AXSYS Capital has closed on the purchase of 853 Medical Drive, a 15,366-square-foot mixed-use “medtail” office property in Wentzville, Missouri, for $3.6 million.
The transaction marks AXSYS Capital’s seventh acquisition in Missouri and is the third purchase made by the company’s “AXSYS Capital Fund I, LP.” The company will hold the property for long-term cashflow for its investors.
AXSYS Capital has about $60 million of assets under management and is raising about $40 million to $50 million of additional capital that the company plans to invest in similar properties across the Midwestern states over the next 12 to 18 months, including Illinois, Missouri, Ohio and Wisconsin.
AXSYS Capital has identified a niche in high-quality properties, primarily medical, in the $2 million to $5 million price point, that are off the radar of institutional investors and have above-market returns. To date, AXSYS Capital has successfully executed the development, acquisition, renovation, repositioning and sale of more than 25 transformative commercial and mixed-use properties across the Midwest totaling more than $74 million.
Jason Riegelsberger and Luke Grant of Skyline Commercial Real Estate represented the buyer, AXSYS Capital in the transaction; Brian Kelley of Revel Commercial Real Estate represented the seller, Asher CRE, LLC. Tenants at the 100-percent net-leased property include SSM Health, Edward Jones, Beacon Endodontics, Regional Eyecare, Accent Dental and the Missouri Center for Oral Surgery.
Carrollton Bank provided financing for the transaction with a permanent, fixed-rate loan of $1,952,500, representing an LTV ratio of 55 percent.
Built in 2005 and meticulously maintained by the building’s previous owners, 853 Medical Drive features six commercial units averaging approximately 2,561 square feet located along Wentzville Parkway adjacent to SSM Health St. Joseph Hospital – Wentzville. The property sits along a dense retail corridor boasting national retailers such as Target, Lowe’s, Walmart, Sam’s Club and Kohl’s. Directly across from the property sits Wentzville Bend, a new 80-acre mixed-use development under construction that will feature a mix of retail, medical and entertainment space anchored by a 158,400-square-foot Menards.
