Real Estate Insights | STL Homelife

Federal Government Considers Selling Major Office Buildings in St. Louis as Part of National Downsizing Effort

Lou — Wed, 05 Mar 2025 19:43:52 +0000

Federal Government Considers Selling Major Office Buildings in St. Louis as Part of National Downsizing Effort

The federal government announced Tuesday that four St. Louis-area federal properties are among more than 440 buildings nationwide that could be closed and sold as part of an effort to reduce the federal real estate footprint.

The Robert A. Young Federal Building, a 20-story, nearly 1 million-square-foot tower in downtown St. Louis, appeared on the “non-core property list” released by the U.S. General Services Administration (GSA), the agency responsible for managing federal real estate assets.

Federal Buildings in St. Louis Targeted for Potential Sale

The Robert A. Young Federal Building, located at 1222 Spruce St., houses multiple government agencies, including:

United States Citizenship and Immigration Services’ St. Louis field office
Internal Revenue Service (IRS) Taxpayer Assistance Center
U.S. Army Corps of Engineers (St. Louis District)
St. Louis Military Entrance Processing Station
U.S. Coast Guard’s Upper Mississippi Sector
Equal Employment Opportunity Commission (EEOC) St. Louis office

The GSA’s website states that the Young building contains more than 25 acres of office space, making it one of the largest federal office properties in the region.

In addition to the Young building, three other St. Louis-area federal properties were included on the non-core list:

Charles F. Prevedel Federal Building (9700 Page Ave., St. Louis County) – A 380,420-square-foot facility that houses the St. Louis Veterans Affairs Regional Office, National Agricultural Statistics Service, and several other agencies.
East St. Louis Federal Building (650 Missouri Ave., East St. Louis, IL) – A 31,990-square-foot office facility adjacent to the federal courthouse, home to court-related agencies, Social Security Administration, U.S. Department of Homeland Security, and U.S. Trustees.
Clyde S. Cahill Memorial Park (Downtown St. Louis) – A federal park near the Thomas F. Eagleton Courthouse, honoring Judge Clyde S. Cahill, the first Black federal judge appointed to serve in the courthouse. The GSA listed the park at “zero” square feet, with no details on how it might be sold.

National Real Estate Downsizing Led by GSA and New Efficiency Initiative

The GSA’s review of these properties is part of a broader federal effort to reduce government-owned office space and cut costs. The initiative was accelerated by President Donald Trump’s administration, which has pledged to shrink federal real estate holdings and budgets.

Trump-appointed officials are working to reduce non-Department of Defense real estate holdings by half, in alignment with the administration’s cost-cutting agenda. The Department of Government Efficiency (DOGE), an unofficial agency led by Elon Musk, has also played a role in identifying underutilized buildings for closure.

Last week, DOGE announced the cancellation of five federal office leases in the St. Louis area, including a U.S. Food and Drug Administration (FDA) facility in the Central West End, which currently operates as a testing site.

Why Are These Buildings Being Sold?

The GSA’s announcement stated that its goal is to dispose of properties that are no longer essential to federal operations. The agency defines “core” federal assets as those that are critical to national defense, law enforcement, or essential government services, such as courthouses and border security facilities.

Non-core properties, the agency said, consist mostly of office space, which has become less relevant due to changing workforce dynamics, funding challenges, and operational shifts.

“We are identifying buildings and facilities that are not core to government operations, or non-core properties for disposal,” the GSA stated. “Selling ensures that taxpayer dollars are no longer spent on vacant or underutilized federal spaces. Disposing of these assets helps eliminate costly maintenance and allows us to reinvest in high-quality work environments that support agency missions.”

Financial and Market Considerations

The federal government currently oversees 363 million square feet of real estate. The properties slated for potential sale amount to more than 80 million rentable square feet, with a total recapitalization need of $8.3 billion, according to GSA estimates.

By selling these properties, the federal government could save $430 million annually in operating costs. The GSA also noted that it is exploring public-private partnerships, sale leasebacks, and ground leases as alternative solutions for underutilized buildings.

The process of selling these properties will be conducted gradually, taking into account current use, occupancy, relocation costs, and local market conditions.

Impact on St. Louis and Potential Redevelopment

While the Robert A. Young Federal Building underwent $70 million in earthquake protection upgrades in 2017, it could now become part of a major redevelopment effort if sold.

If the Young building is vacated, it would mark the third major government-owned property in downtown St. Louis to be closed in the past year, following the State of Missouri’s sale of two downtown office buildings and relocation of employees to suburban offices.

