Investment Overview

Marcus & Millichap is pleased to present the fee simple interest located at 1710 Palace Drive, Garden City, Kansas. The building has two tenants. The first being Kansas Department for Children and Families which is government guaranteed (AA- Fitch Credit Rating), and occupies about 76.8% of the building (21,278 square-feet). Their lease is set to expire February 28, 2034, with a five-year option to renew at that time. The second tenant is Saint Francis Community Services who occupies the remaining 6,427 square feet. Their lease expires June 30, 2026 with three, four-year options to renew including a 5% rent increase. Both leases are modified gross, The Department for Children and Families is responsible for 74% of the property taxes above the $50,000 base year stop. They are also responsible for 74% of the water, gas and electric, and the cost of snow removal/janitorial services. The Kansas Department for Children and Families (DCF) is a state agency responsible for administering various programs and services aimed at supporting children, families, and individuals in the state of Kansas. DCF oversees child welfare programs, including foster care, adoption, and services for families in need. The agency works to ensure the safety and well-being of children and provides support to families to promote stability. The DCF administers programs to assist individuals and families with economic and employment-related needs. This may include programs such as Temporary Assistance for Needy Families (TANF), food assistance, and child care assistance. The agency provides services related to child support, including establishing paternity and enforcing child support orders to ensure financial support for children. DCF is involved in protecting vulnerable adults from abuse, neglect, or exploitation. This includes investigations and interventions to ensure the safety of adults who may be at risk. Saint Francis Community Services is dedicated to providing child and family services. Their mission typically involves ensuring the well-being of children, supporting families, and working towards positive outcomes for the communities they serve. The organization is often involved in child welfare services, which may include foster care, adoption, and other services aimed at protecting and supporting children who may be at risk. Non-profit organizations like Saint Francis often engage with the local community, collaborating with other organizations, schools, and community groups to address the unique needs of the area. The site is situated off Kansas Avenue, the main thoroughfare cutting through the heart of Garden City. The surrounding retail area attracts visitors from a vast geographic range, with a significant portion traveling from distances exceeding 100 miles. Notable establishments in the vicinity include Ollie’s Bargain Outlet, Walgreens, Arby’s, Wendy’s, Kohl’s, Harbour Freight Tools, Goodwill, Sally Beauty, Claire’s, Clarion, Sleep Inn & Suites, and more. Additionally, the property is conveniently located close to the Garden City Community College. Garden City is renowned for its flourishing agriculture and food processing industry, positioned at the center of irrigated agriculture in the Arkansas River valley. Within a five-mile radius, the estimated daytime population reaches approximately 35,000, boasting an average household income exceeding $70,000 and a median age of 31 years. This community is characterized by its affluence and youthfulness. Noteworthy developments in the vicinity include the ongoing construction of Sports of the World, a $30 million multi-sport indoor/outdoor athletic complex scheduled to open in 2025. It is anticipated to attract one million visitors annually.