A joint venture between Revive Capital Development and KAI Design + Build has secured 48.25 million dollars in construction financing. The funds will go towards the conversion of 7Up's former global corporate headquarters in Clayton in the US state of Missouri. The financing package comprises a unitranche loan from lender Octagon Finance as well as historic preservation tax credits.
As part of the project named The Upton, the eleven-storey office building around ten miles west of St. Louis will be converted into a residential complex with 118 units. The property covers a total area of around 200,000 square feet. The drinks manufacturer launched its well-known Uncola campaign at this location in 1968, before the company relocated to Dallas in the late 1970s. The building had stood vacant for more than a decade.
Historic conversion for new target groups
Zach Bubrosky, Head of Originations at Octagon Finance, described the adaptive reuse as an ideal solution for the property. Given the building's historic character and the strong demand for new housing for young professionals near Washington University in St. Louis, the project offers considerable advantages.
Bubrosky emphasised that the historical integrity of the building fabric must be preserved in projects involving historic preservation tax credits. To honour this heritage, historic images of various 7Up bottles are to be integrated throughout the building, among other features. At the same time, the revitalisation contributes to the community by creating urgently needed housing in an undersupplied market.
Amenities and strong economic environment
The scheme at 121 South Meramec Avenue provides for a mix of studio apartments as well as one- and two-bedroom flats. Future residents will have access to several upscale communal amenities:
- —Modern fitness centre and heated outdoor spa area
- —Dedicated dog-washing area
- —Recreation and games room
- —Outdoor area with landscaped fire pits
Bubrosky also highlighted that the Clayton location generates consistent housing demand. The city serves as the headquarters for several global corporations, including Enterprise Rent-A-Car, Centene Corporation, Emerson Electric and Graybar.
