West Bottom Flats III, LLC, an entity controlled by MCM Company, Inc (“MCM”) purchased from Jim G. Pappas the property located at 920 Wyoming Avenue (“920”) on July 24, 2020 for $1 million. Hawthorn Bank provided a 3-year $850,000 interest-only acquisition loan with a floating interest rate 325 points above the 3-year Treasury Rate with a 4% rate floor.
Initially 920, which sits on 61,825 square feet/1.42 acres of land improved with a 2-story, 25,000 square foot masonry building will provide 90 surface parking spaces and a leasing office for West Bottom Flats Phase II (“Phase II), a 90- unit apartment building located at 1525 W 9th Street that will include 90 market-rate apartments and 5,300 square feet of retail and commercial space.
After WBF II construction completion, 920 will be subdivided and the building will be restored in accordance with the Secretary of the Interior Standards for Rehabilitation.
920 is a contributing resource to the West Bottoms – North Historic District, making it eligible for Federal and Missouri Historic Tax Credits once the NPS Part 1 is submitted/approved.
Plans for 920 include commercial office with a focus on co-working and professional office space.
The renovation into commercial office is expected to cost $5 million and will generate approximately $400,000 in Federal Historic Tax Credit equity and expects to generate $465,000 in Missouri Historic Tax Credit equity. The Missouri Historic Tax Credit Program is a competitive program capped at $90 million annually with an additional $30 million made available for projects in qualified census tracts (920 is not located in a qualified census tract). Additional financing includes a $2.7 million construction/permanent loan, sponsor equity of $1.25 million, a $200,000 deferred developer fee, and $67,200 in Sales Tax rebates.
The remaining vacant land will be entitled, then sold or redeveloped.
920 was rezoned to District DX-10 (Downtown Mixed Use, 10 FAR) on October 10, 2019. The Downtown Mixed-Use district is primarily intended to accommodate office, commercial, custom manufacturing, public, institutional, and residential development. Additionally, 920 will seek property tax abatement through the Planned Industrial Expansion Authority (PIEA). Current legislation allows a maximum of 75% abatement for the first 10-year period and 50% for the following 5-years on the improvements.
920 will allow MCM to provide parking and a leasing office for Phase II as well as near and long-term (re)development opportunities. Phase II, when combined with Phase 1, has the size to be a catalyst to spur additional development in an area with a large building stock of warehouses that can be transformed to higher and better use. 920 will allow MCM to capture this upside potential at a low land cost basis as the neighborhood transforms.
©2020 Kelly Callewaert
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