Five Years Since Pyramid Properties Ceased Operations
Five years ago today major St. Louis developer Pyramid Properties, led by John Steffens, collapsed, leaving a long trail of unfinished properties. From May 2010:
City leaders and Pyramid’s former partners say the transfer of properties is remarkable given the size and scope of the properties involved and the timing of the deals in the midst of the Great Recession.
“It has worked out far better than I expected,” said Jeff Rainford, Mayor Francis Slay’s chief of staff. “The fact that people were willing to not race to the courthouse steps is the only reason this didn’t end up a total disaster.”
Instead of filing lawsuits or filing for foreclosure, many of Steffen’s lenders, investors and former partners suspended disbelief and instead participated in a workout process that began days after Pyramid closed its doors. (St. Louis Business Journal)
With the properties untangled many have since been completed by others, including, but not limited to:
The above properties show that even in a down economy projects can happen. Still, the future of a few other former Pyramid projects remains unclear or just getting started:
Considering how much property Pyramid had tied up in complicated financial transactions it’s remarkable what has been accomplished in the last five years. Hopefully the remaining projects will be completed in the new few years.
— Steve Patterson
Don’t know how anyone feels about the demise of Pyramid….but I know that my daughter and son-in-law were lured by the glitz of one of their loft buildings, only later to find out that several shortcuts had been taken in the reconstruction and restoration, which ended up costing the owner-residents a lot of money. Every time it rained, rainwater poured through the exterior walls! The sealant around the windows had been improperly installed, and it separated from the brick and aluminum and allowed air and water to enter the loft units. Seems like everyone benefitted when Pyramid bit the dust, sorry to say.
I know the building you are referring to, I think. It was one of Pyramid’s first attempts in the big league, and they never quite made it. In that building, not only did they allow the tuckpointing to be skimmed, but their supervision was such that they allowed work to be done that did not comply with industry standards: failure to prepare windows before caulking, painting of dirty surfaces, shortcuts in the soundproofing system which resulted in a noisy living environment, etc. Material selections that were impractical were made by designers who were obviously novices, an under-designed HVAC system much too complicated for a residential development, POOR workmanship, a basement (where residents’ storage was located) that leaked every time it rained (and when it wasn’t wet, it was MUSTY)…..are just a few of the issues that residents had to deal with. Thankfully, all the loft buildings downtown were not similarly developed, but I understand that several (NOT ALL) of Pyramid’s developments had major issues to deal with.