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Warehouse

8510 Lackland Road

8510 Lackland Rd, Overland, MO 63114

Listing Price: $2,700,000

Cap Rate
8.01%
Gross SF
54,078
Price/Gross SF
$49.93
Lot Size
2.10 acres
Year Built
1982
Rentable SF
54,078

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 8510 Lackland Road in Overland, Missouri, leased to Overland Metals. The subject property consists of approximately 54,078 square feet of space and is situated on 2.1 acres of land. The asset features 0.91 acres of land associated with the property that is approved by the county for outside storage use. Recently, the property was under remediation to comply with environmental regulations, however was awarded a Letter of No Further Action in June. Since 1935, Overland Metals has been one of the premier non-ferrous metal processing and recycling companies in the Midwest. The recycler uses advanced technology to process various metals including aluminum, titanium, copper, and stainless steel. Experienced craftsmen allow Overland Metals to produce some of the finest recycled metals in the market (Overland Metals). Strategically located just a half mile from the Interstate 170 ramp, the property is positioned within Innerbelt East of 170 submarket. Containing around 9.7 million square feet of industrial space, the submarket is dominated by logistics facilities at 69 percent of inventory. The remaining inventory pool consists of 2.7 million square feet of specialized space and 370,000 square feet of flex space. Innerbelt E of 170 is a strong submarket with a high barrier to entry. With no properties under construction, there is no pressure on vacancies and rents from the supply side. Over the last year, the vacancy rate has fallen 201 basis points to just .9 percent by the second quarter. During this time, absorption came in positive at just over 207,000 square feet, 186 percent above its ten-year average of about 72,000 square feet. Industrial rents are currently rising by 3.0 percent annually and projected to move closer to 4 percent over the next year. At $5.41 per square foot, the average rent is trading at a slight discount to the Saint Louis market average of $5.86 (CoStar). This suggests that there is room to move higher as conditions remain tight within the submarket. The St. Louis metro is near the geographic center of the United States, within 500 miles of one-third of the U.S. population, and has more than 2.9 million residents. The metro encompasses the city of St. Louis; the Missouri counties of St. Charles, Jefferson, Franklin, St. Louis, Lincoln, Warren and Washington; and the Illinois counties of Madison, St. Clair, Macoupin, Clinton, Monroe, Jersey, Bond and Calhoun. St. Louis is the most populous county with 1 million people. The city of St. Louis, which is located at the confluence of the Mississippi and Missouri rivers, is the only city in the metro with a population of more than 300,000 citizens. As Saint Louis continues to be a desirable industrial market for investors, a recent report ranked Saint Louis as the tenth industrial market to watch in 2019.

Investment Highlights

  • Strong Submarket With a High Barrier to Entry, No New Construction Under Way
  • This Submarket Underwent a 2.1% Decrease in Vacancy Rate Y-o-Y, Bringing the Grand Total to 0.9% Vacancy
  • Strategic Location Being 0.5 Mile from the I-170 Ramp
  • 0.91 Acres of Outside Storage is Associated With the Property and Approved by County
  • Overland Metals Has Been in Business Since 1935
  • The Property was Recently Awarded a Letter of No Further Action in June of 2021
  • Overland Metals is One of the Premier Non-Ferrous Metal Processing and Recycling Companies in the Midwest

Exclusively Listed By

Broker of Record

  • Brad Barham

    First Vice President Investments

    (314) 889-2500

    License(s) MO: 2013016939

    Missouri

Financing By

Listing Price: $2,700,000

Cap Rate
8.01%
Gross SF
54,078
Price/Gross SF
$49.93
Lot Size
2.10 acres
Year Built
1982
Rentable SF
54,078

Investment Highlights

  • Strong Submarket With a High Barrier to Entry, No New Construction Under Way
  • This Submarket Underwent a 2.1% Decrease in Vacancy Rate Y-o-Y, Bringing the Grand Total to 0.9% Vacancy
  • Strategic Location Being 0.5 Mile from the I-170 Ramp
  • 0.91 Acres of Outside Storage is Associated With the Property and Approved by County
  • Overland Metals Has Been in Business Since 1935
  • The Property was Recently Awarded a Letter of No Further Action in June of 2021
  • Overland Metals is One of the Premier Non-Ferrous Metal Processing and Recycling Companies in the Midwest

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 8510 Lackland Road in Overland, Missouri, leased to Overland Metals. The subject property consists of approximately 54,078 square feet of space and is situated on 2.1 acres of land. The asset features 0.91 acres of land associated with the property that is approved by the county for outside storage use. Recently, the property was under remediation to comply with environmental regulations, however was awarded a Letter of No Further Action in June. Since 1935, Overland Metals has been one of the premier non-ferrous metal processing and recycling companies in the Midwest. The recycler uses advanced technology to process various metals including aluminum, titanium, copper, and stainless steel. Experienced craftsmen allow Overland Metals to produce some of the finest recycled metals in the market (Overland Metals). Strategically located just a half mile from the Interstate 170 ramp, the property is positioned within Innerbelt East of 170 submarket. Containing around 9.7 million square feet of industrial space, the submarket is dominated by logistics facilities at 69 percent of inventory. The remaining inventory pool consists of 2.7 million square feet of specialized space and 370,000 square feet of flex space. Innerbelt E of 170 is a strong submarket with a high barrier to entry. With no properties under construction, there is no pressure on vacancies and rents from the supply side. Over the last year, the vacancy rate has fallen 201 basis points to just .9 percent by the second quarter. During this time, absorption came in positive at just over 207,000 square feet, 186 percent above its ten-year average of about 72,000 square feet. Industrial rents are currently rising by 3.0 percent annually and projected to move closer to 4 percent over the next year. At $5.41 per square foot, the average rent is trading at a slight discount to the Saint Louis market average of $5.86 (CoStar). This suggests that there is room to move higher as conditions remain tight within the submarket. The St. Louis metro is near the geographic center of the United States, within 500 miles of one-third of the U.S. population, and has more than 2.9 million residents. The metro encompasses the city of St. Louis; the Missouri counties of St. Charles, Jefferson, Franklin, St. Louis, Lincoln, Warren and Washington; and the Illinois counties of Madison, St. Clair, Macoupin, Clinton, Monroe, Jersey, Bond and Calhoun. St. Louis is the most populous county with 1 million people. The city of St. Louis, which is located at the confluence of the Mississippi and Missouri rivers, is the only city in the metro with a population of more than 300,000 citizens. As Saint Louis continues to be a desirable industrial market for investors, a recent report ranked Saint Louis as the tenth industrial market to watch in 2019.

Exclusively Listed By

Broker of Record

  • Brad Barham

    First Vice President Investments

    (314) 889-2500

    License(s): MO: 2013016939

    Missouri

Financing By

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