Pyramid Exits Development Business: Projects Left Hanging

The Pyramid Companies have dropped out of the development business, leaving question marks hanging over several celebrated redevelopment projects in downtown St. Louis.

The biggest project now in doubt is the project that Pyramid called the Mercantile Exchange, a six building project in the heart of downtown St. Louis that received national attention less than a year ago. The project, which was to include the former Dillards (Stix, Baer & Fuller) department store building, the Macy’s (Famous Barr) building, One City Centre, the Mercantile Library building, the former St. Louis Centre mall, and the Sixth Street garage, began as a smaller Pyramid project in 2006. Work on the project was supposed to begin in July 2006. When it did not, Pyramid announced a new start date in 2007, then in 2008, and then finally Pyramid was off the project. With each delay, the size of the project grew until it gained the attention of national newspapers, which pointed to the project as a sign that St. Louis was back growing again.

Pyramid’s real estate holdings include over 2 million square feet of space downtown. Other projects that left up in the air by Pyramid’s departure from the development scene include Bankers Lofts on Washington Avenue, Leather Trades Lofts on Locust Street, the Arcade Building on Olive Street, and the Jefferson Arms on Tucker Avenue, all of them in downtown St. Louis. Charleston Square in the Lafayette Square neighborhood and the Metropolitan Building on Grand are two other projects that will be affected by Pyramid’s withdrawal from development.

Spinnaker Cos., Pyramid’s partner on the conversion of the old Dillard’s building into apartments and a small hotel, said that project will move forward. Other developers are eyeing different pieces of Pyrmad’s holdings, but no other definite deals have been announced. CNR was unable to reach Pyramid President John Steffen for comment.

Columns