14th Annual Student Real Estate Challenge

2024 CHALLENGE BRIEF

Page Intentionally Left Blank

2
 2024 Challenge
Midwest City Contenders

3
 “Arc of Industry’

Near North Riverfront – St. Louis, Missouri

January 24, 2024

4
ABOUT THE FOUNDATION

The Harold E. Eisenberg Foundation is committed to embracing life’s challenges through

gastrointestinal cancer research and education.

Cancer Research

We are committed to breakthrough gastrointestinal (GI) cancer research. We aim to advance

cancer medicine and increase survivorship by fighting cancers of the esophagus, liver, pancreas,
kidneys, stomach, intestines, gallbladder, colon, and rectum.

Learn more about our efforts to fight GI cancers and our partnership with the Robert H. Lurie
Comprehensive Cancer Center of Northwestern University.

https://eisenbergfoundation.org/cancer-research/

Real Estate Education

We are committed to catapulting the career paths of aspiring real estate students through hands-
on, real-world education opportunities, including mentorships, scholarships, the Scholars
Program, the Real Bright Summit, the Speaker Series, the Real Estate Challenge, and more.

Learn more about our real estate education programs.

https://eisenbergfoundation.org/real-estate-education/

Husband. Father. Teacher. Friend.

Harold Eisenberg was a man who inspired many and who continues to inspire our work today.
The Foundation was created in an outpouring of love to honor his memory by fighting the cancers
that took his life and by continuing his legacy as a mentor, leader, and educator.

5
WELCOME

January 24, 2024

Dear Students, Advisors and Real Estate Directors:

On behalf of the Harold E. Eisenberg Foundation, welcome to the 14th Annual Real Estate
Challenge. We wish each of you a rewarding experience.

We are excited to announce that the 2024 Challenge the subject site will be Arc of Industry
(“Challenge Site”). We are grateful to the City of Saint Louis and our presenting sponsors
Swinerton, Habitat, and TestFit for their generous participation in this year’s Challenge.

During the 2024 Challenge, students will determine a Development Plan that is economically
viable and complements the unique uses surrounding the site. To help guide the process, the
Harold E. Eisenberg Foundation has appointed experienced real estate professionals, each of
whom have generously donated their time, to serve as advisors for each school and will assist
their team in realizing its vision. The participating schools and students should be mindful that it
is not the role of the advisors to create the vision for the Challenge Site, but rather to answer
questions and guide students to resources.

We look forward to seeing all of you on Saturday, April 13, 2024, for the Final Presentations.

HEEF Associate Board – Challenge Committee

Harold E. Eisenberg Foundation
1460 Techny Rd
Northbrook, IL 60062
REChallenge@eisenbergfoundation.org

6
ABOUT THE COMPETITION

ELGIBILITY
The Harold E. Eisenberg Foundation (“HEEF”) invites the participation of teams from accredited
educational institutions in the United States.

If two or more team members are not able to be present the day of the virtual or live presentations,
then the team will not be eligible to be considered for the prize. If they wish to pre-record their
presentation and receive feedback, that can be arranged.

COMPETION DIVISIONS

• Undergraduate Student Division

• Graduate Student Division

The Real Estate Challenge Committee recommends that undergraduate and graduate students
compete in their respective divisions. However, if any team has one or more graduate students,
the team must compete in the Graduate Division. It is suggested that teams have at least two (2)
graduate students if competing in the Graduate Division. Teams must consist of no more than
five (5) members with each team member required to attend and participate in the Final
Presentations.

AWARDS

The winning team members are eligible to earn a scholarship for their university. All students will
be encouraged to leverage HEEF’s Education Program, which includes a mentorship program,
job opportunities, and networking events.

The Foundation reserves the right to award a runner-up and honorable mention. The Harold E.
Eisenberg Foundation will present two (2) $7,500 scholarships, one to each of the winning teams
by their division.

INDUSTRY PROFESSIONAL ADVISORS

Two to three real estate industry professional advisors will be assigned to provide help, offer
suggestions, and be a sounding board relating to the team’s approach, highest and best use, and
assumptions. Advisors will be assigned to each team after the Kickoff Meeting.

JUDGES

The Committee will select a panel of judges who have exceptional experience in the real estate
industry. The judges’ role will be to evaluate student submissions and presentations on a fair and
impartial basis with a focus on the judging criteria and the quality of the written and oral
presentations. The Committee will make every effort to balance the skillset of the panel of judges.

7
SPONSORS

The Harold E. Eisenberg Foundation would like to thank our Sponsors for making this Challenge
possible.

