1010 Market Sells for $7.675M at Auction

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1010 Market_Saint Louis

The 346K sf 1010 Market office building in downtown St. Louis has sold for $7.675 at auction. The building is appraised at $6.58M and was sold in 2005 for $18M.

1010 Market has struggled with vacancy for years, and is reportedly just 31% leased today. Its lack of success has been blamed on limited on-site parking. In 2000, the federal Eagleton Courthouse was built on a surface lot that had served 1010 Market occupants. Starbucks left the building in 2003 and the 84 attorneys of Brown & James PC left 50,000 sf empty in 2012, moving to nearby Bank of America Plaza.

A 2013 proposal sought to replace a pedestrian plaza of trees and benches with 26 surface parking spaces and a new building entry. At that time, 1010 was being marketed at $15.50 – $18.00 psf, full service for Class A office space. Marketing materials were offering up to 73,110 sf spanning the top four floors. 1010 Market was built in 1981 and is comprised of 20 floors rising to 295 feet.

Recently, the St. Louis Outlet Mall sold at auction for $4.4M, or 98%-off. That building was completed in 1996 at a cost of $250M. Recently, Crestwood Mall also sold at auction. Its 47 acres fetched $3.635M when sold in 2014. The site had sold for $17.5M in 2008, and was assessed at $28.7M in 2006.

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  • matimal

    Older commercial space has been selling at a steep discount in many American metros, even some that are considerable more successful than St. Louis.

  • Pingback: 1010 Market Sells for $7.675M at Auction - ConstructForSTL()

  • joe

    if you watch news 4 10 o’clock news you’ll understand why

  • citylover

    I am in shock that more companies aren’t downtown My friend lives at the arcade downtown. We were walking around and we passed three metrolink stations! The 8th and pine is literally under the old Laclede gas. And it’s perfect access for all those office buildings: wainwright, AT&T, met square, etc. the stadium serves the warehouse district and would be PERFECT FOR BALLPARK VILLAGE! And the convention center serves wash ave. I don’t get it! With access to public transportation, with great views, with great opportunities, why is downtown sitting by itself?

    And I know the arch grounds aren’t going to “make” downtown, but doesn’t it let people know that people care about this place? Same with blues museum, same with historic renovations, same with improved streetscape and lightstl.

  • Steve S.

    Yessssss … “parking” … let’s just say “parking” and ignore the 5 ton elephant in the room, namely that downtown St. Louis isn’t the region’s main office center anymore …

    This is a perfect site to convert to residential. Empty postwar office buildings have gotten converted to apartments and condos in other cities fairly regularly, too. I’d be willing that those economics work out quite well.

    • Riggle

      Actually. Downtown st louis is BY FAR the most concentrated office center in the region.

      • John R

        True; but I wish it were concentrated a bit more by smudging in all those jobs on the outer border with the Nestle-Purina/Ameren/Wells-Fargo campuses a bit closer to the CBD.

      • Steve S.

        If office tenants are getting subsidies to shuffle from one office building to another, then there’s obviously too much office stock in downtown St. Louis relative to demand.

        Also, while concentration matters to some degree, it might not matter as much as you think. Center City is the most concentrated office region in Philadelphia, but the economic center does seem to be the King of Prussia/Chesterbrook area, which is far far worse than Clayton (which actually looks like a downtown). Even after some 20 years of contracting its superfluous office stock, Center City still can’t command a spec office development. (For reference, the Cira complex and the Science Center, both of which have seen recent office development, are in University City, which commands higher rents than Center City.)

        • Riggle

          Downtown dwarfs claytons office population, the analogous place to king of prussia isnt clayton, its maryland heights.

  • Tom of the Missouri

    This is first class office space in St. Louis. And people tell us the economy is booming. These are great depression prices. With building’s like this sitting empty can anyone imagine anyone investing new money for new buildings in this market? It’s scary. Our solution: Elect a hard core socialist or a multiple times bankrupt doofus reality TV star, neither of which have a clue about economic growth or sustainability. . Our nation is about to get what it deserves for being so stupid. Clayton has a little building boom going on but it is not much more reassuring because it is driven by massive amounts of printed money being used for healthcare for the poor (i.e., Centene), one of the few areas of growth in our country, or by subsides, loan guarantees and by more money printing caused zero interest rates in the case of the new apartments going up. In short none of this is being driven by actual economic progress, economic growth or even population growth. Sadly none of this is economically sustainable for the long run.

