ST. LOUIS-Two local investors, Solon Gershman Inc. executivemanaging director Burt Follman and Chicago-based Alliance EquitiesLLC president Ben Reinberg, have purchased two office buildingshere in the West Port/I-270 submarket. The Park 270 buildings Oneand Two, totaling 275,000 sf, were bought for $32.8 million fromArthur Hill & Co.

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Park 270 One is a five-story office building that was built in1984. Park 270 Two is a six-story office building just north ofOne, and was built in 1987. The buildings are 87% occupied, Follmansays. Major tenants include Xtra Lease Inc., JP Morgan, SprintCommunications LP and the Doe Run Resource Co. The asking leaserate is $21 per sf.

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Follman tells GlobeSt.com that the properties had been built bya single developer, but then split up in ownership. This splitlasted until the previous owner purchased them, consolidated theportfolio and sold it to Follman and Reinberg. “While they weresplit, building Two was better maintained as a pure class Abuilding, while building One became more of a class B,” he says.“Our intention is to upgrade it back to a class A building.” Hesays the company will enhance some of the amenities on theproperty, add some green building practices, and then plan to sellthe portfolio in the next three-to-five years, “our typical holdperiod.”

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Before the sale, however, Follman says his group may look tobuild a 50,000-sf building Three on the site. 'We're pretty sure wecan do it. We've talked to the city, they are receptive, and metwith some architects. The previous owner already did some of thelegwork. We'd have to put in another deck of parking,” he says. Thenew facility would have to be preleased, not spec construction,Follman says.

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He says both black curtain-wall buildings have great exposurealong I-270, in a corridor where the vacancy has dropped from 11.9%to 10.5% from January to July 2007. “The whole region seems to bedoing well,” Follman says. “There's some big users in the market.Enterprise Rent-A-Car and Panera Bread are both based here, andthey're both looking for a large chunk of additional space.”

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