Blog > Blog > 2007

December 27, 2007 at 9:26 pm

I posted an article on this blog a couple weeks ago complaining about the stale designs of all the real estate development projects in St. Louis (McRee Town/Botanical Heights – Proof of out collective lack of imagination). I think my view of the current environment was made quite clear, but I might have been a bit hasty. I came across a small development driving around yesterday, which is pretty close to the mark on what I was talking about. Something CONTEMPORARY. Kind of.

The development is located on the 2800 block of Lafayette, just to the west of Lafayette Square in the neighborhood known as the Gate District. Driving by, I almost didn’t notice the two completed units because they blended in so well with the rest of the neighborhood. Upon closer inspection however, these properties show a lot of promise. They have a brick front, but the sides and rear are stucco-like and the design is quite unique. I drove by again this afternoon with my camera and took a few snapshots.

This is the kind of design I want to see. I have problems with this particular project, but I think the developer has their head in the right place. We can respect the designs of the past, while making something new and unique. AND NO VINYL SIDING.

The problem here is that these things aren’t selling. According to the MLS, 2841 has been on the market for 125 days and 2843 has been out there for 43 days as of the writing of this article. The unit at 2845 hasn’t even broken ground yet. Does this mean that nobody wants to buy this style of property? I think not.

First of all, the starting sticker price on these things is $335,000. For a three bedroom, two and a half bath located in the Gate District in the current market, that’s a lot of money. I also think the exterior design is missing something. Its exciting to see someone go this route in their designs, its just a little boring. But if I had to point at one thing that I think is preventing these properties from selling, I would have to say that its the interior.

I should mention that I have not actually been inside either property: I have only seen pictures and the floor plans. Even with that limited knowledge I can tell that despite the interesting angle they went with for the exterior, they played it safe inside. It looks like every other boring rehab project we’ve seen in the city for the past five years. Not to say it looks bad; it just looks boring. For that kind of price point I would think that the properties would offer something more. They try to bill these properties as “urban contemporary,” but that seems to only be skin-deep.

I look at this project as both an example of what you should do and what you should not do in a development project. If you are going to bother trying to create trendy housing make sure you do so inside and out. If you want more information on the development, check out their website: www.vivonlafayette.com

December 20, 2007 at 9:59 pm

I find myself constantly shocked at what some landlords say to perspective renters. Lines like “I don’t rent to single mothers?” or “How many kids do you have?” seem to come out of far too many people’s mouthes. For those who use that kind of language, I have a bit of advice: STOP!

According to Federal Fair Housing Law, the State of Missouri and the City of St. Louis, the following classes are protected from discrimination:

  • Race
  • Color
  • Religion
  • Sex
  • Disability
  • Familial Status
  • National Origin
  • Ancestry (Missouri)
  • Sexual Orientation (St. Louis)
  • Source of Income (St. Louis)

    • So what does this mean for you? That you better not even ask personal questions of prospective tenants that relate to these classes. Credit scores, employment history and criminal records are fine to use as determining factors, but the categories above are not. Despite what many property owners seem to think, these laws apply to everyone. Even private owners.

    Your personal feelings towards these laws or these people are irrelevant in this situation. The fact is that if you discriminate or treat one group of prospective tenants differently than another, you are opening yourself up to a lawsuit. There are plenty of nonprofit organizations that provide free legal assistance in such cases of discrimination. If you can’t force yourself to keep within the limits of these laws, you’re probably in the wrong business. Watch what you say, watch what you do. You’ll be better off for it.

    *If you want to take a look at the current Landlord-Tent Law Handbook, you can check it out HERE.

    December 17, 2007 at 10:44 pm

    I wish something would happen with Cherokee Street between Jefferson & Gravois. The acquisition prices for buildings are still reasonable and the architecture is gorgeous. Can you imagine what a building like the old Cinderella movie theater (2735 Cherokee – left) would look like if it was redeveloped? Unfortunately this is going to be easier said than done.

    No offense to Alderman Craig Schimd (20th Ward), but his stance on rejuvenating the commercial district along Cherokee is really off the mark. I am no expert on his methods, but I do know that he is doing everything in his power to make it impossible for restaurants and bars to move in. He seems so obsessed with keeping away the “brown baggers” that he is running away those that might go in for a more classy atmosphere. Whats wrong with a nice martini bar? Or a wine & cheese place? Nearby Park West Grille (just north off Jefferson) seems to be doing ok with this kind of environment.

