Sealy Closes Deal for 5-Building St. Louis Portfolio

4001-4045 Lakefront Court, Earth City. Image courtesy of Sealy & Co.

Sealy & Co. continues its growth in the St. Louis industrial market, purchasing a five-building portfolio totaling 554,007 square feet of distribution space from Altus Properties for an undisclosed amount.

With this latest acquisition, Dallas-based Sealy’s holdings in the market account for nearly 13 percent of its more than 20 million square feet of assets owned across the U.S. The St. Louis market is third in total square feet owned by Sealy behind its two other major markets—Dallas and Memphis, Tenn.

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The properties acquired were described by Sealy as functional infill assets in two submarkets—Mid County and North County—with high barriers to entry. The portfolio is currently fully leased to 17 diverse tenants. The properties are:

• 91,181 square feet at 13652-13670 Lakefront Drive, Earth City, Mo.;
• 162,800 square feet at 4001-4045 Lakefront Court, Earth City;
• 110,612 square feet at 8480-8526 Mid-County Industrial Drive, St. Louis;
• 125,820 square feet at 3481-3499 Rider Trail North, Earth City;
• 59,724 square feet at 3401-3467 Rider Trail South, Earth City.

Calling St. Louis a top-tier market, Jason Gandy, managing director of investment services at Sealy, said in a prepared statement the company has found great success in investing in quality, value-add industrial assets in the region. In April, Sealy acquired a 129,000-square-foot infill property with two tenants at 8807 Seeger Industrial Drive in St. Louis from JGB Properties LLC.

One of the most important commercial centers in the Midwest, the St. Louis industrial market is a key distribution and logistics hub and a conduit for port, rail and truck freight. The portfolio acquired from Altus Properties is also located near interstate highways and St. Louis’ Lambert International Airport.

The transaction was handled by Sealy’s Investment Services Team, led by Gandy and Senior Investment Associate Davis Gibbs. Michael Hanrahan of Cushman & Wakefield provided local brokerage assistance to Altus Properties.

Active buyers

Sealy, which has assets in 17 key U.S. markets, has closed on more than $89 million in acquisitions in the past 30 days. Among the recent purchases were two off-market transactions announced in Arkansas and Michigan made just days apart. In late August, Sealy said it had acquired a 303,369-square-foot FedEx Ground facility in southwest Little Rock, Ark., and an 80,000-square-foot distribution warehouse in Flint, Mich. In July, Sealy entered the Savannah, Ga., market when it acquired a 305,400-square-foot industrial portfolio from an undisclosed buyer. The portfolio, which consists of warehouse and distribution properties, is located near the Port of Savannah and within 5 miles of Interstates 95 and 16 and minutes from the Savannah Hilton Head International Airport.

In April, Sealy made two purchases in less than a week in the Kansas City, Kan., and Detroit markets. The first deal announced was the acquisition of a 407,500-square-foot industrial warehouse in Flint that is fully leased to General Motors for truck manufacturing operations. The 21-acre site was sold by Schostak Brothers to Sealy for an undisclosed price. It is adjacent to Bishop International Airport and close to the intersection of Interstates 69 and 75. Days later, Sealy said it had acquired Lone Elm Commerce Center, a Class A, 210,500-square-foot distribution warehouse in Olathe, Kan., from developer Heise-Meyer LLC. The 12-acre site is part of a larger industrial park and has frontage along Interstate 35.