Payne Family Homes said Tuesday it has broken ground on a $400 million mixed-use development in O’Fallon, Missouri.
The project, the Streets of Caledonia, has been in the works for several years and will include 153 acres of residential development and 93 acres of commercial space. The project is located at Interstate 64 and Highway DD in O’Fallon.
“We are very excited to break ground on this project,” said Ken Kruse, president of Payne Family Homes. “This is a large project, and over the past two years, we have been working hard to get everything in place. This development will offer our home buyers a great location, top-quality home construction, green space, amenities adjacent to parks, and a quality school district.”
As part of the project, the Streets of Caledonia project is slated to include 657 single-family homes and townhomes. Home sales at the development are to begin this fall, with plans for display homes to be completed by the first quarter of 2021.
The sprawling development’s residential portion is currently expected to include ranch, 1.5-story and two-story homes as well as two- and three-bedroom townhomes. Current plans for the development, which is located in the Wentzville School District, call for homes priced from the upper $200,000s to the $700,000s.
Payne is teaming up with Lombardo Homes on the project, with plans for the Michigan-based homebuilder to build a section of the development. Officials said the sprawling home development will include 30 acres of common area, which will include a pool, multiple lakes, trails and other recreational spaces. The developer said about $2.5 million will be spent on developing amenities in the residential development.
Kruse said he expects full completion of the Streets of Caledonia’s residential portion in 2025.
The mixed-use component, which will be located north and east of the home project, is expected to be available in early 2021, Payne said. Evan Barnett and Patrick Willett of Pace Properties are marketing the development’s retail space. Marketing of the office component is being handled by Mark Palmer and Artie Kerckhoff of CBRE.
Payne, which had 2018 revenue of $94.8 million, emerged as the developer behind the Streets of Caledonia in 2017. It acquired the residential land for the development in February from THF 40 DD Development LLC, a business entity tied to developers Stan Kroenke and Michael Staenberg.