    The area of Cherokee that goes through his ward, which runs from Ohio to Louisiana, is pretty dead in terms of positive development. The Benton Park West and Gravois Park Neighborhoods surrounding the district are in the same boat. I just don’t understand the die-hard opposition. Look at all the neighborhoods that have come back to life because of the influx of traffic caused by the opening of recreational establishments: the Central West End, Downtown, Lafayette Square, Soulard, Benton Park and even Forest Park Southeast (The Grove).

    If you build interesting commercial venues, people are willing to come even if the area isn’t the greatest. Just look at Manchester in Forest Park Southeast. If you would have told me five years ago, that it would be a great nightlife destination, I would have laughed in your face. Today, the commercial district is home to places such as:

    • White Flag Art Gallery
    • FIVE
    • Sweetie Pie’s
    • The Kentucky Club
    • After
    • Atomic Cowboy
    • Big Wheel Ad Agency
    • Church Key
    • R-Bar
    • Novaks
    • Freddies
    • Newstead Tower Pub
    • Agave Tequileria
    • AMP
    • Gramophone (coming soon)
    • Everest Coffee (coming soon)

    Thats a lot of growth really fast! And as this commercial sector has taken root, rental rates have skyrocketed and interest in residential development has gone through the roof. Now developers are fighting over vacant lots for infill and existing buildings for rehabs.

    Since this method has worked so well for other neighborhoods, why not try it along Cherokee? Come on Mr. Schimd, lets forget our personal feelings towards alcohol and realize that thats how restaurants make money! If you let them build it, more commercial establishments will come. And so will the residents.

    Fortunately there is some hope as a small portion of the district runs through Ken Ortmann’s
    9th Ward. His section (running only two blocks from Ohio to Jefferson) is being targeted for a large new restaurant/bar called Foam. Details are scarce at this point, but it will supposedly be divided into a bar, a restaurant and coffee house. An interesting concept and one I hope works out. If this establishment would prove successful it could help promote the rest of the district. There are a lot of great buildings available in the area and something needs to get things moving. What do you think is the answer to getting this area moving?

    * NOTE – If you live or own property in the 20th Ward, I encourage you to talk with Alderman Schmid about this problem. If the area would improve, anyone owning property in the vicinity would have have a nice payday. For info on how to contact the alderman, visit this website: http://stlcin.missouri.org/alderman/alderman.cfm?Ward=20. For more information about the commercial district check out there website:http://www.cherokeestation.com/

    December 14, 2007 at 9:36 pm

    I have finally finished uploading all of the articles that have appeared in the newsletter in the year of it’s publication. I updated articles where necessary and deleted those that are just too outdated. They have all been backdated to the November archive, so look there if you want to check them out.

    December 11, 2007 at 8:21 pm

    Three sides of brick and one of vinyl: that’s what makes a development “urban.” Or at least, that’s what some people seem to think. One of the best local examples of this opinion is McBride & Sons’ Botanical Heights development in the old McKree Town Neighborhood. There is no doubt that when this project began in 2004 that something had to be done in this neighborhood. The crime and neglect were huge problems and were bringing the surrounding neighborhoods down. However, three years later, I have to wonder if it was all for the best.

    I know some people have been upset about the use of eminent domain and the gentrification for this project, but these are not the issues I speak of. I am referring to the style of the buildings that now stand on the site of that development. Buildings such as the brick/vinyl siding hybrids I was mentioning.

    On an individual level, I find that some of these buildings are attractive. They have a somewhat suburban appearance, but they have their charm. The issue I have with them is that they try to fit in with the existing and former housing stock. A task at which they fail miserably. We need to face the facts: the times have changed. Solid brick buildings (three bricks deep) might have been affordable in 1927, but in 2007 they are anything but. We are unable to replicate the buildings of the past and shouldn’t waste our time trying to do so.

    So the question then becomes: What do we build instead? To that question I have no answer. Personally, I would love to see someone do a bit of modern infill. Single family, duplex, 4-family or whatever. Just something fresh and that doesn’t try to replicate an unachievable product.

