October 7, 2019 — Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has arranged the sale of a single-tenant Michaels in Kansas City, Missouri, to a California buyer for $3,945,000.
Hanley Investment Group Vice President Jeff Lefko and Executive Vice President Bill Asher represented the seller, N3 Real Estate of Southlake, Texas. The buyer, a private partnership from Southern California and Missouri, was represented by Steve Maynard of the Maynard Group of El Segundo, California.
Located on 1.90 acres at 8551 Prairie View Boulevard in Kansas City, the freestanding, 22,810-square-foot Michaels was renovated in 2012 and is a pad to a regional lifestyle center, Zona Rosa, a freeway-visible, one-million-square-foot mixed-use urban town center featuring retail, restaurants, entertainment, office and luxury residential units. Zona Rosa includes Dillard’s, Dick’s Sporting Goods, Old Navy, Barnes & Noble, DSW, Staples and CVS as well as Kansas City Improv, Outback Steakhouse, Buffalo Wild Wings, Granite City Brewery, Red Robin Gourmet Burgers and Brews, 54th Street Grill & Bar and Abuelo’s Mexican Restaurant. Nearby big box national and regional tenants outside of Zona Rosa include Walmart Supercenter, Target, AMC Theatres, Best Buy, Bed Bath & Beyond, Hobby Lobby, Hy-Vee, Lowe’s, PetSmart and Ross Dress for Less.
“The buyer recognized that this was a premium location in the heart of a shopping district that, under new ownership, is going through a lot of positive changes and improvements. The phase I portion of Zona Rosa, which is where the Michaels is located, has historically had strong occupancy,” said Lefko. “There are 93,000 people with an average household income of $94,000 within a five-mile radius of Michaels.”
“This was a rare opportunity to acquire a single-tenant, freestanding Michaels in a prime Midwest market. Kansas City is the sixth-largest city in the Midwest and the 31st largest metro area in the nation,” Asher said.
Situated five minutes away from the Kansas City International Airport and 25 minutes from Downtown Kansas City, Michaels is ideally situated off interstate 20 freeway with 92,000 cars per day and Missouri Route 152 with 40,000 cars per day. Between 2000 and 2018, the number of households grew over 53% in a one-mile radius and 48% growth in a three-mile radius. Over 12% projected growth in the number of households within a one-mile radius over the next five years.
Lefko commented, “There is still a significantly larger buyer pool for single-tenant retail properties priced below $6 million nationwide in today’s market. Investor demand and transaction velocity remains strong and will continue to experience the most activity this year and heading into 2020.”
In the last two years, Hanley Investment Group has completed the sale of 18 retail properties in the state of Missouri. In 2019, there have only been eight single-tenant, junior-anchor box sales in the Midwest with six years or less of lease term remaining and Hanley Investment Group arranged two of these sales.