Project
Acquisition and turnaround of the historic University Plaza Apartments high rise in St. Louis, MO.

Location
In the heart of the St. Louis theater district near Powell Hall and the Fox Theatre, University Plaza is part of the continuing revitalization of the Grand Center arts district.

Project Scope
This 15-story, 87-unit building, built in the late 1920s, is listed on the National Register of Historic Places. Kohner's capital improvements budget for the University Plaza was $800,000.

Challenges
In its previous incarnation as the University Club Plaza Apartments, this property was experiencing such difficulties that it was taken over by HUD in 1990. After a careful analysis of how to turn the property around to produce solid long term revenue streams, an affiliate of Kohner acquired the property in 1993. At that time it was another shabby old building in a formerly grand part of the city whose future was still in doubt. Bringing it back would require combining in one environment (in a one to one ratio) subsidized units for low income families with market rate units for more affluent tenants.

Opportunities
Located on the edge of the respected St. Louis University campus (which was just embarking on a bold architectural rebirth of its own), the University Plaza commands a sweeping panoramic view of Union Station, Kiel Center, and the downtown skyline. It is not far from two major hospital complexes, and within a few blocks of major arteries. The dramatic 1920s-era stone structure was designed by renowned architects Eames and Young in 1918. Already in its early stages when Kohner acquired the property was an ambitious plan for the long term revitalization of the old Grand Avenue entertainment district. Kohner determined that the building systems were in good shape and that it could be effectively figured for modern security, maintenance, and management systems.

Solution
Kohner's marketing strategy focused directly on the demographics of the surrounding area, and on renovating the space to combine the best contemporary urban design features with the elegance of the turn of the century architecture. Kohner's comprehensive renovation program included new interior finishes throughout the building, adding washers and dryers in every unit, and the creation of four new penthouse apartments on the fifteenth floor. The result was a residential environment that would meet the needs of low income inner city families while simultaneously appealing to city dwellers attracted by the site's aesthetic charms and its proximity to entertainment and cultural attractions. Savings on the renovation made possible by Kohner's in-house construction management resources made it possible to hold even the market rate rents at attractively low levels: ranging from $353 for one-bedroom units to $850 for two bedroom townhouses.

Outcome
From an occupancy rate of 50 percent before Kohner assumed ownership, the University Plaza now enjoys 100 percent occupancy (plus a waiting list of prospective tenants).

Community Impacts
In addition to becoming a distinctive and sought-after place of residence in the city, University Plaza has become an anchor for the increasingly successful Grand Center entertainment district. And it has demonstrated that imagination combined with hard work, rigorous management, and effective marketing can create a great residential environment for a diverse tenant base under one roof.