The recent sale of two properties in St. Louis – one being a medical office building in Sunset Hills, and the other a mid-rise office building in Creve Coeur – shows a return on the investment made into the buildings, and the area.
While office space has been in a decline the past few years, by updating and renovating these spaces, both of which are located in high-traffic areas, Bamboo Equity and Intelica Commercial Real Estate have been able to reinvigorate the occupancy as well as the leasing price, providing value to buyers and sellers alike.
The Sunset Hills building sits near the intersection of Interstate 44 and Watson Road and is highly utilized by Mercy Hospital medical professionals.
“These two buildings now extend a series of investment sale transactions wherein process leasing activities have provided inherent value to the buyer as well as inherent proceeds to the seller,” said Joel Meyer, who represented Bamboo Equity in the sale of the buildings to The Marcus Organization of New York.
The Creve Coeur building was purchased by Bamboo Equity in 2018 and has undergone millions of dollars worth of renovations to increase the occupancy rate and attract employees to feel comfortable coming back to the office.
As mentioned in a St. Louis Post-Dispatch article – written by Steph Kukuljan – occupancy has risen 30 percent (10 percent higher than the St. Louis average) and rates have increased to $22.05 per square foot (less than a dollar below the average).