heritage crossing - loopnet · heritage crossing is a redevelopment center in the city of olathe....
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Heritage Crossing
Olathe, Kansas
Offered Exclusively By:
800 East 101st Terrace, Suite 120
Kansas City, Missouri 64131
(816) 251-4600
Robert Heise
Principal Owner/Agent
CONFIDENTIALITY AND CONDITIONS
The information contained in this offering material (“Brochure”) is confidential, furnished solely for the
purpose of a review by a prospective purchaser of the Heritage Crossing building and pads (“Property”)
and is not to be used for any other purpose or made available to any other person without the express
written consent of Heise-Meyer, L.L.C. (“Heise-Meyer”).
This Brochure was prepared by Heise-Meyer and has been reviewed by KC Road Partners, LP
(“Owner”). It contains selected information pertaining to the Property and does not purport to be all-
inclusive or to contain all of the information which a prospective purchaser may desire. All financial
projections are provided for general reference purposes only and are based on assumptions relating to the
general economy, competition, and other factors beyond control and, therefore, are subject to material
change or variation. Prospective purchasers should make their own projections and conclusions without
reliance upon material contained herein. An opportunity to inspect the Property will be made available to
qualified prospective purchasers.
In this Brochure, certain documents, including leases and other materials, are described in summary
form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full
agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are
expected to independently review all documents.
This Brochure is subject to prior placement, errors, omissions, changes or withdrawal without notice and
does not constitute a recommendation, endorsement or advice as to the value of the Property by Heise-
Meyer or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and
judgment as to the condition of the Property and advisability of purchasing the Property described herein,
including engineering and environmental inspections to determine the existence of potentially hazardous
materials used in the construction or maintenance of the building or located at the site.
Owner and Heise-Meyer expressly reserve the right, at their sole discretion, to reject any or all
expressions of interest or offers to purchase the Property and/or to terminate discussions with any party
at any time with or without notice. Owner shall have no legal commitment or obligation to any purchaser
reviewing this Brochure or making an offer to purchase the Property unless a written agreement for the
purchase of the Property has been fully executed, delivered, and approved by the Owner and any
conditions to Owner’s obligations thereunder have been satisfied or waived. Heise-Meyer is not
authorized to make any representations or agreements on behalf of Owner.
This Brochure is the property of Heise-Meyer and may be used only by parties approved by Heise-Meyer.
The Property is privately offered and, by accepting this Brochure, the party in possession hereof agrees
(i) to return it to Heise-Meyer immediately upon request of Heise-Meyer or Owner and (ii) that this
Brochure and its contents are of a confidential nature and will be held and treated in the strictest
confidence. No portion of this Brochure may be copied or otherwise reproduced or disclosed to anyone
without the prior written authorization of Heise-Meyer and Owner.
The terms and conditions set forth above apply to this Brochure in its entirety.
HERITAGE CROSSING, OLATHE, KANSAS
Aerial from the North
JohnsonCounty
Government Plaza
SantaFe MiddleSchool
OlatheNorth HighSchool
OlatheCommunityCenter
FarmersMarketKC
HarleyDavidson
Olathe East HighSchoolOlatheNorthWest HighSchool
ShoppingTarget -Home Depot - Best Buy - Joe’s BBQ
John Deere
Colleg
e Blvd
119thSt
119thSt
127thSt
HaroldSt
135thSt
SantaFeSt
KansasCityRd
RidgeviewRd
Renner Blvd
Aerial From the South
Shopping
Target -Home Depot
Olathe MunicipalCourt
RidgeviewElementary
JohnsonCountyCourtHouse
JohnsonCountyCourtServicesOlatheCityCouncilOlatheCourtServices
Garmin OlatheSouth HighSchool
151st St
E Old 56Hwy
SantaFeSt135thSt
RidgeviewRd
Harrison
St
KansasCity
Rd
151st St
TERMS OF SALE Offers Should Include:
Price
Earnest Money Deposit
Due Diligence Period
Contingencies
Purchaser References
Sources of Funds (Equity & Debt)
Closing Period Offering Price: No Asking Price Offering Procedure: Owner and Heise-Meyer, LLC will assess the qualifications of any party submitting a non-binding letter of intent in accordance with Owner’s objectives. In making this assessment, consideration will be given to a number of facors, including, but not limited to, price, timing of closing and the perceived ability of the investor to complete the transaction. Investor Rationale:
Olathe has continued growing population
Solid mix of multiple tenants
Strong in-fill neighborhood location
MARKET OVERVIEW Kansas City MSA Shopping Center Retail -source CoStar Q2 2015 Q2 2016 %Change Total GLA (sf) 113,755,211 113,324,221 -0.38% Avg Lease Rate $12.40 $12.56 1.29% Avg Occ. Rate 92.4% 93.1% 0.7% Kansas City Home Sale Price – source Kansas City Regional Association of Realtors
June 2015 2016 %Change
Cass County 180,171 233,493 30
Clay County 189,248 198,565 5
Jackson County 170,406 185,339 9
Platte County 238,174 259,869 9
Johnson County 293,205 314,412 7
Leavenworth County 198,579 192,180 -3
Miami County 215,0952 207,857 -3
Wyandotte County 112,748 149,083 32
Kansas City Region 212,129 228,951 8
Residential Building Permits – source Home Builders Association of Greater KC
June 2015 2016 %Change
Cass County 126 256 103
Clay County 785 673 -14
Jackson County 715 1,157 62
Platte County 202 610 202
Johnson County 1,592 1,704 7
Leavenworth County 107 127 19
Miami County 65 46 -29
Wyandotte County 84 117 39
Kansas City Region 2,148 2,793 30
GENERAL PROJECT DESCRIPTION Heritage Crossing is a redevelopment center in the City of Olathe. It is a 10 acre project that is 100% leased, 26,750 square foot building and approximately 5.6 acres of developed lots. It is a very well located in-fill area centrally located between numerous schools, employers and residences. Public and private investments have and will continue to validate this location for tenants over the long term. The shadow anchor to our project is the $22 million Olathe Community Center, aquatics, gym and meeting center across the street from our project. It is serving approximately 400,000 people every year.
