Sealy & Co. Buys Kansas City Industrial Asset

Building One. Image courtesy of Sealy & Co.

Sealy & Co. has purchased Building One of I-35 Logistics Park, a 569,584-square-foot distribution and warehousing facility in Olathe, Kan. Scannell Properties sold the Class A asset with the assistance of JLL. The buyer was self-represented.

Completed this June, Building One is fully leased to Clorox, according to CommercialEdge information. The asset, built on 45.3 acres, features a 36-foot clear height, a 136-foot truck court, 76 dock-high mechanical loading doors and three drive-in loading doors. The facility is also set up for a possible 130,416-square-foot expansion.

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Building One came online at 15801 S. Green Road as part of I-35 Logistics Park, one of the largest speculative developments in Kansas City. The industrial complex will encompass more than 3.2 million square feet across six buildings when complete.

Situated in one of the region’s most sought-after industrial corridors featuring tenants such as FedEx and XPO Logistics, the facility is within 7 miles of Interstate 35 and close to the BNSF International Intermodal Facility. The location is some 10 miles from another Sealy property, a 210,504-square-foot warehouse that the firm acquired in 2021.

Sealy & Co. seals the deal

Sealy & Co. Managing Director Jason Gandy and Director David Gibbs led the Investment Services team that arranged the acquisition.

Gandy further detailed the strength of the asset’s location to Commercial Property Executive; “The Kansas City industrial market fundamentals remain strong with falling vacancy, consistent rent growth, and a sizeable but slowing construction pipeline. Kansas City’s geographical location and diverse transportation infrastructure make this an ideal market for industrial users.”

The firm is a highly active industrial investor throughout the Midwest. In September, Sealy purchased a 1.1 million-square-foot industrial portfolio in Dayton, Ohio, as well as a 713,796-square-foot distribution facility near Detroit.

Industrial upswing in Kansas City

Attracting investment and development endeavors from some of the sector’s biggest players, Kansas City’s industrial market has seen positive tends across nearly all of its major metrics.

According to data from a third quarter 2022 report from CBRE, the metro had 13.6 million square feet of space in its pipeline at the end of September. More than 4 million square feet were leased in Q3, leading to an overall vacancy rate of 4 percent, down 90 basis points over the quarter.