ST. LOUIS — A historic downtown office building was sold in December to a partnership of two real estate firms attracted by the building’s long-term single tenant.
The six-story building at 700 Market St. leased by natural gas utility Spire Inc. was sold by owner Koman Group to a venture between New York-based Arch Street Capital Advisors and Phoenix-based Orion Office REIT Inc. (NYSE: ONL). The price was $30.5 million, according to Cushman & Wakefield. Koman Group merged in 2019 with Keeley Development Group.
The 127,468-square-foot building was bought by Koman Group in 2014 and underwent a 12-month, $46.4 million redevelopment ahead of Spire, then known as Laclede Group, moving to the new office in 2015 from 720 Olive St., where it had been headquartered since 1970. Spire signed a 20-year lease in 2015 for the building, which was designed by famed architect Philip Johnson.
The structure, constructed from 1974 to 1977, was added to the National Register of Historic Places in 2008 as representative of St. Louis' "Modern Movement," which is described in the building's nomination filing at the time as "a period of image revitalization."
The renovated building, which Arch Street Capital described in a news release as “state of the art,” is part of a broader venture between Arch Street and Orion that focuses on acquiring single-tenant office properties ranging between $10 million and $60 million, Arch Street said. Orion has taken over the previous interest in the partnership held by VEREIT Inc. Orion was spun off following the merger of VEREIT and Realty Income Corp.
The St. Louis building is part of a $227 million, six-asset portfolio acquired by the two firms as part of the joint venture, Arch Street said. The venture envisions the office building as a long-term lease that is “mission critical” for its investment grade-credit tenant, Spire.
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