    I actually saw an interesting concept house on another blog this morning. Something that got me thinking about all of this. I don’t know if something like this is the answer, but it sure is creative. What do you think?

    Looking at the pictures, it seems to fit in with the surrounding area better than one would expect. You can see more about the building (including basic blueprints) HERE. It is very urban, yet doesn’t rely on a faux-retro exterior to be so. The first picture actually reminds me of an existing building in South City. Not because they look a lot alike, but because they are so unique compared to their surrounding buildings, yet seem to fit in.

    This building (left) is located at 2817 S. Kingshighway (63139). It has a unique modern look to it that just seems to work. The thing I find most interesting about it is that it isn’t modern at all. At least in terms of age. Believe it or not, this property was actually built in 1897. It seems that there were dissenters in style choices even back then. Why can’t we think more like that today?

    So what is the point of all this rambling? That we need to rethink how we handle development in our city. We can play it safe and keep on creating developments like Botanical Heights or we can start getting creative. Creative design can make use of modern materials with affordable and aesthetically pleasing results. In our efforts to retain our character we have lost track of the fact that everything evolves. As developers and as a city as a whole, if we don’t want to be left in the dust by our competitors we need to starting thinking ahead rather than pining for a bygone past.

    December 7, 2007 at 11:21 pm

    Its so easy to do, but so many people don’t bother to do it. I can never understand it. When the filters in a furnace get clogged up with dust it lowers the efficiency of the heating and cooling system, by reducing the airflow. The harder the system has to work, the more costly the system is to run and the faster it with break down.

    A once a month cleaning of the filter can really keep things running smoothly and save you a lot of hassles. Completely replacing the filter every month might be a bit of an overkill, so I recommend bringing a small vacuum cleaner along. Suck out all the dirt in the filter every month with the vacuum and replace the filter quarterly and you have yourself a happy furnace. If you’ve been slacking on this one the past few months, I suggest you get on it. And the best part is that it gives you a great excuse to pay a monthly visit on your tenants to make sure they aren’t putting holes in the walls. The half an hour it takes each month to do this is well worth it.

    December 4, 2007 at 9:30 pm


    This is one of those properties that has been “on the verge” of being redeveloped for years. It’s one of the few local “icons” that hasn’t been either developed or demolished. A good project centered around this complex would do a lot for the area in southern Benton Park and Marine Villa. But maybe I’m just biased because I live in Benton Park. Nevertheless, its just a matter of time before something finally happens to it. I just hope this isn’t another one of those cases where the momentum builds up only to fizzle away a few months later. From the sound of the recent article in the Post Dispatch it at least seems like this proposal is being treated somewhat seriously. Take a look for yourself: Redevelopment proposal renews hope for Lemp complex

    December 4, 2007 at 8:50 pm

    One of the most frustrating things I come across in the rental business is poorly managed apartments. I’m not talking about bad property management companies (that’s a whole other story), but bad landlords. The biggest issue is that everyone seems to want to have their cake and eat it too. Too many landlords seem to be under the impression that they can put a run-down, dirty rental unit on the market and get paid a premium rent. Time for a reality check.

    The rental market is very strong right now. Units over $600 a month have seen a particularly big jump in interest lately, but people expect a quality product when they start spending that much money for an apartment. Outdated kitchens and bathrooms, broken radiators, window ACs, landlord white walls and stick-down tile do not a quality unit make. If your property is located in an area that can handle high quality units, you’ll need to bring your units up to that level of finish if you expect to rent them out. You can’t lose track of the fact that you are competing with other landlords for tenants. If a prospective tenant can get a better unit two blocks away for the same price, why would they rent yours? Get familiar with your local apartment market through the newspaper or internet ad sites such as craigslist or backpage (you can find links in the menu to the right) to avoid this problem. Educate yourself so you don’t waste your time overpricing or under improving your units.

    So what’s the moral of this story? If you want to attract quality tenants at a premium rental rate so as to maximize your profit potential, you need to pay the price for it. Otherwise, you can’t blame anyone but yourself if your buildings sit vacant.

    December 3, 2007 at 9:53 pm

    We all know that the market is being flooded by foreclosures at the moment. This has some people running for the hills, while it has left others salivating over the feast of great buys on the market. But one question that many of us are forgetting to ask is: “Where are they coming from?”

