Historic Lemp Brewery Complex
3500 Lemp Avenue
Saint Louis, MO 63118

Price: $20,000,000

A "CITY WITHIN A CITY".

Over 872,000 SF of existing net interior area in 29 buildings on 13.8 acres. Among largest redevelopment opportunities in Midwest, with potential as major mixed-use/lifestyle campus in the heart of St. Louis. NOTE: Property may be purchased in whole or in separate parcels. Property holds prominent place in St. Louis history. Birthplace of Falstaff Beer; prior to Prohibition was larger than its neighbor Anheuser-Busch. Brewery closed upon Prohibition and was sold to International Shoe Co (ISCO). Currently operated as a multi-tenant warehouse/industrial complex. Built from 1865-1911, buildings are visually related but each is distinct in its own right with signature design elements in Italianate/Renaissance Revival style. Site has open land available for parking and new construction. Property's unique network of underground lagering vaults and natural caverns were at one time a St. Louis tourist attraction. Property listed on National Register and eligible for Federal and State Historic Tax Credits. Also eligible for Brownfield Tax Credits, Rebuilding Communities Tax Credits, Federal and State New Market Tax Credits, and Tax Abatement/TIF.
 

St. Louis Business Journal - January 5, 2007

The Lemp Brewery south of downtown is under contract for the second time this year. Mayorslay.com reports Kansas City, Kan.-based Garrison Development has plans to redevelop the brewery complex.

Garrison, based in Kansas City, Kan., focuses on the Midwest and Mountain states.

The one-million-square-foot Lemp Brewery complex includes more than two dozen brick buildings on 15 acres at 3500 Lemp near South Broadway and Cherokee. Most of the buildings have been vacant for years.

St. Louis-based Jacob Development Group, led by Andy Hillin, had the property under contract from its owners, Shashi Palamand and his father Rao Palamand, earlier this year for an undisclosed amount. The Palamonds have owned the Lemp Brewery property since 1999 and put it on the market in late 2006. Jeff Kaiser of CB Richard Ellis, the owners' broker, declined to comment. Garrison principal Gary Hassenflu could not be reached for comment.

Several other developers presented bids for the property earlier this year, including St. Louis-based DESCO Group and Minneapolis-based Dominium Development & Acquisition.



 

by Lisa R. Brown - St. Louis Business Journal - December 15, 2006

The 1 million-square-foot Lemp Brewery complex will soon have a new owner.

Jacob Development Group, led by Andy Hillin, is days away from having the property under contract from its owners, Shashi Palamand and his father, Rao Palamand, according to sources. Those sources said the sale price for the complex -- which is composed of more than two dozen brick buildings at 3500 Lemp near South Broadway and Cherokee -- is about $20 million.

Hillin declined to comment about his plans for the property.

Since he founded Jacob Development three years ago, his focus has been on the Washington Avenue loft district. Jacob Development's projects include the $41 million Bogen Lofts at 1201 Washington, the $18 million Avenida at 1235 Washington and the $22 million Ventana Luxury Lofts at 1635 Washington. Hillin also was a co-developer of several other condo conversion projects in the loft district, including Rudman on the Park, the Denim Lofts and the Garment Row Lofts.

The Palamands, who have owned the Lemp Brewery property since 1999, put the complex on the market this fall after investing several million dollars in upgrades, according to Shashi Palamand. Most of the property is now vacant, with the exception of space filled by a handful of commercial tenants.

Jeff Kaiser of the St. Louis office of CB Richard Ellis, and Ed Rosenthal, vice president of urban development in the firm's Los Angeles office, are the brokers representing the Palamands in the sale, which is expected to close in two months.

Rosenthal said the Lemp Brewery property received interest from more than 20 developers across the country, primarily from those interested in buying a portion of the 15-acre parcel. The property is visible from Interstate 55 and is a few blocks from downtown St. Louis.

"A major part of the process for the owners is deciding: Do they want to do piecemeal development, or do we want to sell to one party?" Rosenthal said. "We were getting offers in the $25- to $30-per-square foot range if we did it piecemeal." Instead, the owners sought to sell the property to one buyer who had a plan to redevelop it, he said.

