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Investment group sells industrial property in Gateway Commerce Center

Transwestern Investment Group recently sold 22 Gateway Commerce Center Drive, a 155,700-square-foot industrial building in Edwardsville, on behalf of its discretionary investment fund, TSP Value and Income Fund II. The property was 57 percent leased at the time of sale to New York/New Jersey-based Moxie Equities.

“The disposition of this well-located asset allowed TIG to maximize pricing by appealing to buyers interested in industrial value-add opportunities,” said Ryan Grable, vice president at TIG. “Moxie Equities was able to acquire one of the few shallow-bay warehouses of its kind in St. Louis’ Metro East submarket below replacement cost.”

Built in 2007, the property is located within Gateway Commerce Center, a premier institutional distribution park that offers convenient access to four modes of transportation: road, rail, water and air. Among its four existing tenants, the weighted average lease term is 4.4 years, and the weighted average in-place tenure is 7.5 years.

St. Louis is an increasingly important e-commerce market experiencing an industrial vacancy rate below the national average, positive net absorption, year-over-year rent growth and risk-adjusted returns. The acquisition of 22 Gateway Commerce Center Drive enhances Moxie Equities’ growing value-add portfolio, the firm said.

“Continued rent growth and historically attractive debt markets positioned 22 Gateway as a timely, alternative investment during a period where core, bulk yields continue to compress,” added Grable.

JLL’s Sean Devaney and Ed Halaburt represented TIG in the transaction.

Transwestern Investment Group is a real estate investment adviser with $6.3 billion of assets managed since inception. The firm serves a broad range of institutional and high-net-worth clients with its full-service investment management and Transwestern’s integrated operating platform.

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