CHESTERFIELD, Mo. — An Atlanta-based firm has entered the St. Louis market with the purchase of an office park in Chesterfield for $67 million, one of the largest office deals of the past year.
Attracted by the office park’s long-term anchor tenant, Clayton-based health care giant Centene Corp. (NYSE: CNC), Glenfield Capital purchased Timberlake Corporate Center from Franklin Street Properties Corp. At $191 a square foot, the Chesterfield office park's sale is ranked ahead of the sale of the One Metropolitan Square downtown office tower for $114 per square foot, and behind the sale of the EDGE@BRDG headquarters of Benson Hill in West County for $607 per square foot, according to commercial real estate firm Cushman & Wakefield.
Timberlake, a three-building campus with 351,532 square feet that is 100% leased, is the second Centene-leased office building to sell in the last year in St. Louis. Corporate Hill IV, now fully leased by Centene, sold last summer to Sovereign Capital, another investor new to St. Louis. Centene signed up in 2015 to lease the five-story Corporate Center II building in the Timberlake complex, which had been built in 1998.
The Chesterfield office park is Glenfield’s first purchase in the Midwest, as it looks beyond the Southeast for attractive assets that meet the investment profile of its new $150 million equity fund targeting highly leased Class A office buildings, the company said.
“Timberlake Corporate Center was a compelling purchase because it meets the Glenfield Stabilized Income Fund’s narrowly focused criteria of well-leased Class A office assets in appealing markets where people want to be,” said Andrew O’Brien, principal and head of investments at Glenfield Capital. “It’s challenging to get such extraordinary value while also buying at less than 50% of replacement cost.”
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