PRESENTING SPONSORS

REAL ESTATE EDUCATION PARTNERS

8
CHALLENGE TABLE OF CONTENTS

Section 1: THE SITE "ARC OF INDUSTRY" 10

Section 2: LOCATION OVERVIEW 19

Section 3: DEVELOPMENT OPPORTUNITY 32

Section 4: ASSUMPTIONS 33

Section 5: JUDGING CRITERIA 34

Section 6: SUBMISSION CHECKLIST 36

Section 7: CHALLENGE LOGISTICS 38

Section 8: FINAL NOTES 39

9
THE SITE – “ARC OF INDUSTRY”

Arc of Industry is situated less than a mile north of Downtown Saint Louis, Missouri. The entire
site spans 95-acres and runs along the Mississippi riverfront for over 1 mile.

ARC OF INDUSTRY SITE – SECTIONS

To make the site more palatable, it has been broken down into four (4) Sections.

The HEEF 2024 Case Challenge will only focus on Section D.

10
YOUR TEAM WILL ONLY FOCUS ON SECTION D.

SECTION A

For the purposes of this Case Challenge, assume the City

of STL will improve the pedestrian experience with light
enhancements along Leonor K. Sullivan Drive and
connect it into Section C and Section D.

(Estimated Completion 2028.)

SECTION B

For the purposes of this Case

Challenge, assume there will be
future redevelopment of Section B.
This section will greatly enhance
the area and better connect into
Section D.

(Estimated Completion 2040.)

Note 1: Assume this area will complement your development.

Note 2: The exact improvements should NOT determine your team’s proposed development plan.

SECTION C

Similar to Section A, assume a P-3 development will take place to

improve the pedestrian experience and connect the bike path into
Section D.

(Estimated Completion 2032.)

11
SECTION D

Site Bounds

North: Mullanphy Street

East: Mississippi River
South: Ashley Street
West: First Street (active rail line)

Note: When establishing a $/SF land purchase price, use 21-acres and the above bounds for the Site parameters.

SECTION D BREAKDOWN; 2024 CASE CHALLLENGE SITE (“Site”)

Situated on approximately 21-acres of land, the Site is currently improved with five (5) standing
buildings that encompass 273,000-square-foot of industrial space. Each of these buildings played
a significant role in St. Louis’ economic growth in 19th Century.

No Name Address SF
1) Beck and Corbitt Iron Building 1234 N 1st Street
2) Peerless Building 1255 Lewis Street 78,000
3) Lacleed Power Building 1246 Lewis Street 40,000
4) William A. Kerr Foundation Building 21 O’Fallon Street 6,000
5) Sonn Sign Building 1322 Lewis Street 40,000
6) Cotton Belt Freight Building 1400 North 1st Street 109,000
7) Power Lines
8) Access Points
9) Active Rail Line
10) Rail Spur
11) Root Wad Park
12) Trailnet Bike Path
13) Flood Wall
14) Mississippi River

12
ITEM BREAKDOWN

1) Beck and Corbitt Iron Building

This building was formally the Beck & Corbitt Iron

Company which produced hundreds of items
including steel, iron pipe, steel sheets, steel roofing,
bolts, and screws. The building caught fire in Oct
2022; the remainder of the site sits with brick and
rubble.

Source: Unseen St. Louis

Building 1: Beck and Corbitt Iron Building

2) Peerless Building

This is a vacant windowless 6 story post

and beam building with 78,000 square
feet. It was a part of the Belcher Sugar
Refinery complex and later used as a
chemical coatings manufacturing
business. The building has had fires and
is environmentally contaminated.

Source: LoopNet
Building 2: Peerless Building

3) Laclede Power Generation Building

This building is 40,000 square feet and has 100’ high

ceilings, is a vacant former Electrical power plant
constructed in 1901. It has had environmental
remediation, interior demolition, masonry, and roof
repairs. Trailnet, a bicycle advocacy nonprofit, once
acquired it to convert it to a trail head. The basement
of the building extends about 20’ east of the existing
exterior wall. The building also has a cave beneath
it that fills with water if the water is not managed. It Source: LoopNet
Building 3: Laclede Power Generation Building

13
has the distinction of being right on the Riverfront Bike trail! This building is 1 mile north of the
Arch.

4) William A Kerr Foundation Building

This building is
approximately 6,000
square feet. It was
the Belcher Sugar
Refinery Bath
House and has a
Platinum LEED
Certification on its
renovation. The
Foundation donates
its use to nonprofits
Source: William A. Kerr Foundation
for meeting space. Building 4: William A. Kerr Foundation Building

5) Sonn Sign Building

This building is 40,000 square feet

with a 100’ high roof and has three
floors, 36’, 34’, 28’ floor to ceiling
heights 1-3 respectively. This
building is currently being leased.
Outside of the Ashley Power Plant,
there is no building closer to the
Mississippi river than this one.

