The expansion project brings 272 multifamily apartment units and commercial space to the City Foundry STL development, with support from Opportunity Zone funding.
CLA (CliftonLarsonAllen LLP), one of the leading professional services firms in the U.S., has secured $49.7 million in joint venture equity funding for a ground-up, mixed-use development located in the Midtown neighborhood of St. Louis.
A national leader in the Opportunity Zone space, CLA combines deep experience in the real estate industry, tax, and investment management services to offer stakeholders broad insight into the full benefits of the Opportunity Zone program. Since 2019, the firm has raised $350 million for Opportunity Zone projects.
The expansion project, known as Vande East or City Foundry STL Phase 2, will consist of 272 multifamily apartment units and approximately 83,000 square feet of commercial space upon completion. Located within the City Foundry mixed-use district, this Qualified Opportunity Zone project has an anticipated development cost of $125 million. The development will offer smaller, more affordable units and desirable amenities, including exposed beams, floor-to-ceiling windows, and recreation opportunities. The development is expected to open in early 2022.
City Foundry STL Public Market constituted Phase 1 of the project and was one of the first Opportunity Zone projects in the Midwest. CLA helped garner $50 million in Opportunity Zone funding for the mixed-use development, which opened in 2020. The current space includes a large food hall, offices, grocery, entertainment, and more. The second phase of the project provides housing and office space to complement the existing space.
Spearheading the project is Lawrence Group, an integrated planning, design, architecture, and construction firm. Steve Smith, Lawrence Group founder and CEO, worked closely with CLA Wealth Advisors to secure funding.
“The first phase of City Foundry offers entertainment, retail, and dining options, but it won’t have a true 24/7 vibrant mixed-use community without housing,” said Smith. “When you have innovative and creative job opportunities, that’s a draw. Now we’ll also have the place to live for this district to help attract and retain young professionals.”
Smith continued, “This is a game changer for St. Louis, and we appreciate CLA’s guidance and help in bringing the capital to make it possible. We believe this is a special property that can help St. Louis become a destination. We want people to realize how dynamic and innovative the St. Louis market is, to help them look at their city with a new perspective.”
CLA played an instrumental role in the capital raise, and the firm also provided tax advisory and compliance services, financial model development support, consultations on structure, and guidance on Opportunity Zones, deploying its full suite of services.
“With its proximity to major research universities, the St. Louis market is ripe with opportunity for tech companies, creatives, and professionals,” said Tony Hallada, managing principal with CLA Wealth Advisors, who oversaw the capital raise. “CLA is pleased to have assisted with this expansion project. An influx of business sales has meant many former owners have capital gains to invest, so there has been an incredible demand for Opportunity Zone funding opportunities.”
“This development will bring new high-quality, multifamily rental housing to an exciting space in the heart of St. Louis’ innovation hub,” said Dan Thieret, a principal with CLA St. Louis. “We are grateful for the opportunity to collaborate with Lawrence Group again and to contribute to this project.”
More information on City Foundry STL is available at cityfoundrystl.com.
CLA exists to create opportunities for our clients, our people, and our communities through industry-focused wealth advisory, digital, audit, tax, consulting, and outsourcing services. With more than 8,500 people, nearly 130 U.S. locations, and a global vision, we promise to know you and help you. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.