Holliday Fenoglio Fowler, L.P. (“HFF”) an Illinois licensed real estate broker
College Boulevard Portfolio
E X E C U T I V E S U M M A R Y
Overland Park, Kansas
del Sartoat the
Renaissance
del Sartoat the
Renaissance
Outlook StreetOutlook Street
Glenwood StreetGlenwood Street
MidwestTrust
MidwestTrust
Overland ParkConvention Center
Overland ParkConvention Center
Courtyard Inn
Courtyard Inn
Black & VeatchGlobal
Headquarters
Black & VeatchGlobal
Headquarters
ZurichNorth
America
ZurichNorth
America
Black &VeatchBlack &Veatch
Hilton Garden
Inn
Hilton Garden
Inn
SheratonSheraton
CardinalHealth
CardinalHealth
AccentureAccenture
Mid TownAthletic Club
Mid TownAthletic Club
DruryLane Inn
DruryLane Inn
DoubleTreeby Hilton
DoubleTreeby Hilton
MidlandLoan Services
MidlandLoan Services
7101 College College Boulevard
College Boulevard
College Boulevard
College Boulevard
Van Eyckat the
Renaissance
Van Eyckat the
Renaissance
FinancialPlaza
CommercePlaza
Metcalf AvenueMetcalf AvenueMetcalf AvenueMetcalf Avenue
Antioch RoadAntioch Road
MarriottMarriott
Stable Cash Flow with Redevelopment UpsideHolliday Fenoglio Fowler, L.P. (“HFF”) has been retained to sell a 100% fee simple
interest in the College Boulevard Portfolio (the “Property” or “Portfolio”); a 806,864
RSF, three-asset Class A office portfolio situated in the heart of Kansas City’s most
vibrant submarket, Overland Park. 7101 College (228,660 RSF), Commerce Plaza I &
II (285,465 RSF) and Financial Plaza I-IV (292,739 RSF) all combine to make up the
College Boulevard Portfolio.
The combination of the three assets presents a unique opportunity to acquire the stable
cash flow provided by 7101 College Boulevard and Commerce Plaza I & II (collectively
96% leased), and further enhance returns through the stabilization, repositioning or
redevelopment of the mixed-use Financial Plaza complex (86% leased). The in-place
rents in the Portfolio are 10% below market, providing an excellent opportunity to mark
to market on rollover and further increase rental rates with cosmetic upgrades.
Investors are welcome to bid on the Portfolio in its entirety or any
combination of the three properties within.
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
COLLEGE BOULEVARD PORTFOLIO
BOMA RENTABLE AREA 806,864 RSF
PERCENT OFFICE LEASED 92.6%
# OF BUILDINGS 7
STORIES Varies
DATE COMPLETED / RENOVATED 1984-1989
PARKING RATIO 3.7/1,000 RSF
SUBMARKET South Johnson County
College Boulevard Corridor
7101 College - JNA Advertising
PROPERTY SUMMARY Portfolio Summary 7101 College Commerce Plaza I Commerce Plaza II Financial Plaza I Financial Plaza II Financial Plaza III Financial Plaza IV
Type Office/Retail Office Office Office Office Office Office Office
Address 7101 College Blvd. 7300 W. 110th St. 7400 W. 110th St. 6700 College Boulevard
6800 College Boulevard
6900 College Boulevard
11005-11095 Metcalf Avenue
% Leased 92.6% 94.4% 98.4% 98.1% 76.3% 79.6% 87.5% 99.8%
RSF 806,864 228,660 158,095 127,370 8,484 106,384 147,952 29,919
% of Portfolio 100.0% 28.3% 19.6% 15.8% 1.1% 13.2% 18.3% 3.7%
# of Buildings 7 1 1 1 1 1 1 1
Stories 1-15 15 9 7 1 7 10 1
Built/Renov 1984-1989 1986 1986 1989/2004 1984 1985 1985 1985
Construction Type Structural Steel Masonry Frame w/ Polished Granite
Masonry Frame w/ Polished Granite
Steel Frame Steel Frame Steel Frame Steel Frame
# of Parking Spaces 2,880 749 975* 1,156*
Parking Ratio* 3.6 3.7 3.4* 4.0*
* Represents combined Ratio for Commerce I &I and Financial Plaza I-IV
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
Overland Park/ South Johnson County Outperformance In recent years, Johnson County has accounted for an outsized share of new business and job growth
in the greater Kansas City MSA. The submarket’s proximity to executive housing, interstate access,
retail amenities and a deeply educated workforce serves as a magnet for corporate relocations. The
proximity to the Missouri state line and an inventory of Class A properties with comparatively lower
operating expenses has resulted in thousands of jobs relocating to the College Boulevard Corridor in
recent years. Aiding these relocations are state incentives that aim to attract new businesses to the
region but also lure businesses across state lines from Missouri. As both states have engaged in this
so called “border war”, Kansas has long been considered to be winning the war with tenants leaving in
favor of a Missouri address few and far between.