    I had a conversation a few weeks ago with a potential buyer who seemed averse to dealing with any foreclosures. At first I thought he simply didn’t want to deal with any of the many hassles that come from dealing with these notoriously slow and irrational sellers. But that wasn’t it. He wasn’t avoiding the banks, he was avoiding the former owners. He didn’t want to lend assistance to a system that was taking away peoples’ homes.

    This seems to be a commonly held belief. The media loves to paint a picture of poor innocent families being bullied around by lenders and mortgage brokers. Or that adjustable rate mortgages are forcing them to fall behind in their mortgage payments. That these “victims” are the source of this surge in foreclosures hitting the market.

    Well I have news for you. That isn’t the case. Sure that kind of thing is happening right now. Its been happening for years. But it doesn’t account for where we are now. No, this market has a different source. Something worse or better (depending on how you look at it): the short sighted businessman. Those shortsighted investors who bought not because a deal made sense, but because they could. Those investors who gobbled up no money down deals, took lots of money back at the closing table, faked seller carry backs, had an insatiable appetite for refinancing or put faith in poor property managers without a seconds thought to the consequences.

    These people are the source of this buyers market. They have brought things to the way they are now. But for the scrupulous investor, this situation screams of opportunity. The false steps of these investors has cleared the way for all the opportunities that are on the market today. Those investors who have repeatedly made poor decisions, scam artists and financial parasites that have plagued the market for the past few years are slowly disappearing one by one. Enjoy the spoils with a clear conscience.

    November 15, 2007 at 9:56 pm

    *NOTE – This article was originally written in May of 2007 for the newsletter.

    In the landlord world, eviction is a four-letter word. The process is so despised because current Missouri eviction law clearly favors the tenant. Even the deadbeat ones. There are so many problems with current laws that finding
    a starting point for reform has been a little tricky. Despite this hurdle, the wheels are finally in motion heading in the direction of change.

    Over the last few years, one of the biggest issues landlords have faced is what to do with a tenant’s personal belongings during an eviction. Current laws are unclear about this situation and that has worried many a landlord. That’s where the new Landlord-Tenant Liability law comes into play.

    The bill (HB 504), as summarized on the Missouri House of Representatives website, “exempts landlords from liability for any damage to personal property resulting from the enforcement of a judgment granting possession of the property.Landlords are given the absolute right to dispose of the personal property in any manner they consider reasonable.”

    This bill has just made it out of committee in the State House. It passed unanimously, but a greater battle still looms ahead. The bill still needs to pass the muster of the entire body of the State House and Senate. No date has been set for further debate, but the House website lists the “proposed effective date” for the bill as 08/28/2007. This would indicate that movement on the subject can be expected in the near future.

    This bill would do a lot to even the playing field between landlords and tenants in St. Louis and the entire state of Missouri. Ensuring it’s passage should be a high priority on any investor’s checklist. You can help improve the bill’s chances by contacting your State Senator and Congressman and voicing your support. There are various interest groups pushing to kill the bill or add crippling amendments and your letters can make a big impact.

    Lookup your representatives here:
    www.senate.mo.gov/llokup/leg_lookup.aspx

    For more information on the bill or to checkup on its status visit:
    www.house.mop.gov/bills071/bills/hb504.htm

    *UPDATE – This bill ended up failing to pass during the last session. Not do to lack of support, but due to lack of time. It has been picked up again for the current session and already has traction. So its still vital that everyone throw their support behind this one. Check back soon for and update on the status and more information.

    November 15, 2007 at 9:35 pm

    *NOTE – This article was originally written in May of 2007 for the newsletter.

    Working with investment real estate offers me an opportunity to talk shop with all kinds of landlords and view all types of apartments, across St. Louis. One thing that always astounds me, is the lack of quality rental units in town. There seems to be a perception that there is no market for quality apartments. In my experience, that simply isn’t true. Putting those careful touches on your units can go a long way.

    As an example, I’d like to use a couple of 4-families I own together with my own family in the Shaw Neighborhood. All the units in these buildings were totally rehabbed in the early 90’s. When we bought them last year, the floors had been upgraded to hardwood and some of the kitchens had been redone. At the time, all the occupied units were filled with Section 8 tenants paying rents from $650 to $685. All in all, the buildings were in pretty good shape.

