KBS Capital Markets has acquired the Pierre Laclede Center in Clayton, Missouri, a suburb of St. Louis, for $74.25 million from BPG Properties. Located at 7733 Forsyth Blvd, the two building property consists of 577,000 square feet of office space. The property was approximately 95% occupied at closing.
BPG Properties acquired the property in 2006 for $75 million. BPG invested about $5 million in capital improvements and increased the occupancy by about 4% prior to the sale to KBS. Even so, many view the sale’s price point as an indication that commercial real estate values have finally stabilized.
While Moody’s/REAL Commercial Property Price Index is down by more than 43% over the last 24 months, BPG was able to exit this property without significant capital losses, even if they did buy it near the peak of the market.