SOUTH JOHNSON COUNTY - CORPORATE RELOCATIONSCompany Employees Sq Ft
JP MORGAN* 800 175,000
PERCEPTIVE SOFTWARE 750 238,000
AMC 450 130,000
TEVA 400 147,000
COVENTRY HEALTH CARE 300 70,000
KEYBANK 300 67,000
AMERIGROUP 300 40,000
APRIA HEALTHCARE 300 101,000
FISHNET SECURITY 200 70,000
UNITED HEALTHCARE 100 30,000
Source: Kansas Chamber of Commerce*JP Morgan occupies 7,360 RSF of Commerce Plaza II
Primary Tenants BuildingCredit Rating RSF % NRA Expires
Remaining Term
Tenant Since
GE 7101 S&P: AA+ 44,877 5.6% September-17 1.2 Yrs June-11
CARDINAL HEALTH CP II Fitch: BBB+ 36,910 4.6% August-18 2.2 Yrs September-12
CIGNA CP II S&P: A 30,277 3.8% January-22 5.6 Yrs June-02
ARROWHEAD GENERAL INSURANCE FP III 24,077 3.0% September-22 6.2 Yrs March-14
BRUNGARDT HONOMICHL & COMPANY 7101 23,983 3.0% November-21 5.4 Yrs June-14
PRINCIPAL CP I S&P: A+ 20,706 2.6% February-19 2.7 Yrs October-90
EMC CP I AM Best: A 18,162 2.3% January-21 4.6 Yrs October-10
HQ GLOBAL WORKPLACE CP I 18,110 2.2% March-18 1.7 Yrs January-98
WALSWORTH PUBLISHING COMPANY CP I 18,096 2.2% August-20 4.2 Yrs September-13
HMN ARCHITECTS CP II 17,667 2.2% September-19 3.2 Yrs January-05
MEDTRAK SERVICES, INC 7101 16,435 2.0% November-18 2.4 Yrs October-07
ODYSSEY AMERICAN REINSURANCE CP I S&P: A- 15,780 2.0% October-19 3.3 Yrs December-08
SIMPSON, LOGBACK, LYNCH, NORRI CP II 15,187 1.9% January-19 2.6 Yrs November-03
300,267 37.2% 3.4 Yrs 8.6 Yrs
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
Diverse Tenant Base/ Sticky Tenancy The College Boulevard Portfolio possesses an exceptional investment profile, providing a wide array of high profile
tenancy steeped in quality. The 806,864 rentable square foot portfolio features a rent roll of 128 tenants, insulating
investors from an over-concentration to one specific tenant. The largest tenant, General Electric (GE) leases 44,877
rentable square feet in 7101 College, only 5.6% of the net rentable area of the Portfolio, shielding an investor from any
tenant specific risk. An impressive 45% of the primary tenants in The College Boulevard Portfolio carry an investment
grade credit rating of BBB- or better. Twenty four tenants within the Portfolio have occupied space at one of the three
buildings for over 10 years, accounting for over 46% of the leased square footage. A major contributor to the success
of the Portfolio is the ability to accommodate tenants’ varying space and pricing needs while maintaining a highly visible
presence at Metcalf and College Boulevard.
Best Absorption in the Central U.S.Since 2013, Kansas City has absorbed over 4.8 million rentable square feet. Kansas City has outpaced all but one Central
U.S. market in net absorption on a percentage basis. The table herein shows how Kansas City compares to other major
Central U.S. markets.
