- Kirkwood's Station Plaza on the Selling Block
Station Plaza in Kirkwood, a mixed-use development with apartments and retail space, is on the market for $36.2 million, about $8 million less than what it sold for in 2006.
The seven-year-old property is in the heart of Kirkwood and has 155 apartments and 43,362-square-feet of retail space, both fully leased and occupied.
"I think it's an extremely attractive property and there will be a lot of people who want it," said Ken Aston, a partner with apartment sales firm Hendricks & Partners, which is selling the property. "This is what real estate companies like to put on their brochure cover."
So why is it for sale, and at a steep discount?
MLP Development, a real estate company that has since gone out of business, developed Station Plaza in 2005. The property was sold in 2006 for $42 million in a tenants-in-common (TIC) deal, a type of real estate transaction that allows individual investors to pool their money to avoid paying real estate capital gains taxes.
The Geneva Organization, a Minneapolis-based real estate investment company, sponsored the TIC deal. But Geneva encountered financial problems following the meltdown in the real estate market and went out of business in 2010, defaulting on the Station Plaza property.
Dunae Lund, president of The Geneva Organization, said in 2009 that both lenders and investors had soured on TIC deals, according to a story in the Minneapolis St. Paul Business Journal, a sister publication.
"Our TIC business has all but ended," Lund told the newspaper. "This may have been a one-cycle wonder."
In 2010, Station Plaza was taken over by the Maxus Realty Trust, the Kansas City-based private lender for the property.
"The private lender stabilized the property, brought in a property manager and made some improvements following the default," Aston said.
In spite of the ownership-struggles, the Station Plaza development is fully occupied and features tenants such as Bar Louie and Michael Del Pietro's pizza resaurant, Pazzo's.
Rent for the apartments ranges from $1,100 to $1,900. [St. Louis Business Journal
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