Marcus & Millichap is pleased to present the opportunity to acquire the property located at 539 South 10th Street in Kansas City, Kansas, leased to Garsite/ Progress LLC. The subject property consists of approximately 68,085 square feet of industrial space and is situated on 8.15 acres of land. The nine-building asset features metal construction, two dock-high doors, and 14 grade-level doors. With a floor area ratio of just 0.19, the asset qualifies as an industrial outdoor storage property (IOS). Sitting next to the Union Pacific Armstrong Railyard, the asset is strategically located with proximate access to major thoroughfares, including Interstates 70 and 35.
Since 2001, the property has served as the headquarters for Garsite. Through 2027, Garsite is signed to an absolute triple-net lease with 2.0 percent annual rent escalations, leaving the landlord with no maintenance responsibilities and no expenses. Since 1952, Garsite has served as one of the leading manufacturers of aircraft refuelers, hydrant dispensers, and above-ground fuel storage tanks to the airlines, oil, and freight industries in North America.
The property is located within Armourdale, a midsized submarket containing 12.2 million square feet of industrial space. As one of Kansas City’s original industrial hubs, nearly 80 percent of the properties in Armourdale were developed prior to 1980. Given the low supply of available industrial land, the submarket has experienced little growth, expanding by only 1.3 percent since the turn of the century. As a result, vacancies have historically remained low, sitting at just 2.8 percent in Q1 2023. After hitting a record high last year, rent growth has steadily declined to 4.4 percent, but remains higher than any level pre-Covid. With no industrial properties under construction, there will be no supply-side pressure on vacancies or rent growth for the foreseeable future (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
7400 College Boulevard, Suite 105
Overland Park, KS 66210
Tel: 816-410-1010
Colby.Haugness@MarcusMillichap.com
License: KS 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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0060042)