    • John R

      You make some valid points but 1010 Market is an aging, 35 year old office building with serious challenges including limited parking… I’m not sure I’d call it “first class” and it is definitely atypical for the leasing rates in Class A buildings downtown. I’m not sure what the potential is for one of the mixed-use conversions that commonly are being undertaken across the country with challenged office buildings, but it wouldn’t surprise me if it occurs to this one as well..

      • Tom of the Missouri

        I have not paid a lot of attention to downtown office buildings in recent years, but that one did used to house one of the local TV networks and a huge international consulting firm where I once worked. Modern office towers are not usually obsolete though in 30 or so years. The one just down Market to the east by starchitect Phillip Johnson built 42 years ago I think proves my not obsolete point, although it also proves my real estate depression point, in that the city had to give the new rich corporate tenant more than it was worth in tax payer money, 7 million dollars, to move in. I guess they will have to do the same to 1010 Market. Before long the city will not be able to afford bicycle lane striping paint. Now that the income tax has been secured for a few more years, that extra cost though should be manageable, unless of course they exempt the new tenant from that, too, as seems to be the practice now.

        Story here: https://nextstl.com/2013/08/laclede-gas-to-select-long-vacant-general-american-building-for-new-headquarters/

        And btw, does not bicycle path theory say that adequate parking is irrelevant to buildings now days because it encourages use of our super cost efficient Metrolink trains and bicycles. That should thus be a plus for 1010 Market, not a price downer. A good forward thinking corporation should jump at such an opportunity.

        I think a mixed use conversion would be cool, but there are an awful lot of apartments going up, especially in the central corridor these days. Since there seem to be few people moving in and few new jobs, who is going to live in all of them.

        • jhoff1257

          KSDK is still in that building. Also a few other 1960s era towers downtown have had some residential conversion. Laclede Gas was purchased by Brian Hayden with the intent to convert it to residential/mixed use, he also converted the 60s era Millennium Center to residential. He’s working on the historic Alverne building as we speak. As far as apartments in the Central Corridor, do you think they’d be building all of them if no one wanted to live in them? My guess is the developers did their homework.

          Not to mention Washington University, BJC, and St. Louis University are driving a lot of these projects. West End Lofts and the Standard in Midtown are being marketed as student housing near SLU. Much of the residential development in the Loop is being driving by Washington University. BJC/WUMed are driving most of the development in the CWE. It’s not like they are just putting up apartment buildings to put them up.

        • John R

          I didn’t say 1010 Market was obsolete, I said it was “aging” with challenges like limited parking and as such was not first-class. Class A buildings are not all equal and any sub-market of size will find some more attractive than others… if 1010 Market had more parking capacity I’m sure it would have a much higher occupancy rate like its close neighbor at 800 Market, the BoA Plaza. (That 750,000 sq. ft. building was built in 1982, but unlike 1010 Market, it has attached covered parking for 2,000 vehicles.)

          With respect to 700 Market, the Philip Johnson-designed office building you brought up, that eccentric building had additional issues of essentially requiring a single tenant and having less than efficient office lay-out… again not an easy thing to overcome in a lackluster regional office market.

          Anyway, clearly the downtown and metro office market as a whole have issues, but both 1010 Market and 700 Market should not be thought of as standard examples of what’s going on.

          As for your harping on bike-lanes, the CBD has very few of them. Chestnut, I believe; maybe another? Not sure if one is planned for the Market St. re-do as part of the Kiener Plaza work.

    • Chicagoan

      Bernie Sanders isn’t a “hard core socialist”. Compared to socialist policies in Europe, Bernie’s brand of socialism is actually rather tame.

      Love your conservative diatribe, though. Questioning “our leaders”, taking a shot at healthcare, and poo poo-ing bicycle lanes, you’re running the gamut.

      You even introduced the Show Me Institute into this, why don’t you just show everyone your NRA membership card while you’re at it?

      • Tom of the Missouri

        I didn’t think of that. Thanks. I did just renew it for 2016. Your not a NRA member? Sorry to hear that. I just assumed you were a NRA member too since your guy Bernie has always been kind of gun friendly.

        • Chicagoan

          Bernie’s not my guy, I can’t even vote, I’m not an American.

          • Tom of the Missouri

            But you are a “Chicagoan” and everyone knows Chigaoan’s can vote for anyone as many times as they want, even after they are dead, assuming they vote for Democrats. Thus not being a citizen is not a voting impediment for a Chicagoan.

          • Chicagoan

            Touché 🙂

  • Scott

    Any word on what the buyer plans to do with the building? Tennants? Renovations? Just curious. Thanks for your great articles!