Kawa Capital Management, a leading independent asset management firm specializing in real estate capital solutions, has purchased the leased fee interest at One Metropolitan Square in St. Louis, on the $145 million acquisition of the property from 601W. Located in the heart of the city’s central business district, the parcel is home to a commercial office building that is 92-percent leased to a prominent roster of 35 tenants in industries such as law, government, energy and architecture, among others.
The building has been owned and operated by 601W since 2005 and has been maintained as a best-in-class office space since its acquisition, providing strong in-place cash flow, long-term leases and credit tenants. This past summer, 601W successfully negotiated and executed a 20-year lease with the US Department of Agriculture for 163,000 square feet of space.
“This ground lease represents the continued success and expansion of our Ground Lease 2.0 platform,” said Michael Corridan, Managing Director, Kawa. “The flexibility and ability of our ground lease structure to maximize a property’s capital stack are creating opportunities for owners and operators across U.S. metro areas. One Metropolitan Square is a prime asset in an ascendant St. Louis market and the ground lease provides the new owner a tremendous platform for further growth.”
Downtown St. Louis is a thriving area of the country and currently has more than $8 billion in investments in the area surrounding One Metropolitan Square. The area will soon be home to new buildings and businesses, as well as a new Major League Soccer stadium, which will help drive new jobs and commercial activity in the area.
About Kawa
Founded in 2007, Kawa is a capital solutions provider and independent asset manager with approximately $1.9 billion in assets under management. Kawa’s capital solutions arm focuses on real estate financing, including bridge lending, mezzanine financing, structured credit, net leased real estate equity, and credit tenant leases. Kawa is also active in structuring, purchasing and financing ground leases across the U.S. in various sub sectors including hospitality, office, retail, malls and solar. For more information, please visit www.kawacapitalsolutions.com.
