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TAX CREDIT
CORNER
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Louderman
Building
By Scott Hall
The State of Missouri has multiple tax credit programs to provide
incentives for investments and charitable contributions to approved
projects. This regular column features examples of how the various
Missouri state tax credit programs benefit the State, generally,
and St. Louis in particular.
For too many years St. Louis’ Louderman Building stood like so many
historic buildings downtown, unappreciated and underutilized. The
12-story office building sitting at the corner of Eleventh and Locust
streets, is characteristic of the St. Louis style in the 1920s,
boasting limestone facades, decorative terra cotta and quaint storefronts.
While these ornaments create wonderful architecture and valuable
pieces of history, they do not characterize a modern office building.
For these and other reasons, the Louderman Building has, for many
years, been largely vacant. However, the building will soon be re-born,
maintaining its architectural significance while also boasting 21st
century amenities. With the help of U.S. Bancorp. and the Missouri
Tax Credit Clearinghouse, Craig Heller and his company Loftworks
are turning St. Louis’ forgotten Louderman Building into one of
the city’s finest places to live, work and shop.
Built in 1925 by St. Louis financier William Louderman and the local
architecture firm of LaBeaume & Klein, the Louderman Building was
part of a conservative St. Louis architectural movement of the 1920s.
Ignoring the Art-Deco fad, the building instead boasts buff-colored
brick, cast iron storefronts, and terra cotta ornamentation. Despite
these adornments, the Louderman Building lacked many of the amenities
of a modern building. Thus, the building was largely vacant for
many years.
Coming off the successful residential redevelopment of his 10th
Street Lofts project, developer Craig Heller and his company Loftworks,
saw the Louderman Building as more than a challenge, but as an opportunity
as well. Soon, Heller’s vision will be realized as he is converting
the 95,000-square-foot office building into a mixed use of office,
retail and residential. On its top seven floors, the re-named Louderman
Lofts Building will have 1,800-square-foot, loft-style condominiums
offering spectacular views of the city, 21st Century amenities and
guaranteed parking.
Experienced at developing downtown loft condominiums, Heller sees
the Louderman Lofts as something a little different,“this project
is going to be a little more sophisticated. We are trying to attract
more empty-nesters.” Either way, Heller is confident that the demand
is there and expects to sell his units within weeks after they are
available.
In addition to the residential units on the building’s upper floors,
there will be small-business space on floors two through five. This
unique space, which will be configured in offices of about 400 square
feet, will be used by small businesses in their start-up phases.
Not only will the Louderman Lofts allow for custom fitting space,
but they will provide a unique opportunity for young professionals
to live and work in the same building.
Finally, reminiscent of when the building first opened its doors,
the ground floor will once again offer street level shopping. Added
to the building will be street-level signage by Kiku Obata that
will help attract pedestrian traffic. All of this development has
brought excitement back to the building, but it should be noted
that without the Missouri State and Federal Historic Rehabilitation
Tax Credit Programs, this project might never have happened.
Enacted January 1, 1998, by the late Gov. Mel Carnahan, the Missouri
Historic Rehabilitation Tax Credit Program offers credit against
Missouri state income tax for 25 percent of the qualified costs
for rehabilitation of a certified historic building or any eligible
building in a certified historic district. More importantly, the
Missouri historic credits are transferable to other Missouri taxpayers.
Thus, to the extent that Heller could not use the Missouri tax credits,
he could sell his excess credits to the Missouri Tax Credit Clearinghouse,
a division of U.S. Bancorp.
In addition to the powerful state historic credit, Heller was also
able to use the Federal Historic Rehabilitation Tax Credit on the
retail and office portions of the building. The federal credit offers
an additional 20 percent credit for rehabilitation expenses. The
State of Missouri is unique in allowing developers to use both of
these credits and the gap funding that they provide is essential
to such redevelopment. “Having those credits is so critical,” Heller
notes.
Using the power of the Missouri state and Federal historic tax credits,
Craig Heller is offering new life for St. Louis’ historic Louderman
Building. With mixed-use residential, office, and retail development,
the new Louderman Lofts will offer a unique opportunity to experience
a centralized urban lifestyle.
Scott Hall is an associate of DFC Group, Inc., tax credit consultants
to the Firstar Tax Credit Clearinghouse. |
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