Hallmark Distribution Center

Newmark Zimmer’s Capital Markets team is excited to announce the successful sale of Hallmark Distribution Center, a significant 850,000 square foot single-tenant industrial distribution center located in Liberty, Missouri. This institutionally graded facility boasts an ideal location on Interstate 35, providing convenient access to 85% of the U.S. population within 1 to 2 business days.

The Hallmark Distribution Center features state-of-the-art amenities such as LED lighting and a 40-foot clear height, enhancing operational efficiency. Hallmark Cards, the tenant, has signed a 10-year lease with annual rent escalations, showcasing their long-term commitment. Additionally, Hallmark Cards invested significantly in the property, including the construction of a connector road linking the center to an adjacent legacy distribution facility.

The property benefits from a 90% real estate tax abatement for 10 years, which lowers operating costs. The center also offers a competitive in-place rent of $4.92 per square foot, compared to the average market rate of $5.71. With Kansas City’s market rents expected to grow by 6.5% in 2023, this new construction presents a valuable investment opportunity with a stable income stream.

Moreover, the Hallmark Distribution Center supports future expansion, with the potential to add 150,000 square feet. Its location in a high-growth submarket and access to a readily available labor pool further enhance its investment appeal.

Michael VanBuskirk, Chris Robertson, and Raegen Root from Newmark Zimmer’s Capital Markets team led the successful transaction, highlighting their expertise in managing high-value real estate deals.