Koman Purchases Clayton on Park

Clayton On The Park, a residential high rise building at 8025 Bonhomme  Ave. in Clayton., has been purchased by COTP LLC, an entity wholly owned by affiliates of local commercial real estate firm The Koman Group (TKG). The seller was  PBE Companies, an affiliate of Providence, Rhode Island-based Sovereign Bank.  Financial terms of the transaction were not disclosed.

The 24-story, 275,000-square-foot structure is currently vacant. In 2009, a joint venture of  Conrad Properties Corp. of St. Louis and McLean, Va.-based Sunrise Senior Living  closed it after investing in a renovation that yielded 206 senior residences and leasing only 20 of them.

Opened in 2000, Clayton On The Park initially operated as a successful boutique luxury apartment and extended stay hotel residence. "The superior location and in-place amenities attracted us to the building," said Jason Braidwood, TKG managing director. Koman plans to update residential finishes and  reposition the building's existing 5,000-square-foot restaurant, fitness center and health spa in re-launching it as a one-of-a-kind luxury apartment community within easy walking  distance of the Clayton central business district.

To execute the plan, Koman and San Diego-based co-developer Wermers Companies have retained Riverstone Residential Group, one of the largest privately- owned, third-party multifamily property management companies in the United States, to  oversee Clayton On The Park. Riverstone, with more than 180,000 units under  management, manages properties across the United States including Chicago, St. Louis, San Francisco, Los Angeles, Seattle, Portland, Washington D.C., Denver and Atlanta.

Added Braidwood: "A declining home ownership rate and a lack of recent deliveries make it a compelling time for multi-family investment. We look forward to re-positioning Clayton On The Park to capitalize on this trend and have interest in committing to additional residential projects that meet our investment criteria."Wells Fargo provided senior debt financing.Reid Case Group, LLC of St. Louis, retained by PBE Companies in fall 2010 to secure,  manage and reposition Clayton On The Park, helped facilitate the transaction. The principals of the company are Ellen Reid and Jay Case.

Founded in 1984, The Koman Group has developed more than $1 billion in new projects in Missouri and Illinois. Heading its St. Louis portfolio is CityPlace, a mixed-use development comprised of eight buildings totaling more than 1.1 million square feet of space. In 2009, it partnered with tenant Centene Corporation to develop the 17-story, 485,000-square-foot Centene Plaza building - the only new Class A office tower constructed in Clayton since 2001. All told, Koman Group and its affiliates own and manage approximately 1.5 million square feet of commercial and residential space.

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