Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3601 Fairbanks Avenue in Kansas City, Kansas, leased to Pentair Flow Technologies, LLC. The subject property consists of approximately 364,510 square feet of manufacturing and warehouse space and is situated on 22.86 acres of land. Zoned for M-3 heavy industrial use, the five-building asset features a clear height between 13’ and 30’, eight dock-high doors, 18 grade-level doors, and heavy three-phase power with 800 amps and 277 to 480 volts. Located adjacent to a major BNSF intermodal rail hub, the property sits in proximity to the interchange between Interstates 635 and 70. Occupying the property since 1997, the tenant recently signed a new long-term triple-net lease from March 2024 through August 2032. At $1.13 per square foot, the below-market rental rate increases 3.0 percent annually with two five-year renewal options. As a subsidiary of the publicly traded company, Pentair plc, (NYSE: PNR), the tenant is a leading global manufacturer of residential and commercial water solutions.
The subject property is located within the relatively small Turner submarket containing 7.9 million square feet of industrial space. During the third quarter of 2024, the vacancy rate jumped 150 basis points to 7.3 percent due to negative net absorption. Annual rent growth slowed by 50 basis points on the quarter to 6.5 percent but remains well above the 4.3 percent 10-year average. Asking rents in the Turner submarket now average about $7.40 per square foot. With only 200,000 square feet under construction representing 2.5 percent of inventory, vacancies and rent growth will largely be determined by demand (CoStar).
Metro Kansas City is located in the heartland of America, as it sits close to both the geographic and population centers of the United States, and serves as a major regional commercial, industrial, distribution, and cultural hub. Within a two-day drive, 85 percent of the nation’s population can be reached from Kansas. Kansas City, Kansas, known simply as “KC”, is the third-largest city in the state, the county seat of Wyandotte County, and the third-largest city of the Kansas City metropolitan area. Kansas City is the home to the General Motors Fairfax Assembly Plant, which manufactures the Chevrolet Malibu and the Buick LaCrosse. In addition, Associated Wholesale Grocers and Kansas City Steak Company are based within the city.
BROKER OF RECORD
Colby Haugness
Kansas Broker of Record
9393 West 110th Street, Suite. 500
Overland Park, KS 66210
Tel: (816) 410-1010
Colby.Haugness@MarcusMillichap.com
License: 00241410
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0370207)