Cerner HeadquartersCerner Corporation, a global leader in healthcare,
recently broke ground on their $4.45 billion Trails
Campus just 20 minutes down the road from the
College Boulevard Portfolio. The project is heralded
as the largest economic development project in
Missouri state history. The Trails Campus, slated to
be completed over the next decade, will house 16,000
new Cerner employees. The campus will feature
4.3 million square feet of office and 400,000 square
feet of retail and hotel space. The office portion will
include two data centers, a service center, a training/
conference center and employee amenities, including
an on-site day-care center, dining services, fitness
center and health clinic. Cerner will not be vacating
any of their existing office space as part of this project.
This will all be pure new absorption for the market and
a majority of the jobs at the complex will be new hires.
Credit: Cerner Corp. & Gould Evans Architects
NET ABSORPTION SINCE 2013 AS % OF INVENTORY - 4Q 2015
Market Total RBA Net Absorption Absorption as % of Inventory
HOUSTON 290,351,116 17,480,188 6.02%
KANSAS CITY 115,128,156 4,845,793 4.21%
DALLAS/FT WORTH 345,951,175 14,418,336 4.17%
OKLAHOMA CITY 57,565,630 2,222,351 3.86%
LOUISVILLE 54,019,618 1,880,200 3.48%
CINCINNATI 141,346,839 4,250,171 3.01%
DETROIT 210,034,140 6,190,167 2.95%
ST. LOUIS 133,574,236 3,354,115 2.51%
INDIANAPOLIS 103,034,939 2,337,098 2.27%
MINNEAPOLIS/ST. PAUL 189,723,938 3,920,810 2.07%
CHICAGO 471,762,280 9,351,454 1.98%
MILWAUKEE 68,841,808 1,283,137 1.86%
CLEVELAND 151,032,106 2,287,835 1.51%
Source: CoStar Property®
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
Epicenter of the College Boulevard Corridor The College Boulevard Portfolio is located at the epicenter
of Kansas City’s strongest submarket. Kansas City’s
deepest base of prolific corporations and Fortune 500
tenants is concentrated in the 28.5 million RSF South
Johnson County submarket. The College Boulevard
Corridor is the densest cluster of office product in the
submarket, due to its access and visibility to I-435 as well
as nearby executive housing. Companies such as AMC,
TEVA, Sprint, Black & Veatch, CenturyLink, Quintiles,
YRC Worldwide, Midland Loan Services and Waddell
Reed all operate either global or regional headquarters
from the College Boulevard Corridor.
South Johnson County boasts an exceptionally low
7.0% vacancy rate within its Class A space, the lowest
of any major submarket in the Kansas City market. The
quadrant between Metcalf Avenue and Nall Avenue
from College Boulevard to the north to 119th Street to
the south contains 6.4 million RSF of office space that
is over 95% leased. This quadrant contains the global
headquarters of Black and Veatch (Forbe’s Largest
Private Companies #150).
Site Plan
43550
College Blvd
435 50
Met
calf
Aven
ue
W. 110th Street
Lam
ar A
venu
e
Low
ell A
venu
e W. 110th Street
College Blvd
W. 112th Street
Met
calf
Aven
ue
Ship Center
Van Eyck at the
Renaissance
del Sartoat the
Renaissance
The ZurichBuilding
Midtown Athletic Club
CommercePlaza
7101 College FinancialPlaza
Online Trading Academy
Cons
er A
venu
eNfs National
Flood Services
Drug Enforcement Administration
435 OverlandPark Place
GasMartUSA
Wright CareerCollege
The AtriumsSenior LivingCommunity
Met
calf
Aven
ue
W. 107th StreetW. 107th Street
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
Epicenter of the College Boulevard Corridor
del Sartoat the
Renaissance
del Sartoat the
Renaissance
Lamar Avenue
Lamar Avenue
Black & VeatchGlobal
Headquarters
Black & VeatchGlobal
Headquarters
ZurichNorth
America
ZurichNorth
America
CardinalHealth
CardinalHealth
Van Eyckat the
Renaissance
Van Eyckat the
Renaissance
FinancialPlaza
Metcalf Avenue
Metcalf Avenue
W. 115th StreetW. 115th Street
Sprint CorporationGlobal Headquarters
Sprint CorporationGlobal Headquarters
QuintilesTransportation
Corporation
QuintilesTransportation
Corporation
HyattPlaceHyattPlace
Overland ParkInternational Trade Center
Overland ParkInternational Trade Center
W. 119th StreetW. 119th Street
Nall AvenueNall Avenue
Town Center PlazaTown Center Plaza
MenorahMedicalCenter
MenorahMedicalCenter
W. 112th StreetW. 112th Street
Ship CenterShip Center
Metcalf Avenue
Metcalf Avenue
CommercePlaza
Mid TownAthletic Club
Mid TownAthletic Club
MidwestTrust
MidwestTrust
Overland ParkConvention Center
Overland ParkConvention Center
The Fountains on 119thThe Fountains on 119th
Wright Career College
Wright Career College
Carrabba's Italian GrillCarrabba's Italian Grill
7101College
Epicenter of the College Boulevard Corridor
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South Johnson County SuccessThe overall health of the South Johnson County is best evidenced by the meager 7.0% vacancy rate
within its class A inventory. This is one of the strongest of the major submarkets in the Kansas City area.
