Finance news

A prospective homebuyer might be surprised to find a new subdivision of large houses and townhouses in the city of St. Louis.

But there it is, the Boulevard Heights development, just off Blow Street and Trainor Court in south St. Louis.

Bearing the same name of the surrounding neighborhood, the project’s 11 acres are subdivided for new houses comparable to those offered in competing subdivisions throughout the suburbs.

C.F. Vatterott Construction Co. and Rolwes Homes Inc., the subdivision’s developers, are betting on the city’s housing renaissance. And they’re hoping to grab some of those returning to south St. Louis.

"This is a neighborhood that has deep roots, and a lot of people want to come back to it," said Gregory Vatterott, president of C.F. Vatterott.

Selling the houses hasn’t been helped by the recent collapse of the housing market. Despite the challenge, the project is doing rather well, said Joe Zanola, president of a real estate market research firm based in Rock Hill.

"Boulevard Heights, in line with the total St. Louis region market, has been closing more new homes than (they) have been starting," Zanola said. "This is a very healthy sign."

Mayor Francis Slay even gave a personal vote of confidence in the project. His family moved into a house he bought there earlier this year.

The subdivision is being built on the former site of greenhouses once maintained by the St. Louis Public Schools for a horticulture program.

The developers’ plan calls for 44 single-family houses and 32 townhouse units, with the first houses constructed in 2007. Sizes range from 1,200 square feet for the smallest townhouse unit to more than 3,000 square feet for the largest house.

So far, 25 houses and 11 townhouse units have been finished. Of those, 22 houses and nine units are occupied.

Work and sales of the houses and townhouses are split between the two developers. If there is enough interest, condominiums also could be built, Vatterott said.

Partnering on the project gave each company more leverage in financing about $35 million they’ve invested in the subdivision, he added.

Norma Stoltz, a Rolwes Homes sales manager for Boulevard Heights, said one good feature of the subdivision’s architecture was that "we maintain the historic integrity of the (Boulevard Heights) neighborhood in our designs."

Like sales elsewhere, demand for housing in Boulevard Heights subdivision slowed this year, Vatterott said. But he said there was a recent spike in interest.

The least expensive townhouse unit starts in the $190,000 range, while the most expensive house is in the $400,000 range.

The developers are offering customized house styles. Vatterott’s green package with energy-saving features includes high-efficiency heating and air-conditioning, tankless water heaters and double-pane insulated glass windows.

Energy-efficient features have helped Boulevard Heights compete with large older houses for sale in the area, said Jill Woodard, a Vatterott sales manager for Boulevard Heights.

"That’s one of the hidden benefits of new construction," she said.

Another draw is the variety of stores and restaurants nearby at shopping center Loughborough Commons, at Interstate 55 and Loughborough Avenue, Woodard added.

The Boulevard Heights project brings to almost 500 the number of city housing units Vatterott has built either on its own or with other developers since the mid-1980s.

But it is the first time the company has been involved in developing so large a subdivision within the city limits.

The developers said Boulevard Heights would be completed within a few years.

Source