8900 State Line Rd, Leawood, KS 66206

8900 State Line Road is an 84,962 square foot office building located along the west side of State Line Road in Leawood, Kansas. The offering presents a unique opportunity to acquire an 83.97% occupied medical office building along a major corridor with tremendous upside potential.

Medical Tenancy

The Property has historically catered to medical-based tenants and continues to be a natural draw to medical tenants looking for space in the submarket. The building is occupied by a majority of tenants in the medical industry, with Psychiatry Associates of Kansas City as the anchor tenant occupying 23.58% of the building. Additional medical tenants include therapists, counseling, and health & wellness.

Small Tenant Suites

The Property has 41 suites with an average size of 2,072 square feet; 18 of the suites are under 1,000 square feet and 13 of the suites are between 1,000 and 2,000 square feet. The smaller suite sizes fit the submarket demand extremely well as there is a strong supply of small office users looking for move-in ready suites in this submarket. This also reduces the amount of tenant improvements needed to re-tenant the suites.

Value-Add Opportunity

The Property is currently 83.97% occupied with 13,621 square feet of vacancy ready to be leased up at market rents. Additionally, three of the tenants are on month-to month leases at below market rents. The current owner has recently updated all common areas (carpet, tile flooring, paint), added a new conference room and updated 61% of the tenants spaces since 2019.

Rent Growth Opportunity

The average in-place rent at the Property is currently $18.54 per square foot. New leases at the Property have been completed with starting rates in excess of $20.00 per square foot providing opportunity to push rents to market rents as leases expire.

High Demand Location

The Property is located along State Line Road in the South Kansas City submarket, one of the most sought-after submarkets in the Kansas City metro. The submarket has strong nearby demographics and ease of access to Interstate 435 making the Property accessible to employees from all over Kansas City.

Nearby Amenities

There are several walkable amenities nearby, including the Ward Parkway Mall and the Ward Parkway Restaurant Pavilion, located just across the street from the Property. Nearby restaurants include Starbucks, Charleston’s, Hawaiian Bros, Five Guys, Firehouse Subs and Chick-fil-a. Ward Parkway Mall is also home to Target, Trader Joe’s, AMC Theater, Ross Dress for Less, Off Broadway, TJ Maxx, Home Goods and Genesis Health Club among others.

Development Opportunity

The southern portion of the parking lot has the potential to develop a commercial or multifamily property on without taking away any parking from the existing building.

One proposed development opportunity includes the construction of 44 apartment units on top of a newly constructed parking deck adjacent to the existing parking deck. This allows for additional leasable square footage without eliminating or reducing the parking ratio of the office building.

Future owners could develop the lot themselves, sell the lot to a developer or partner with a developer to complete the project. Following is a rendering of a potential 44-unit multifamily project that could fit on the site.

The current owner has not put any plans or proposals in front of the city. Any development plans are speculative and would require the buyer to determine on their own.