Olathe, KS | 580,000 SF | Investment
Benchmark, a 30+ year old retailer, decided to exit the market but owned 44 acres with three different buildings: a 250,000 SF, six year old industrial building; a 160,000 SF, six year old retail showroom; and a 240,000 SF, thirty year old combination showroom/warehouse building. Benchmark wanted to sell all the buildings together and close by year-end for tax reasons. The purchase was made based on the strength of the location and significant discount to replacement cost.
Purchased in December 2005 and structured as a TIC in order to accommodate a 1031 exchange, the newer industrial building was immediately leased to Ingersoll Rand for 10 years. That lease was then bundled with the vacant buildings and sold to the owner of an adjacent property, so that owner could control a larger piece of land for long term development. The sale price was twice the acquisition price, producing extraordinary returns on leveraged equity.