Shopping Community

Lawrence Marketplace

2525 Iowa Street, Lawrence, KS 66046

Listing Price: $10,167,000

Cap Rate
8.39%
Gross SF
90,982
Rentable SF
90,982
Price/Gross SF
$111.75
Lot Size
6.27 acres
Year Built
1974

Investment Overview

Marcus & Millichap, on behalf of ownership, is pleased to present, Lawrence Marketplace, a 90,982-square-foot shopping center located in Lawrence, Kansas. The subject property underwent extensive renovations in 2014 which revitalized the center, making it a go-to destination in Southern-Lawrence's main retail corridor. Lawrence Marketplace is currently 100 percent occupied by a variety of prominent tenants which include Fitness, Food, Active Entertainment, Office Supplies/Electronics, and Specialty Stores. Office Depot is the centers largest tenant, occupying 35,254 square feet which equates to 39 percent of gross leasable area and 27 percent of the centers gross income. Office Depot has had success at this site since 1997 due to its strong location and below market rent. This is evident by their recent early-renewal which runs through 2025 and is bound by triple-net terms. These triple-net terms include prorata reimbursement for tax, common area maintenance, and insurance as well as roof repair and replacement expenses. Planet Fitness is the centers second largest tenant, occupying 21,587 square feet, 24 percent of gross leasable area and 28 percent of gross income. Planet Fitness opened in 2016 after commencing a 10-year triple-net lease. Other complimentary tenants at the site include Trek Bikes, Mattress Hub, HuHut Mongolian Grill and Breakaway Indoor Play. Trek and Mattress Hub are both leased into 2029, while HuHut is occupied into 2027. Four of the seven tenants have rent increases in year five of their leases providing meaningful rent growth over the hold period, as well as significant increases in their option terms. With proposed financing, Leveraged IRR in year five is 9.14 percent and Leveraged IRR in year 10 is 17.12 percent. Prospective purchasers will benefit from a national tenant base, long-term leases, ease of management, strong real estate taxes, insurance, and common area maintenance expense recovery, and irreplaceable real estate within walking distance of University of Kansas.

Investment Highlights

  • 100 Percent Occupied 90,982-Square-Foot Shopping Center in Lawrence, Kansas
  • Less than One-Mile from University of Kansas- Annual Enrollment Over 28,150
  • 27,000 Cars Per Day Passing in Front of Property on Iowa Street
  • Average Weighted Remaining Lease Term of Six and a Half Years
  • Leveraged IRR in Year-10 of 17.12 Percent
  • Minimal Deferred Maintenance: Complete Renovation in 2014 with New Build-outs

Exclusively Listed By

Shopping Community

Lawrence Marketplace

Listing Price: $10,167,000

Cap Rate
8.39%
Gross SF
90,982
Rentable SF
90,982
Price/Gross SF
$111.75
Lot Size
6.27 acres
Year Built
1974

Investment Highlights

  • 100 Percent Occupied 90,982-Square-Foot Shopping Center in Lawrence, Kansas
  • Less than One-Mile from University of Kansas- Annual Enrollment Over 28,150
  • 27,000 Cars Per Day Passing in Front of Property on Iowa Street
  • Average Weighted Remaining Lease Term of Six and a Half Years
  • Leveraged IRR in Year-10 of 17.12 Percent
  • Minimal Deferred Maintenance: Complete Renovation in 2014 with New Build-outs

Investment Overview

Marcus & Millichap, on behalf of ownership, is pleased to present, Lawrence Marketplace, a 90,982-square-foot shopping center located in Lawrence, Kansas. The subject property underwent extensive renovations in 2014 which revitalized the center, making it a go-to destination in Southern-Lawrence's main retail corridor. Lawrence Marketplace is currently 100 percent occupied by a variety of prominent tenants which include Fitness, Food, Active Entertainment, Office Supplies/Electronics, and Specialty Stores. Office Depot is the centers largest tenant, occupying 35,254 square feet which equates to 39 percent of gross leasable area and 27 percent of the centers gross income. Office Depot has had success at this site since 1997 due to its strong location and below market rent. This is evident by their recent early-renewal which runs through 2025 and is bound by triple-net terms. These triple-net terms include prorata reimbursement for tax, common area maintenance, and insurance as well as roof repair and replacement expenses. Planet Fitness is the centers second largest tenant, occupying 21,587 square feet, 24 percent of gross leasable area and 28 percent of gross income. Planet Fitness opened in 2016 after commencing a 10-year triple-net lease. Other complimentary tenants at the site include Trek Bikes, Mattress Hub, HuHut Mongolian Grill and Breakaway Indoor Play. Trek and Mattress Hub are both leased into 2029, while HuHut is occupied into 2027. Four of the seven tenants have rent increases in year five of their leases providing meaningful rent growth over the hold period, as well as significant increases in their option terms. With proposed financing, Leveraged IRR in year five is 9.14 percent and Leveraged IRR in year 10 is 17.12 percent. Prospective purchasers will benefit from a national tenant base, long-term leases, ease of management, strong real estate taxes, insurance, and common area maintenance expense recovery, and irreplaceable real estate within walking distance of University of Kansas.

Exclusively Listed By

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