Other developers with local ties made bids to purchase the property and had plans on the drawing board. One of those was St. Louis-based DESCO Group, whose plans for the development topped $100 million and included 250,000 square feet of office space and an undetermined amount of space for retail, lofts and condos.

Minneapolis-based Dominium Development & Acquisition also made a bid for the Lemp Brewery complex. In 2003, Dominium completed a $42 million conversion of the Homer G. Phillips Hospital in north St. Louis into senior living apartments.

The Lemp Brewery complex is the latest attempt by Dominium in recent years to redevelop a sizable St. Louis property. In 2005, Dominium made a failed bid to be named redeveloper of the 16-story Syndicate Trust Building at 1006 Olive St. downtown. Another Minneapolis-based firm, Sherman Associates, in partnership with St. Louis-based LoftWorks LLC, was ultimately selected by the city of St. Louis for the Syndicate project.

The first building in the Lemp Brewery complex was constructed in 1864. Other buildings were added over the years as Lemp Brewery's operations grew until the plant closed in 1919 because of Prohibition. Located in the Cherokee-Lemp Historic District, all of the red brick buildings are Italian Renaissance Revival style, with the largest totaling 105,000 square feet.

lrbrown@bizjournals.com
 

by Margie Manning - St. Louis Business Journal - March 14, 1997

New life is brewing in the old Lemp Brewery compound in south St. Louis.

L.B. Redevelopment L.P., made up of Houston investors Jim Goss and John Bailey, plans to transform the 1 million square feet of space into a restaurant/entertainment complex, reminiscent of a European streetscape.

Eight restaurants, including two with their own breweries, are envisioned, along with a 3,500-seat music hall and three other live music venues. A series of music festivals is planned for an outdoor courtyard.

Bailey said L.B. Redevelopment has budgeted $12.5 million on the project. About $3.5 million will be spent on landscaping, fencing, tuckpointing and other site cleanup during the initial phases. The company's redevelopment expenses are separate from spending by the tenants who will occupy the restaurants and music venues.

"If the demand continues based on what we've seen at this point, there will be at least $20 million expended down here," Bailey said.

Bailey said the redevelopment project would be a catalyst to spur growth in the entire Cherokee-Lemp Historic District, which includes nearby restaurants and antique shops.

"Things like this tend to feed off each other and create a critical mass. We think it's going to be a magnet for redevelopment of the surrounding area," he said.

But Paul Pointer, owner of the Lemp Mansion restaurant just one block away, is keeping a cautious eye on the new project. Pointer's family has been redeveloping property in the area since 1975 and owns the Lemp trademark for food, liquor by the drink, catering and banquet facilities and bed and breakfast.

"When people in this town think of Lemp, they think of this restaurant," Pointer said. "I hope it heightens the Lemp name and we don't lose business."

The Lemp Brewery redevelopment project is the latest chapter in the long and varied life of the two dozen or so buildings that make up the 14-acre compound at South Broadway and Cherokee.

Most of the buildings were constructed between 1874 and 1910, as the Lemp Brewery grew to be one of the most successful businesses in St. Louis. But Prohibition and a series of suicides in the Lemp family destroyed the business, and the compound was sold in 1922 to International Shoe Co. for $588,000.

Goss, the managing partner of L.B. Redevelopment, first tried to put together a deal to buy the compound for $3.9 million in 1988, but the oil crisis of the late 1980s kept the Houston investors he represented then from completing the deal.

In 1992, L.B. Redevelopment paid $200,000 for the compound, which currently is home to light industry and artists lofts. Last year, they hired Hellmuth Obata & Kassabaum to develop a master plan, Goss said.

"There have been a lot of breweries remodeled, but I don't know anyone who's done anything this big," Goss said.

The Lemp Brewery property has two distinct advantages, Goss said. First, there is a fence around the entire compound, allowing developers to keep a tight handle on usage and making the site secure. In addition, the complex is large enough to accommodate on-site parking for 750 to 900 cars.