http://www.olatheks.org/parksrec/communitycenter Other notable capital investments in the area include:
Mahaffie Farmstead Museum
Johnson County Court Services (the old Dillon store)
Raising of the BNSF RR through downtown Olathe
City investment in “Santa Fe hardscaping” from I-35 to downtown Olathe
Hy-Vee (and other retailers) at 119th & Ridgeview
The new 127th Street overpass Heritage Crossing is also located at the epicenter of Olathe employers and Olathe high schools:
Garmin headquarters straight south at 151st street
Sysco Foods ½ mile north along KC Road – 1,000 employees
Farmers insurance straight north at 119th street & Renner
Corporate Ridge Office Park – Ridgeview & K-10 o John Deere o Terracon o NBRC/AMP o Healthridge Fitness
Approximately 2,000 City/County employees are located straight west in downtown Olathe.
Olathe North High School is 3 blocks to the west on KC Road
Olathe South High School is at 151st & Ridgeview to the south
Olathe East High School is east at 127th & Blackbob
Olathe Northwest High School at College & Lone Elm
Olathe West High School is located at 135th & Hedge
FINANCIAL INFORMATION
Building A-2, a 26,750 SF neighborhood center, is 100% leased. It generates approximately $415,000 in annual NOI (Rent Roll is attached)
Pads A-3 thru A-6 represents 5.67 acres of developed pad sites ready for vertical development.
Pad A-1 is a fully developed pad site with the parking lot already constructed and the pad ready for construction.
The TIF (through December 2028) currently reimburses the developer approximately $38,000/year.
DMV has a substantial rent increase in October of 2016 and has indicated they would be willing to extend their lease for five years.
TIF INFORMATION Heritage Crossing secured a $3,160,000 tax increment financing agreement (TIF) with the City of Olathe. All real estate taxes except for school funds over and above the original tax base and 0.5% sales taxes generated within the district are reimbursed back to KC Road Partners, LP to pay off the $3,160,000 TIF. This agreement with the City of Olathe provides a substantial amount of security to the overall project.
The TIF term expires 12/31/2028. The City of Olathe will consider another TIF term on the 5.6 acres (pads A-3 thru A-6)upon completion of the next project.
All taxes generated over and above approximately $23,938 are reimbursed to developer
0.5% of all sales taxes generated in the project are reimbursed to the developer
All interest paid under the TIF loan is also reimbursable to developer
AVAILABLE DOCUMENTS For serious inquires and execution of a confidentiality agreement, the following documents are available and can be sent PDF via e-mail or hard copy upon request:
TIF Redevelopment Agreement and Amendment with the City of Olathe and KC Road Partners, LP
Copies of Leases
Building A-2 construction documents
PROPERTY SUMMARY
Location:
700 North Ridgeview, Olathe, Kansas
Total Land Area: 10 acres (approximate)
Parcels: (see site plan on next page)
A-1 1.5 +/- acre pad with parking built A-2 26,750 square feet leased building A-3 thru A-6 5.6 acres of pad sites
Occupancy: Building A-2 100% multi-tenant occupied
Lease Type: Triple net. Landlord responsible for roof and structure. Tenants P 1/12 the est CAM/Tax/Ins each month
Zoning: CP-2
Construction Type: Architectural concrete and steel
Year Built: 2007
Utilities:
All utilities serve the building. Power: 3 phase, 400 amps, 208/120
Fire Protection: Building is sprinklered
HVAC: All leased spaces have their own rooftop unit(s)
Condition: The Property is in first class condition.
Landscaping: Property is landscaped with shrubs and trees.
Roof:
Single Membrane TPO