A sprawling office portfolio in suburban St. Louis hit the for-sale market amid weak demand for corporate space and a national slowdown in property sales because of rising interest rates.
The Maryville Centre and Woodsmill Commons complexes, built in the 1980 and ’90s, were in search of an investor willing to pour dollars into upgrades and new leases to fill large blocks of vacancy.
Cushman & Wakefield brokers marketing the nine-building portfolio struck a $41.5 million deal with a new investor in the office market: Cequel III Family Office, a St. Louis-based investment firm of Charter Communications co-founder Jerry Kent.
Despite a huge discount to its previous sale price almost a decade earlier, the sale stood out in an environment of limited debt and equity for office deals. The sale price equaled about $42 per square foot.
The sale earned a CoStar Impact Award, as judged by real estate professionals familiar with the market.
About the Deal: Buildings in the 984,298-square-foot portfolio range from three to five stories tall in Town and Country, Missouri. The Maryville Centre complex includes buildings at 520, 530, 540, 550, 625635-645 and 655 Maryville Centre Drive. The Woodsmill Commons complex includes buildings at 400 and 424 S. Woods Mill Road. The transaction was a lender-approved short sale. The buildings last sold for almost $140 million in 2015, during a much stronger investment sales market.
What the Judges Said: "This investment opportunity helped draw national attention to the region and was completed during a turbulent time in the market," said Scott Drachnik, president and CEO of the Economic Development Council of St. Charles County.
They Made It Happen: Sellers Starwood Capital Group and Vanderbilt Office Properties were represented by Cushman & Wakefield brokers Dan Deuter, Jack Gentile, Mike Hanrahan, Cody Hundertmark and Tom Sitz.
CoStar Market Manager Teresa Blackmon contributed to this report.