Baynorth sells offices for $75m

Philadelphia-based value-added investor BPG Properties bought the complex in a suburb of St. Louis, Missouri and plans a $5 million overhaul.

Baynorth Capital Partners has sold an office complex in a suburb of St. Louis, Missouri to Philadelphia-based BPG Properties for $75 million (€59 million). BPG plans to invest $5 million to upgrade the 577,818-square-foot Pierre LaClede Center, its first office investment in the St. Louis market.

BPG, an affiliate of Philadelphia-based Berwind Properties Group, has also expanded its presence elsewhere in the Midwest, recently pushing into the Minneapolis market with its $86 million acquisition of the 936,000-square-foot Interchange Office Park.

The Philadelphia-based investment firm, which owns assets across sectors, has committed approximately three-fourth of its value–added fund, which closed on $550 million early last year. BPG is currently in the process of raising its eighth vehicle, which has a target of $650 million to $750 million.

Boston-based Baynorth was founded in 2004 by managing directors Chip Douglas and Charlie Wu, who spun the firm out of private equity firm Charlesbank Capital Partners. The first opportunity fund they raised after the spinout closed on $430 million in March 2005. The firm makes opportunistic, value-added and mezzanine debt investments across sectors in the US.

Charlesbank was formed in 1998 after it spun out from Harvard Management Co. Baynorth inherited the St. Louis office buildings from Charlesbank and Harvard’s investment arm, which acquired it for $62 million in 1997, according to the St. Louis Post-Dispatch.