Project
Acquisition and turnaround of the Fairmont Apartments, formerly known as the Fairmont Hotel.

Location
This nine-story apartment building is located at #7 Maryland Plaza, the heart of St. Louis' fashionable West End neighborhood. The Fairmont is surrounded by charming shops and popular restaurants, and it's located just two blocks from Forest Park, home of the St. Louis Zoo, Art Museum, Science Center, and other popular attractions and recreational areas.

Project Scope
The building includes 64 one bedroom and studio apartments, ranging in size from 495 square feet to 610 square feet within the nine-story high rise. Six store-front commercial spaces are included in the ground floor of the building, and a courtyard and gazebo complete the complex. Built in 1921 as the Fairmont Hotel, it is listed on the National Register of Historic Places. Kohner's capital improvements budget for the Fairmont was $1.5 million.

Challenges
Effectively rehabilitating and managing historic city properties is a real estate challenge that few developers will attempt. In 1980, the Fairmont had been converted from a hotel to an apartment complex, yet little had been done since that time to provide the amenities that today's apartment residents demand. After a careful analysis of how to effectively renovate and market the property to produce long term revenue streams, Kohner acquired the property in 1994.

Opportunities
Located in a fashionable, vibrant city neighborhood, The Fairmont had an ideal location, but had suffered from deferred maintenance and lackluster management approaches. Its Central West End location is convenient to great restaurants, shops, and night life, and is ideal for professionals and students at the nearby BJC Health Systems campus and the Washington University Medical Center just a few blocks away. Kohner determined that the building systems were in good shape and that it could be effectively configured for modern security maintenance, and management systems.

Solution
Kohner's renovation of the apartment building has transformed the space into a modern facility with a host of amenities that today's apartment residents demand. Apartment features include wall-to-wall carpeting, full-size stoves, garbage disposals, frost-free refrigerators, individually controlled heating and air conditioning, and lighted off-street parking, as well as an intercom security system and convenient access to modern laundry facilities on each floor. This charming high-rise also features a new first floor Leasing Center complete with offices and conference facilities for enhanced customer service and building security. Six store front commercial spaces on the ground floor are occupied by popular restaurants and boutiques, as well as the Central West End Association, a vital neighborhood organization and advocate.

Outcome
From an occupancy rate of 80 percent before Kohner assumed ownership, The Fairmont Apartments now enjoy a 98 percent occupancy, with a stable mix of students, healthcare professionals, and young professionals. Kohner has held the leasing rates at reasonable levels, ranging from $470 for a studio apartment unit to $630 for a one-bedroom unit.

Community Impacts
Once again a beautiful, convenient, well-managed apartment building, The Fairmont is a real asset to the revitalization of the city's Central West End. No longer home to a largely transient tenant base, the property is now a sought after address for people who desire the convenience and excitement of city living.