The restaurant/breweries could each hold 250 patrons and would be among the five largest in the United States in terms of size, Bailey said. Each would be at least 22,000 square feet, with options to expand to 40,000 square feet. Each would have its own banquet and special events facilities.

Bailey said the company has letters of intent from firms that want to operate the facilities, but he could not disclose the companies' identities. He said an announcement could come about mid-April. The first restaurant/brewery is scheduled to open by the end of the summer, with the second facility opening in January 1998.

L.B. Redevelopment is contacting a mix of local restaurateurs and national chains about operating the other six restaurants planned for the brewery complex. Bailey said one will likely be a Mexican restaurant, another Cajun, and a third a steak-oriented dining facility.

"We're steering clear of the suburban franchise operations. What we have to do here at Lemp is create something unique that's going to be a regional draw," Bailey said.

The 3,500-seat music hall, scheduled to open Oct. 1, would double as a facility for trade shows and other special events. Bailey said L.B. Redevelopment is close to reaching an operating agreement with a St. Louis-based firm for the music hall.

The three other music venues would feature traditional country artists or jazz-blues musicians, Bailey said.

"We will also produce a series of festivals in a courtyard on 2 acres on the northwest quadrant of the property. That can accommodate 7,500 people, or up to 20,000 through a weekend," Bailey said.

In February, the city approved 25-year tax abatement for the Lemp Brewery project. The St. Louis Board of Aldermen was scheduled to vote March 14 on amending the design standards for the site so that it could be used as an entertainment complex, while still maintaining its historic features.

"It strikes a balance between what one needs for economic development and what preservationists would like to see," said Alderman Craig Schmid, D-10th Ward, the sponsor of the measure.

The brewery also would be the largest property taxpayer in a proposed new Cherokee-Lemp Historic Tax District, which is on the ballot April 1.

The district, which would run along Cherokee Street from Indiana Avenue to South Broadway, would levy a property tax of 85 cents for each $100 of assessed valuation. The city would impose a surcharge on business licenses to finance the district. The taxes and fees would raise about $14,000 a year to promote the district.


 

by Lisa R. Brown - St. Louis Business Journal - September 8, 2006

Owners of the sprawling and storied Lemp Brewery complex are putting the property up for sale.

The brewery has not been in operation since Prohibition. The complex -- which includes 30 brick buildings at 3500 Lemp near South Broadway and Cherokee -- is now home to a few small commercial tenants. But most of the buildings sit empty with 'for lease' signs throughout the property.

The 15-acre complex in the Benton Park neighborhood in South St. Louis City is being marketed to local and national developers for mixed-use projects, said Ed Rosenthal, vice president of urban development in the Los Angeles office of CB Richard Ellis, the broker on the property. Jeff Kaiser of CB Richard Ellis' St. Louis office is the local broker for Lemp Brewery's majority owner, Shashi Palamand, and his father, Rao Palamand a minority owner.

An asking price has not been set for the property but real estate sources said it could sell for $30 per square foot, or as high as $30 million. Proposals are due from developers in early October. A group of investors, Historic Lemp Brewery LLC, purchased the property in 1999 for $1.8 million. Shashi Palamand said he and his father bought out four of the other investors in 2003 and 2004 privately for several times the amount paid in 1999.

"The last few years have been spent stabilizing the property and bringing it up to code," Shashi Palamand said. The Palamands spent several million dollars on improvements on the property, including installing new roofs on about 25 of the buildings.

Rosenthal said the former brewery's smoke stack offers a potential tenant good visibility. The complex is located a few yards off of I-55 and is a few blocks south of Anheuser-Busch Inc.'s headquarters and brewery.

"It's an opportunity to create a little city within a city," Rosenthal said. "It's an unusual, historic site that played a big role in St. Louis development. It's a bit of history. And it's self-contained so a developer can create a beautiful mixed-use community."

The first building in the Lemp Brewery complex was erected in 1864. Up until 1911, additional buildings were added as the brewery's operations grew, until the plant closed in 1919 due to Prohibition. A few years later, the brewery property was sold to International Shoe Co. for $588,500.

The buildings total 1 million square feet of space. All of the buildings are Italian Renaissance Revival style, and the largest has 105,000 square feet of space.

