Hanley Investment Group Real Estate Advisors completed the sales of two new-construction, single-tenant net-leased retail investments to two separate buyers in Blue Springs, Missouri.
The two adjacent freestanding properties are occupied by Heartland Dental and a Starbucks Café with a Drive-Thru in Blue Springs, an affluent, high-growth suburb of the Kansas City metro area. The sales prices were not disclosed; however, the combined transaction size exceeded $5 million, with a blended cap rate in the low 6% range.
In the sale of the Heartland Dental-occupied property, Hanley Investment Group’s Executive Vice President and Partner Jeff Lefko and Executive Vice President Bill Asher, in association with Jay Ferguson of Ferguson Properties, Inc. in Kansas City, Missouri, represented the seller and developer, Ferguson Properties and Foresight Real Estate. The buyer, a private 1031 exchange buyer from California’s Central Valley, was represented by Peter Winterling, a senior vice president with Kidder Mathews in Sacramento, California.
The new 4,200-square-foot Heartland Dental building, completed in 2024 on a 0.96-acre parcel, is located at 3107 SW 7 Highway (29,000 cars per day).
“We secured a California-based, all-cash private 1031 exchange buyer and negotiated a 21-day due diligence period, closing escrow prior to the tenant opening for business,” said Lefko.
According to Lefko, the new 10-year, triple-net, corporate-guaranteed lease includes 10% rent increases every five years during the initial term, with three five-year renewal options. Heartland Dental is the nation’s largest dental support organization, operating in over 1,700 locations. At this location, Heartland Dental operates as Dental Care on 7.
In the second transaction, Hanley Investment Group’s Jeff Lefko and Bill Asher, in association with Jay Ferguson of Ferguson Properties, Inc. represented the seller and developer, Ferguson Properties and Foresight Real Estate, in the sale of the single-tenant, net-leased Starbucks Drive-Thru and Café. The buyer, a private 1031 exchange investor from Southern California, was represented by John Martin, a senior vice president and principal with Lee & Associates in Ontario, California.
The new 2,312-square-foot Starbucks, featuring both a café and drive-thru, was completed in 2024 on a 0.59-acre parcel at 3101 SW 7 Highway. According to Lefko, the 12-year, triple-net, corporate-guaranteed lease (Nasdaq: SBUX) includes an 8% increase in year eight of the initial term, with four five-year renewal options featuring 7.5% increases. Starbucks is the world’s largest coffeehouse chain, with more than 40,000 locations worldwide.
