After entering the Kansas City market over 90 days ago, Sparrowhawk Real Estate acquired another building, the newly completed first building in the Heartland Logistics Park in Shawnee, Kansas.
Financial terms of the transaction were not disclosed.
John Stafford, executive vice president, and Ed Elder, president of Colliers represented the seller and developer of the building. The logistics park which is expected to total four buildings and approximately 2 million square feet of space. SparrowHawk announced that Stafford and Elder will continue to market the building for rent.
Building 1, located at 24525 W. 43rd St. in Shawnee, is a 272,882 square foot industrial asset that can accommodate a single user. It is also divisible at 52,000 square feet. SparrowHawk and Colliers anticipate that the building will be leased by multiple users. Physical attributes of the building include unobstructed ceiling heights of 32 feet, 27 dock doors, suitable office space, parking for 249 automobiles and 75 trailers.
Alfredo Gutierrez, Founder of SparrowHawk Real Estate Strategists, said, “We are thrilled to add our second property in Kansas City in 90 days and to enter the ground floor with this new development. Given the market conditions in Kansas City, we are confident that a rental can happen quickly.
For SparrowHawk, the transaction was significant and strategic for a variety of reasons, including expanding its presence in Kansas City and the timing of the transaction.
Strategic expansion in Kansas City
At the end of the first quarter of 2021, SparrowHawk entered the Kansas City market with the acquisition of College and Renner Business Center, a 226,009 square foot four-building light industrial portfolio in Lenexa, Kansas, which makes part of Johnson County in Kansas City. industrial submarket.
At the time of this acquisition, Gutierrez said, “We have been paying particular attention to the Kansas City market, an area that we believe is a growing industrial market due to its central location and we are pleased to expand our portfolio there. national. This four building asset, very well located and with a diverse list of tenants, is the prototype of what we look for when establishing a presence in a new market. »
College and Renner Business Center, considered one of Lenexa’s most prestigious business parks, consists of four buildings ranging in size from approximately 44,700 square feet to 76,200 square feet. Another key asset attribute is the ability to control an additional 13 acres of developable land upon which SparrowHawk can expand available business center space. At the time of the acquisition, the building was 91% let.
The acquisition was a strategic portfolio acquisition that came weeks after SparrowHawk sold an asset in DeKalb (west of Chicago), Illinois. In mid-June, SparrowHawk Real Estate completed the disposition of a fully leased Class A industrial building in DeKalb, Illinois, an increasingly popular market as new buildings for national businesses are developed. . The 161,542 square foot warehouse building at 711 Fairview was developed in 2001.
“After an appropriate holding period during which we had created as much value as possible, the time had come to sell 711 Fairview and use the proceeds to acquire the Heartland Logistics Park building,” Gutierrez said. “As a newly developed rental asset, we see tremendous potential in creating value for this building for the benefit of our investors.”
Gutierrez added that this acquisition further demonstrates SparrowHawk’s intention in 2021 to be a net buyer, a strategy he believes may require strategic and timely moves to further expand SparrowHawk’s portfolio of assets.
Kansas City’s industrial market totals approximately 283 million square feet of space. Johnson County is the second largest submarket and totals 76 million square feet. In 2020, more than 3.6 million square feet of space was absorbed in Kansas City, with nearly 60% in Johnson County. Other interesting factors include KC’s position as the number one market in the United States for rail tonnage and the third largest trucking center.