Dierbergs, McBride buy Crestwood mall site, move ahead with mixed-use development
January 27, 2022

https://www.bizjournals.com/st…

By Gloria Lloyd – Reporter, St. Louis Business Journal Jan 27, 2022

Dierbergs Markets and McBride Homes closed Wednesday on the purchase of the former Crestwood Plaza mall site in south St. Louis County.

The city of Crestwood in November rezoned the 46-acre site at 1 Crestwood Plaza for the mixed-use Crestwood Crossing development. Dierbergs and McBride separately purchased halves of the property, at Watson and Sappington roads, but will develop the site together, a McBride spokeswoman said. Financial terms of the deals were not disclosed.

The western side of the development, with a half mile of frontage on Watson Road, will be anchored by a 70,000-square-foot Dierbergs grocery store. Although Dierbergs is the only confirmed tenant so far, the St. Louis-based grocery chain is proposing an additional 30,000 square feet of restaurants and retail on multiple outlots. The plans, which the grocer projected at $67 million last year, also call for an open-space plaza and green space.

The other half of the property, to the east, will be turned into a new subdivision for McBride, St. Louis’ largest homebuilder. The Villages at Crestwood Crossing will have 81 houses. The three separate home styles in the subdivision will include 31 city-style homes like those built at La Collina, McBride’s neighborhood development on The Hill. The residential and commercial sides of the development will be connected by sidewalks and trails, with a connection to the Grant’s Trail greenway. McBride did not disclose development costs for its half of the project.

Extensive grading and site work will begin in March, McBride said in a news release. Construction on both the retail and housing sides, which is expected to take two years, could begin by mid-2022. McBride will start selling houses in The Villages this summer.

The former indoor mall at Watson and Sappington roads in Crestwood shuttered in 2013 and was demolished in 2017 by Chicago-based owner UrbanStreet Group. In the last decade, three separate developers had made proposals for the site and then dropped the plans.

Dierbergs and McBride announced in December 2020 that they were under contract to purchase the mall for a mixed-use development. Dierbergs last year submitted a request for tax-increment financing, but then later withdrew that requestand said that the project would work with the existing $15 million TIF granted to UrbanStreet before the mall demolition.

McBride CEO and Chairman John Eilermann Jr. and Dierbergs Markets President and CEO Greg Dierberg both said in statements that they were excited to redevelop the site of the mall, which has sentimental ties for many St. Louisans.

“My grandmother used to take me to Crestwood Mall when I was young. To have the opportunity to revitalize this iconic location means a lot to my family,” Dierberg said in a statement.

McBride is already seeing high demand for the houses that will be built at Crestwood Crossing, Eilermann said.

“Our phones have already been ringing off the hook for this new Crestwood development,” said Eilermann. “We have over 175 names on our interest list, which just proves the pent-up demand for new housing in the area.”

Sansone Group’s Mark Kornfeld and Grant Mechlinrepresented the buyers on the deal, while UrbanStreet Group was represented by Matt Bukhshtaber of CBRE.

Brokering the sale of the former mall was particularly sentimental to Kornfeld, who grew up in Crestwood and whose parents still live there.

“Having grown up in the City of Crestwood makes it extra special to be part of a major redevelopment like this,” Kornfeld said.

With demand already high for houses at the site, Mechlin said he believed the retail at the site, anchored by Dierbergs, will also prove popular among residents.

“Throughout the pandemic, both the grocery and residential sectors have been thriving. We are excited to help bring two great St Louis operators in these categories to this project,” Mechlin said.

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