Successful Closing: Bamboo closes on the purchase of 2 Olivette properties
Bamboo Equity Partners has acquired more than 200,000 square feet of office and industrial space in Olivette, an area the local real estate investment firm says is "poised for future growth."
Creve Couer-based Bamboo acquired 9601-9643 Dielman Rock Island Industrial Drive and 1220 N. Price Road for $3 million, Managing Principal Dan Dokovic said.
It plans to invest close to $1 million in major upgrades at the Dielman site and rebrand the roughly 56,000-square-foot property. Dokovic said it will have incubator space and luxury collection suites, which provide private storage for collectors of wine, art or cars, for example.
Eagle Warehouse & Distributing occupies roughly 60% of the North Price property, which has around 148,000 square feet of office and warehouse space. An additional 60,000 square feet will be available for lease in 2020.
Neither are the modern bulk facilities that have popped up in the area in recent years, but both are ideal for last-mile distribution for e-commerce companies, he said.
"If anything is last mile in St. Louis, it's this area," Dokovic said.
Olivette's central location and proximity to major business hubs like Clayton and Frontenac were key to Bamboo's deal.
"You can get anywhere in St. Louis from Olive and I-170 within 20 minutes," he said. "We're bullish on midcounty, especially Olivette ... it's one of the key areas that's poised for future growth."
Lease rates for industrial space in mid-St. Louis County are among the highest in the St. Louis region at $6.64 per square foot. The vacancy rate is 1.2%. The marketwide average is $4.33 per square foot and a 4.7% vacancy rate, according to the most recent research from CBRE.
Bamboo-affiliated firm Intelica CRE represented both Bamboo and the seller, the Greenberg family, on the Dielman Rock Island deal. Intelica's Drew Clary represented Bamboo in its deal with the seller, Raven Development, on the North Price property.
Read the article in the St. Louis Business Journal here.
Article written by Steph Kukuljan of the St. Louis Business Journal