(Read more on the industrial market.)
LENEXA, KS-A partnership that includes Zimmer Real Estate Services LLC has floated a 1.8-million-sf industrial and office space portfolio on the market to see if anyone wants to take a bite. The 92%-occupied portfolio of Lenexa Industrial Park Inc. includes about one million sf of Southlake Technology Park, the almost 50-year-old Lenexa Industrial Park, the 90,000-sf Belletower office building and a 75,000-sf industrial facility in North Kansas City.
It's reported that some believe the properties are worth $150 million, and David Zimmer, president of the family-named brokerage firm, says that's a “fair value.” He says it's not like there's a “for sale” sign out, he can't comment on what the partnership hopes to receive for the portfolio. “The primary reason to sell is that the markets have been so strong, we felt like it was a good opportunity to take some money off the table. If we are able to get what we think they're worth, we'll make the decision to sell them. If we can't get the value, who knows, maybe we'll hang on to them for another 35 to 40 years,” Zimmer tells GlobeSt.com.
His company handles the management and leasing for the building, and started the development of Southlake in 1986. The company sold some space in the 300-acre park, including a build-to-suit property for the North American marketing headquarters for John Deere, and 30 acres for the new Applebees corporate headquarters. The park is primarily all office or flex space, while most everything in Lenexa park is industrial.
Zimmer says there will probably be a call for offers in the next 30 days. “Our idea is to negotiate a contract before the end of the year, and close in the first quarter 2008,” he says. “The rents here have been improving quarter by quarter,” Zimmer says. “It's not over the top, but it's certainly not in the doldrums. There's positive absorption, it's turning from a tenant market to a landlords market; I think everyone can agree with me on that.”
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