Chicago Developer Plans St. Louis Condominiums

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Petra Breyerova

 

Seeing an opportunity in moderately-priced condominiums, Chicago-based
developer Silverstone Communities is entering the St. Louis downtown area
housing market.

This month, its new division, Silverstone Communities-Midwest LLC, acquired the
former Bethesda Town House senior apartments located at 60 Plaza Square from
private investment group Dharbaj Holdings LLC for an undisclosed price.

Silverstone plans to transform the vacant 13-story building into 127 units of
moderately-priced condominiums.

Prices will range from about $80,000 for a studio to around $200,000 for a
two-bedroom, two-bath property.

Rising demand and the improved downtown property market has created a shortage
of affordable condominiums, said Kevin Farrell, senior director of economic and
housing development at Downtown St. Louis Partnership, a nonprofit group that
supports downtown area development.

"Anything that would be priced under $100,000 or even $150,000 at this point is
very tough to find (in the downtown area)," he said.

In 2001, condos averaged about $75 a square foot. Today, prices typically range
from $175 to $210, and can exceed $300 per square foot in some projects,
Farrell said.

The 60 Plaza Square project pegs its condominiums at roughly $180 to $190 per
square foot.

When the 60 Plaza Square project is completed, it will include a fitness
center, library and 4,800 square feet of commercial space.

Silverstone is selecting a local architect and a contractor next week to carry
out the $4 million renovation, which will start in August, said Stephen Anrod,
the division's president. The building, built in 1961, was designed by St.
Louis-based Hellmuth, Obata & Kassabaum Inc.

The division plans to start selling the condos this fall, with the first units
available in late 2006 or early 2007.

Total project sales should reach $18.5 million, Anrod said.

Targeting young professionals and first-time house buyers as potential
customers, Silverstone sees a niche for moderately-priced condominiums in the
downtown area, which encompasses the Downtown and Downtown West neighborhoods.

Overall, the downtown area residential market continues to pick up steam with
$807 million invested in from 1999 to 2005 in condominiums and apartments.

This year alone, investment is expected to reach $655 million, with most of
that coming from projects set to start later this year, according to the
Downtown St. Louis Partnership. Currently, there are about 800 condominiums
under construction in the downtown area.

Because of the trend, the partnership projects the downtown area population to
increase to 17,000 in 2010 from its present level of about 10,000. The area
population was 8,300 in 2000.