Source: LoopNet
Building 5: Sonn Sign Building

6) Cotton Belt Freight Depo Building

This building is 780’ long, 28’ wide, five stories tall, 109,000 square feet, constructed in 1911, and
has been vacant for the past 50 years. It is a concrete structure.

14
Source: Architectural Afterlife
Building 6: Cotton Belt Freight Depot (Exterior)

Source: Architectural Afterlife

Building 6: Cotton Belt Freight Depot Building (1st Level Interior)

7) Power Lines

Large towers exist on the site to carry power across the

Mississippi River. It is not likely that these towers can be
removed without significant investment and coordination.

Source: Google Maps

Infrastructure: Power Lines

15
8) Proposed Access

Access to Section D is through Leonor K Sullivan Boulevard, O’Fallon Street, and Mullanphy
Street.

9) Active Rail Line

This rail line has approximately 5 trains

that run through the site per day. The
trains are required to run at slower
speeds and thus do not create a loud
noise when passing through the site.

Source: Google Maps

Infrastructure: Active Rail Line

10) Rail Spur

An active rail spur

currently exists on the site.
For the purposes of this
Challenge, this spur can
be kept or removed.

Source: Google Maps

Infrastructure: Rail Spur

16
11) Root Wad Park

“At the edge of the

Mississippi River in St.
Louis, Missouri lies a
hidden gem known as
Rootwad Park. The
park is an unfinished
work by sculptor,
entrepreneur, and
creative director Bob
Cassilly. The park
showcases remnants Source: Architectural Afterlife
Park: Rootwad Park
of St. Louis’ industrial
history, including the old
Laclede Power Station
and Cotton Belt Freight
Depot” – Architectural
Afterlife

12) Trailnet Bike Path

Source: Architectural Afterlife
View: Rootwad Park
Open year-round, the
St. Louis Riverfront Trail
runs twelve miles
alongside the
Mississippi River and
runs through the heart of
Arc of Industry Site.
Whether you want to
walk, run, or bike, the
trail offers an intimate
perspective of the
Mississippi River and
the shoreline that you
can’t find anywhere Source: Google Maps
else, making it one of View: Trailnet Bike Path; path along interior of Floodwall.
the top things to do in
St. Louis.

17
13) Flood Wall

Groundbreaking took place in

1959 to construct a $130M,
11-mile flood wall that would
protect 3,420 acres along the
riverfront from a flood stage
52 feet. This floodwall runs
parallel to the Site and the
Mississippi riverfront.

“More than 500 graffiti artists

and musicians from around
the world will descend upon
St. Louis this Labor Day
Source: Forbes
Weekend for the 26th Paint Infrastructure: Flood Wall (graffiti)
Louis festival. The free event
once again welcomes the community to observe a 1.5-mile section of the city’s flood wall along
the Mississippi River repainted fresh.” – Forbes

14) Mississippi River

The Mississippi River is

one of the world’s major
river systems in size,
habitat diversity and
biological productivity. It
is also one of the world's
most important
commercial waterways.
The Mississippi River
influences a significant
piece of the economy in
the upper Midwest.
Barges move
approximately 175 million
tons of freight each year.
Source: Alberici
Natural Resource: Mississippi River

ZONING/ENTITLEMENTS

The Challenge Site is currently zoned “K” (Unrestricted District) with 1,650 feet of river frontage.
The site has potential for adaptive reuse of the existing structure(s) or ground-up new
development. Zoning requires a variance or zoning change to permit residential development but
should not be difficult to obtain.

18
LOCATION OVERVIEW

RIVER SIGNIFICANCE ON FOUNDING

Around 600 A.D., the city of Cahokia, Illinois was first founded about 8-miles southeast of modern-
day STL (across the Mississippi River). In 1764 modern St. Louis was founded as a trading post
by Pierre Laclède, a French fur trader who traversed up the Mississippi River from New Orleans.
The reason both cities were established here is due to the confluence of the Missouri and
Mississippi rivers, along with the Illinois (60-miles north), and Ohio (130-miles south) rivers. At
this time, rivers were the easiest way to transport goods and conduct trade, they were the
interstate highway systems before railroads and automobiles. Initially furs, then hardware, grain,
lumber, ice, and people, were transported by way of the rivers.

Source: Sutori
View: Map North America river system around the time St. Louis was founded.

