Improved access, military contractors prove boost for business park
by Heather Cole
After the slowdown in the market for high-tech space in 2000, things are starting to heat up again at Missouri Research Park.
The University of Missouri-owned park, at Highways 40 and 94, is talking with many prospective tenants/owners, said Rick Finholt, executive director. After the dot-com bubble burst and a subsequent slowdown of several years, there is more activity in the high-tech real estate market in the St. Louis area, especially among businesses with military or anti-terrorist products or in life and health sciences, Finholt said. He declined to give the names of particular businesses in discussions with the park.
Fifty developable acres remain at the 20-year-old, 700-acre park. Missouri Research Park has 15 businesses and two government agencies as tenants, and includes the Missouri Bluffs Golf Course. "One of the rumors I'm trying to combat is that the park is built out," Finholt said.
An 80,000-square-foot building, formerly owned and occupied by Mallinckrodt Inc., is the only empty building in the park. Mallinckrodt was purchased by Tyco International in 2000 and is now part of Tyco Healthcare Group. Tyco, which holds a long-term lease on the building, subsequently sold off the Mallinckrodt division that had operated in the park.
Marketing land in the park was made easier by a switch in land ownership, Finholt said. For 20 years, the University of Missouri has leased the ground under businesses' buildings, instead of selling it. Originally, that allowed the companies to avoid paying taxes on their properties in the park. However, the park and companies went through a "friendly" lawsuit with St. Charles County over the issue, Finholt said. As a result, the Missouri Supreme Court ruled the tax waivers unconstitutional in 2000. Since an agreement was reached early this year with the state, the university and St. Charles County, businesses in the park have started purchasing the ground under their buildings. Two businesses -- Westar Aerospace & Defense Group and Natoli Engineering Inc. -- closed on their property, and Nike IHM, A.G. Edwards and Novus International are in the process, Finholt said. The price for land in the park is from $250,000 to $300,000 an acre.
"It (the agreement) has improved the marketability of the remaining lots, because it clarifies the legal position," he said. "It's so unusual to market property on a ground lease, as opposed to a simple sale." The university still cares for the common areas of the park, manages and markets it.
Other developments at the park include:
• An outbound on-ramp to Highway 40 recently was completed, improving access to the park "dramatically," Finholt said.
• Nexstar Financial recently finished adding 150 parking spaces after consolidating two offices into 80,000 square feet at the park.
• Construction soon may restart on the Wingate Inn Hotel, which will be owned by the Fifth District Economic Development Fund, a community and housing development fund created by members of the Fifth Episcopal District of the African Methodist Church.
Six months ago, the Fifth District fund halted construction on the hotel, which had been set for completion early this year. Financing fell through on the $7 million project. The fund now is set to sign off on new financing by Nov. 24. Construction on the 100-room hotel would start by the end of December and be finished by fall 2006, said Harold Whitfield, chief executive of the fund.
Nexstar brought about 80 people to the park when its lease on a Creve Coeur office building ended late in 2004, said Kitty Jacobs, vice president at Nexstar. That, and increasing staff as Nexstar added new clients, brought the number of employees in its Missouri Reasearch Park office to 500, said Helen Garrity, executive vice president. That put the pinch on parking. Nexstar now has 450 spaces.
hcole@bizjournals.com
