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Saint Louis, MO

Freight World

5202-5240 South 38th Street, Saint Louis, MO 63116
Property Type:
Single Tenant
Cap Rate:
9.50% cap
Square Feet:
57,900 sqft
Lot Size:
1.39 Acres
Price Per Square Foot:
Year Built:
* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • 57,900-Square-Foot Distribution Warehouse Situated on 1.39 Acres
  • Features Five Dock Doors, Masonry Construction, and 16’ Clear Height
  • Located One Mile From I-55, 13-Minute Drive to Downtown Saint Louis
  • Leased to 3PL Freight World Through 12/2025, Creating Lease-Up Opportunity
  • Tight Barrier-to-Entry Submarket with 0.1% Vacancy Among Comparables

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5202 to 5240 South 38th Street in Saint Louis, Missouri, leased to Freight World, LLC. The subject property consists of approximately 57,900 square feet of warehouse space and is situated on 1.39 acres of land. The single-tenant asset features a clear height of 16’, five dock-high doors, and masonry construction. Located just one mile West of Interstate 55 and 13 minutes driving from Downtown Saint Louis, the property is ideal for storage and distribution with easy access to major thoroughfares. The modified gross lease with Freight World runs through December 2025, providing buyers with an owner-user, renewal, or lease-up opportunity. Established in 2017, Freight World offers a variety of shipping services, such as third-party logistics warehousing, container loading and unloading, and refrigerated trucks.

The subject property is located in Saint Louis City South, a large submarket containing 36 million square feet of industrial space. As one of Saint Louis’ original industrial hubs, 84 percent of the inventory was developed prior to 1979. In 2023, the vacancy rate in Saint Louis City South bucked the national trend and dropped to a record low of 2.5 percent as demand outpaced supply, hitting nearly 415,000 square feet. Among comparable properties between 50,000 and 60,000 square feet, vacancies were largely non-existent last year at just 0.1 percent. Despite the historic tight supply, asking rent growth across Saint Louis City South slowed down by 250 basis points to 4.6 percent. During the first quarter of 2024, only 340,000 square feet of industrial space were under construction, all of which were concentrated in properties over 100,000 square feet (CoStar). As the economy continues to face the impact of the highest interest rate environment in two decades, Saint Louis City South may act as safe haven in the near term for industrial investors seeking protection from high vacancy rates.

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.

David Saverin
Missouri Broker of Record
7800 Forsyth Boulevard, Suite 710
St. Louis, MO 63105
Tel: (314) 889-2500
License #: 2008013520
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0370093)