Source: The Library of Congress

View: Map of the St. Louis Harbor in 1837; Bloody Island and Indian Mounds around Site

19
20
Source: STLMag.com
View: Arc of Industry Site in 1876; Near North Riverfront; No. 17 (Grain Elevator) is approx. location of existing Ashley Power Plant (Zoom in)
RAILROAD REVOLT

STL flourished as more

people migrated West in
search of liberty and
fortunes. STL soon became
known as the ‘Gateway to
the West’. In the 18th
century, the river was the
City’s front door.
Steamboats and paddle-
wheelers moored side-by-
side, and goods were
stacked as far as a mile
north and a mile south of the
current day Arch Grounds.
Special purpose buildings
were constructed along the
riverfront to accommodate
commerce. By 1874, thanks Source: World Maps
to world-renowned engineer View: Ed’s Bridge connecting Missouri to Illinois.
James Buchanan Eads,
STL finally constructed a railroad bridge over the Mississippi River. Alternative transportation
(railroads and roads) was averse to river commerce and the steamboat industry. Slowly,
commercial activity was weaned from the waters of the Mississippi River. The infrastructure and
buildings designed to support those industries became obsolete and deteriorated.

Source: Library of Congress

View: Ed’s Bridge connecting Missouri to Illinois; longest in the world in 1874 (6,400’ long).

21
RISE OF THE GATEWAY ARCH

By the early 1900’s the riverfront

significance was diminished. There were
blocks and blocks of adjacent vacant
underutilized buildings. In the 1930s, as
the eyesore grew, Luther Ely Smith had
an idea to create a monument
commemorating STL contribution to the
westward expansion, the STL Arch. He
was persistent and persuasive and by
1935 he and his committee had
convinced Franklin D Roosevelt to
designate the site of the current Arch
Grounds as the Jefferson Memorial
Expansion Project. He wanted the
memorial to be an impetus to attract folks
to the riverfront and be an economic
catalyst for Downtown STL. It wasn’t until
1939 that site demolition began, delayed
by war, there was a design competition in
1947 and 180 entries were submitted.
Finish-American Architect Erro
Source: National Archives/National Park Service
View: Arch comes together. Saarinen’s Arch design was selected.

22
ST. LOUIS TODAY

Since 2010, Downtown STL has added

5,000 residents; NGA is building a new
100-acre campus in North City; Square,
the San Francisco-based mobile
payment platform developed by two St.
Louis natives, is building offices in the
former Post-Dispatch building and is
expected to anchor the “North of
Washington” innovation corridor;
Cortex continues to add significant new
physical developments, including a
$115 million building at 4210 Duncan
Ave.; the Arch Grounds received $380
million worth of enhancements; Union
Station is now home to the St. Louis
Aquarium and the Wheel, a 200-foot-
tall Ferris wheel; the Brickline
Greenway will link 17 neighborhoods
across the city; and MLS has awarded
St. Louis a franchise, which began
playing in 2022 in a new stadium in
Downtown West.

The city is critical to regional

prosperity. Although the city contains
less than 1% of the land area of the St.
Louis, MO-IL MSA, St. Louis accounts
for 11% of the regional population,
17% of private sector jobs, and 19% of
generated wages. With 200K private Source: 2020 STL Economic Development Framework
sector jobs (and 30K jobs in the public View: City geographies; Population change
sector), the city boasts an enviable
private sector job density – the highest
among all Missouri counties – as well
as high wages. The biggest industries
in the City of St. Louis are Hospitals
(29.4K jobs in 2018); Food Services
and Drinking Places (16.7K jobs);
Professional, Scientific, and Technical
Services (16.7K jobs); and Educational
Services (13.3K jobs). Although job
growth in the city lagged St. Louis
County, the rest of the region, and the
U.S. from 2010 to 2018, it grew faster
than all three from 2017 to 2018. (See
Figure ES-5.)

23
MISSISSIPPI RIVER

The Mississippi River provides a vital link for freight movement in the United States. In 2020, the
river carried more than half of the 165.5 million tons that moved between the 12 states touching
the Upper Mississippi System and Louisiana. The percentage of freight carried by the river to
Louisiana is much higher for some states: 92 percent for Indiana, 81 percent for Missouri, 80
percent for Illinois, and 75 percent for Kentucky. Today, that flow of freight has been hampered
by low water levels on the Lower River.

Source: Bureau of Transportation Statistics

The Mississippi River waterway moves roughly $4.1 billion of cargo annually and continues to
offer businesses a low-cost mode of transportation. The St. Louis region specifically offers easy
access to domestic and international destinations, including points of export for ocean container
shipping, inland shipping ports offering container on barge services, and several major airports.
It is the largest river transportation hub in the Midwest.

