1503 MO-7, Blue Springs, MO 64014

South Seven Plaza is a 52,949-square foot neighborhood retail center located along the west side of 7 Highway in Blue Springs, Missouri. The property includes three out-parcel buildings that are fully leased, one to a Phillips 66 convenience store operator on a long-term lease, one to a drive-through donut shop on a long-term lease and the third to an animal hospital. The property is 58% occupied and can be purchased for a price that is substantially below the replacement cost, offering a rare value-add opportunity for investors to acquire and lease-up the property.

Value-Add Opportunity

The property has 22,080 square feet of vacant inline space in eight different suites, ranging in size from 1,350 square feet to 5,332 square feet. Additionally, the vacant spaces can be consolidated into larger spaces or divided into smaller spaces to accommodate different tenant needs.

The competing properties along 7 Highway in Blue Springs have an average asking rental rate of $16.00 per square foot. Lease-up of the vacant units at the property at $12.00 per square foot plus the in-place income will increase the cap rate on the purchase price to 13.0%.

Recent Renovations

The current owner recently completed several renovations to the property which has helped increase leasing activity. The improvements include painting the exterior of the property, installation of new signs bands, sidewalk replacement and conversion of several vacant units into white box condition. Additionally, the owner has installed a new monument sign at the property. The recent renovations reduce the amount of capital work required by a new owner to get the property stabilized and will expedite the lease-up.

Strong Location

The property is situated on 7 Highway which boasts traffic counts of 26,078 cars per day and is one of the top retail nodes in the Kansas City MSA. The 7 Highway corridor attracts the attention from top national retailers looking to expand into the Kansas City market, including Whataburger which is currently building one of the first Kansas City locations just north of the property. Additionally, Blue Springs is one of the strongest submarkets in the Kansas City region with strong population growth (14% from 2010 to 2023) and a high median household income of $88,544.

Retail Fundamentals

The property features an end cap space with a drive-through lane that is currently occupied by The Pizza Place. The other storefronts face 7 Highway with excellent visibility. Four ingress/egress points providing for full access to the center for traffic going both north and south along 7 Highway. Additionally, the bay depths in the center range from 75 feet to 95 feet, an attractive feature for inline retail space users.

Service-Based Tenancy

The tenants at the property are primarily service based making them essential businesses to the surrounding community. The rent roll contains a mix of medical tenants, restaurants, salons, office users and a convenience store/gas station.

Below Replacement Cost

With the rise in construction costs, the property offers an opportunity for an investor to purchase a neighborhood retail center in a strong retail corridor below the replacement cost.