The potential sale of these properties raises questions about how St. Louis will adapt to shifting federal real estate trends and what redevelopment opportunities may arise.

While the GSA has not provided a specific timeline for sales, the agency emphasized that it would proceed methodically and strategically to ensure taxpayers benefit from the transition.

As the federal government looks to reshape its office footprint, downtown St. Louis could see a wave of new development opportunities, provided that investors and local stakeholders can find viable uses for these large-scale properties.

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Developer Lists Another Downtown St. Louis Apartment Tower for Sale Amid Market Uncertainty

Lou — Wed, 05 Mar 2025 19:37:29 +0000

St. Louis Developer Lists Another Downtown Apartment Tower for Sale Amid Market Shifts

Real estate developer Brian Hayden, who owns multiple properties in downtown St. Louis, has listed another of his apartment buildings for sale as the area sees renewed investment interest alongside some lingering market challenges.

The Gallery 515 apartment complex at 515 Olive St. is now on the market with an asking price of $15.8 million. The 20-story tower currently features 92 apartments, with room for approximately 70 more units if vacant office space is converted.

This listing comes as Hayden also seeks a buyer for another of his properties, the Laclede Gas Building (Gallery 720) at 720 Olive St., a 31-story mixed-use tower with an asking price of $34.1 million.

Expert: Market Conditions Are Shifting, but Opportunities Exist

Industry professionals say Hayden’s move reflects a changing landscape in downtown real estate, where new investments, redevelopment projects, and strategic sales are shaping the market.

Jay Lindberg, Broker-Owner at New Monarch Realty, sees opportunities ahead despite some ongoing challenges.

“The downtown St. Louis real estate market is evolving, and we’re seeing a mix of veteran developers and new investors positioning themselves for the next phase of growth,” Lindberg said. “There’s no doubt that vacancy rates remain a concern, but the positive side is that investors are still actively seeking well-located properties with potential for repositioning.”

According to Cushman & Wakefield’s latest data, downtown St. Louis has a 17.1% multifamily vacancy rate, notably higher than the 9.9% regional average. However, new developments and adaptive reuse projects are generating fresh momentum.

“Investors are carefully evaluating properties to ensure long-term success,” Lindberg added. “But if a building is well-managed and has a strong value-add strategy, there’s definitely room for growth.”

Gallery 515’s Potential & Market Positioning

Gallery 515 spans 230,279 square feet, with 90,167 square feet dedicated to residential use. The building houses Park Avenue Coffee and Hayden’s Irish Pub on the ground floor, while the remainder of the property consists of vacant office space that could be converted into additional apartments.

Andy Scott of Realty Exchange, who is marketing the property alongside Matt Bukhshtaber and Corey Egan of CBRE, stated that interest in the building has been steady since its listing.

“We’ve already had multiple tours, and there’s definite interest,” Scott said.

A key selling point of Gallery 515 is its assumable loan, which carries a 10-year term at a 5.06% interest rate—a strong incentive in today’s financing climate.

New Development & Competition in the Market

Any buyer looking to expand the building’s residential footprint will need to consider the growing number of large-scale multifamily developments coming to downtown St. Louis, including:

The Goldman Group’s $350 million redevelopment of the AT&T Tower (909 Chestnut St.), adding 625 apartments.
The Cordish Cos.’ $670 million Millennium Hotel project, incorporating 600 new residential units.
The potential redevelopment of the Railway Exchange Building, a prime location that could see new housing as the city moves toward acquiring the site through eminent domain.

Lindberg noted that while these developments add competition, they also signal growing confidence in downtown’s long-term potential.

“More housing downtown means more activity, more businesses, and a stronger overall market,” he said. “The key for investors will be identifying properties that align with the wave of revitalization that’s coming.”

Hayden’s Portfolio & Strategic Shift

Hayden acquired Gallery 515 (formerly Millennium Center) in 2013 for $3.9 million and invested $10 million to convert office space into apartments. He says the decision to sell is part of a broader strategy to reallocate capital for future opportunities.

“Downtown still offers a lot of potential, and I believe the next generation of investors will bring fresh energy to these properties,” Hayden said.

In addition to Gallery 515 and Gallery 720, Hayden owns several other downtown properties, including:

Gallery 1014 (1014 Locust St.)
Gallery 400 (555 N. 4th St.)
Gallery Villas (511 Olive St.)

