Bank of America withdraws offer of $5.9 million for Syndicate Trust
St. Louis Business Journal - by Linda Tucci
Bank of America has withdrawn a $5.9 million offer for the Syndicate Trust/Century Buildings, the crumbling, massive property at 915 Olive St., owned by the Conlon Group.
The offer was made Dec. 17 by CBD LLC, a limited liability company formed by Bank of America Community Development Corp., and signed by the corporation's senior vice president, Mary Campbell.
In a letter dated Jan. 28, bank attorney Robert Graham informed the Conlon Group that CBD was terminating the sales contract for two reasons: an unresolved problem with the lease between Conlon and the sole tenant, Walgreens; and CBD's inability to obtain "committee approvals for a purchase price" higher than $2 million.
That value was based on an appraisal, the current condition of the property and its surrounding land values, the letter stated.
Bank of America declined to comment, stating that confidentiality provisions in its contracts prohibit the bank from "talking about the terms or even the existence of such contracts." The sales contract indicates that CBD forfeited $50,000 in earnest money when it pulled out.
Conlon Group principal Mark Finney said valuing the property at $2 million "is borderline ludicrous."
"This property has gone through six years of litigation, and the value of the property has been argued about, litigated about and finally judicially resolved, with the last value established at $6.2 million," he said.
He dismissed the issues related to the Walgreens lease, saying Bank of America was well aware of the situation when it signed the sales contract. Finney also said he was led to believe that Bank of America intended to tear down the building. "Had I known they wanted to fix it, I would not have signed this contract."
The pullout is the latest in an ongoing fight over the property between Finney and various downtown entities, including the city of St. Louis and Downtown Saint Louis Partnership, the business group chaired by Bank of America Midwest President David Darnell.
The 700,000-square-foot Syndicate Trust occupies an entire city block, bordered by Locust, 9th, Olive and 10th streets. A half-block south from the proposed $244 million convention hotel on Washington Avenue and just west of the Old Post Office, the Syndicate Trust is considered a key property an area targeted for rehabilitation in the city's $1.2 billion Downtown Now! plan.
Webster University has expressed interest in moving into the Old Post Office if the city can assure parking for its students and evidence that the surrounding blighted buildings will be addressed. They include the Syndicate Trust, the Paul Brown and Arcade.
The Paul Brown building recently was purchased by Pyramid Construction with the help of Carpenter's District Council money, and there are efforts by the same group to acquire the adjacent Arcade.
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