StackSource arranges $141.5m financing package for St. Louis mixed-use project

The financing was provided by Enhanced Capital, a New York-based impact investor.

Dallas-based Alterra Worldwide has secured $141.5 million of financing from Enhanced Capital to convert a derelict building in downtown St. Louis, Missouri into a mixed-use residential property in a deal arranged by StackSource.

The Jefferson Arms Building was originally constructed as a hotel in 1904 and converted into apartments in 1977. It has been vacant for 16 years, but the sponsor is planning to convert the asset to residential, retail and hospitality space.

With this financing, Alterra will redevelop the historic property so that it offers more than 230 one- and two-bed apartments, a similar number of hotel rooms, and just under 30,000 square feet of retail space. The residential and retail portion will be completed in phase one, while the hotel rooms – to be branded under the Marriott name – will be delivered in phase two.

The financing was originated by New York-based impact investor Enhanced Capital and includes senior debt, PACE financing, tax increment financing, historic tax credit bridge debt and the purchase of state historic tax credits.

Dusty Dickerson, managing director at Enhanced Capital, said the project exemplifies how the firm can finance highly complex real estate projects which include historic rehabilitation, sustainability and housing.

“Alterra’s team has an inspiring vison for this historic asset in St. Louis,” added Zach Wagner senior director at StackSource – the commercial real estate focused-fintech company which arranged the transaction. Wagner co-led the financing assignment with senior managing director Beth Mercante.