Construction has begun on the $130 million redevelopment of the historic Butler Brothers building in Downtown West.Memphis, Tennessee-based Development Services Group purchased the 735,000-square-foot, long-vacant building for $6 million in late 2020, planning to transform it into a mixed-use complex with 384 apartments, coworking offices, and a restaurant and bar space on street level.The building, which spans a full city block at 1717 Olive St. between 17th ... and 18th streets, previously served as a warehouse in the once-thriving Garment District. The reuse of the building is seen as a signal of a revival of interest in the Downtown West neighborhood centered around the nearby $461 million Centene Stadium, which the St. Louis City SC Major League Soccer team will start playing in next year.With the building constructed in 1906 and listed on the National Register of Historic Places, DSG said it will use both state and federal historic tax credits as part of its capital stack for the project. The company plans to preserve the building's design elements during the adaptive reuse project. It didn't say how long rehabilitation would take."This project is a massive undertaking that will offer a major contribution toward the continued activation of Downtown West's full revitalization," DSG President and CEO Gary Prosterman said in a statement. "The team has worked diligently for the past year to not only determine how this iconic structure can best serve the neighborhood, but we were also methodical in assembling the design and financial components to bring that new ... investor and senior construction lender, with Meta Real Estate Partners as the junior construction lender. Enhanced Capital and US Bank are the state historic tax credit investors, and First Bank is providing historic tax credit bridge financing.The balance of the equity is being provided by DSG principals and Enhanced Capital. Patient capital financing came from Greater St. Louis Inc.
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