SAUGET – Chambers Street Properties, a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties, today announced the acquisition of an approximately 502,000-square-foot, Class A distribution warehouse in Sauget for $21.1 million.
Built in 2008, the property is 100 percent leased to two tenants through 2019 and 2020, and both leases include annual rental increases of approximately 2 percent. Tenants consist of a privately held manufacturer and distributor of medical supplies in the U.S., and a contract manufacturer whose services include processing, forming, and packaging granulated chemical products for use in a variety of applications, Chambers Street said in a release.
Chambers Street also holds options to purchase two adjacent parcels of land that would allow the building to be expanded by up to 450,000 square feet and to accommodate additional trailer parking, providing flexibility for its tenants.
Jack A. Cuneo, president and chief executive officer of Chambers Street, commented, “We are very pleased with our recent industrial purchase in the active Metro East submarket of St. Louis. This acquisition is consistent with our strategy of focusing on U.S. industrial assets located in primary and secondary markets with easy access to major highways, ports, rail and freight corridors, and intermodal facilities. We are excited to be working with our new tenants who are occupying the facility as a result of growth in their core businesses.”
The company statement cited the property’s location near several interstates and Mississippi River port facilities and Union Pacific and CSX intermodal facilities.