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Single-Tenant Industrial

1111 East 37th Street North

1111 E 37th St N, Wichita, KS 67219

Listing Price: $9,700,000

Cap Rate
6.25%
Gross SF
64,050
Price/Gross SF
$151.44
Lot Size
11.54 acres
Year Built
1997
Rentable SF
64,050

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1111 East 37th Street North in Wichita, Kansas, leased to Piping & Equipment Constructors, Inc. The subject property consists of approximately 64,050 square feet of space and is situated on 11.54 acres of land. The three-building asset features partially covered outside storage space and ample land for further development. Investors have an opportunity to obtain an asset with a new 15-year lease occupied by an established company. For 75-years, Piping & Equipment Constructors have provided employee-centric, heavy industrial construction services and supplies. P&E Constructors provide a variety of services and products including, development of capital projects, maintenance services, fabrication of piping and structural steel, and welding. The property is located less than a mile away from the entrance to Interstate 135 in the Northeast submarket. Northeast contains about 15.5 million square feet of industrial space, representing over 25 percent of Wichita’s industrial inventory. Logistics facilities make up most of the inventory with 8.4 million square feet, followed by 6.2 million square feet of specialized buildings (mostly manufacturing space). The relatively low 6.5 percent vacancy rate has created a tough barrier to entry in the Northeast submarket. As a result, market rents have powered to a decade’s high 5.6 percent annual increase at the start of Q4 2021. Over the past five years, Northeast has posted a net absorption of about 99,000 square feet on average. Industrial rents run about $6.00 per-square-foot, which is a slight premium over the metro average of $5.84 a square foot. The nearly 77,000 square feet currently under construction represents only a 0.5 percent expansion to local inventory. As a result, new supply will have a negligible impact on vacancies and rents for the foreseeable future (CoStar). In 1916, Clyde Cessna signed a contract to start manufacturing planes in Kansas. Since then, the greater Wichita region has pioneered aviation and manufacturing with a culture of innovation - building iconic planes, revolutionizing manufacturing with composites, and cultivating an industry synergy. The world’s great aviation brands - Textron Aviation with Beechcraft/Cessna Aircraft Company, Airbus, Bombardier Learjet and Spirit AeroSystems - working with more than 450 world-class suppliers, are designing and building the world’s fleet of commercial and general aviation aircraft. (aircapitaloftheworld.com). The City of Wichita Office of Economic Development offers a variety of incentive programs designed to broaden and diversify the tax base, encourage capital investment, create employment opportunities and provide the economic growth and welfare of the region. The Wichita City Council has adopted an economic development policy which governs the use of incentives. The policy defines the eligibility criteria, required economic impact and return on investment. Industry sectors for which incentives may be used include: Manufacturing, Service Sector, Research and Development, Warehousing and Distribution, Corporate Headquarters, Transportation, Commercial Redevelopment, Tourism, Affordable Housing, and Medical Services (Wichita.gov).

Investment Highlights

  • Prime Location Being Less Than a Mile From the Entrance of I-135
  • The Property is Situated on 11 Acres Which Can Allow an Investor to Develop
  • Consists of Outside Storage and Covered Storage
  • An Investor Will Obtain a Brand New 15-Year Long Lease with an Established Company
  • The Tenant is Piping and Equipment Constructors Who Have Been in Business for 75 Years
  • Tight Barrier-to-Entry Submarket That Has Experienced Rent Growth of 5.6% Y-o-Y
  • Construction Activity Represents Only a 0.5% Increase in Total Inventory for the Submarket

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (816) 410-1010

    License(s) KS: 00241410

    Kansas

Financing By

Single-Tenant Industrial

1111 East 37th Street North

Listing Price: $9,700,000

Cap Rate
6.25%
Gross SF
64,050
Price/Gross SF
$151.44
Lot Size
11.54 acres
Year Built
1997
Rentable SF
64,050

Investment Highlights

  • Prime Location Being Less Than a Mile From the Entrance of I-135
  • The Property is Situated on 11 Acres Which Can Allow an Investor to Develop
  • Consists of Outside Storage and Covered Storage
  • An Investor Will Obtain a Brand New 15-Year Long Lease with an Established Company
  • The Tenant is Piping and Equipment Constructors Who Have Been in Business for 75 Years
  • Tight Barrier-to-Entry Submarket That Has Experienced Rent Growth of 5.6% Y-o-Y
  • Construction Activity Represents Only a 0.5% Increase in Total Inventory for the Submarket

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1111 East 37th Street North in Wichita, Kansas, leased to Piping & Equipment Constructors, Inc. The subject property consists of approximately 64,050 square feet of space and is situated on 11.54 acres of land. The three-building asset features partially covered outside storage space and ample land for further development. Investors have an opportunity to obtain an asset with a new 15-year lease occupied by an established company. For 75-years, Piping & Equipment Constructors have provided employee-centric, heavy industrial construction services and supplies. P&E Constructors provide a variety of services and products including, development of capital projects, maintenance services, fabrication of piping and structural steel, and welding. The property is located less than a mile away from the entrance to Interstate 135 in the Northeast submarket. Northeast contains about 15.5 million square feet of industrial space, representing over 25 percent of Wichita’s industrial inventory. Logistics facilities make up most of the inventory with 8.4 million square feet, followed by 6.2 million square feet of specialized buildings (mostly manufacturing space). The relatively low 6.5 percent vacancy rate has created a tough barrier to entry in the Northeast submarket. As a result, market rents have powered to a decade’s high 5.6 percent annual increase at the start of Q4 2021. Over the past five years, Northeast has posted a net absorption of about 99,000 square feet on average. Industrial rents run about $6.00 per-square-foot, which is a slight premium over the metro average of $5.84 a square foot. The nearly 77,000 square feet currently under construction represents only a 0.5 percent expansion to local inventory. As a result, new supply will have a negligible impact on vacancies and rents for the foreseeable future (CoStar). In 1916, Clyde Cessna signed a contract to start manufacturing planes in Kansas. Since then, the greater Wichita region has pioneered aviation and manufacturing with a culture of innovation - building iconic planes, revolutionizing manufacturing with composites, and cultivating an industry synergy. The world’s great aviation brands - Textron Aviation with Beechcraft/Cessna Aircraft Company, Airbus, Bombardier Learjet and Spirit AeroSystems - working with more than 450 world-class suppliers, are designing and building the world’s fleet of commercial and general aviation aircraft. (aircapitaloftheworld.com). The City of Wichita Office of Economic Development offers a variety of incentive programs designed to broaden and diversify the tax base, encourage capital investment, create employment opportunities and provide the economic growth and welfare of the region. The Wichita City Council has adopted an economic development policy which governs the use of incentives. The policy defines the eligibility criteria, required economic impact and return on investment. Industry sectors for which incentives may be used include: Manufacturing, Service Sector, Research and Development, Warehousing and Distribution, Corporate Headquarters, Transportation, Commercial Redevelopment, Tourism, Affordable Housing, and Medical Services (Wichita.gov).

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (816) 410-1010

    License(s): KS: 00241410

    Kansas

Financing By

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