I Almost Never Start With the Building
Date Posted: August 18, 2026
Posted In: Ideas, What we are thinking about,
Why successful redevelopment begins by asking different questions
by John Berglund, Founder and CEO, River City Asset Advisors
I recently reached out to the ownership of the historic Chemical Building in downtown St. Louis (Jay Simon and Jeff Clark with Metropolitan Build). They have done multiple historic projects in St Louis, hoping to add the Chemical Building to the list with a mix of hotel and apartments. Jay believes that the bottom of the downtown market is behind us, noting recent improvements in crime statistics and upcoming infrastructure work.
Like many people involved in redevelopment, I’ve admired the chemical building for years – Henry Ives Cobb designed the building and it has a twin – The Tacoma – in Downtown Chicago. It occupies an important corner on a largely intact stretch of Olive and has the qualities developers look for in adaptive reuse: historic architecture, a central location, and a strong identity within the city.
Over the past 30 years, this building has had (8) different developers take a swing at adaptive reuse – none of which has come together in a successful redevelopment. Some of these historic buildings naturally become great projects but getting the numbers to work is always a challenge. In fact, when someone asks me to look at a redevelopment opportunity, I almost never begin by studying the building itself. Instead, I begin with three questions.
Who is the end user?
Every successful redevelopment begins with demand. Who will actually occupy the space – apartments, office tenants, a hotel, students, medical users, mixed-use retail? Buildings are built for a specific time and place – and so an “adaptive reuse” doesn’t answer that question. The market does. Beautiful historic buildings sit vacant for years because of the challenge of what the building could become. The Chemical Building illustrates this perfectly. The architecture isn’t the challenge. Finding the right long-term use, and matching that use to today’s market, is where the real work begins.
Where does the capital come from?
The second question is financial: can the project actually be funded? In a soft market like Downtown St. Louis, a project like the Chemical Building cannot happen without some form of subsidy – and typically require an assembled capital stack – some combination of developer equity, Historic Tax Credits, Opportunity Zone investment, and local incentives – all of which determines how the debt will be structured. Each layer reduces risk and helps close the financing gap. Understanding what’s financially available drives the outcome. For better or worse, the best redevelopment concept isn’t determined by the building – it’s determined by what can realistically be financed.
What problem does this project solve?
Beyond the money, this may be the most important question of all. Every successful redevelopment solves a problem – creating housing, providing office space employers actually want, preserving an important landmark, or strengthening an entire downtown district. The strongest projects create value not just for investors but for the surrounding community. That’s where public incentives become meaningful – public incentives won’t make a bad project a good one, but they do help good project become financially feasible.
Notice what I haven’t mentioned
At this point, I still haven’t talked about architects, construction costs, floor plans, building systems, contractors, or historic windows. Those issues matter enormously – but they matter after the bigger questions have been answered. Sometimes, redevelopment begins with a building tour when it should begin with a market conversation.
The Building Is Only One Piece of the Puzzle
The Chemical Building has stood as part of the St. Louis skyline for more than a century. Whether it ultimately becomes apartments, hospitality, office space, or some combination isn’t nearly as important as asking the right questions before a redevelopment plan gets drawn. Successful projects rarely happen because someone found a beautiful building. They happen because owners, lenders, architects, municipalities, investors, and developers align around a shared vision – and build a financial strategy that makes that vision possible. That’s the work that excites me most.
Final Thoughts
Jay believes that this is a good time to jump in. “It will require patient capital. We are in the 3rd Inning of a 9-inning game. But the recent improvements downtown indicated positive momentum.” Every city has a Chemical Building – a property everyone recognizes, one people want to see brought back to life. The challenge isn’t identifying these buildings. It’s determining which ones can become successful projects, and building the roadmap to get them there. Sometimes the most important thing in a redevelopment project isn’t the building itself – it’s asking the right questions before anyone starts designing the answers.
John Berglund is a veteran St. Louis real estate developer and founder of River City Asset Advisors, where he advises owners and investors on complex, underutilized and distressed real estate assets. His development experience includes leading the $75 million restoration of downtown St. Louis’ historic Post Building, and he brings a practical focus on navigating the financial, technical and execution challenges that can make or break difficult projects.