St. Louis-Area Retail Pad Trades Below 6.9% Cap

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Connect (Chicago)

Hanley Investment Group Real Estate Advisors has completed the sale of Kirkwood Square, a 15,944-square-foot retail pad building in the St. Louis suburb of Kirkwood, MO. The sale price was $8,225,000.

The firm’s Jeff Lefko and Bill Asher, along with Kevin Shapiro of L3 Corporation of St. Louis, represented the seller, Kirkwood Square LLC. The buyer, a private investor from the Los Angeles area, was represented by Steve Maynard of El Segundo, CA-based Maynard Group.

Built in 2017, Kirkwood Square is 100% leased to five national and regional tenants.

“There was no shortage of interest in the property,” Lefko said. “The challenge was educating buyers on a non-traditional tenant mix consisting of 67% medical and no food uses.”

Citing CoStar data, Lefko said, “This transaction is the only multi-tenant retail pad property above $7 million to trade below a 6.9% cap rate in the Midwest in 2018.”