    Many landlords would have just left things as they were and continued to run the building in its purchased state. However, we decided that we wanted to run these buildings at their full potential. Nine months later we are feeling the effects of this decision. Even though we have lost many a weekend due to our labors at the property, we couldn’t be happier with the results.

    We haven’t had to do anything major in any of our units, but each time we have a new vacancy it takes weeks to get these properties running at our quality level. Those nicks in the walls and paint splatters take time to fix. That horrible, uncaulked, quarter-round trim takes time to replace. Broken closet door hardware has also been a consistent problem. A kitchen has needed to be redone here and there.

    The key is treating quality units as if they are going to be sold as condos. The little things that many landlords skip over for sake of time have to be addressed. You also need to get creative with the painting. White, beige and light yellow don’t make for the most attractive setting. In our latest unit, we took this concept to a new level. Bright green, orange, and multiple shades of blue were the colors of choice. The paint costs the same as the more traditional colors, but the effect on the appeal of the unit can’t be easily measured.

    This extra effort has made it much easier to find new tenants and push rents. There has been so much interest that we are already pre-leasing units, which will not be ready for almost two months. Our initial rental efforts were going for $725 per unit. The most recently completed units are reaching as high as $760 a month in rent. This high level of interest not only puts more money in our pockets, it also allows us to be more choosy of the tenants we allow into the building.

    Of the eight units in these two 4-families, we still have three more to bring to our level of finish. Additionally, we are also finally getting the chance to address some the exterior issues that were untouchable during the winter. When we’re finished, we’ll have a couple of buildings that will require little to no attention to keep up, and eventually fetch a hefty price at resale. Taking that extra time to make sure you dot every “I” and cross every “t” can pay off. The next time you have a vacancy, don’t just patch and re-rent, bring it up to the level it should be.

    November 15, 2007 at 9:29 pm

    *NOTE – This article was originally written in May of 2007 for the newsletter.

    Cherokee Avenue is one of those streets that has held onto the title “up and coming” for some time now. Whether deserving of this label in the past or not, the street is slowly coming into it’s own. It has gradually found it’s own identity as a haven for Mexican-Americans and artists alike.

    The 2007 Cinco de Mayo celebration held along Cherokee, just to the west of Jefferson is a perfect example of how far the area has come. The crowds during the festival could just as easily been ripped straight from the playbook of the Soulard Mardi Gras celebration, albeit on a much smaller scale. The fact that so many people showed up in this humble little corner of South City is an example of why the area isn’t so humble anymore.

    Attendance figures for the event were not available as of writing this article, but the streets were full all day long. The main draw seemed to be the margaritas, authentic Mexican cuisine and artisan displays. Each year seems to bring bigger crowds and more interest in the area. As people flock to the festivities they witness the potential neighborhood possesses.

    A drive through the area still shows that there is a significant undeveloped segment of the neighborhood, but the energy for improvement is there. Best of all, prices are still within reason, making the district an intriguing development target. As a commercial sector, Cherokee east of Jefferson, has already made tremendous strides and has found it’s own niche has continued to improve the residential community around it has improved as well. A similar fate might well await the improving Benton Park West portion of the Cherokee District.

    There are lot of opportunities in the area and with the promising price-to-rent ratio found in the area, those opportunities could be good ones. In ten years, this area could be the “New Soulard.” Mark your calendars, that day will be here before you know it.

    November 15, 2007 at 9:18 pm

    *NOTE – This article was originally written in May of 2007 for the newsletter.

    Who would have guessed that it would have taken almost twenty years and $18 million to get to this point? In the late 1980’s Tower Grove Park was not a place to take the kids for an afternoon picnic or ballgame. Today, it is a proud member of our local collection of urban parks.

    According to the South City Journal, the final piece in the creation of this renaissance is about to be put into place thanks to a $250,000 grant from Emerson and $100,000 in pledges from Anheuser-Busch Foundation.

    This $350,000 will be used to completely recreate three out of the four lily ponds in the park. These ponds are located on the north side of the park near the Tower Grove Avenue entrance. Seen as the last remaining project needed to be done in the park, residents and park maintenance staff should be proud of the transformation they have witnessed and been a part of.

