Baltimore, MD – Alex. Brown Realty (ABR) and Fulcrum Asset Advisors announce the acquisition of a two-building suburban office portfolio in St. Louis, Missouri. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $5.1 million in the joint venture. The project will be financed via a loan from the Central Bank of St. Louis.
The Creve Coeur Office Portfolio totals 165,098 sf and is located within the Creve Coeur area of St. Louis County. The two properties are situated approximately one-mile apart along Olive Boulevard, a major east/west thoroughfare within the County that also offers access to the I-270 beltway. West Park I is a five-story, 98,588 sf office building developed in 1988 and is currently 93% occupied with seven tenants. Developed in 1999, Pine View Point is a three-story, 66,510 sf office building located within the Fern Ridge Business Park and is currently 46% occupied by three tenants, with the entire third story of the building available for lease. Both properties benefit from a favorable parking ratio.
Fulcrum and ABR intend to complete several value-add improvements to the properties, including curing deferred maintenance, improving landscaping and preparing the vacant space at Pine View Point to make it more desirable for lease by tenants looking for a large block of contiguous space.
The Creve Coeur submarket has experienced improving market fundamentals since 2012, with decreased vacancy rates and a recovering office market. “We expect the market improvements to continue throughout 2015 and beyond,” commented Tom Burton, ABR’s chief investment officer. “The targeted value-add improvements will allow us to capitalize on the increased demand for office space. We also benefit from having a strong partner in Fulcrum who has a successful track record in the Creve Coeur market.” The acquisition represents the second transaction between ABR and Fulcrum.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Fulcrum Asset Advisors, LLC is a Chicago-based, privately held real estate investment and operating firm that specializes in making and managing investments in office and industrial properties. www.fulcrumllc.com