Vacancy rates are expected to decline as all office sectors are expected to see positive growth. A lack of
quality space in the market will continue to drive the market, lowering vacancy rates in South Johnson
County. This trend will open the door to rent growth across the market and specifically at the Properties.
As of Q1 2016, the 1/2 radius of the Metcalf Avenue and College Boulevard intersection saw a Class
A vacancy rate of just 5.3%. The lack of of Class A space within the immediate area speaks to the
prominence of the Portfolio’s location within what is already considered Kansas City’s best submarket.
Mark to Market OpportunityThe wide gap between current in place rents across the Portfolio and current market rents provides an
opportunity for a new investor to increase future revenues. As highlighted in the adjacent chart, the average
in-place rental rate across the Portfolio is 10% below market. This provides opportunity for a new investor
to capitalize current market conditions by marking leases to market as they come up for renewal, thereby
substantially enhancing the asset’s return throughout the holding period.
5%
6%
7%
8%
9%
10%
11%
12%
13%
2014 2015
Vaca
ncy
South Johnson CountySource: Costar
SOUTH JOHNSON COUNTY VACANCY RATE
7101 College - Lobby
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Portfolio 7101 Commerce FinancialIn-Place Market
IN-PLACE VS. MARKET RENT
Upside Potential Through Repositioning The College Boulevard Portfolio presents a unique opportunity to acquire and stabilize, reposition or redevelop the Financial Plaza buildings via the stability of the income stream produced
by 7101 College and Commerce Plaza, which are collectively 96% leased. Cosmetic upgrades to the lobbies of Financial Plaza Tower II & III, in conjunction with the continuation of corridor
and restroom upgrades, will bring a modern feel to the buildings and will allow a new owner to continue to push rental rates in a rising market. This practice has been proved out across
Metcalf Avenue at 7007 and 7015 College Boulevard. Benefitting from recent cosmetic improvements, the two Class A buildings increased occupancy from 80% to the low 90% while
pushing asking rents from $18.00 to $22.00 in less than
24 months. The Portfolio underwriting takes into account
capital necessary to modernize the Properties and
achieve top tier rents. A full overview of the underwritten
capital projects can be found the Financial section of the
offering memorandum.
Upside Potential Through RedevelopmentThis Main and Main location has the potential for an new
investor to unlock the true value of this site. The current
retail building is under utilizing the hard corner at the
absolute center of this market. Over 48,200 vehicles
pass through this intersection each day. The potential
redevelopment opportunities include a new retail
center, retail out lots, multi-family or an office building.
This is the number one intersection in the number one
submarket in Kansas City. The potential opportunities
are endless with multiple different scenarios possible.
