CLAYTON — A second developer has dropped plans to buy and remake the Clayton headquarters of global footwear retailer Caleres, citing a tough financial climate.
Developer Michael Hamburg said Wednesday that his company, Pier Property Group, has dropped its contract to buy the campus but said he remains in “close contact†with Caleres.
“I still firmly believe in the location’s potential and importance to the future of Clayton, so we hope to remain involved if things are able to stabilize in financial markets,†Hamburg said in an email to the Post-Dispatch.
A spokeswoman for Caleres, formerly known as Brown Shoe Co., said the company is marketing the property through real estate firm Cushman & Wakefield and talking to interested buyers.
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Caleres has been shopping its headquarters, at Maryland Avenue and Topton Way, since 2021 with the goal of having a developer remake it while also cashing in on the competitive demand for Clayton’s real estate that often commands the highest prices in the region.
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But recent higher interest rates have made developments more expensive and riskier and have impacted nearly every commercial real estate deal in the country.
The tough financial market has either slowed deals or killed them, like Pier Property Group’s.
Before Pier Property Group stepped forward, real estate development firm CRG had the 9-acre property under contract to buy. CRG’s $500 million plan included condominiums, townhouses and a LifeTime fitness facility as well as a smaller and more modern office for Caleres, which the company said better fit its post-pandemic needs.
That deal fell through by the end of the year, Caleres said in public financial filings, though neither the company nor CRG publicly said why.
Then, earlier this year, Hamburg pitched a similar, large-scale project with apartments, retail, entertainment, office space and a hotel. He went under contract with Caleres in February, filings show, and was expected to close before the end of the year before Hamburg decided to end the deal this summer.
City officials have called the Caleres redevelopment an important project for Clayton.
“This is such an important site for Clayton, and the right development could be transformative for the community,†Mayor Michelle Harris said Wednesday.
Brown has been part of the corporate name since the company's founding in 1878. Next month, however, that name will be dropped once shareholders approve the change on May 28. (Post-Dispatch video)
