Former federal building offers eclectic tenant options

Earlier this year, the former federal courthouse sat empty, with prospects unknown.

Now the large building at 339 Broadway has taken on a new purpose and is filling fast with what its owner says is a mixed business community prompted by flexible leasing options, which is bringing jobs and activity to downtown Cape Girardeau.

Joseph Uzoaru, who runs Athena Property Group and is a Cape Girardeau city councilman, bought the 40,000-plus-square-foot building in May from a private, out-of-state owner.

He signed a first tenant, Codefi, a co-working community, a short time later.

Since then, more than 10 other businesses have helped fill all but about 8,500 square feet of the space available for commercial office lease, while some other space remains for climate-controlled leasable storage and other purposes.

Thomas Schneider paints a doorway Tuesday on the second floor of the former federal building in Cape Girardeau. (Laura Simon)

A federal courthouse and administration building until the majority of operations was moved to the new Rush Hudson Limbaugh Sr. Federal Courthouse on Independence Street in 2008, local governments considered buying the building. But negotiations fell through, and the General Services Administration auctioned the building to a private owner for $325,015 in 2012.

The final selling price was lower than a previous retail offer and a separate auction bid by Cape Girardeau County.

Local officials, including Mayor Harry Rediger, worried over the building's future when ownership and use was in limbo, especially when its vacancy coincided with a large project to improve the Broadway corridor. The private owner, Majid Hemmasi of RDRH Holdings Inc. of Austin, Texas, put the building on the market for $1 million shortly after buying it, and it remained empty -- apart from being used for a portion of the filming of "Gone Girl" in 2013 -- until the deal with Uzoaru came through this year.

Painting and other finishing touches are being done on second-floor office space for a Washington, D.C.-based contractor for MedAssets, a health-care performance improvement company with a division in Cape Girardeau. Uzoaru said the lease, which is expected to add between 12 and 20 employees, is a good example of the growth activity he wanted to see when he invested in the building.

"I think this building offers a unique opportunity," he said. "There are very few offices in Cape Girardeau where you walk out that door and you're not outside. This company wanted to be located in the building because of the community it brings."

Other businesses that have rented office space include the law firm Lorenz and Lorenz; Kaldis Coffee and Zimmer Radio Group; Around the Clock Medical Alarms; Webcurrent Communications; and an Ameriprise Financial consultant. There also is studio space leased to several photographers, storage of historical documents and a room for private guitar lessons leased to individuals.

Uzoaru located his office for the property management group in the building.

Uzaoru said he has filled space quickly because of the variety of leases he offers -- from 90 days to five years. He has allowed modifications to space for tenants based solely on their needs, and rent includes utilities except for data service.

"We want to eliminate businesses' barriers for expansion, and we have found that the ones who come to us are done with doing things like having to estimate their utilities every month on top of their other expenses," Uzoaru said. "Long-term commitments can also be challenging, and as a landlord, we are just in a better position to take on some of those risks for them."

Uzoaru so far has spent about $300,000 for repairs and improvements for the building. Several projects continue, such as outfitting the large courtroom as a multipurpose community room he intends to offer for activities such as employee trainings, presentations and other events.

"I found that there aren't many facilities large enough in the downtown area for those things," he said, "so I couldn't think of a better use for it."

Pews have been removed from the courtroom. But the judge's bench and witness stand are staying, Uzoaru said, "because I think they are cool."

Wainscoting is being improved and media equipment is being added. Uzoaru said he has heard from groups interested in renting the space.

Codefi also is expanding after opening this fall and will fill the last remaining 800 square feet on the first floor.

The opportunity to locate that business in the building prompted Uzoaru to buy it, he said -- founders Chris Foeste and James Stapleton were looking for space for the startup project downtown, and it became the catalyst for the growth in business.

"That was like the trigger," Uzoaru said. "I thought, if I have one great tenant, this can happen."

Uzoaru said he plans to rename the former federal building soon, which he said he believes will further designate it as a business community.

eragan@semissourian.com

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