Duke, Gundaker team on $750 million development

By: Lisa Brown // November 02, 2006

Duke Realty and Gundaker Commercial Group are moving forward with a $750 million investment to create Premier 370, a nearly 850-acre, mixed-use development planned for St. Peters. They plan to develop 10 million square feet of industrial, retail and office space in Premier 370 over the next decade.

The site of Premier 370, at Interstate 70 and Highway 370, is currently farmland. Gundaker Commercial and Duke Realty closed in April on the property, which they bought from the city of St. Peters for about $25 million.

Jerry Crylen, senior vice president of the St. Louis office of Indianapolis-based Duke Realty, and Mike Hejna, president and chief executive of Chesterfield-based Gundaker Commercial, announced details of the partnership Oct. 25. Duke will invest $450 million to develop 6 million square feet of industrial space. It will develop 505 acres south of Highway 370, focusing on buildings larger than 120,000 square feet.

On the north side of Highway 370, Gundaker Commercial will invest $300 million to develop 330 acres with build-to-suit and sale/lease properties up to 120,000 square feet. Gundaker Commercial is experienced at providing facilities for small to midsize businesses, Hejna said. "The type of product that we'll be building is primarily industrial buildings, office buildings, hospitality, retail, and food and beverage," he said.

Premier 370 is the first development partnership between Duke and Gundaker Commercial. The development draws on both companies' development strengths. "The project's amenities are designed to balance the needs of the surrounding work force," Hejna said.

St. Louis Business Journal - October 27, 2006
by Lisa R. Brown