Arena site lures first tenant
St. Louis Business Journal - by Margaret Jackson
Protein Technologies International could be the first tenant at the Highlands at Forest Park, the new business park Balke Properties is developing on the former Arena site.
Protein Technologies is close to signing a lease worth $40 million over 10 years for about 250,000 square feet of space, according to people in the real estate community.
Protein Technologies officials declined to comment.
The company now occupies about 180,000 square feet of space at Checkerboard Square, the 40-acre campus Ralston Purina Co. owns at 801 Chouteau. Ralston sold Protein Technologies to DuPont for $1.5 billion in 1997.
Protein Technologies, headed by Ed Coco, is a $500 million company that develops, produces and markets isolated soy protein and soy fiber technology. The soy protein is used in food, infant formulas and sports drinks, as well as in coatings for paper and paperboard.
The company, which employs 1,200 people in 75 countries, has 294 employees at its St. Louis headquarters. It operates seven manufacturing plants and six technology centers.
Protein Technologies needs about 12 acres for its new headquarters and laboratories, according to people familiar with the deal. The old Arena site is about 26 acres.
Balke officials declined to comment on the prospect of Protein Technologies coming to the business park. Balke has the property, now owned by the city, under contract. The deal is expected to close by February.
Balke has agreed to pay the city $9 million over five years for the property. Within the first year of the deal, it will put up $1.8 million for 20 percent of the site.
If the firm doesn't buy additional portions of the Arena site in the next four years, the property will revert to the city. Under terms of the deal, the city must clear the property within the next year.
The city purchased the old Arena for $15 million in 1986 and is paying $50,000 a month in mortgage payments.
City officials have estimated that 2,000 to 4,000 workers could be employed at the site, depending on how the office complex is developed. City officials couldn't be reached for comment.
In December, the office park's top prospective tenant -- Safeco Corp. -- decided against locating at the site. Instead, the company plans to lease office space being developed near Interstate 270 and Manchester Road in west St. Louis County, but a lease hasn't been signed, sources said.
Bridge Information Systems Inc. also decided against relocating from Creve Coeur to the Arena site. The company is spending about $50 million renovating five office buildings it purchased near its original Creve Coeur location.
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