$44M Buys Kansas Shopping Center

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OLATHE, KS-The investment firm Passco Real Estate Enterprises of Irvine, CA is the new owner of Olathe Station, a 13-building, 611,643-sf shopping center here that is 99% leased. The deal included 320,469 sf of net rentable space in 11 buildings, which is everything but the Super Target property and the AMC Theater. The purchase price was $44 million. The seller was AIG Baker, a retail real estate company out of Birmingham, AL, that represented itself in the transaction. Richard Walter and Donald MacLellan with the Irvine, CA-based investment advisory and brokerage firm Faris Lee Investments represented Passco. Greenwich Capital provided acquisition financing. Faris Lee president Richard Walter tells GlobeSt.com that Passco purchased the property on behalf of one of its tenant-in-common investment partnerships. The capitalization rate on the investment is in the low 7% range. Near-term upside includes room for the development of two small buildings. The City of Olathe is located in the northwest portion of Johnson County and is the fastest growing city in the state of Kansas and in the Kansas City metropolitan area. Olathe Station is situated adjacent to Interstate 35 at the southwest corner of 119th and Blackbob Road. The property was built in two phases and has two addresses: 15345 West 119th St. (Phase I) and 12075 South Strang Line Road (Phase II). The first phase of Olathe Station, which is 100% occupied, opened in 1997 and totals 371,042 sf in five buildings, including 75,000 sf of shop space. Retail anchors include Super Target, Bed Bath & Beyond, Office Max, Bassett Furniture and PetsMart. The eight-building, 240,601-sf second phase opened in 1997 and is 98% occupied. Retailers include AMC Theater, Michaels and Brook Mays Music. Restaurants include Joe’s Crabshack, Zio’s Italian Restaurant, Texas Roadhouse and Rock Bottom Pizza. Additional shop space totals 54,000 sf.