Professional Installers Sale-Leaseback
- 12100 Prichard Farm Road, Maryland Heights, MO 63043
- Property Type:
- Sale Leaseback
- Cap Rate:
- 7.98% cap
- Square Feet:
- 63,176 sqft
- Lot Size:
- 4.85 acres
- Price Per Square Foot:
- Year Built:
- 12100 Prichard Road is Located in the Highly Sought-After Westport Industrial Submarket
- The Property Sits Only Two Miles to the South of I-70 and Three Miles to the West of I-270
- The Tenant, Professional Installers, Inc. Was Founded 1984, and Since its Inception has been Involved in Over 80,000 Furniture Installations and Relocations
- Professional Installers, Inc. is a Member of the Facilities Services Network (FSN), a Not-For-Profit Group of the 20 Largest Independent Commercial Furniture Installation Firms from North America, Australia, and Singapore
- Tenant is Executing a Five-Year Sale-Leaseback of the Premise on an Absolute Net Basis to Reduce Landlord Responsibilities
- Westport Industrial Submarket Continues to be a Strong Industrial Submarket with Vacancy at 3.6%
- Given the Tight Barrier-to-Entry Submarket, Market Rent has Grown 8.7% Year-Over-Year
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 12100 Prichard Farm Road in Maryland Heights, Missouri, occupied by the current owner, Professional Installers, Inc. The subject property consists of approximately 63,176 square feet of industrial space and is situated on 4.85 acres of land. The single-tenant asset features an additional 6,000 square feet of mezzanine space, one drive-in door, nine dock-high doors, and a clear height of 24 feet. Upon sale of the property, Professional Installers will execute a five-year leaseback on an absolute net basis to reduce landlord responsibilities. Since its inception in 1984, Professional Installers has completed over 80,000 furniture installations and office moves. Professional Installers (the company) benefits from the property’s prime location, sitting only two miles south of Interstate 70 and three miles west of Interstate 270.
The subject property is located within the highly sought-after Westport submarket, containing 15.5 million square feet of industrial space. Logistics facilities account for the largest proportion of local supply, making up 73 percent. Flex and specialized space round out the local inventory, accounting for 14 percent and 13 percent, respectively. For over five years, the vacancy rate in Westport has trended below 6 percent and currently sits at 3.6 percent in Q3 2022. With supply remaining tight, market rent growth has raced to an all-time high of 8.7 percent annually. Market rents now average $7.68-per-square-foot, offering landlords a 24 percent premium compared to the overall Saint Louis market. Westport’s prime location has attracted a significant amount of development in recent years. The 606,677 square feet, currently under construction, is a new record amount for the submarket. However, given that all of this new development is concentrated in buildings larger than 100,000 square feet, the new supply will have minimal effects on rent growth and vacancies for smaller industrial buildings (CoStar).
The Saint Louis metro is near the geographic center of the United States, within 500 miles of one-third of the U.S. population. About 2.8 million people call the metro area home, with Saint Louis hosting over 319,000 residents. Located at the confluence of the Mississippi and Missouri rivers, the metro area encompasses counties in both Missouri and Illinois. The economy of Saint Louis is anchored by the logistics industry, with trade, transportation, and utilities accounting for the largest share of employment. As Saint Louis continues to be a desirable industrial market for investors, a recent report ranked Saint Louis as the tenth industrial market to watch in 2019. The Gateway Arch continues to serve as a major tourist attraction, and residents enjoy a high quality of life with a variety of entertainment options.