Cambridge Air Solutions has completed a new lease for industrial space to further expand its operations in the St. Louis area. The new lease was announced by SparrowHawk LLC, a real estate investment firm based in Houston, Texas.
The building is owned through a joint venture, SparrowHawk STL Industrial LLC, with American National Insurance Company.
Cambridge completed the lease for 68,605 square feet within the 420,000-square-foot multi-tenant industrial building at 1290 Interstate Drive in Wentzville, Missouri. SparrowHawk has been active in buying industrial properties in St louis and currently owns nearly 1.5 million square feet of industrial space in the region.
Cambridge Air Solutions is a manufacturer and distributor of HVAC systems. The company’s headquarters is at 760 Long Road Crossing Drive in Chesterfield, Missouri.
According to Alfredo Gutierrez, Founder of SparrowHawk, Cambridge is the beneficiary of the ongoing boom in real estate construction and efforts during the COVID pandemic to install equipment and systems that improve air quality.
“We remain bullish on the St. Louis market, given the leasing and activity trends we’re seeing as well as St. Louis’ favorable economic and geographic position,” Gutierrez says. “Activity is strong, cap rates are compressing, and values are increasing. That’s good news for the marketplace, and our portfolio.”
Vacancy in St Louis industrial real estate has declined steadily during the last five years, and average asking lease rates have continued to climb. According to third quarter market statistics from JLL, the vacancy rate for industrial space in all of St. Louis is 5.1 percent. In the Wentzville area, that rate is 2.5 percent, according to JLL Senior Research Analyst Andrew Thompson.
Another factor that underscores the strength of the market, according to SparrowHawk, is the fact businesses, like Cambridge, are leasing space that will satisfy current requirements and give them space for future growth. That bodes well for the local economy and industrial property owners/investors.
Cambridge Air Solutions was represented in the transaction by Christopher A. Schmidt of JLL. SparrowHawk was represented by David Branding and Patrick Reilly, also with JLL. Susan Duffy and Ken Domash with Domash Designsource are the architects for the new space. Improvements in the space will be completed by G.S.&S. Construction with Christopher J. Hastings as project leader.
