Investment will Assist $35 Million Redevelopment of 540,000 Square Foot Mixed-Use Urban Property

CHICAGO – Aries Capital is pleased to announce that the Urban Development Fund, LLC (UDF), an affiliate of Aries Capital, has provided $17.5 million in financing to facilitate the redevelopment of the St. Louis Centre in St. Louis, Missouri. The 540,000 square foot former shopping mall and will undergo a $35 million redevelopment beginning this year. This investment was made possible by an allocation of New Market Tax Credits (NMTC).

The St. Louis Centre is located at 515 N. 6th Street, and was constructed in 1987. At the time, it was the largest urban shopping mall in the United States with 120 stores and 20 restaurants. The property is adjacent to One City Centre, a 25-story office tower and is currently 100% vacant. The redevelopment project is intended to serve as a catalyst for the redevelopment of the “Mercantile Exchange District”, which will feature the renovation of One City Centre, the St. Louis Centre and the Dillard/Laurel building.

The St. Louis Centre is located in a census tract with a 17% poverty rate and a median family income benchmarked at 69% of the area’s overall median income. Additionally the area an unemployment rate is 1.83 times the national average, and is located in the St. Louis Mo./E. St. Louis Empowerment Zone.
“The redevelopment of the St. Louis Centre is expected to increase revenue and draw numerous jobs back to the downtown area and also stem the further loss of additional businesses,” said Neil Freeman, President of Aries Capital and UDF. “The revitalization of this area is expected to also assist the tourism and convention industry from which the vacant buildings and lack of retail immediately surrounding the adjacent convention center and Edward Jones Dome currently detract.”

“Additionally, the redevelopment of the downtown area will provide much needed retail development to the residents of downtown and north St. Louis,” added Michael Qualizza, Chief Financial Officer of UDF, “for which few retail developments are currently accessible by public transportation.”

UDF provided two loans totaling $17.5 million. Using NMTC financing allowed UDF to provide a below-market rate and other flexible features including: higher than standard loan-to-value, more flexible borrower credit standards, and lower than standard debt service coverage ratio. The redevelopment of the St. Louis Centre will include 60,000 square feet of first floor retail space, a movie theater and banquet hall on the second floor and a parking garage for 750-vehicles on the remaining two floors of the structure.
Established by Congress in 2000 as part of the Community Renewal Tax Relief Act, the NMTC program was created to stimulate economic opportunity and job creation in low-income communities. The program permits individual and corporate taxpayers to receive a credit against Federal Income taxes for making qualified investments in investment vehicles known as Community Development Entities.