One of St. Louis’ tallest office buildings sells for only $3.6 million....2% of it's peak price

[jbrownson0831]

Wow. I didn't know St. Louis had turned into such a shithole.

Along with the city the baseball team too

 

[Harpy Eagle]

View attachment 930818

The building has been empty since 2017....yet it is somehow Biden's fault.

I just love you partisan sheep, you are so much fun.

 

[Weatherman2020]

The building has been empty since 2017....yet it is somehow Biden's fault.

I just love you partisan sheep, you are so much fun.

SF real estate values are now lower in 2023 for the first time in history.

Biden + Newsom.

 

[Harpy Eagle]

SF real estate values are now lower in 2023 for the first time in history.

Biden + Newsom.

and that has what to do with a building in St Louis that has been empty since 2017?

 

[justoffal]

https://www.costar.com/article/642008108/one-of-st-louis-tallest-office-towers-empty-for-years-sells-for-less-than-2-of-its-peak-price

In the latest sign of how lower demand is hitting parts of the U.S. office market, one of the tallest towers in St. Louis that sold for $205 million in 2006 has changed hands again this week — for about $3.6 million.

The former One AT&T Center, a 44-story high-rise totaling 1.46 million square feet at 909 Chestnut St., is now owned by Boston-based Goldman Group. The firm bought the property via CoStar Group's Ten-X auction exchange from SomeraRoad Holdings, a commercial real estate investor and developer that paid just $4.5 million for it two years ago. On a per-square-foot basis, the tower’s value over 18 years dropped from about $140 to $2.50, according to CoStar data.

The block on which the long-vacant property sits was declared a blighted area by the St. Louis Planning Commission in 2023. SomeraRoad had proposed renovating the existing building to develop 306 apartments, 300 hotel rooms and 37,000 square feet of retail, thus reducing the office square footage by 1.2 million square feet.

The company's plan to redevelop the tower never materialized. Charles Goldman, principal of Goldman Group, wouldn’t disclose to CoStar what his firm intended to do with the property, saying his company was “still digesting the sale.” At 588 feet, the former One AT&T Center is taller than all but the 630-foot Gateway Arch monument in St. Louis and the 593-foot One Metropolitan Square office building.

Dem-run shit-hole gonna shit-hole.

They will convince the city and state (and maybe the feds) to give them money to redevelop the "blighted" area. Take the money, use it to pay off politicians and give bonuses to everyone in the C Suite, then declare bankruptcy. There's lots of grift to be had there.

Part of the "Doom Loop" I guess.

The Real Estate Nightmare Unfolding in Downtown St. Louis​

MSN

New York City will be next

 

[initforme]

Most of the jobs done in high rises can be done from people working from home. One positive trend that came out of covid.

 

[Harpy Eagle]

Most of the jobs done in high rises can be done from people working from home. One positive trend that came out of covid.

This is a fact. Saves a company a ton of money

 

[CrusaderFrank]

Looks like it would have made an awesome condo project, were it not for downtown St. Louis (and most other major cities for that matter) being a shithole.

LOL

Well said!

Besides that Mrs. Lincoln how was the play?

Retrofitting old office into apartments is a very costly endeavor.

A shelter for newly arrived democrat voter is probably highest and best use. Throw mattresses in the offices and leave the community bathrooms

 

[JackOfNoTrades]

New York City will be next

Dude....commercial real estate in NYC has been there...for a couple of years now.
Again, this is happening in EVERY major city.

 

[CrusaderFrank]

This is a fact. Saves a company a ton of money

I like Related's view: Sure, you can work from home, but you won't be working for Related

 

[Harpy Eagle]

I like Related's view: Sure, you can work from home, but you won't be working for Related

Each company has to make up their own minds. I can see why a company dedicated to Commercial real estate might not want their people working in anything but an office building.

Then there is the case of someone like my brother...
My brother is an architect, he has been working from home since COVID. He moved once they made them remote a hour north of the city they were in and has 10 acres now. He works, does stuff on the land, does more work....rinse and repeat. When his employer tried to make him come back to the office he said he would leave the firm, so they asked if they could ship his chair to him and gave him a raise to keep him from leaving.

They get more work out of him now as the time he would have spent commuting he often spends working.

 

[CrusaderFrank]

Each company has to make up their own minds. I can see why a company dedicated to Commercial real estate might not want their people working in anything but an office building.

Then there is the case of someone like my brother...
My brother is an architect, he has been working from home since COVID. He moved once they made them remote a hour north of the city they were in and has 10 acres now. He works, does stuff on the land, does more work....rinse and repeat. When his employer tried to make him come back to the office he said he would leave the firm, so they asked if they could ship his chair to him and gave him a raise to keep him from leaving.

They get more work out of him now as the time he would have spent commuting he often spends working.

All true, and Related made a massive bet on Hudson Yards. That plus the synergies of people actually working together face to face is not duplicated on a Zoom call. Ross is also making a big bet on South Florida, he even parted ways with Jorge Perez and Related Group because of it

 

[Harpy Eagle]

All true, and Related made a massive bet on Hudson Yards. That plus the synergies of people actually working together face to face is not duplicated on a Zoom call. Ross is also making a big bet on South Florida, he even parted ways with Jorge Perez and Related Group because of it

That is one of the biggest downfalls. One of the biggest upsides besides the saving on renting space is the infinite talent pool. I have people that work under me that are in 7 different cities right now. None of them would have moved for the job, but they did not have to.

 

[CrusaderFrank]

That is one of the biggest downfalls. One of the biggest upsides besides the saving on renting space is the infinite talent pool. I have people that work under me that are in 7 different cities right now. None of them would have moved for the job, but they did not have to.

Well Covid and Zoom were the kiss of death for office space, turned into into parking lots for a city with flying cars. Not all at once, but trend is inevitable

 

[justoffal]

Dude....commercial real estate in NYC has been there...for a couple of years now.
Again, this is happening in EVERY major city.

I know Boston is getting clobbered.

 

[Harpy Eagle]

I know Boston is getting clobbered.

Compaines are going "hmmmm, we get the same work done and do not pay millions in rent".

 

[Zincwarrior]

and that has what to do with a building in St Louis that has been empty since 2017?

Empty as in no occupancy? Er, is it scheduled to be torn down or already in receivership? something is very wrong if true.

 

[Harpy Eagle]

Empty as in no occupancy? Er, is it scheduled to be torn down or already in receivership? something is very wrong if true.

Been empty as is occupancy since 2017. Finally sold for less than a house in San Fran goes for.

Been a few other deals over the last few years that fell through.

Not sure yet what this company plans to do with it.

There are a few building like this in St Louis. A great building next to the baseball stadium, used to be a hotel with a rotating restaurant on top. Been closed since like 2015 I think. The city if finally moving to use eminent domain to take control of it since the owners will not.

 

[Zincwarrior]

Closed for a decade? Wow.

 

[Mac-7]

Got a newsflash for ya slugger, commercial real estate is a nightmare in ALL cities. Been heading that way since the pandemic sped the whole WFH thing up.
But you keep pluggin away!

And so unnecessary

There was a period during the first 3 or 4 months when the virus was overwhelming our hospitals

The panic that followed was somewhat understandable

But shutting down the economy for months on end did did more harm than the wuflu itself