Milwaukee-based multi-family housing developer Mandel Group Inc. announced Monday that it has acquired the historic Merchandise Mart apartment building in downtown St. Louis. A Mandel affiliate raised an $8.1 million equity fund for the purchase, according to an SEC filing.
The 213-unit building was built in 1889 and was originally a dry goods warehouse. It was converted to apartments in 2003, in a $45 million project. The building’s apartments were 85 percent occupied at the closing of the sale to Mandel Group.
“The property appealed to us in part because we were able to acquire the asset well below its replacement cost today, and far below the original cost,” said Jason Babcock, vice president and director of acquisitions for Mandel Group. “It’s right in the heart of a vibrant mixed-use downtown neighborhood that’s experiencing sizable reinvestment. We expect the property to gain value both through enhanced operations, but also due to the dynamics of the surrounding area.”
Mandel Group has numerous apartment buildings in the Milwaukee area, but has increased its presence outside of Wisconsin and now owns or manages apartment buildings in Missouri, Minnesota, Illinois and Kansas.
“While the acquisitions market has tightened substantially, we’ve been fortunate to continue finding these types of opportunities in select Midwestern markets,” said Barry Mandel, president and CEO of Mandel Group.
