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Struever Bros. gives up stake in Providence ALCO project

6:30 PM Tue, Oct 27, 2009 |
Philip Marcelo    Email

alco.jpg
Providence Journal photo / Sandor Bodo
Struever Bros, Eccles & Rouse has relinquished its ownership stake in the multiphase American Locomotive Works, or ALCO, development, in the Valley neighborhood of Providence.


PROVIDENCE, R.I. -- Struever Bros, Eccles & Rouse -- the Baltimore-based development firm behind some of the largest mill rehabs in the state --- has walked away from its biggest project in the state, the $230 million American Locomotive Works in Providence.

The financially struggling company had already halted work on the Dynamo House, a $150 million renovation of the South Street Power Station in Providence and dropped out of a smaller commercial development in West Warwick.

Over the past year, the company has shed 36 of its 40 Providence-based employees.

William C. Struever, the company's president and CEO, confirmed on Tuesday that the company has relinquished its ownership stake in the American Locomotive Works project, also known as ALCO.

McCormack Baron Salazar, a St. Louis housing developer, has agreed to be lead developer for the next two phases of ALCO, which call for 194 units of housing and 50,000 sq. ft. of commercial space.

"Like many other real estate development and construction companies, Struever Bros. Eccles & Rouse is working through the complex challenges of these trying economic times," Struever said in a statement. "While Struever Bros. will have no continued ownership in the future phases of ALCO, McCormack Baron and Olneyville Housing are committed to the revitalization of one of the most important projects in all of Providence."

Future phases of the project, however, remain uncertain.

At 23 acres, ALCO -- a redevelopment of the former U.S Rubber, American Locomotive and Nicholson File factory buildings in the Valley neighborhood -- was to be the largest single development in the Capital City after the Providence Place mall.

When it was proposed in 2005, ALCO was envisioned as a nine-phase, $333 million development with 650 residences, 450,000 square feet of commercial space and a 180-room hotel.

Over the years, however, the plan was scaled back considerably.

Last year, the overall proposal called for 378 residential units, 404,044 square feet of office space, and 30,280 square feet of retail space. A proposed hotel was eliminated.

The next phases were to bring nearly 2,000 new construction jobs and an additional $167 million of investment into the city over three years.

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 Tags  ALCO American Locomotive Works economy Providence RI real estate Struever Bros.

Comments

Davalex said:

When I was younger, the US Rubber plant on the ALCO grounds used to smell like rotten eggs.

After reading this story, I imagine the scent lingers.

Link | October 27, 2009 9:04 PM
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