Previous proposals to revitalize the Lemp Brewery property, which is in the Cherokee-Lemp Historic District, failed to materialize. In 1997, former owner Jim Goss planned a $12.5 million conversion of the property into an entertainment complex with restaurants, music venues and a microbrewery. The project never got beyond the planning stages.

lrbrown@bizjournals.com
 

Kansas City Business Journal - May 23, 2007

Garrison Development plans a $125 million mixed-use project at the former Lemp Brewery in St. Louis.

Gary Hassenflu, principal of Garrison Development, based in Kansas City, Kan., said Wednesday that he hopes to close on the contract in the spring of 2008. The project will have 350 apartment units, 80,000 square feet of retail and 20,000 square feet of offices, Hassenflu said. Construction is expected to take two and a half years.

The 1 million square-foot Lemp Brewery complex includes more than two dozen brick buildings on 15 acres. Most of the buildings have been vacant for years.

St. Louis-based Jacob Development Group, led by Andy Hillin, had the property under contract from its owners, Shashi Palamand and his father, Rao, earlier this year for an undisclosed amount. The Palamonds have owned the Lemp Brewery property since 1999 and put it on the market in late 2006.

Several other developers presented bids for the property earlier this year, including St. Louis-based DESCO Group and Minneapolis-based Dominium Development & Acquisition.

by Lisa R. Brown - St. Louis Business Journal - October 20, 2006

The nearly vacant Lemp Brewery complex could soon be the site of more than $100 million in development.

The DESCO Group is one of three bidders vying to acquire the 15-acre Lemp Brewery property just south of downtown. Other bidders include nationally based developers also seeking to resurrect the prime piece of real estate.

If it's the winning bidder, The DESCO Group is planning a more than $100 million mixed-use development that includes 250,000 square feet of office space and an undetermined amount of retail space, lofts, townhouses and condos. If the bid is accepted, the project will be among the largest developments under way in the city, and will join other major mixed-use developments downtown, including the $650 million Ballpark Village adjacent to Busch Stadium and Pyramid Cos.' $270 million redevelopment of the St. Louis Centre mall and adjoining buildings.

The owners of the former Lemp Brewery, at 3500 Lemp near South Broadway and Cherokee, put the property on the market this summer. Shashi Palamand, the majority owner of the property, said he will select from among the bidders before the end of October. Palamand, along with his father, Rao Palamand, bought the property with several other partners in 1999 for $1.8 million. The Palamands then bought out the four other investors in 2003 for several times the amount paid in 1999 to the previous owner, Jim Goss, and have sinceinvested millions in upgrades to the property. Goss made a failed attempt to convert the property into an entertainment complex.

The Lemp Brewery complex, in the shadow of the Anheuser-Busch headquarters and brewery, includes 30 mostly vacant brick buildings totaling nearly 1 million square feet of space. The buildings were erected between 1864 and 1911. The brewery closed in 1919. The ownership of the property has changed hands several times, and commercial tenants have come and gone throughout the years, including the International Shoe Co., which once owned the complex.

An asking price was not set for the property, but real estate sources said it could sell for $30 per square foot, or as high as $30 million. The DESCO Group declined to disclose its bid amount.

Mike Goellner, project manager with The DESCO Group, said the St. Louis-based developer's plans include preserving the buildings. "All the existing buildings are individually listed on the national historic register, so we would be looking at rehabbing them, using historic tax credits," Goellner said.

The DESCO Group's plans also call for partnering with a home builder to develop new-construction townhomes on vacant parcels within the property. The project would likely be accomplished in phases and span five to 10 years, Goellner said.

Goellner said The DESCO Group, which is the developer of Schnuck Market's stores, did not include a grocery store in its proposal for the Lemp Brewery. "We've got the Loughborough store two miles away," he said.

Ed Rosenthal, vice president of urban development in the Los Angeles office of CB Richard Ellis, and Jeff Kaiser of CB Richard Ellis' St. Louis office are the brokers on the property. Rosenthal said the property garnered more than 20 offers from both local and nationally based developers. "We have narrowed ourselves down to three."

lrbrown@bizjournals.com