He has suggested that sales of additional assets could be considered as part of his evolving investment approach.

Beyond downtown, Hayden’s company owns apartment communities in Alton, Illinois, and developments in Midtown, Central West End, and Compton Heights. His most recent project, The B on Lindell, involved transforming the historic Masonic Temple at 3681 Lindell Blvd. into a modern residential complex.

What Comes Next?

As Hayden moves to sell select properties, the downtown real estate market remains in transition, balancing high vacancy rates with increasing redevelopment interest.

While challenges exist, experts say the right investment strategy can unlock value in downtown’s evolving landscape.

“Downtown St. Louis is at a turning point,” Lindberg said. “For those with a long-term vision, there are some exciting opportunities ahead.”

The post Developer Lists Another Downtown St. Louis Apartment Tower for Sale Amid Market Uncertainty first appeared on STL Homelife.

Today’s Impacts on Property Insurance Costs—And What Investors Can Do About It

Lou — Fri, 08 Mar 2024 22:32:57 +0000

Navigating the Changing Insurance Market: How Economic Conditions and Natural Disasters Impact Property Owners

This article is presented by NREIG. Read our editorial guidelines for more information.

As insurance premiums continue to rise, property owners must understand the effects of economic conditions and natural disasters on the insurance market. These insights offer practical guidance for real estate investors navigating a dynamic and unpredictable market.

Extreme Weather Events and Natural Disasters

Maintaining a healthy book of business in areas prone to frequent extreme weather events and natural disasters, such as Florida, Louisiana, and California, is a challenging task for insurance carriers. The severity of natural disasters, such as hurricanes, tornadoes, and wildfires, has increased in recent years, making it even more difficult for insurance carriers to keep up.

Faced with these conditions, insurance carriers have had to review their payout history, resulting in higher premium rates and deductibles across the board.

Labor and Material Shortages

Construction costs have skyrocketed over the past four years due to a persistent shortage of skilled labor. The struggle to find and retain skilled workers has forced construction companies to offer higher wages, driving up project costs. Labor accounts for about half of overall expenses, making it a significant factor in the rising costs of construction.

Supply chain disruptions, initially caused by COVID-19 factory closures, have also led to delays in construction material production. The scarcity of materials has only further inflated prices. Natural disasters, like the ones mentioned, have only exacerbated the supply and demand challenges faced by the construction industry.

The domino effect of these cost increases is evident: with labor and materials costing more, property repairs become more expensive, requiring insurers to pay out more when a loss occurs. This ultimately leads to carriers raising premium costs for insureds.

Diminishing Buying Power

The persistent escalation of inflation over the past four years has significantly reduced consumers’ buying power and impacted various sectors, including construction. As the cost of essential goods and services rises, construction workers naturally seek higher wages to keep up with the increasing cost of living, creating a cycle of rising costs.

Not only are construction materials more expensive due to supply chain issues, but the purchasing power of the dollar has also diminished, making money less effective in covering necessary expenses. Insurers are contending with the increased cost of labor and materials while also facing the broader impact of inflation on the economy.

The diminishing value of the dollar translates to insurance carriers allocating more funds to cover the same level of property damage, prompting an increase in premium rates.

Unless you’re comfortable self-insuring at a higher level and making substantial changes to your coverage, it will be challenging to significantly lower your insurance costs. However, there are proactive measures you can take to mitigate the impact of these market changes on your insurance premiums.

The post Today’s Impacts on Property Insurance Costs—And What Investors Can Do About It first appeared on STL Homelife.

$400,000/Year Cash Flow From One Unique Rental Property

Lou — Fri, 08 Mar 2024 22:32:50 +0000

let’s get to it.

“How This Power Couple Made $400K/Year Cash Flow with One Unique Rental Property Investment”

Amanda and David Fornelli have achieved financial freedom through their successful real estate investments, earning an impressive $400K/year in cash flow. And the best part? They were once real estate rookies, just like many of us. But with determination and a unique rental property investment, they were able to leave their W2 jobs and become full-time investors.

After joining a real estate investing program, Amanda and David started flipping houses in Southern California. Within three months, David was making twice as much from flips as he did at his day job, so he quit and never looked back. They continued to flip houses, but also ventured into the short-term rental market, which proved to be even more profitable.

In this episode, Amanda and David share their journey to financial freedom, including their transition from flipping houses to investing in short-term rentals. They also discuss their decision to invest in high-priced Southern California and their latest venture – a multimillion-dollar boutique hotel that brings in hundreds of thousands of dollars in profit each year.