24
MAJOR FREIGHT CORRIDORS

Because of its central location, STL remains one of the largest rail hubs in the US. It links six
Class 1 rail routes, the Canadian National, Union Pacific, Canadian Pacific Kansas City (CPKC),
CSX, Norfolk Southern, and Burlington Northern Santa Fe railways, in addition to local and short
line railroads.

Source: US Department of Transportation; Federal Highway Administration

Source: St. Louis Regional Freightway

25
METROLINK

Although the agency faced funding issues, the system was actually able to grow and expand
throughout the decade. In 2001, the agency opened the St. Clair County MetroLink Extension,
serving eight new MetroLink Stations from 5th & Missouri in East St. Louis to Southwestern Illinois
College in Belleville, IL. MetroLink service grew again with the addition of service to the Shiloh-
Scott MetroLink Station in Illinois in 2003, the same year the agency changed its name to Metro,

Metro grew yet again in 2006, when it opened the Cross County MetroLink Extension. The Cross
County MetroLink Extension expanded MetroLink service into mid-St. Louis County from Forest
Park, serving nine new stations and eight miles into the heart of the region. Metro also began
serving seven new MetroBus Transfer Centers while expanding Metro Call‑A‑Ride service and
opening parking facilities at the North Hanley and Brentwood I-64 MetroLink Stations.

The Red and Blue Line both have a stop just 0.5-miles from the Site.

SITE

Source: metrostlouis.org
View: MetroLink map; note Laclede’s Landing stop

26
GREAT RIVERS GREENWAY/MISSISSIPPI RIVERFRONT TRAIL

Since the year 2000, the City of St. Louis has made bicycling a part of the overall plan for the City
of St. Louis. Since then, projects like Bike St. Louis and the greenways from Great Rivers
Greenway (GRG) have brought over 135 miles of bicycling routes to City streets.

A combination of federal transportation grants, extensive public engagement and engineered

designs continue to make our community more friendly for those who bicycle for transportation,
fitness, or even just for fun.

Mississippi Riverfront Trail (bike path) runs along the floodwall through the Arc of Industry Site.

Source: Great Rivers Greenway

View: STL bike path; path along Arc of Industry Site

27
SURRONDING DEMOGRAPHICS

The population of the one-mile radius surrounding the project site

is 9,008. The Columbus Square neighborhood has a
population of 1,978 based on the 2020 City of St. Louis
Census. The 1-mile radius grew in population by more
than 11% between 2010 and 2023 while the 5-mile
radius surrounding the project site decreased by 8%.

The demographics of the population are 49%

Black Non-Hispanic, 44% White Non-Hispanic,
3% Asian Non-Hispanic, and 4% other. The
median household income within 1 mile was
$63,100, and the median within 5 miles
was $42,598. Most residents are
between the ages of 20-34 with a
bachelor’s degree or higher.
Although the population has
grown, the relative household
types have remained stable.
Almost 64% of total
households are families, and
35.7% are non-families.
Nearly 92% of the housing
types have five or more
units. SITE

Health care, food and

beverage,
bio/chemical, and
utilities roles are
the main sectors in
which residents of
the surrounding
community
work.

Source: Dan Brassil Real Estate

View: STL Neighborhoods.

28
NEARBY TRENDS

Laclede’s Landing

Going North from the Arch

Grounds, the area between Eads
Bridge and Dr. Martin Luther King
Bridge is an area named Laclede’s
Landing. The name honors STL’s
founding father, Pierre Laclède.
This area has building remnants of
STL’s historic riverfront and was
once governed by a Missouri
Private Redevelopment
Corporation Law (353) called
Laclede’s Landing
Redevelopment Corporation. In
the 70’s and 80’s it was one of
STL’s renowned entertainment
Laclede’s Landing
districts. As the City morphed, Source:
View: Looking South towards Arch Grounds.
and Washington Avenue Loft
District developed, the appeal waned, and business left, restaurants and bars closed. Currently,
there is a developer converting many of these historic warehouses into apartments.

29
Lumiere Place 2007/Horseshoe
Casino 2018/Four Seasons STL

The area farther north between Dr.

Martin Luther King Bridge and
Biddle Street is a redeveloped
area controlled by the Casino.
Pinnacle Development out of Las
Vegas constructed two casinos in
the STL MSA, one in Laclede’s
Landing and one in Lemay.
Laclede’s Landing Casino has a
Four Seasons hotel with 500
keys, and gaming area of over
75,000 square feet. There is a Source: Four Seasons/Google
direct tunnel connection to the View: Looking South over Mississippi River and Arch.
adjacent Edwards Jones Dome,
the former home of the STL Rams.
When Pinnacle developed the
Casino, they tore down a number
of buildings; the Casino currently
sits like an island in a sea of
asphalt.

