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Kansas City, KS

931-935 Sunshine Road

Address:
931-935 Sunshine Road, Kansas City, KS 66115
Property Type:
Multi Tenant
Price:
$2,970,000
Cap Rate:
6.81% cap
NOI:
$202,238
Square Feet:
24,000 sqft
Lot Size:
2.27 Acres
Price Per Square Foot:
$123.75
Year Built:
1963
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Investment Highlights

Investment Highlights

Investment Highlights

• 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

Investment Overview

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.

BROKER OF RECORD
COLBY HAUGNESS
Kansas Broker of Record
7400 College Blvd., Ste. 105
Overland Park, KS 66210
P: (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. © 2022 Marcus & Millichap. All rights reserved. (Activity ID: ZAD0370579)