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Spotlight on Southwestern Illinois Commercial Contractors

Article Courtesy Illinois Business Journal By Melissa Crockett Meske

Contegra Construction - Illinois Business Journal

Contegra Construction – Illinois Business Journal

Contegra Construction Co., Gateway East 717 Distribution Center, Edwardsville

Located just south of New Poag Road in Edwardsville, the Gateway East 717 Distribution Center is the first speculative warehouse structure built on the east side of Illinois 255. Construction began back in June 2015 and was substantially complete in January 2016.

Contegra Construction Co. of Edwardsville has served as the development’s general contractor.
The property’s developer, TriStar Properties, selected Gray Design Group Inc. of St. Louis as the architect for the project. Propper Construction Services, another partner in the development,
has provided construction management. Other partners included leasing agent Cushman & Wakefield and the private equity firm of Pacific Coast Capital Partners.

Bobby Klucker, Contegra’s project manager, pointed out that the unique elements to this speculative warehouse, compared to others, that was used on the Gateway East 717 building was all concrete pavement on its exterior and a 36’ clear height. He also pointed out the biggest challenges were that of amenities, access and the weather.

There were no existing utilities or infrastructure to build upon at this site. Added to that was the heavy rain received back in June which only allowed for three days of work on the project, with 20 days lost. Yet the six-month schedule still prevailed.

The 717,060-square-foot facility is on a 76-acre site with 36-foot-height clearance capabilities. A concrete tilt-up distribution facility with 80 truck docks, it features a heat reflective and energy efficient thermoplastic polyolefin roof and design/build mechanical, electrical, plumbing and fire protection systems.

Gateway East 717 is expandable to more than 1.2 million square feet. Its construction has opened up an additional 700 acres of the 2,300-acre warehouse and distribution park for development.

More Spec Buildings Underway at Gateway Commerce

Article Courtesy St. Louis Post Dispatch Tim Bryant

 

TriStar Properties is building again at Gateway Commerce Center, where work is underway on two distribution centers with more than 1 million square feet.

 

Both buildings will be built on spec, meaning that TriStar has yet to obtain tenants. Teamed with TriStar to fund the projects with a combined cost of $49 million is PCCP LLC, a Los Angeles-based real estate finance and investment management company.

 

One of the structures, Gateway East 618, will have 618,450 square feet on a 53-acre site. The second building, Gateway East 513, will put 513,760 square feet under roof on a 46-acre site. Each building could be expanded later to have more than 1 million square feet, TriStar said.

Michael Towerman, president of Earth City-based TriStar, said the distribution centers should produce at least 500 jobs once they’re up and running.

 

The 618 building will be ready for occupancy in late summer with the 513 building being ready for tenants this fall, said Ed Lampitt, managing director of the St. Louis office of Cushman & Wakefield, the leasing agent.

 

“Our rationale in beginning a pair of buildings simultaneously is to cut a broad swath in the marketplace,” Lampitt said in a statement. “We want to offer prospective national tenants a choice — and an excellent match — in their pursuit of highly efficient and expandable bulk space configurations.”

 

Gateway Commerce, near Edwardsville, already has 15 distribution centers with nearly 11 million square feet.

 

With TriStar on the 618 and 513 buildings are Contegra Construction, Gray Design Group and Stock & Associates Consulting Engineers Inc.

 

PCCP and TriStar worked together at Gateway Commerce in 2014, when they developed a 673,137-square-foot distribution center occupied last year by Florida-based third-party logistics provider Saddle Creek Corp. The $26 million structure was the first speculative industrial building erected in the St. Louis area since 2007, TriStar said.

 

Recently completed at Gateway is a $36 million, 717,060-square-foot distribution center on a 56-acre site. Lampitt said lease negotiations with potential tenants were underway.

 

Among other TriStar projects is the Residences at Sunset Ridge, an apartment complex being built in west St. Louis County on 11 acres northwest of Interstate 270 and Manchester Road.