    Now that the park is in great shape, more and more community and sports activities can be seen within the park’s borders. One good example is the Tower Grove Farmers Market (www.tgmarket.org). Last year’s market was such a success that vendors and volunteers are going for another round. The market will be open every Saturday from May 12 through October 27, 8:30am until 12:30pm. This is just one of the many examples of the progress the park has made.

    So the next time you are in South City looking for something to do, stop by the park. You just might be surprised what you find. For a list of available activities and amenities visit the park’s website at www.towergrovepark.org.

    November 15, 2007 at 7:46 pm

    NOTE – This article was originally written in March of 2007 for the newsletter.

    Lead can not only be hazardous to your health, it can also be hazardous to your investment. Lead abatement can be expensive and time consuming, hitting you where it hurts: The bottom line. Federal and State assistance has been available for years, but the method of disbursement has been inconvenient and, oftentimes, punitive.

    Realizing that they have a major problem on their hands, and a glut of unused money to correct the problem, the City of St. Louis Building Division has created a new window replacement program for multi-family units. Mayor Francis Slay laid the groundwork for the program with his Comprehensive Action Plan for the Eradication of Childhood Lead Poisoning.

    The Multi-Family Window Replacement Program is designed to help eliminate lead hazards in multi-family rental units, which are being marketed to low and middle-income families. Under the program, multi-family buildings with lead-painted, wooden windows can qualify for a $200 per window reimbursement credit for replacing their old windows with new double hung windows. The City of St. Louis will reimburse the owner for up to 10 windows per unit, for a potential total of $2000 per unit.

    Vacant units, which an owner wishes to seek the credit, will be inspected by the City’s Building Division. This inspection, normally costing as much as $400, is offered free of charge. If lead is detected around the windows, the owner will then replace the problem windows. Anyone can install the windows, as long as they take the free 1-day class in Lead Safe Work Practices through the City.

    After the windows have been installed the City’s Lead Inspector will return to perform a lead clearance test. If the unit does not pass the test, the owner will be instructed on what other steps need to be taken to complete the lead abatement. When clearance is granted, the owner will submit copies of their receipts and the City of St. Louis will reimburse the owner under the previously described criteria.

    This program, if used properly, could be of huge benefit for investment property owners. With potentially $8000 in window credits per four-family, this one is really worth a look.

    However, before taking the leap, be aware that there are some restrictions to the program. Most notably, rents for one-bedroom units in the program cannot exceed $526 a month and two-bedrooms cannot exceed $654 a month.

    For more information on the program and it’s limitations call Jerry Wessells. He can be reached at 314.641.8677. Mr. Wessells can help answer any questions you might have. You can also download the paperwork to getting started in the program HERE.

    November 15, 2007 at 7:35 pm

    *NOTE – This article was originally written in March of 2007 for the newsletter.

    Hollywood seems quite fond of remaking classic, and not so classic, films. When I heard that “300” star Gerard Butler was going to star (allegedly) in a remake of the cult classic, Escape from New York (1981), I just couldn’t pass up on the opportunity to share my thoughts.

    For those unfamiliar, the original movie was a John Carpenter film starring Kurt Russell as felon Snake Plisskeen. In a post-apocalyptic future (1997 in the film), New York had become a maximum security prison and it looks a little worse for wear. When an airplane carrying the President of the United States crashes on the island, Snake is charged with rescuing him in exchange for his freedom.

    You are probably wondering how this is relevant to the St. Louis real estate market. After all, I’m not a film critic. The reason it is relevant is because the movie was filmed in St. Louis. For most films this would be considered an honor, but for this particular film it was anything but. St. Louis was chosen as the filming location, not for its scenic skyline or spacious urban park, but for its barren and desolate landscape. This was an era prior to the loft conversions of Washington and Locust; prior to the building of the Edward Jones dome; even prior to the renovation of the Fox Theatre and Union Station. A careful viewing of the film reveals these structures for the dilapidated structures they once were.

    We might still have our fair share of problems in St. Louis, but we sure have come a long way in 26 years. We might move slow in some regards, but you can’t argue that we haven’t made any progress.

    In determining a filming location for this remake, scouts visiting St. Louis would be met with an entirely different landscape than during the filming of the original. What was once a dangerous eyesore has become a desirable residential and commercial area.

    So the next time you feel frustrated with the City for its poor schools or its blighted areas, pop in a copy of Escape from New York. It’ll put a smile on your face.

    Next Page »