ANDOVER, KS – [December 31, 2020] – Blue West Capital has completed the sale of a multi-tenant retail property located at 224 E Cloud Avenue in Andover, KS for $1,157,500, which is a 6.35% cap rate. This sale represents the second lowest cap rate ever for a multi-tenant retail property in Kansas, according to CoStar. Earlier this year, Blue West Capital sold a multi-tenant property located at 565 Wakarusa Drive in Lawrence, KS for the third lowest cap rate ever for a multi-tenant property in Kansas.
Brandon Gayeski and Robert Edwards, of Blue West Capital, represented the seller and purchaser in the transaction, respectively. The seller was InvestKC LLC, a Kansas-based family office. The purchaser was Andover Two Tenant, LLC, a Colorado-based private investor.
The 3,000 SF property was built in 2019 and is 100% leased to national tenants AT&T and Great Clips. Both tenants are on long-term triple net leases with fixed rental increases. The property is strategically positioned as an outparcel to a Dillons Marketplace grocery store. The surrounding area is affluent with average annual household incomes of $130,000 within three miles.
“The buyer demand for well-located properties leased to national tenants on long-term leases remains strong. Given the low price point for a new construction property, this deal received substantial interest. We were able to negotiate a quick all-cash deal with a buyer shortly after beginning our marketing process,” said Brandon Gayeski.
“Blue West Capital’s robust pool of investors, particularly those based in Western States, expressed significant interest in buying this quality two-tenant net leased retail investment. In the end, one of our repeat Colorado-based investors stepped up to the seller’s terms. We continue to help move more and more capital into the Midwest and will be bringing more quality net lease properties for sale in the coming months,” said Robert Edwards.