Chouteau’s Landing

Good Developments Group, a firm

founded and operated by former
employees with New York City-
based JDS Development Group,
is pursuing an 80-acre project that
includes Chouteau's Landing and
areas south. Conceptual plans Source: Four Seasons/Google
View: Looking Northeast towards Site from Four Seasons.
currently peg the development
cost at $1.2 Billion. On August 11th,
2022, the project took its first step
in the approval process as the Port
Authority agreed to enter a
cooperation and funding
agreement. It should be noted that
the Port Authority has the power to
approve of tax abatements to
facilitate development.

Source: Good Development Group

View: Looking up 2nd Street.

30
 Proposed Rams Stadium

Before the Rams left STL, there

was a push to build a new stadium
on the “Arc of Industry” Site. The
above plan was approved by the
City Aldermen, it required the City to
pitch in $150 million of the
estimated $1.1 billion stadium cost.
Another $550 million was supposed
to come from the NFL and the
Rams, with the team adding $250
million and the league kicking in
$300 million. The state would pay
Source: Good Development Group
for the rest of the stadium.
View: Looking Northwest from Illinois site of Mississippi River.
When the Rams moved to West,
the city reached a settlement and
was awarded $790 million, $571
million paid by Rams owner Stan
Kroenke.

National Geospatial-Intelligence
Agency (NGA)

The next phase of the development

of the Near Northside will be driven
by the development of the N2W
headquarters which will infuse
North St. Louis with thousands of
jobs. The N2W headquarters itself
Source: City Scene STL will be one of the country’s major
View: Looking Mt.
Northwest
Carmel over Site from Missouri side assets for geospatial jobs. With the
High School
investment, the district will expand
with new housing to the north and
east and a mix of new commercial
and institutional uses along
Jefferson Avenue. The 97-acre
N2W project site is in the historic
St. Louis Place neighborhood at
the intersection of Jefferson and
Cass avenues. When complete,
the campus will include a 700,000-
square-foot office building, two
parking garages, a visitor center, a
delivery inspection facility, and
secure entrance/exit points.
Source: NGA
View: Looking Southeast towards Downtown STL

31
THE OPPORTUNITY

THE OUTLINE

Your team (“YOUR TEAM’S NAME”) is a General Partner (“General Partner”) or GP (“GP”) who
is known for transforming communities through bold development.

Your team met the brokers for Arc of Industry at the Harold E. Eisenberg Foundation’s Annual
Eisenopoly event. Given your highly regarded reputation, they have sought out your team to
redevelop a portion of the Arc of Industry Site (Section D).

THE DEAL

Your team has come up with a dynamic proposal to redevelop the Site. However, given the
unprecedented vision, it has been difficult to secure the needed funding to proceed with
development.

Wintrust Bank has agreed to give you a Senior Loan (A-Note) at 60% Loan to Cost (LTC). You
are now seeking a Limited Partner (“Limited Partner”) or LP (“LP”) as a B-Note to close the gap
in your funding sources.

Your team will pitch to Eisenstone, a Chicago-based private equity firm, to invest in the deal as a
Limited Partner (“Limited Partner”) or LP (“LP”). Their capital requires a 20% return.

Each team is competing to secure the much-needed equity capital. The Eisenstone Investment
Committee (Judging Panel) intends to invest with the team that has the most optimal financial
returns, paired with the most realistic and metamorphic plan for the Site.

32
ASSUMPTIONS

• ZONING: Your team should understand that the site is currently zoned “K”–Unrestricted
District. The City of STL offers valuable zoning information resources that can be found HERE.

• EXISTING BUILDINGS: The Buyer is not required to keep any of the existing buildings.

• HISTORIC TAX CREDITS: The Missouri State and Federal Historic Tax Credit Programs
provide an incentive for the redevelopment of historic structures. Historic preservation
financing incentives can be found HERE.

• AFFORDABLE/WORKFORCE HOUSING: The City of STL does not have affordable housing
requirements for new residential developments. A handful of affordable housing financing
incentives can be found HERE.

• INFRASTRUCTURE: You may relocate all local distribution lines for power, gas, water, and
communications at the developer’s expense, based on utility‑company standard pricing.

• PRICING: Your team needs to meet the expectations of the partnership and come up with a
financially feasible plan for the site. You need to come up with a market‑appropriate amount
that you can justify in your pro forma (e.g., current sales price for land in the area, market
rents for various uses, project costs, etc.).

