military, online and
corporate, as well as American-style traditional campuses in North
America, Europe, Africa and Asia. Its mission as a worldwide
institution is to ensure high-quality learning experiences that
transform students for global citizenship and individual
excellence.
About U.S. Bank Community Lending DivisionU.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.
About U.S. Bancorp Community Development CorporationWith
more than $14.4 billion in assets as of June 30, 2014, U.S. Bancorp
Community Development Corporation, a subsidiary of U.S. Bank,
provides innovative financing solutions for community development
projects across the country using state and federally sponsored tax
credit programs. USBCDC's commitments provide capital investment to
areas that need it the most and have contributed to the creation of
new jobs, the rehabilitation of historic buildings, the
construction of needed affordable and market-rate homes, the
development of renewable energy facilities, and the generation of
commercial economic activity in underserved communities. Visit
USBCDC on the web at www.usbank.com/cdc.
About U.S. BankU.S. Bancorp (NYSE: USB), with $389
billion in assets as of June 30, 2014, is the parent company of
U.S. Bank National Association, the 5th largest commercial bank in
the United States. The Company operates 3,174 banking offices in 25
states and 5,005 ATMs and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit
U.S. Bancorp on the web at www.usbank.com.
Editors/Photographers: A hard-hat tour of the building will
be available TODAY at 1 p.m. at the
8th Street entrance of the Arcade Building across
from the Laclede Gas Building. Closed-toe shoes are required for
the tour.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140811005094/en/
Shera Dalin, U.S. Bank Public Relations(314) 335-3335,
shera.dalin@usbank.comorJosie Warren, Dominium(952) 851-7227,
jwarren@tunheim.com
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