KP Development, a St. Louis-based build-to-suit developer, has closed on the purchase of the former Chrysler assembly plant site in Fenton, Mo. The developer is now ready to move forward on the proposed Fenton Logistics Park.
The sale of the last of the many Chrysler plants closed during the automaker’s bankruptcy represents the end of a chapter for Chrysler, and a new beginning for Fenton and the entire St. Louis region. The project will include development of 2.5 million square feet of space for companies and end users during the next five years, representing an investment that will likely top $500 million in all and bring thousands of new jobs to the region.
“The local market and region is short in industrial, light manufacturing, distribution and office product, and that deficiency is even more pronounced in the southern portion of the metropolitan area, where the development of the Fenton Logistics Park will really fill a void,” said Terry Barnes, president of KP Development, in a written statement.
Barnes said that KP Development has secured interest from regional and national players, and that the company is working on finalizing five company-driven projects, with two of those on target to close within the next 60 to 90 days, paving the way for 300 jobs soon and up to 1,500 potential jobs within 24 months.
Logistically, these initial projects could be built simultaneously with the first phase of the Fenton Logistics Park infrastructure. Preliminary site work could get underway before the end of the year, with an official ground-breaking that could take place in early 2015. The initial end users are anticipated to be operational in the fourth quarter of 2015.
NAI DESCO represented the sale of the former Chrysler site on behalf of seller RJM I, LLC, as liquidation trustee for Old Carco Liquidation Trust (the successor to Chrysler LLC and its affiliated chapter 11 debtors). Associated Bank is financing KP Development’s acquisition of the site.