KANSAS CITY, MO-A retail store turned retail warehouse here has been sold in an alphabet-soup-type purchase agreement, by Hollywood, FL-based DDM/JFD LP to Cleveland, OH-based WM KC SPE LLC, for $16.4 million. The property, at 5000 Bannister Road, is a former store in a strong retail area that is now fully leased by Wal-Mart as a warehouse.

“The owner has a large portfolio, they just thought it was time to sell the property,” says Bryan Ley, senior advisor with Sperry Van Ness, which represented the buyer. “They want to move more money into development projects, so they’re getting rid of some of their product.”

The 134,650-sf property was built in 1992 for Pace Warehouse, a retail chain that was acquired by Sam’s Club, which is owned by Wal-Mart. “The company decided to convert the store into a fixtures warehouse. Whenever they close a Wal-Mart, they move all the fixtures to this location, and then allocate the material to a new or existing Wal-Mart. You could call it a hub or outlet for supplies for the company,” Ley says. The public is not allowed into the store, he says.

Since the store is in a prime retail area, across from stories such as Home Depot, the property and lease rate is treated as retail, Ley tells GlobeSt.com. “The annual lease on the property is about $1.1 million, and it’s leased until 2018,” he says. “It was hard to compare it during the sale. There’s possible industrial buyers, but it’s too pricey for them; and there’s retail buyers, but it’s not being used as a retail store. Ultimately, the retailers like it because it has good intrinsic value, if the tenant ever leaves it can be used as a store again.”

Ley says there were nine offers for this property, and from the mutual execution of the final deal to close took 21 days. He was joined on the deal by Brad Umansky and Michael Roberts, and Robert Szivlas from RJ Wohl Co. represented the REIT buyer.

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