Hallmark Distribution Center

Newmark Zimmer’s Capital Markets Team, consisting of Michael VanBuskirk, Chris Robertson, and Raegen Root, is pleased to announce the sale of an 850,000 square foot single-tenant industrial distribution center in the Midwest. This institutionally graded facility features LED lighting, a 40’ clear height, and is ideally located on Interstate 35, providing access to 85% of the U.S. population within 1-2 business days. The tenant, Hallmark Cards, has signed a 10-year lease with annual rent escalations and has made significant capital investments, including a connector road to an adjacent legacy distribution center. The property benefits from a 90% real estate tax abatement for 10 years and offers a below-market in-place rent of $4.92 per square foot compared to the average market rate of $5.71. With market rents in Kansas City expected to grow by 6.5% in 2023, this new construction presents an attractive investment opportunity with a durable income stream. The building also allows for a future expansion of 150,000 square feet and is situated in a high-growth submarket with access to a readily available labor pool.