Developer selected for the Syndicate Trust ~STL~

[Brickcity]

Syndicate Trust project goes to Heller, Sherman

By Tavia Evans

Of the Post-Dispatch

04/05/2005

Local developer Craig Heller of LoftWorks LLC and George Sherman of Minnesota-based Sherman Associates have been selected by the city's development arm to resurrect the Syndicate Trust Building downtown.

Heller and Sherman have proposed converting the building into 91 condominiums and 84 apartment units. The $68 million project also will include about 21,000 square feet of retail on the first floor, in addition to a theater, business center and gallery space for artists. U.S. Bank will provide the financing.

A selection committee of the city's Land Clearance Reutilization Authority recommended the two firms Tuesday during a public meeting.

Built in 1907, the Syndicate Trust, 10th and Olive streets, is listed on the National Register of Historic Places. It was once home to the Scruggs-Vandervoort-Barney department store.

Rodney Crim, executive director of the St. Louis Development Corp., said the firms' financial backing and innovative projects already under way made them a first choice to restore the historic building.

"Their project had no pre-sale requirements, and the financial capacity of the two firms combined was significant," Crim said. "We were attracted to their ability to do it without those contingencies."

Three groups of developers, including two out-of-town firms, presented their redevelopment plans to the city before the Jan. 13 deadline.

The selection committee gave second and third rankings to proposals submitted by Pyramid Construction and Roberts Cos., partnering with Minneapolis-based Dominium Inc., respectively.

Heller said he got the call around 4 p.m. Tuesday, that his proposal had been chosen.

"This is literally right in our backyard," said Heller. "Our goal is to not just to redevelop the building, but turn it into a real city landmark."

Heller opened City Grocer in October, across the street from the Syndicate Trust. His firm also has developed the 10th Street Lofts, Bell Lofts, Louderman Lofts, Printers Lofts and the 315 Lofts.

Sherman Associates already has a record of historic conversion and mixed-use projects under its belt. The firm is working to convert a former Sears building and retail complex in the Midwest Exchange building in the heart of Minneapolis. The $190 million project includes turning the group of historic buildings into apartments, condos, office space and a global market.

The SLDC has 60 days to negotiate a redevelopment agreement with Heller and Sherman - which could include ironing out details of tax increment financing - and report back to the LCRA's board. If an agreement can't be reached, the project could be passed to the second- or third-ranked developers.

Pyramid, one of the most visible builders downtown, proposed 175 condominiums and 78 loft rental apartments above three floors of office space and retail space, at an estimated $80 million.

Roberts Cos. and Dominium proposed building 240 units - 94 condominiums, 65 artist lofts and 81 luxury rental apartments and street-level retail, with a price tag of about $77 million.

Reporter Tavia Evans

E-mail: [email protected]

Phone: 314-340-8159