45 Progress Parkway
- 45 Progress Parkway, Maryland Heights, MO 63043
- Property Type:
- Single Tenant
- Cap Rate:
- 7.47% cap
- Square Feet:
- 38,382 sqft
- Lot Size:
- 2.17 acres
- Price Per Square Foot:
- Year Built:
- Located at the Major Interchange Between I-270 and State Road 364
- Building Was Renovated in 2015: New Bathrooms, Carpet/Flooring, New Surface on Parking Lot
- O’Fallon Brewery Has Posted Double-Digit Growth Numbers Year-Over-Year
- Tight Barrier-to-Entry Submarket with a Market Vacancy of 3.6 Percent
- Due to the Low Vacancy in this Submarket, Market Rent has Grown 4.9 Percent Year-Over-Year
- Surrounded by Multiple Hotels, Edward Jones St. Louis Headquarters, and The World Wide Technology’s Global Headquarters
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 45 Progress Parkway in Maryland Heights, Missouri, leased to O’Fallon Brewery. The subject property consists of approximately 38,382 square feet of space and is situated on 2.17 acres of land. The asset, renovated in 2015, features new bathrooms, carpet and flooring, and a newly paved parking lot. For over 20 years, O’Fallon Brewery has produced and distributed craft beers for the Saint Louis metropolitan area. Year-over-year, O’Fallon Brewery has posted double digit growth in sales. With multiple hotels, Edward Jones St. Louis Headquarters, and the World Wide Technology global headquarters surrounding the property, O’Fallon’s onsite restaurant, O’Bar, has access to a large pool of customers.
Located at the major interchange between Interstate 270 and State Road 364, the property is primely situated within the Westport submarket. Westport is a sizable submarket with 15.5 million square feet of industrial space, largely consisting of logistics facilities. Specialized and flex properties together make up nearly 28 percent of local inventory. Over the last year, the vacancy rate has fallen 170 basis points down to 3.6 percent, representing the lowest level on record. Conversely, average market rents have increased a record 4.9 percent during this time. At $7.48-per-square-foot, the market rents in Westport enjoy a 23 percent premium over the Saint Louis market average. However, the best is yet to come as net absorption in Westport is expected to hit an all-time high in 2022 with nearly 650,000 square feet. While net deliveries are projected to set a 20-year high at over 385,000 square feet, the lag behind net absorption should allow vacancies to fall significantly further (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, and has more than 2.9 million residents. The metro encompasses the city of Saint Louis; the Missouri counties of Saint Charles, Jefferson, Franklin, Saint Louis, Lincoln, Warren and Washington; and the Illinois counties of Madison, Saint Clair, Macoupin, Clinton, Monroe, Jersey, Bond and Calhoun. Saint Louis is the most populous county with 1 million people. The city of Saint Louis, which is located at the confluence of the Mississippi and Missouri rivers, is the only city in the metro with a population of more than 300,000 citizens. 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.