Property Details
Price:
$1,025,000 | Cap Rate:
8.30% | Property Type:
Office |
Building Size:
6,572 SF | Land Area:
0.80 Acres | Property Use:
GSA Office |
Current NOI:
$85,071 | Lease Type:
Gross at Operating Expenses | Remaining Term:
10 Years |
Highlights
Ten Years Remaining on the Lease (Five are Firm) – 100% leased and guaranteed by the US Federal Government (S&P AA+).
High Renewal Probability & Long-Term Tenant – GSA Rollover data shows a very low termination rate (less than 2% probability that GSA exercises termination right in soft lease term when the property is new construction or recently refurbished) and a very high renewal probability.
Convenient Location – This is the Field Office for the State of Kansas for the Federal Highway Department, and access to the state’s roadways is a vital consideration for them in choosing a location. 6111 SW 29th Street is a prime location within Topeka, Kansas with its convenient access to the interstate system. It is situated less than one mile west of Interstate 470 which links with Interstate 70 one mile to the north. The Property is one mile south of West Ridge Mall (almost 1 million SF, with five anchors) and is within easy reach of an abundance of amenities, including restaurants, shops and entertainment venues.
Local Market Fundamentals – The Topeka, Kansas market for office properties is tight, with CoStar currently reporting vacancy of 6.6% within the 10.5 million square foot regional office market. The area boasts a low 7.1% five-year average vacancy. Asking rents for Class B office properties in the vicinity of the Property range between $14 gross and $22 gross.
Quality Improvements – The building is well-constructed, with a combination of masonry and wood exterior. All windows were replaced in 2015 with aluminum store front LOW E glass. The shingled roof was replaced in 2013. A well-maintained asphalt paved parking lot provides a total of 27 parking spaces, and there is an additional gravel lot that is used for occasional overflow parking. Additionally, a vacant lot provides for potential building expansion of +/- 2,400 square feet, or for additional parking if desired.
Location Description
Topeka is the capital city of the State of Kansas and the seat of Shawnee County. It is situated along the Kansas River in the central part of Shawnee County, located in northeast Kansas. As of the 2010 census, the city population was 127,473. The Topeka Metropolitan Statistical Area, which includes Shawnee, Jackson, Jefferson, Osage, and Wabaunsee counties, had a population of 233,870 in the 2010 census.
Being the state’s capital city, Topeka’s largest employer is the State of Kansas, employing about 8,400 people, or 69% of the city’s government workers. Altogether, government workers make up one out of every five employed persons in the city. The educational, health and social services industry makes up the largest proportion of the working population. The four school districts employ nearly 4,700 people, and Washburn University employs about 1,650. Three of the largest employers are Stormont-Vail HealthCare (with about 3,100 employees), St. Francis Health Center (1,800), and Colmery-O’Neil VA Hospital (900). The retail trade employs more than a tenth of the working population (11.5%) with Wal-Mart and Dillons having the greater share. Nearly another tenth is employed in manufacturing (9.0%). Top manufacturers include Goodyear Tire and Rubber Company, Payless ShoeSource, Hill’s Pet Nutrition, Frito-Lay, and Jostens Printing and Publishing. Southwest Publishing & Mailing Corporation, a smaller employer, has its headquarters in Topeka.
I-70, I-470, and I-335 all go through the City of Topeka. I-335 is part of the Kansas Turnpike where it passes through Topeka. Other major highways include: US-24, US-40, US-75, and K-4. Topeka Regional Airport (FOE) formerly known as Forbes Field is located in south Topeka in Pauline, Kansas. Forbes Field also serves as an Air National Guard base, home of the highly decorated 190th Air Refueling Wing. MHK located in Manhattan, Kansas is the next closest commercial airport, MCI in Kansas City is the closest major airport. Philip Billard Municipal Airport (TOP) is located in the Oakland area of Topeka.
