8920 Pershall/Green Street St. Louis

Sponsor: Principals of Green Street

Type of QALICB: Real Estate

Owner: An affliate of Green Street St. Louis

City and State: Hazelwood, Missouri

Contact Person: Brian Pratt

Phone: 3147262500

Contact Email: [email protected]

Allocation Amount Requested: $12,700,000

Brief Description of QALICB:

Green Street St. Louis will complete a dramatic transformation of former, and now vacant, call center into a 130,000 SF high-quality food production facility for Arcobasso Foods.  Arcobasso Foods is locally-owned production and sales company that manufactures and distributes customized specialty sauces, dressings, and beverage mixes for various nationally and regionally branded food and beverage retailers. Arcobasso Foods is unable to expand at its current location, a multi-tenant building, due to rapid growth and business acquisitions coupled with a lack of expansion space. 

Green Street will complete the adaptive reuse of the existing 89,000 SF call center by upgrading and adding new building systems, floor drains and plumbing to meet the production needs of Arcobasso s business operations.  Other interior upgrades include the complete renovation of the building s office areas to support the administrative and sales team while adding food grade flooring and wall coverings to meet food production certifications.  The exterior will undergo updates to the entrances and building façade to add light and security for Arcobasso.  In addition, Green Street will add an additional 40,000 SF cooler/freezer/warehouse expansion to accommodate the inbound ingredients and outbound shipping of product subject to various temperature levels and packaging requirements.  Green Street will incorporate sustainable building features with the potential for LEED certification.

Arcobasso has executed a Letter for Intent to take the space with final lease terms pending completed production/building drawings and project costing (expected to be complete by November 2015).  Green Street and Arcobasso anticipate the execution of a lease document in November (contingent on NMTC commitments) with construction commencing in February 2015 to be completed in August 2015.

In conjunction with the relocation to 8920 Pershall, Arcobasso will acquire an additional $2 million in production equipment and hire an additional 35 new employees while retaining 65 employees in this distressed area of St. Louis County.  The average salary of Arcobasso employees is $41,700 plus benefits.

But For Statement: NMTC are necessary to underwrite the extraordinary costs of redeveloping a former call center into a modern food facility with the large scale building infrastructure investments required to meet Arcobasso s production requirements while also meeting the food industries certification guidelines. The NMTC will support below market lease rates to assist Arcobasso in growing its business through investments in new equipment and the hiring of new employees at a location that provides sufficient growth for future production expansion.  The NMTC will not only provide below market lease rates for food grade production space, but will also support a flexible lease schedule that provides a stair-stepped lease schedule further discounting the initial lease costs for Arcobasso in the initial years of occupancy as it grows production capacity and market share. 

 

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