A new owner will be able to transform this intersection
and add significant value to their investment.
del Sartoat the
Renaissance
del Sartoat the
Renaissance
ZurichNorth
America
ZurichNorth
America
7500 CollegeBlvd.
7500 CollegeBlvd.
Van Eyckat the
Renaissance
Van Eyckat the
Renaissance
FinancialPlaza III
Metcalf Avenue
Metcalf Avenue
College Boulevard
College Boulevard
CommercePlaza II Commerce
Plaza I
FinancialPlaza II
FinancialPlaza IVCollege Boulevard
College Boulevard
Metcalf Avenue
Metcalf Avenue
Metcalf Avenue
Metcalf Avenue
Marty AvenueMarty Avenue
PotentialRedevelopment
PotentialRedevelopment
7101 College
PotentialRedevelopment
PotentialRedevelopment
FinancialPlaza I
Wright Career College
Wright Career College
Carrabba's Italian GrillCarrabba's Italian Grill
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
Kansas City Tech Startup BoomKansas City has historically been an entrepreneurial city, but most recently the city has experienced a tech ecosystem boom with burgeoning startup activity and
tech density, which proves the city’s viability as a technology destination. This dynamic is best demonstrated by Think Big Partners and the Sprint Mobile Health
Accelerator. Think Big Partners is an early stage accelerator and startup incubator, which has formed the first partnership of its kind with Microsoft Ventures. Not
only has this partnership provided a more elaborate platform for Kansas City based startups, but it has attracted capital from around the world. Sprint has also been
a relevant player and recently launched the Sprint Mobile Health Accelerator, powered by Techstars, a leading accelerator brand. Leaders of early-stage mobile
technology startups from across the United States have come to Kansas City to work on health care initiatives with the expertise of top technology experts.
Besides these tech incubator programs, several large organizations including Sprint, Cerner, MRI Global, Marion Laboratories, and the University of Kansas have been
engines of tech growth throughout the years. Since 1970, these groups have spun off over 100 separate tech companies that are still in business today. The Kansas
City Tech Galaxy herein depicts the breadth and depth of the tech community in Kansas City.
Kansas City was recently named one of the top 5 cities in the world for tech entrepreneurship by the Global Entrepreneurship Congress, with its state of the art
connectivity provided by Google Fiber, low unemployment rate and practical cost of living. Some of the fastest growing startups in the city include:
• VeriShip: Creator of an intelligent operations enhancement technology
• Rhythm Engineering: Its flagship product, In Sync, is a real-time adaptive traffic control system
• Avenue Link: Performance based online marketing company
Midwest Technology HubThe city is well on its way to becoming one of the most advanced and connected cities in the world, both by attracting innovative technology companies and by being a pioneer in
the technology revolution. Kansas City is committed to the technology renaissance and this is demonstrated by a number of the government’s initiatives including public WiFi.
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
There is currently a lack of creative office space in the Johnson County
submarket. As part of the redevelopment and repositioning of Financial
Plaza, an investor will be able to create this much needed space. An
investor could also re-brand the building away from The Financial Plaza
name and re-brand as a technology complex.
Kansas City has been granted a competitive
advantage in future high-tech growth with
the installation of an ultrahigh-speed internet network called Google Fiber.
Kansas City was chosen as the first city to receive Google Fiber. The fiber-
optic network has proven attractive to both high-tech companies and data
centers, as they have aggressively flocked to Kansas City since learning of
Google Fiber’s presence. Recently, Kansas City was identified as one of the
top five cities for tech start-ups by the Global Entrepreneurship Congress.
Discount to Replacement CostThe College Boulevard Portfolio represents a rare opportunity to
acquire a supremely located and historically well-preforming office
portfolio at a significant discount to replacement cost. Reproduction
of an asset of such scale and design would cost in excess of $300 per
RSF to recreate today. The cost of construction creates an arbitrage
opportunity between the escalated replacement costs and the
Property’s projected residual value.
Investors are welcome to bid on the Portfolio in its entirety or any
combination of the three properties within.
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College Boulevard PortfolioCollege Boulevard PortfolioCollege Boulevard Portfolio
Contact InformationHFF Chicago181 West Madison | Suite 3900Chicago, IL 60602Telephone: 312.528.36
Investment ContactsMark B. KatzManaging [email protected]
Jeffrey M. BramsonSenior Managing [email protected]
Jaime M. FinkSenior Managing [email protected]
Sean P. FogartyManaging DirectorKansas License #: [email protected]
Patrick M. [email protected]
©2016 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.
HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
Debt ContactChristopher S. CarrollManaging [email protected]