Kansas City Light Industrial Portfolio

Various locations

포트폴리오 설명

Jones Lang LaSalle (“JLL”), as an exclusive advisor to ownership, has been retained to market for sale the fee-simple interest in the Kansas City Light Industrial Portfolio, a collection of seven (7) light industrial assets located in three infill business parks within the Kansas City MSA. Totaling 624,784 square feet, the Portfolio offers multi and single-tenant formats with average unit sizes of just under 25,000 square feet. With 87% occupancy and 3.2 years WALT across the Portfolio, future ownership will take advantage of consistent yield enhancement opportunities through immediate vacancy lease-up and a staggered rollover schedule. The Kansas City Light Industrial Portfolio provides investors a diversified assemblage of light industrial facilities at scale located in the heart of Johnson County, offered at a significant discount to today’s replacement costs.

Positioned directly off of I-35, the Portfolio is located in the Switzer, Westbrook, and Brookhollow business parks within the Johnson County industrial submarket. These high performing parks provide tenants with outstanding access to the Kansas City metro area and its dense labor pools. Johnson County’s light industrial/shallow bay industrial fundamentals significantly outperform that of the greater Kansas City market, boasing a 4.4% vacancy rate and zero oncoming, competitive product. This lack of available options demonstrates the potential for continued rent growth.

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개요

건물 수

건물 총면적

58,044 제곱미터

월트

3.2 년

Kansas City Light Industrial Portfolio (7 부동산)

미디어

투자 하이라이트

INSTITUTIONALLY MAINTAINED CRITICAL MASS OF LIGHT INDUSTRIAL PRODUCT

+ The Portfolio offers investors 624,784 square feet of functional light industrial product in the Johnson County submarket of Kansas City. With various tenant formats, building/ suite sizes, and clear heights, this collection of Assets offers highly adaptable real estate that caters to a wide variety of user requirements.

+ For example, Switzer I was previously a multi-tenanted building when Manna Pro Products first leased space in the facility. Since a corporate merger in 2021, it quickly expanded to the entirety of the facility. By maintaining existing demising walls and office pods, investors will have multiple leasing options if Manna were to vacate.

+ Through the stewardship of multiple institutional owners, the properties within the Portfolio have consistently met the highest standards of maintenance and management quality.

SUPPLY-CONSTRAINED JOHNSON COUNTY LIGHT INDUSTRIAL SUBMARKET

+ Johnson County’s light industrial submarket outperforms the Greater Kansas City industrial market and is poised for future growth. When considering second generation assets with average suites <150,000 SF and below 30’ clear heights, the market boasts a 4.6% vacancy rate (6.0% in KC overall) and zero oncoming supply.

+ A lack of competing availabilities and no new supply in the pipeline indicates continued rent growth for the Johnson County light industrial market.

IMMEDIATE YIELD ENHANCEMENT OPPORTUNITIES THROUGH VACANCY LEASE-UP AND CONSISTENT ROLLOVER SCHEDULE

+ In the near-term, future ownership will boost going-in yields through the lease-up of vacancies while benefitting from a backstop of a stable in-place rent roll, as no more than 6.5% of tenants roll annually during the first two analysis years.

SIGNIFICANT DISCOUNT TO REPLACEMENT COST

+ The Portfolio is located in established industrial business parks with significant barriers to future development. Additionally, as construction costs continue to rise, the development of product of this type is extremely limited. Due to these factors, JLL believes the Kansas City Light Industrial Portfolio is offered at a significant discount to today's replacement cost.