 

The $49 million project is a joint venture with Propper Construction Services. The 254-unit apartment complex is part of a planned $100 million mixed use development featuring a hotel, office and assisted living facility.

 

 

TriStar Properties, dignitaries celebrate construction start on $30 million distribution facility

Article Courtesy Illinois Business Journal

 

EDWARDSVILLE – Rain was pouring outside the tent, but the mood under it was sunny as a host of dignitaries on Wednesday saluted the latest expansion planned at Gateway Commerce Center.

TriStar Properties has begun construction of a $30 million, 717,060-square-foot speculative distribution center, the first facility to be built on the eastern side of Illinois 255.

It brings a new angle of visibility to that portion of Gateway, which in the last 18 years has grown into a premier warehousing and distribution hub that now employs nearly 5,000 people.

The newest project, called Gateway East 717, will include development of the 53-plus-acre site and construction of a tilt-up distribution facility with 80 truck docks, a heat-reflective and energy efficient thermoplastic polyolefin roof and design/build mechanical, electrical, plumbing and fire protection systems. The Class A modern bulk building will have expansion capacities to more than 1,200,000 square feet.

“Last summer we built a 673,137-square-foot speculative building and it was fully leased before completion,” said Mike Towerman, president of TriStar Properties, referring to what’s known as Gateway West. “This new building will allow us to quickly meet a company’s facility requirements and provides a strategic logistical advantage for large distribution operations.”

The project is scheduled for completion in December 2015. Contegra Construction Co. is providing general contracting services for the project. Propper Construction Service is a partner in the project and is serving as construction manager, Towerman said. Also partnering is PCCP, a private equity firm. Both Propper and PCCP worked with TriStar on the Gateway West project, he said.

Gray Design is the latest project’s architect, and DTZ will provide leasing services.

The construction of the new distribution center opens an additional 700 acres of the 2,300-acre Gateway Commerce Center for development, officials said.

Towerman said if this project goes as planned more buildings are likely to be constructed on that side of the highway.

With more than 10 million square feet of leased space, the master planned Gateway Commerce Center is considered one of the top business distribution parks in the Midwest. Located at the intersection of Interstate 270 and Interstate 255, it is home to corporate tenants including Unilever, Proctor & Gamble, Dial Corp., Ozburn-Hessey Logistics and Hershey. Dial was the first venture, opening in 1998.

Among speakers on Wednesday morning were Towerman, Madison County Community Development Administrator Frank Miles, Edwardsville Mayor Hal Patton and state Sen. Bill Haine, D-Alton.

So wet were conditions Wednesday morning that the mandatory groundbreaking photo had to be shot on a concrete pad, under the dry tent.

The background of the main players

TriStar Properties was founded by Rodney Thomas and Michael Towerman in 1996 to develop industrial real estate. Since its inception in 1996, Tristar and its principals, operating through affiliated partnerships, have developed several large business parks with total acreage of more than 30,000 acres, as well as purchased and resold more than 3,000 acres of residential land. During this time, TriStar has purchased or developed more than 1,500,000 square feet of office space, developed or sold land for the construction of more than 10 million square feet of warehouses and distribution centers. TriStar’s current projects include virtually all real asset classes.

Propper Construction Services provide a full range of construction management services for projects on a national basis. Founded in 2014, Propper Construction Services is an affiliate of St. Louis-based Propper International. Propper International is one of the largest official suppliers of apparel to the United States armed forces, and also manufactures high-quality apparel for the commercial military, tactical, law enforcement and public safety markets.

Contegra Construction Co. is a general contracting and construction management firm serving the education, industrial, healthcare, municipal and office markets throughout the Midwest. Contegra Construction Company, LLC. was founded by Eric Gowin in 2003. Each member of our management team has more than two decades of experience in the construction industry. We have completed some of the largest projects in the region and our clients trust us to successfully manage their most complicated projects from start to finish.