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Wichita, KS

2530-2536 South Southeast Drive

Address:
2530-2536 South Southeast Drive Wichita, KS 67216
Property Type:
Single Tenant
Price:
$2,550,000
Cap Rate:
7.85% cap
NOI:
$200,286
Square Feet:
54,870 sqft
Lot Size:
4.94 Acres
Price Per Square Foot:
$46.47
Year Built:
1957/1986
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* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • The Tenant, Western Industries, Has Just Resigned a 1-Year Commitment for the Property
  • The Southeast Industrial Submarket Has Experienced an Influx of Business Owner Demand
  • This Submarket had a 4.6% Drop in its Vacancy Rate, Bringing Submarket Vacancy to 3.0%
  • Due to this Decrease in the Supply of Leasable Space, Market Rent Grew 4.2% Y-o-Y
  • There is Currently No New Industrial Properties Under Construction in this Submarket
  • Western Industries Has Five Locations Across the US and Mexico and an Additional Seven in China
  • Ease of Access to I-135 Being Only 0.5 Mile from a Ramp

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the properties located at 2530 to 2536 South Southeast Drive in Wichita, Kansas, leased to Western Industries. The subject properties consist of approximately 54,870 square feet of space and is situated on 4.94 acres of land. The assets feature easy access to Interstate 135, with the onramp located just a half-mile away. Recently, the tenant resigned to a one-year commitment. Western Industries operates at five locations across the U.S. and Mexico and an additional seven in China.

The subject property is located in the Southeast submarket, a midsized market containing around 5.2 million square feet of industrial space. Logistics facilities account for the largest proportion of inventory with 4.2 million square feet, followed by 850,000 square feet of specialized space, and 190,000 square feet of flex space. Since peaking in Q2 2020 at 7.6 percent, the vacancy rate has plummeted down to 3.0 percent at the start of Q4 2021. Net absorption over the past year came in at over 210,000 square feet, three times greater than the five-year average. The reduction in availability has pushed the growth of market rents up to 4.2 percent year-over-year, the highest rate in over a decade. Given that industrial rents in Southeast are averaging about 16 percent below the market average at $4.93 per square-foot, rents have more room to grow before reaching competitive levels. With no industrial projects currently under construction, there will be no pressure from new supply on vacancies and rents for the foreseeable future.

In 1916, Clyde Cessna signed a contract to start manufacturing planes in Kansas. Since then, the greater Wichita region has pioneered aviation and manufacturing with a culture of innovation – building iconic planes, revolutionizing manufacturing with composites, and cultivating an industry synergy. The world’s great aviation brands – Textron Aviation with Beechcraft/Cessna Aircraft Company, Airbus, Bombardier Learjet and Spirit AeroSystems – working with more than 450 world-class suppliers, are designing and building the world’s fleet of commercial and general aviation aircraft. (aircapitaloftheworld.com)

The City of Wichita Office of Economic Development offers a variety of incentive programs designed to broaden and diversify the tax base, encourage capital investment, create employment opportunities and provide the economic growth and welfare of the region. The Wichita City Council has adopted an economic development policy which governs the use of incentives. The policy defines the eligibility criteria, required economic impact and return on investment. Industry sectors for which incentives may be used include: Manufacturing, Service Sector, Research and Development, Warehousing and Distribution, Corporate Headquarters, Transportation, Commercial Redevelopment, Tourism, Affordable Housing, and Medical Services. (Wichita.gov)

BROKER OF RECORD
Brad Barham
Missouri Broker of Record
Downtown Chicago Office
Tel: 312-327-5400
Brad.Barham@marcusmillichap.com
License: MO 2013016939
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. © 2021 Marcus & Millichap. All rights reserved. (Activity ID: ZAC0370649)