CHESTERFIELD — An office building along the Highway 40 corridor has a new owner even as its largest tenant plans to downsize.
Novus Properties Co. acquired the 226,000-square-foot Chesterfield Corporate Plaza office last week from California-based American Healthcare REIT Inc. The building, just west of Highway 40 (Interstate 64) and Highway 141, has long housed back-office administrative offices for Mercy.
The health care system will be cutting its footprint from about 185,000 square feet to 50,000 square feet this summer. A spokeswoman for the organization said the company is reducing its leased space for offices it owns, and no layoffs are involved.
For Novus, the deal for 14528 South Outer 40 Road marks its first foray into the office market after years developing shopping plazas and other commercial spaces across the ӣƵ region.
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“This is completely off the beaten path for us,” said Michael Koch, director of investments for Webster Groves-based Novus.
Koch declined to disclose the purchase price, and county records had not yet recorded the sale.
The local office market is still trudging its way out of lows from the pandemic. Then, companies opted for remote work and leasing was anemic. But five years on from COVID, businesses want prime offices with upgraded amenities.
Clayton remains the most in-demand area. The county seat has attracted blue chip companies like industrial technology company Emerson and battery maker Energizer.
But nearby suburban areas, like the Highway 40 corridor, are also luring companies, experts say.
Research from commercial real estate firm CBRE found that the office market along Highway 40 (Interstate 64) saw more businesses lease space there than in any other area in the region in the first quarter of the year.
It’s why Novus bought Chesterfield Corporate Plaza, Koch said.
“Given the ever-changing landscape of the real estate industry, and just the opportunity we see in the office sector now, it’s almost like a development play,” he said.
The company plans to upgrade and modernize the lobby and common areas of its new Chesterfield property. Koch believes his firm will be able to offer competitive lease rates while also providing the amenities tenants are looking for, he said.
“There’s a lot of exciting projects along the Highway 40-Chesterfield corridor,” Koch said. “The building is in a great position.”
Koch represented Novus in its purchase. Rick Eiseman of CBRE represented the seller. Sansone Group will handle leasing and the building’s management.
