CapStone Holdings has invested $40 million in the $210 million first phase of City Foundry STL, a mixed-use project designed and planned by Lawrence Group in downtown St. Louis featuring a food hall, entertainment venues, retail and office space. The stake from the Bonita Springs, Fla.-based, business incubator and investment firm is one of the largest single-entity investments in the project that is set to open this summer.
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Located on the 15-acre site of the former Federal Mogul Foundry, City Foundry STL is part of $8 billion in new investments being made in central St. Louis as part of the Cortex Innovation Community District. The adaptive reuse project was unveiled in September 2016. Plans call for the open-steel shell of the former foundry to house St. Louis’ first food hall and anchor a complex with pedestrian-friendly walkways, three major entertainment venues, and other offerings. The first phase will include 122,000 square feet of restaurant and entertainment space, 105,000 square feet of retail, 107,000 square feet of office space and a 500-space, multi-level parking garage. The office space is fully leased, according to the St. Louis Magazine. The magazine also reported two more office buildings and an additional parking garage are planned in a second phase.
Keith Stone, CapStone Holdings chairman & founder, said in a prepared statement City Foundry matches the firm’s investment criteria. He cited the high-growth location, the vision being brought to life by established developers and entrepreneurs and the projected long-term positive returns as reasons for the firm’s investment. Stone said City Foundry is expected to be the city’s new predominant place to gather, eat, innovate and play.
City Foundry is located in an Opportunity Zone, a designation created by the 2017 federal tax law that offers real estate investors tax benefits. The developer was able to raise capital for the City Foundry project because of its location in the Opportunity Zone, according to the St. Louis Post-Dispatch newspaper. The newspaper also reported the city of St. Louis has approved $19.4 million in tax increment financing for the redevelopment.
Ballpark Village expansion
City Foundry isn’t the only major project in the city. In November, a new Class A office tower anchored by PwC opened in downtown St. Louis as part of the $260 million expansion of Ballpark Village, a mixed-use neighborhood being developed by the St. Louis Cardinals and The Cordish Cos. The 11-story building includes 120,000 square feet of office space, street-level retail and more than 460 parking spaces. The PwC Pennant Building is the first building to open in the second phase of the 10-acre Ballpark Village development that will eventually include a hotel, a 29-story luxury residential tower and a three-story retail pavilion.