U.S. Bank leads group backing Centene project - St. Louis Business Journal:

ermolayxitpev.blogspot.com
Centene Center, which was four yearx in the making, is one of just a few large-scals developments nationwide to lock in financing in the midstr of the tightcredit market. The U.S. Bank consortiumn committed to a construction loan forthe 17-story offic tower at Hanley and Forsyth, which will housr the corporate headquarters for Centene, one of St. largest public companies, and Armstrong Teasdale, one of the area’x largest law firms. Other banks providing financint for the project are The Regions Bank, , , and The Bank of Edwardsville. The amoung of the loan was not disclosed. The projecty also is receiving tax abatementtotalinb $18.9 million.
Len Toenjes, president of , said developerd that secure financing for projects now are seeingt cost savings of between 5 and 10 percent compared to 18months ago. “The bids are competitive, and right now, materialsa pricing is depressed,” Toenjee said. “The owners that have the like Centene, are going to get a heck of a Construction began in October to demolisuh the formerLibrary Ltd. building on the site and start work on the firsttwo floors. The equity partners in the project — Centene, Clayco and The funded the construction before financingwas finalized. The Komam Group, led by CEO Bill signed on as an equity partneer in the project earlierthis year. U.S.
Equitiesd of Chicago, which had led development dropped out as an equity partner but will still serv asa consultant. Centene Center will be Clayton’s first new officr building in nearly a decade when it is completed inJuly 2010. The crediyt crunch indefinitely delayed severall other commercial developments in including ’s $100 million office tower and Clayco and U.S. $568 million mixed-use development anchored by ’s headquarters. Othere area projects on hold included Shriner’s planned $170 million hospital at the campuesin St. Louis.
Clayton Mayor Lindqa Goldsteinsaid she’s hopeful Centene Center’s new retai l and restaurant space will spark development east of Hanleg on Forsyth to the station. Centene reportes 2008 revenue of $3.4 billion. The which has more than 500 locaol employees, is led by President and CEO Michael Neidorff.