Octagon Lending has committed $48.25 million in construction financing to convert the iconic former 7Up headquarters in Missouri into residential units. Revive Capital Development and KAI Design + Build, partners on the project, will execute the adaptive reuse of the building that served as the soft drink company's global nerve center during the 1960s and 1970s.
The conversion represents a calculated bet on mixed-use repositioning in secondary markets. Office-to-residential conversions have accelerated across the country as remote work depresses demand for traditional corporate real estate. Lenders like Octagon have warmed to the strategy when the underlying asset, location, and team align properly. This Missouri project meets those criteria.
The former 7Up headquarters carries both brand heritage and structural integrity. The building dates to an era when manufacturing and corporate campuses anchored American prosperity. Rather than demolish, Revive Capital and KAI Design plus Build opt to preserve the shell and reimagine the interior for multifamily living. This approach typically costs less than ground-up construction while capturing historical appeal that attracts renters and buyers.
Octagon's $48.25 million commitment covers hard costs and contingencies for the residential buildout. Construction lenders require detailed completion budgets, timeline schedules, and pre-leasing or pre-sale commitments from sponsors. Octagon's confidence in Revive Capital and KAI Design plus Build signals the lender views the conversion feasible within budget and on schedule.
Revive Capital Development specializes in adaptive reuse across the Midwest. KAI Design plus Build brings architectural and construction expertise to translate office floor plans into apartment layouts, parking, amenities, and building systems suitable for residential occupancy. The partnership model separates development risk from execution risk, a structure lenders prefer when backing complex conversions.
The former 7Up building sits in a Missouri market where office vacancy exceeds 15 percent in many submarkets. Converting vacant office to housing addresses supply constraints for renters and gives the building productive use. Local housing markets benefit from new supply entering a sector where new construction remains limited outside major metro areas.
Residents moving into the converted headquarters will occupy space once occupied by 7Up executives and brand strategists. The building's mid-century bones appeal to renters seeking character and authenticity. Industrial-style ceilings, large floor plates, and robust structural systems translate well to open-concept apartments and loft-style units.
Revive Capital and KAI Design plus Build now begin construction. Octagon's funding flows as project milestones trigger draws. The lender retains security interests in the property and development budget. If costs overrun or the timeline slips, the sponsors carry risk until they close permanent financing with a multifamily REIT, life insurance company, or bank.
The $48.25 million commitment reflects Octagon's appetite for conversion deals in secondary markets where local employment centers support residential demand. The former 7Up headquarters project gives a storied building second life while adding housing supply where it counts most.