Golub, Intercontinental Buy Plaza for $85M

MARYLAND HEIGHTS, MO-Golub & Co. LLC was able to hold on to the 670,000-sf Westport Plaza, a mixed-use property here, by switching one partner for another. The company and former partner Investcorp sold the property at 990 Westport to a new partnership of Golub and Boston-based Intercontinental Real Estate Corp. Sources say the sales price was about $85 million for the 500,000 sf of office space and 170,000 sf of restaurants, shops and two Sheraton hotels.

The Golub/Investcorp bought the 41-acre property, which also includes two garages, in February 2004 for $60.2 million, sources say. Michael Newman, president and CEO of Golub, tells GlobeSt.com that they believe in the buildings. “We spent a lot of time and effort on the property,” he says. “When we took it over the occupancy was in the high 60% range, and we’ve taken it to 93%. We think it’s the best building in the market. It’s very recognizable, is very stable and has nice amenities.” Golub will continue to manage the building.

Building tenants include Northrup Grumman, Travelers Insurance and Healthways, and retail shops such as Dierdorf & Hart’s Steak House, Coldstone Creamery and Panera Bread. Lease rates at the building, about 30 years old, are in the mid-$20 range per sf, Newman says.