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Lee's Summit, MO

Midland Marble & Granite, LLC

Address:
2077 NE Rice Road, Lee's Summit, MO 64064
Property Type:
Single Tenant
Price:
$2,320,000
Cap Rate:
7.00% cap
NOI:
$162,432
Square Feet:
24,000 sqft
Lot Size:
3.29 acres
Price Per Square Foot:
$96.67
Year Built:
1999
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Investment Highlights

Investment Highlights

Investment Highlights

• Great Location Off I-470 with Visibility from the Interstate
• The Raytown/Lakewood Industrial Submarket Vacancy Rate Sits at 3.1%
• Below-Market Rents for Flex Space
• Building Allows for 20k SF Expansion on the East Side
• The Low Vacancy Led to a 4.0% Rental Growth Y-O-Y for this Submarket
• Midland Marble & Granite has been in Business for Over 25 Years Serving the Greater Kansas City Area
• Midland Marble & Granite Plan to Use a Portion of the Proceeds to Update All Five HVAC Units and Overlay Parking Lot

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2077 Northeast Rice Road in Lee’s Summit, Missouri, leased to Midland Marble & Granite. The subject property consists of approximately 24,000 square feet of space and is situated on 3.29 acres of land. The asset features 69 parking spaces, two dock-high doors, 22’ clear height, and concrete construction. The subject property has 8,000 square feet of office space, 8,000 square feet of showroom space, and 8,000 square feet of warehouse space. The building allows for 20,000 square feet of expansion on the east side. The below-market rents for flex space provide opportunity for an investor to increase rents. The subject property is in a great location off of I-470 with high visibility. Midland Marble & Granite has been in business for over 25 years serving the Greater Kansas City area. The company plans to use a portion of the proceeds to update all five HVAC units and overlay the parking lot. Raytown/Lakewood is a midsized submarket containing around 3.4 million square feet of industrial space. The Raytown/Lakewood Industrial Submarket vacancy rate sits at 3.1 percent, which has led to 4 percent rental growth year over year for the submarket.

The local industrial market has remained relatively stable considering the recent turmoil, though the vacancy rate has softened by 2.3 percent over the past four quarters. Over the past five years, the submarket has posted net absorption of about 13,000 square feet per year, on average. Rents increased by an impressive 4 percent over the past 12 months, the strongest pace of rent growth observed in more than a decade. There are no supply-side pressures on vacancy or rent in the near-term, as nothing is underway. Though the pipeline is empty, the submarket has seen recent development. Roughly 7,200 square feet has delivered over the past three years, representing a modest inventory expansion of 0.2 percent. Raytown/Lakewood saw about five sales over the past year, consistent with the handful of trades that typically close in a given year.

Like many suburban communities across the United States, Lee’s Summit began to experience its transformation from a rural, mostly agrarian community to a suburban community in the decades after the Second World War. As the city grew, its population nearly doubled every decade. The City is well-served by several interstate, federal and state highways. Interstate 470, which rings the southeastern portion of the metropolitan area connecting Interstate 70 to Interstate 435, dissects Lee’s Summit. U.S. Highway 50, and Missouri Routes 291 and 150 also go through Lee’s Summit providing access to Kansas City and the surrounding area. The City has a broad spectrum of employers including companies that manufacture everything from plastic containers to tools to electronic components. In addition to manufacturing, there is a wide variety of services such as customer service centers for pharmaceuticals and telecommunications
firms, data management and processing centers, and educational institutions. There are 16 businesses in Lee’s Summit with 250 employees or more, with eight of these businesses employing over 500. (cityofls.net)

BROKER OF RECORD
BRAD BARHAM
Missouri Broker of Record
Downtown Chicago Office
Tel: 312-327-5400
Fax: 312-327-5410
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: ZAC0060063)