Central Hardware Building
- 5239 Brown Avenue, Saint Louis, MO 63115
- Property Type:
- Multi Tenant
- Square Feet:
- 80,000 sqft
- Lot Size:
- 1.33 acres
- Price Per Square Foot:
- Year Built:
• Strong Submarket Growth with Vacancy Decreasing 1.5% Y-O-Y to 4.6%
• Property Comes with 1,000 Square Feet in Lockers to Provide Additional Income Source
• Due to Increased Demand for Space in Saint Louis City North, Rent has Increased 3.7% Y-O-Y
• Located in an Opportunity Zone and Enterprise Zone Allowing Owner to Avoid Capital Gains Tax on Any Profit
• Strong Location, Less than a 0.5 mile to I-70 and 0.36 Miles to State Road 115
• Has “K” Zoning Otherwise Referred to as “Unrestricted” Zoning
Marcus & Millichap is pleased to present the opportunity to acquire the properties located at 5239 Brown Avenue and 4200 Union Boulevard in Saint Louis, Missouri. These subject properties consist of approximately 80,000 square feet of industrial and office space are situated on 1.33 acres of land. The asset features 1,000 square feet of storage lockers that can provide an additional source of income. The property is located in Saint Louis City North, a strong submarket with a vacancy rate of just 4.6 percent, down from 6.1 percent in 2020. Due to increased demand for industrial space, the submarket’s average rent rose 3.7 percent over the past year. The asset is located in an Opportunity Zone, giving investors the potential to avoid and prepare for the capital gains tax on any profit. The property is also conveniently located less than a mile from Interstate 70 and State Road 115.
Saint Louis City North is a large submarket, containing roughly 37.7 million square feet of industrial space. Vacancies remain unperturbed by the recent economic upheaval. Net absorption over the past year registered at 353,000 square feet, which was 53 percent higher than the five-year average of 230,000 square feet. With no projects under construction, there are no supply-side pressures on vacancy or rent in the near-term. Moreover, the inventory has actually contracted over the past 10 years, as demolition activity has outpaced new construction. Industrial properties traded with regularity last year, consistent with the generally high level of activity over the past three years (CoStar). While there are no industrial projects underway in Saint Louis City North, there are multiple mixed-use projects planned or under construction including The City District, an $81 million development (St. Louis Business Journal).
The St. 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 St. Louis; the Missouri counties of St. Charles, Jefferson, Franklin, St. Louis, Lincoln, Warren and Washington; and the Illinois counties of Madison, St. Clair, Macoupin, Clinton, Monroe, Jersey, Bond and Calhoun. St. Louis is the most populous county with 1 million people. The city of St. 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.