A building that made soda brands in the 1960s and `70s is ready for a beautiful change with new creative capital.
A joint venture between Bringing Capital Development to Life and KAI Design + Build has secured $48.25 million in construction financing to facilitate the office-to-home conversion of the former 7 Up global headquarters in Clayton, Mo., Commercial Observer has learned. The financing package includes tax credits for historic rehabilitation.
Octagon Finance Available unitranche loans support the adaptive reuse of an 11-story building in Downtown Clayton 10 miles west of St. Louis to a 118-unit apartment complex. A 200,000 square foot redevelopment project is called Upton will be built on the site where 7Up opened its Uncola campaign in 1968.
Zach Bubroskyhead of originations for Octagon Finance, said adaptive reuse is an ideal solution for the former 7Up building given the historic nature of the property and the need for new housing options or young professionals in the nearby area University of Washington in St. The soda company moved from Clayton to Dallas in the late ’70s, and the building sat vacant for more than a decade.
“When you do this historical tax credit project, you have to maintain the integrity of the history of the building,” said Bubrosky, who was listening to the building will be a picture of various 7Up bottles. “It creates an attractive project and also gives back to the community by providing additional housing when you know there’s a housing shortage in this market.”
Located in 121 South Meramec AvenueUpton will have a mix of studio, one-bedroom and two-bedroom apartments. Resident amenities include a fitness center, heated outdoor spa, dog wash, game room and fire pit.
Bubrosky added that the project should generate strong demand drivers from its location in Clayton, home to its global headquarters Enterprise Rent-A-Car, Centene Corporation, Emerson Electric Kab and Graybar.
Revive Capital Development and KAI did not immediately return requests for comment.
Andrew Coen can reach it acoen@commercialobserver.com.