• DEMOLITION COSTS: Teams can choose to apply a general cost per square foot as the cost
to demolish and remediate parcels, or assign costs based on an assessment of existing
structures and land uses to provide a more accurate calculation.

• BROWNFIELDS: There are 2 Brownfields located within the site; a total of $19 million in
remediation is needed. More information on how to qualify for Brownfield remediation tax
credits can be found HERE.

Note: For the purposes of this Case Challenge, assume your project will receive the tax credits needed for
Brownfield remediation. Be sure to address the remediation period in your project timeline.

• PARCELS: For reference to the Site’s parcel information, you can find the interactive mapping
website HERE.

• DEVELOPMENT TIMELINE: Year 0 (planning, entitlements, etc.) is 2025–2026; the start year
the first year you may begin construction or actual redevelopment is 2026.

33
JUDGING CRITERIA

EISENSTONE INVESTMENT COMMITTEE

The judges will select a winner they deem as having best satisfied the criteria as outlined below.
Please note these are written as guidelines for the judges and may not be comprehensive of all
criteria discussed during Final Presentations.
One goal of the Real Estate Challenge is to provide a means and a demonstration of integrating
real estate and allied disciplines. The judges will consider how successfully your team is able to
work together, as evidenced in your team’s final product. Teams are advised to highlight both the
process and methodology used behind key assumptions as support for their proposed solutions
throughout all aspects of the final delivery and presentation. Demonstration of the learning
process will be a focal point of the evaluation.
The winning proposal should accomplish the following criteria:

LONG TERM TRANSFORMATIVE NATURE

• Addresses the development of the Site through a business plan that includes locally
focused economic development through innovative and targeted policies and agreements
• Outlines a plan that is realistic in the short and long-term considering the current state of
the Site and surrounding community
• Repositions the area and optimizes financial returns for investors

BALANCE OF USES
• Addresses the highest and best use of the Site with a development plan and timeline
• Maximizes the Site’s potential to transform the surrounding area

INNOVATIVE SITE DESIGN

• Provides a creative and refined plan for the Site
• Outlines a design and development plan that is comprehensive, holistic, and cohesive
• Provides a visionary marketing plan and brand identity for the development

FINANCIAL FEASIBILITY
• Accounts for the economic viability and risks associated with development including but
not limited to market conditions, supply and demand constraints, entitlement risk, and cost
underwriting
• Uses an appropriate capital stack (i.e., equity and debt), financing structure (utilizing public
funds, TIF, federal tax credits, etc.) and return metrics required by investors for a project
of this scope
• Addresses the market feasibility by defining the appropriate build-out and absorption rates

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

34
• Supports the public planning goals for the City of Saint Louis laid out in the Economic
Development Strategic Framework
• Provides a positive influence on community and surrounding neighborhoods

35
SUBMISSION CHECKLIST

Saturday, March 2, 2024, by 4:00 PM CST

CURRENT VALUE (PDF)

Each team must submit an electronic version of their Current Value.

Note 1: For the purposes of this Challenge, the LOI puts the site ‘under contract’ until the “Buyer” (your company)
can perform additional due diligence (Final Presentation).
Note 2: This Current Value does not have to be the eventual Purchase Price your team uses in the Final
Presentations.
Note 3: Use land-sale comps for a Current Value or a quick un-trended, un-levered, return analysis to come up
with a value. (This should take no longer than 4-6 hours.)
Note 4: For the purposes of this Challenge, the “Seller” is Red Bird Holdings.
Note 5: Please round to the nearest thousand.
Note 6: Save file as “TeamName_CurrentValue_2024.03.02”

1) CURRENT VALUE TO INCLUDE:

• Letter of Intent–Not to exceed two (2) pages (PDF) in length.

Friday, March 29, 2024, by 4:00 PM CST

INVESTMENT SUMMARY (PDF), FINAL PRESENTATION (PDF), MODEL (EXCEL)

Each team must submit an electronic version of their Investment Summary, Final Presentation,
and Financial Model.

• Note 1: HEEF will pre-load this Final Presentation (PDF) version for your team on Final Presentation Day.
• Note 2: Final Presentation should not exceed 10MB in size.
• Note 3: Save Investment Summary file as “TeamName_InvestmentSummary_2024.03.29”
• Note 4: Save Final Presentation file as “TeamName_FinalPresentation_2024.03.29”
• Note 5: Save Final Presentation file as “TeamName_Model_2024.03.29”

1) INVESTMENT SUMMARY TO INCLUDE:

• Executive Summary–Not to exceed two (2) pages (PDF) in length.

