Project
Acquisition and turnaround of the historic Drake Plaza apartment and commercial complex, a unique three-building development in St. Louis, Missouri.

Location
In the heart of the St. Louis theater district near Powell Symphony Hall and the Fox Theatre, the Drake Plaza is strategically located near St. Louis University between downtown and the fashionable Central West End, and is part of the continuing revitalization of the Grand Center arts district.

Project Scope
The unique, visually integrated residential and commercial complex includes 87 apartment units in a six-story high rise, and 12,000 square feet of commercial space in two adjoining buildings. It was built in the second decade of the twentieth century and is listed on the National Register of Historic Places.

Challenges
Finding productive uses for historic buildings and developing effective management and marketing approaches for them three-quarters of a century later is a challenge that few real estate professionals today seek out. Located in a transition area of the inner city, the Drake Plaza's difficulties were significant enough that Kohner Properties was able to acquire it in a foreclosure sale in 1997.

Opportunities
Located adjacent to the respected St. Louis University campus and the rapidly revitalizing Grand Center Theater district of the city, the 80-year-old Drake Plaza is also within minutes of the Central West End, Union Station, Kiel Center, downtown, and the river front. It is not far from two major hospital complexes, and within a few blocks of major arteries. The distinctive stone fronted structure is aesthetically a legitimate neighbor of the Fox Theatre, Powell Hall, and other vintage structures in the immediate vicinity. A key consideration in Kohner's interest in the property was the fact that it had undergone an extensive $10,000,000 renovation only ten years earlier. It offered comparatively spacious one and two-bedroom units ranging in size from 550 to more than 1,200 square feet, plus a beautiful courtyard and stainless steel swimming pool.

Solution
In providing totally new interior finishes throughout the building, Kohner was careful to include a variety of touches that effectively emphasize the unique turn-of-the-century architecture. Kohner developed new graphics and signage systems especially for the Drake Plaza. All units feature Euro style kitchens, ceramic tile baths, and central air conditioning. The Drake Plaza was aggressively marketed to a demographic base of city dwellers interested in both the excitement and energy of the theater district and the property's distinctive surroundings and convenient lifestyle. Savings on the renovation made possible by Kohner's in-house construction management resources made it possible to hold lease rates at attractively low levels.

Outcome
From an occupancy rate of 80 percent before Kohner assumed ownership, the Drake Plaza now enjoys an occupancy rate of better than 98 percent (plus a waiting list of prospective tenants). It has also proven to be an attractive venue for commercial tenants, including a medical practice, chiropractic office, accounting firm, and the organizational headquarters for the St. Louis Association of Community Organizations (SLACO).

Community Impact
Once seen as a failing location with doubtful potential, the Drake Plaza is now a sought-after place of residence in the city's midtown area, and has become a valuable residential and commercial anchor for the successful Grand Center Theater and entertainment district.