SparrowHawk a Texas Merchant Investor acquires first building in $90M Shawnee industrial park

Kansas City, Missouri (July 8, 2021) –?After entering the Kansas City market 90-plus days ago,?SparrowHawk Real Estate?has acquired another building, the just completed first building in the Heartland Logistics Park in Shawnee. Financial terms of the transaction were not disclosed.

John Stafford, Executive Vice President, and?Ed Elder, President, of?Colliers?represented the Seller and developer of the building. The Logistics Park that is expected to total four buildings and approximately two million square feet of space.?SparrowHawk?announced that?Stafford?and?Elder?will continue to market the building for lease.

Building 1, located at?24525 W 43rd Street, Shawnee, Kansas?is a 272,882-square-foot industrial asset that can accommodate a single user. It is also divisible to 52,000 square feet.?Colliers?and?Colliers?anticipate that the building will be leased by multiple users. The physical attributes of the building include 32 foot clear ceiling heights, 27 dock doors, office space to suit, parking for 249 automobiles and 75 trailers.

Alfredo Gutierrez, founder of?SparrowHawk Real Estate Strategists, said, “We are excited to add our second property in Kansas City in 90 days and to get in on the ground floor with this new development. Given market conditions in Kansas City we are confident that a lease-up can happen quickly.”

Stafford?reiterated the strengths of the market and said, “The sale of Heartland Logistics Park Building 1 prior to being fully stabilized (leased) shows the strength of the industrial market in Kansas City and this submarket. this was a win-win for buyer/seller due mainly to rising construction costs and industrial tenant demand.”

For?SparrowHawk?the transaction was significant and strategic for various reasons, including expanding the depth of its presence in Kansas City and the timing of the transaction.

Strategic Expansion in Kansas City

At the end of Q12021?SparrowHawk?entered the market with the acquisition of?College and Renner Business Center, a four-building, 226,009-square-foot light industrial portfolio in Lenexa, part of Kansas City’s Johnson County industrial submarket.

At the time of that acquisition,?Gutierrez?said, “We’ve been paying very close attention to the Kansas City marketplace, an area we believe to be a growing industrial market because of its central location and are glad to expand our national portfolio there. This four-building asset, in a great location and with a diverse roster of tenants, is prototypical of what we look for when building a presence in a new market.”

College and Renner Business Center, considered one of the highest image business parks in Lenexa, consists of four buildings ranging in size from approximately 44,700 square feet to 76,200 square feet. One of the other key attributes of the asset is the ability to control an additional 13 acres of developable land on which?SparrowHawk?can expand available space of the business center. At acquisition, the property was 91% leased.

Strategic Timing

The acquisition was a strategic portfolio acquisition coming within weeks of?SparrowHawk’s disposition of an asset in DeKalb (west of Chicago), Illinois. In mid-June?SparrowHawk?Real Estate,?completed the disposition of a Class A, fully-leased industrial building in DeKalb, Illinois—a market seeing increasing popularity as new buildings for national companies are developed. The 161,542-square-foot warehouse building at 711 Fairview was developed in 2001.

“After an appropriate hold period where we had created as much value as possible, it was an appropriate time to sell 711 Fairview and use the proceeds to acquire the Heartland Logistics Park building,”?Gutierrez?said. “As a newly developed asset in lease-up, we see tremendous potential in creating value for this building to benefit our investors.”

Gutierrez?added that this acquisition further demonstrates?SparrowHawk’s intention in 2021 to be a net buyer, a strategy he said may require some strategic and timely dispositions in order to further expand the?SparrowHawk?portfolio of assets.”

The Kansas City industrial market totals approximately 283 million square feet of space. Johnson County is the second largest submarket and totals 76 million square feet. In 2020 more than 3.6 million square feet of space was absorbed in Kansas City, with nearly 60% taking place in Johnson County. Other interesting factors include KC’s position as the number one market in the US for rail tonnage and a number three trucking center ranking.

About Colliers

Colliers?(NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at?corporate.colliers.com, Twitter?@Colliers?or?LinkedIn.

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About SparrowHawk Real Estate Strategists

SparrowHawk?specializes in the acquisition, management, enhancement and disposition of quality industrial properties for the benefit of institutional investors. In contrast to property development,?SparrowHawk?performs as an intermediary that pinpoints especially attractive Class-A and B properties that promise above-market rates of return. The company is led by 35-year industry veteran?Alfredo Gutierrez. Thanks to a wealth of industry knowledge and relationships, as well as a hands-on deal-making approach,?Alfredo?is able to act quickly on unique opportunities that are often inaccessible to others in the real estate arena. To learn more about?SparrowHawk?www.sparrowhawkre.com