ST. LOUIS — The vacant, former AT&T tower that occupies an entire city block in downtown St. Louis has sold for $4.1 million, less than half of what it is appraised for, and just one-50th of what it sold for more than a decade ago.
The sale offers a glimmer of hope for a revitalization of the 46-story building at 909 Pine Street — one of four prominent buildings in the downtown area that are vacant. But it’s also a reminder of how weak the downtown office market is. Bondholders appraised the building at $9.2 million last year, according to documents provided by data analytics firm Trepp.
New York-based SomeraRoad Inc. bought the 1.4 million-square-foot tower in late April, according to records filed with the city. Ian Ross, founder of SomeraRoad, declined to comment.
SomeraRoad has a pattern of turning around troubled properties. In 2018, it bought and renovated Hazelwood’s Village Square Center, at Interstate 270 and Dunn Road. At the time, the retail center was 60% vacant. It is now less than 30% vacant, with Washington University Physicians anchoring the property.
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Before SomeraRoad’s acquisition, the AT&T building last sold for $205 million in 2006.
That’s when owner, MB REIT, a subsidiary of Minto Holdings of Florida and Chicago-based Inland American Real Estate Trust, bought it from AT&T. The deal was financed by investment bank Bear Stearns, which failed two years later amid banking turmoil during the Great Recession.
When AT&T’s lease ended in 2017, about 2,000 employees relocated to nearby buildings. That same year, U.S. Bank sued the owner and foreclosed on the building. The building has been in receivership ever since. Bondholders hold some $107 million in debt on the building.
Bondholders have made a half-dozen attempts to sell the building — rejecting a 2018 offer for about $20 million from Bob Clark, executive chairman and founder of the construction company Clayco, and his development partner Larry Chapman.
Bondholders, with few offers to entertain, put the building up for auction last year, with bids starting at $2.85 million.
Reporter Jacob Barker contributed to this report.
EMPTY TOWER: After another potential buyer decides not to purchase downtown’s AT&T tower, David Nicklaus and Jim Gallagher discuss what might happen to the vacant property. It’s likely to remain empty for a long time, they conclude. Video by Colter Peterson, cpeterson@post-dispatch.com