Listen to the podcast on Apple Podcasts and read the full transcript to learn more about their success and how they achieved it. And if you’ve ever considered investing in a hotel, this episode is a must-listen.
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Buying a Home in O’Fallon, MO: Your Ultimate Guide to Suburban Bliss

Lou — Tue, 16 Jun 2015 21:16:25 +0000

Nestled in the heart of Missouri, O’Fallon represents the quintessence of suburban living. It’s a place where the charm of small-town America meets the conveniences of modern life. If you’re considering buying a home in O’Fallon, MO, you’re looking at an opportunity to be part of a community that’s vibrant, family-friendly, and growing. In this guide, we’ll explore the essential aspects of buying a home in O’Fallon, from understanding the real estate market to discovering the lifestyle that awaits you in this inviting suburb.

Understanding the O’Fallon Real Estate Market

Market Trends

O’Fallon’s real estate market is characterized by its stability and gradual growth. The area has seen a steady increase in property values, making it an attractive option for long-term investment. The market here caters to a wide range of budgets, offering everything from cozy starter homes to luxurious estates.

Current Ofallon, MO Homes For Sale

Property Types

The city boasts a diverse range of property types. You’ll find charming bungalows, spacious single-family homes, modern townhouses, and even expansive plots of land for custom-built homes. The architectural styles range from classic to contemporary, ensuring that every potential homeowner finds something that resonates with their taste.

The O’Fallon Lifestyle

Community and Recreation

O’Fallon is renowned for its strong sense of community and abundance of recreational activities. The city hosts numerous community events throughout the year, fostering a tight-knit community spirit. Parks and recreational facilities are aplenty, offering sports fields, walking trails, and playgrounds.

Schools and Education

Families with children will appreciate O’Fallon’s commitment to education. The city is served by highly-rated public schools, known for their academic excellence and extracurricular programs. There are also several private and charter schools offering alternative educational environments.

Shopping and Dining

O’Fallon doesn’t fall short when it comes to shopping and dining options. The city has a variety of shopping centers, local boutiques, and restaurants that cater to all tastes and preferences. Whether you’re looking for a quick bite or a fine dining experience, O’Fallon has it all.

Navigating the Home-Buying Process

Finding the Right Home

Working with a local real estate agent can significantly ease your home-buying journey in O’Fallon. They can provide valuable insights into the local market, help you navigate listings, and find a home that meets your needs and budget.

Financing

Understanding your financing options is crucial. O’Fallon offers various mortgage programs and lenders. It’s advisable to get pre-approved for a mortgage to streamline the buying process.

Closing the Deal

Once you find your dream home, it’s all about making an offer, negotiating terms, and closing the deal. Your real estate agent will guide you through this process, ensuring all legalities are handled efficiently.

Homes For Sale in O'Fallon

Search Homes

The post Buying a Home in O’Fallon, MO: Your Ultimate Guide to Suburban Bliss first appeared on STL Homelife.

How to prep your house for sale!

Lou — Tue, 01 Jan 2013 01:19:40 +0000

Staging Your Home

Prepping and staging a house.

Every seller wants her home to sell fast and bring top dollar. Does that sound good to you? Well, it’s not luck that makes that happen. It’s careful planning and knowing how to professionally spruce up your home that will send home buyers scurrying for their checkbooks. Here is how to prep a house and turn it into an irresistible and marketable home.
Here’s How:

Disassociate Yourself With Your Home.

Say to yourself, “This is not my home; it is a house — a product to be sold much like a box of cereal on the grocery store shelf.
Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours.
Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room.
Don’t look backwards — look toward the future.

De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can’t see past personal artifacts, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there! You don’t want to make any buyer ask, “I wonder what kind of people live in this home?” You want buyers to say, “I can see myself living here.”
De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven’t used it in over a year, you probably don’t need it.

If you don’t need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.

Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:

Alphabetize spice jars.
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.

Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. You don’t want buyers scratching their heads and saying, “What is this room used for?”
Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
Make Minor Repairs.

Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don’t close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls.
(Don’t give buyers any reason to remember your home as “the house with the orange bathroom.”)
Replace burned-out light bulbs.
If you’ve considered replacing a worn bedspread, do so now!

Make the House Sparkle!

Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.

Scrutinize.

Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room’s statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You’re almost finished.

Check Curb Appeal.

If a buyer won’t get out of her agent’s car because she doesn’t like the exterior of your home, you’ll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.

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