2) FINAL PRESENTATION TO INCLUDE: (INVESTMENT MEMO)

1. Summary of the Proposed Redevelopment Plan
a. Property Analysis
b. Zoning & Entitlement Analysis
c. Marketing Analysis of Development Strategy
2. Financial Analysis
a. Discounted Cash Flow Model
b. Pre-Development Budget
c. Development Budget
d. Project Timeline/Staging Plan
e. Capital Structure

36
 f. Municipal Incentives
3. Zoning & Entitlements
4. Demographics
5. Marketing
6. Exhibits and other supporting documentation (as necessary)
7. Acknowledgement of Faculty Advisors
8. Team Roster – Include a brief biography and headshot

3) FINANCIAL MODEL TO INCLUDE:

• Deal Returns/Assumptions Summary Tab

37
CHALLENGE LOGISTICS (Note: All dates/times are subject to change.)

Wednesday, January 24, 2024, at 9:00 AM CST

REAL ESTATE CHALLENGE KICKOFF MEETING (Teams)
• Kickoff virtual call with HEEF Real Estate Challenge partners
• Virtual Site Tour video released
• HEEF Real Estate Challenge Brief distributed to participants
• Mentor Pairings released a week following the Kickoff Meeting

Saturday, February 10, 2024, at 1:00 PM CST

IN-PERSON SITE TOUR (St. Louis, MO)
• Participants will have the opportunity to walk the site in-person
• Meeting Location: https://maps.app.goo.gl/Et5vsMPhoUkStsFm9
o STL Central Library – Auditorium
o Address: 1301 Olive St, St. Louis, MO 63103
▪ Parking Lot: Corner of Olive and 15th Streets (Free)
▪ $1.50/hour parking on street

Saturday, March 2, 2024, by 4:00 PM CST

CURRENT VALUE SUBMISSION DEADLINE
• Email submission to REChallenge@eisenbergfoundation.org

Friday, April 5, 2024, by 4:00 PM CST

INVESTMENT SUMMARY, FINAL PRESENTATION, MODEL SUBMISSION DEADLINE
• Email submission to REChallenge@eisenbergfoundation.org

Saturday, April 13, 2024 (Time TBD)

FINAL PRESENTATIONS (Holland & Knight–Chicago, IL)
• Undergraduate Division and Graduate Division teams will be present live or live via Zoom/MS
Teams to a panel of judges
• Location: https://maps.app.goo.gl/mfHNd8xKbNMzqmPF8
o Address: 150 N Riverside Plaza Suite 2700 Chicago, IL 60606

The Eisenberg Foundation would like to thank the law firm Holland & Knight for graciously hosting
the Final Presentations.

38
FINAL NOTES

FINAL PRESENTATIONS

The Undergraduate and Graduate Division will present live to a panel of judges on Saturday,
April 13, 2024, in Chicago. Timing and logistics for Final Presentations will be distributed at a
later date.

If your team intends to present virtually, please email the Committee at

REChallenge@eisenbergfoundation.org no later than Saturday, February 10, 2024. If we do not
hear from you by this date, we will expect to see the entire team in person.

RESOURCES

Each team may use all the resources available within its respective university or college including
real estate and business school faculty, research data ordinarily available to students at their
respective university or college, and industry professionals.

Please note teams may not work with an individual resource that is assisting another team. Failure
to comply with any of these guidelines is grounds for dismissal from the HEEF Real Estate
Challenge. A prospective judge may not be used as a resource; however, that does not disqualify
the judge’s firm from providing support to a student team. All teams are required to keep a list of
all individuals or companies contacted or utilized throughout the course of the competition.

As the Challenge Site is in progress in real-time, HEEF and Participants of the Real Estate
Challenge may not negatively interfere with any development or redevelopment processes. As
such, teams are required to contact the Real Estate Challenge Committee before any inquiry is
made to any stakeholder groups, officials, or representatives of any stakeholders, or other groups
that may have an interest in the future of the Site. In addition, teams must not reach out to any
City of STL appointed officials (Aldermen or Alderwomen) Brokers involved in the deal or State of
Missouri appointed officials and employees. Disregarding any of the above is grounds for
disqualification and potential legal liability to the violating party. If you are not sure if a particular
resource falls into this category, please contact the Real Estate Challenge Committee at
REChallenge@eisenbergfoundation.org before moving forward.

QUESTIONS & CLARIFICATIONS

Please direct all questions to REChallenge@eisenbergfoundation.org. Please note that it may

take up to three (3) business days to respond.

39