Fully Leased Industrial Asset in Kansas City Is for Sale

Wednesday, July 11, 2018

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is presenting the opportunity for qualified investors to acquire 167th Street at Lone Elm, a 601,829-square-foot industrial offering that is 100 percent leased to FedEx (S&P BBB) and Bushnell (subsidiary of Vista Outdoors, S&P B+). The industrial property for sale is located in Olathe, Kansas, in the South Johnson County submarket, the dominant industrial region of Kansas City. Featuring clear heights of 32 feet, two percent office finish and generous truck court depths, 167th Street at Lone Elm is an institutional-quality asset in an increasingly institutional market. The property provides investors the opportunity to acquire stable cash flows from a committed tenancy in one of the country’s fastest growing industrial markets.

Industrial Property for Sale Investment Highlights

  • Prime Logistical and Distribution Location within the Robust Johnson County Industrial Market:  167th Street at Lone Elm is strategically located with immediate access to Interstate 435, Highway 10 and Interstate 35 – the primary north-south artery of the U.S. and stretching from Canada to Mexico, making it the industrial backbone of central U.S. 167th Street at Lone Elm presents a rare opportunity to acquire an institutional-quality, Class A industrial product in Olathe with tremendous access and strong visibility. Kansas City’s central geographic location, growing economy, business-friendly environment, low tax rate and developed and evolving infrastructure, which features the largest rail center in the U.S. by tonnage, all contribute to the advantages corporations benefit from when locating in the Kansas City market.
  • Mission Critical Facility for In-Place Tenants:  The property is FedEx’s primary distribution location in the Kansas City market, and the company has demonstrated its commitment to the area with the leasing of a neighboring building. UPS operates a nearby facility, putting pressure on FedEx to maintain a strong presence in the area. Bushnell has made a significant capital investment into its space, including the addition of 5,196 additional rack positions in late 2017, making the tenant likely to renew upon lease expiration.
  • High Barriers-to-Entry Market in Rapidly Growing Industrial Destination:   While there appears to be an abundance of developable land in the area, most of this land features challenging topography and lacks critical city utility lines, making it unsuitable for development. Kansas City is a rapidly growing industrial destination. It is currently the No. 1 rail center in the United States by tonnage and the No. 3 truck center in the U.S. Kansas City International Airport moves more cargo than any airport in a six-state region, and the area is within a three-day drive of any city in the contiguous United States. Additionally, it is one of only eight cities in the country in which four interstates intersect.
  • Nation-Leading Industrial Market:  The Kansas City industrial market consists of 286 million square feet of industrial space that is 94.5 percent occupied as of the first quarter 2018. In 2017, the total industrial market experienced record-breaking net absorption of approximately seven million square feet, and over the last three years, rental rates have consistently remained around its current level of $4.50. Since 2011, the Kansas City industrial market has absorbed more than 33 million square feet, outpacing new construction deliveries by 11 percent. The Johnson County submarket, Kansas City’s dominant industrial submarket, has historically ranked first in Kansas City in terms of inventory, absorption and deliveries.

For more information on this commercial real estate listing or other industrial properties for sale, please contact Adam Herrin, Stephen Baily or Sean Fogarty.  Click here for our real estate investment sales search page for a current listing of commercial properties available for sale. 

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