Marcus & Millichap has arranged the sale and acquisition financing of Alton Center Business Park, a 450,400-square-foot industrial property located in the St. Louis metropolitan statistical area. The business park traded for $15 million, and a total of $12.4 million in acquisition financing was secured in conjunction with the transaction.
The property was marketed by Marcus & Millichap investment professionals based in the firm's Chicago Downtown office. Senior director of investments Tyler Sharp and investment specialist Adam Abushagur held the exclusive listing to market Alton Center Business Park on behalf of the seller, described as a private family partnership. The same team also procured the buyer, Rockford Asset Management.
According to Sharp, Alton Center Business Park was positioned as a value-add opportunity. At the time of sale, the property was approximately 30% vacant, creating potential lease-up upside. At the same time, the park benefits from a stable income stream from a long-term international manufacturing tenant that occupies the balance of the space, providing in-place cash flow to support the investment strategy.
On the financing side, IPA Capital Markets, a division of Marcus & Millichap, arranged the acquisition loan. Marcus & Millichap's Chicago Downtown-based capital markets team, led by managing director Frank Montalto and associate director Ethan Splan, secured the debt on behalf of Rockford Asset Management. The financing was sourced from a direct bridge lender.
The bridge loan is structured as non-recourse and carries a three-year initial term with extension options, sized to 75% loan-to-cost. The non-recourse nature and higher leverage are aligned with the property's value-add profile and the sponsor's business plan to address the current vacancy while relying on income from the existing tenant base.
Alton Center Business Park was originally constructed in 1960 and is anchored by Imperial Manufacturing Group, identified as a long-term international manufacturing tenant at the property. The combination of a meaningful vacancy component and a creditworthy anchor tenant underpins the investment thesis, as the buyer looks to create additional value through lease-up while maintaining a significant base of contractual rent.
The transaction highlights ongoing investor and lender interest in industrial product within the St. Louis MSA, particularly for assets that offer both current cash flow and clear paths to value creation. It also underscores the role of specialized capital markets teams in structuring non-recourse bridge financing for value-add industrial acquisitions.
