Jones Lang LaSalle (“JLL”) and RealInsight Marketplace (“RIM”) have been retained by the Seller, on an exclusive basis, to sell the property known as Unit 2 of the office condominium located at 1831 Chestnut Street in St. Louis, MO (the “Property”). The entire condominium consists of a 9-story, 416,562-sf building with 1,129 parking spaces located in two parking garages and a nearby surface lot. The Property (only Unit 2) consists of 80,170-sf located on the 6th and 7th floors and associated interests in the parking facilities. The entire 52,320-sf, 6th floor is soon to be vacant with St. Louis University leaving at lease expiration in August 2021. The entire 27,850-sf, 7th floor is currently leased to Momentum NA, Inc, a subsidiary of The Interpublic Group of Companies (expires in December 2027). Anthem Blue Cross and Blue Shield occupies the entirety of Unit 1, the non-owned condominium unit, with a lease through 2025. The company also serves as property manager for Unit 2, with operating expenses excluding taxes and insurance costs, payable based on a set schedule and Unit 2 occupancy. The offering provides investors the unique opportunity to acquire a value-add office condo unit in a major metropolitan market.
- VALUE-ADD OPPORTUNITY – With the the 6th floor soon to be vacant, a desirable large, 52,320-sf floor plate (unique to the Downtown office market where typical floor plates are 20k-30k sf) with floor-to-ceiling window lines in a well-maintained building will be available for a large office user, or for subdivision into smaller units. The remaining 7th floor tenant has a corporate guaranty from a credit rated parent entity.
- LOCATION – The Property is at the western terminus of the St Louis Gateway Mall across from the Union Station complex, home to numerous attractions including the St. Louis Aquarium and The St. Louis Wheel, and adjacent to the under-construction St. Louis City SC Stadium, future home of the city’s Major League Soccer franchise. The site is also in close proximity to Stifel Theatre, the Enterprise Center (home to the NHL’s St. Louis Blues), and several new residential and hotel developments.
- AMENITIES – The building offers 24/7 security, on-site property management, a 100-person building conference room, and a full-service café including tenant lounge and outdoor patio seating. In addition to available parking on site, a new, under-construction parking garage adjacent to the stadium and 1831 Chestnut will provide additional daytime parking for the Property.
- EXPENSE STRUCTURE – Due to the management agreement in place with Anthem Blue Cross and Blue Shield, the Property has a mostly fixed and predictable operating expense structure, excluding taxes and insurance, through 2025. We believe it to be below market.