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Projects

Adaptive Reuse in Hazelwood, MO

5651 & 5701 Phantom Drive
Hazelwood, MO 63042

25,107
Square Feet
Industrial

Process

Bamboo Equity Partners™ purchased the property in an off-market transaction in May of 2019.  The property had been vacant for nine years, and was in disarray with broken windows, a leaking roof, interior mold and asbestos problems. We realized the need for outdoor parking and storage in a tight industrial submarket and demolished two-thirds of the building to redevelop the property. The remaining 25,000+ square-foot space was completely updated to a modern office warehouse and flex property with a three-acre parking lot in front of the building. During construction, the expanded outdoor parking space attracted Carvana Co. and Amazon.com, Inc. Carvana utilized both the building and secured parking for a regional distribution hub, while Amazon used the space to park their fleet of sprinter vans for quick delivery out of their adjacent distribution center.

With two credit tenant leases in place, we took the property to market and sold to a large institutional fund in May of 2021 to achieve a 67% IRR for investors in just three years. Throughout operations, we also paid a 9% annual preferred return on equity.

Results

100%

Increase in Occupancy

Occupancy at Acquisition: 0%; Occupancy at Disposition: 100%

233%

Increase in Value

Acquisition Price: $1,500,000.00; Disposition Price: $5,000,000.00

Not only do you get a solid return for your investment, but you get to watch properties in the local market change from something that was old and dingy to something that’s functional with happy tenants.

Alice Benner, Principal & Managing Director

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