931-935 Sunshine Road
- 931-935 Sunshine Road, Kansas City, KS 66115
- Property Type:
- Multi Tenant
- Cap Rate:
- 6.81% cap
- Square Feet:
- 24,000 sqft
- Lot Size:
- 2.27 Acres
- Price Per Square Foot:
- Year Built:
• Located in the Highly-Sought-After Submarket of Central Kansas City/Fairfax
• This Submarket Has an Extremely Tight Barrier-to-Entry with a Market Vacancy of 1.6%, a 2.6% Decrease Over Last Year
• Given the Below-National-Average Vacancy Rate, the Market Rent has Grown at 8.5% Year-Over-Year
• The Tenant Mix Consist of Exxon Mobile and ALS Laboratory Group, Both with Five Years of Term Remaining
• The Property Consists of Specialized Lab Equipment/Centrifuges within the Facility
• The Two Tenants Have a High Level of Synergy Among Their Businesses and Have Been in the Property for 20+ Years
• Absolute Net Lease Structure Where the Landlord Can Bill Back Their Capital Expenditures at Year End
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 931 to 935 Sunshine Road in Kansas City, Kansas leased to Exxon Mobile Corporation and ALS Laboratory Group. The subject property consists of approximately 24,000 square feet of research and development space and is situated on 2.27 acres of land. The asset features two equally sized units, two dock-high doors, a clear height of 18’, and an active rail spur.
With absolute net leases in place, the future landlord can easily recoup the cost of any capital improvements made to the building. Occupants for over 20 years, Exxon Mobile and ALS Laboratory Group have a high level of synergy. Exxon Mobile uses the property to develop micro melts of lubricant oils, which are then tested by ALS. Given that there is a one-year gap between the end of each tenant’s lease, the risk of losing either one of these codependent tenants is mitigated.
The subject property sits within the highly sought-after Central KC KS/Fairfax submarket, containing 16.3 million square feet of industrial space. Due to the submarket’s extreme barriers-to-entry, the vacancy rate sits at just 1.6 percent during Q3 2022, well below the national average of 4.1 percent. As a result, market rents have grown by 8.0 percent year-over-year. With no industrial properties under construction in the submarket, rent growth and vacancies will be unaffected by new supply for the foreseeable future.
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.