Hanley Investment Group Arranges Sale of New Multi-Tenant Retail Property in St. Louis, MO Suburb for $8.2 Million

Kirkwood Square, 10700-10712 Manchester Road
St. Louis County, Kirkwood, MO

KIRKWOOD, MO - Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced  the firm has completed the sale of a 15,944-square-foot, new construction, five-tenant retail pad building shadow-anchored by a new Fresh Thyme Market located in a St. Louis suburb.

Jeff Lefco

 The sale price was $8,225,000.

Hanley Investment Group’s Vice President Jeff Lefko and Executive Vice President Bill Asher, along with Kevin Shapiro of L3 Corporation of St. Louis, represented the seller, Kirkwood Square, LLC, based in Clayton, Missouri.

The buyer, a private investor from the Los Angeles area, was represented by Steve Maynard of Maynard Group of El Segundo, California.

Bill Asher

Built in 2017, Kirkwood Square is located on 1.29 acres at 10700-10712 Manchester Road in St. Louis County in the city of Kirkwood, Missouri. The property is 100-percent leased to five national and regional tenants on new 10-year leases.

“There was no shortage of interest in the property due to its outstanding location, quality of tenants and new long-term leases,” Lefko said.

 “The challenge was educating buyers on a non-traditional tenant mix consisting of 67 percent medical and no food uses. The property is 100-percent leased to 100-percent service-based, internet-resistant tenants.”

Kevin Shapiro

Tenants include Mercyhealth Family Medicine (6,000 square feet) and Mercy-GoHealth Urgent Care (3,324 square feet).

Mercyhealth was named one of the top five large U.S. health systems in the U.S. in 2018 and includes more than 40 acute care and specialty hospitals and 800 physician practices and outpatient facilities.

 Other tenants include AT&T (2,460 square feet), Treats Unleashed (2,560 square feet) and Sport Clips (1,600 square feet).

According to Asher, “The lack of supply of quality available retail product, coupled with investor demand, are primary drivers for a record-breaking sale like this in the multi-tenant retail sector. Investors continue to comb the market for the right retail opportunities and landing on assets like this one because of the strength of location, sustainable internet-resistant, service-related tenant mix and overall elevated return.”

“This transaction is the only multi-tenant retail pad property above $7 million to trade below a 6.90 percent cap rate in the Midwest in 2018, according to CoStar,” said Lefko.

Asher noted that this sale was one of the lowest cap rates at an effective 6.87 percent and the highest price-per-square-foot sales in the Midwest since 2010 (excluding urban Chicago).

A 22-minute drive to downtown St. Louis, Kirkwood Square is located just off of the signalized intersection of Manchester Road and Kirkwood Road, one of the top signalized intersections in the region with 53,000 cars per day at the intersection. Average household incomes exceed $140,000 within a one-mile radius of the property and over 183,000 people within a five-mile radius.

CONTACTS:

Anne Monaghan
MONAGHAN COMMUNICATIONS, INC.anne@MonaghanPR.com 830.997.0963

 www.hanleyinvestment.com.