- 3630 East Front Street, Kansas City, Missouri 64120
- Property Type:
- Single Tenant
- Cap Rate:
- 6.56% cap
- Square Feet:
- 246,000 sqft
- Lot Size:
- 16.44 acres
- Price Per Square Foot:
- Year Built:
- Features 53 Dock-High Doors And 300 Parking Spaces, And Masonry Construction
- Triple-Net Leases, Minimizing Landlord Responsibility And Expenses
- Tight Barrier-To-Entry Submarket With 3.2% Vacancy Rate
- Located Within 5 Miles Of Downtown Kansas City
- Strategically Located Industrial Warehouse With Proximate Access To Major Freeways
- 246,000-Square-Foot Industrial Warehouse Situated On 16.44 Acres
- Priced Below Replacement Cost Offering Investor Low Basis
- 100% Occupied With 2.7 Years Remaining On The Lease And Two 5-Year Renewal Option
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3630 East Front Street in Kansas City, Missouri, fully leased to American Freight. The subject property consists of approximately 246,000 square feet of warehouse space and is situated on 16.44 acres of land. The asset, constructed of masonry, features 53 dock-high doors and 300 parking spaces. With the property priced below replacement cost, investors are offered a low basis. There are just under three years remaining on the lease, with two five-year renewal options. As a triple-net lease, landlord responsibilities and expenses are minimized.
Since 1994, American Freight has provided affordable furniture and mattresses. In early 2020, American Freight was acquired by Franchise Group for $450 million. Shortly after the acquisition, American Freight combined with Sears Outlet, a leading national discount retailer of home appliances, and Furniture Factory Outlet Home, a regional retailer of furniture and mattresses. The new American Freight Company now offers customers a one-stop-shop for quality furniture, mattresses, and appliances at affordable prices in over 350 locations in 40 states and Puerto Rico (American Freight).
The subject property is strategically located within five miles of downtown Kansas City. With access to major freeways including Interstates 29 and 435, the property is well situated in the Executive Park submarket. Executive Park is a large submarket containing about 18.9 million square feet of industrial space. Like the metro, logistics facilities account for the largest proportion of local supply, making up 74 percent of the inventory. The vacancy rate and rent growth ended the second quarter at 3.2 percent and 3.4 percent respectively, indicating a tight barrier-to-entry. After six years of no deliveries, the almost 400,000-square-foot Executive Park Logistics Center was completed at the end of the second quarter (CoStar). As the ecommerce boom continues to fuel demand for logistics centers, Executive Park offers investors optimum opportunity.
The Kansas City metro sits close to both the geographic and population centers of the United States and serves as a major regional commercial, industrial and cultural hub. The market consists of 14 counties: Clay, Bates, Cass, Platte, Clinton, Caldwell, Jackson, Lafayette and Ray counties in Missouri; and Johnson, Linn, Miami, Leavenworth and Wyandotte counties in Kansas. The metro has roughly 2.1 million residents. Jackson is the most populous county with 709,000 people, followed by Johnson with 592,000 residents. Kansas City, Missouri, is the largest city with 488,000 citizens, followed by Overland Park, Kansas, with 189,000 people.