Investment Offering
Kansas City, MO - Bar K
501 Berkeley Parkway | Kansas City, MO 64120
$4,325,000
Price8%
Cap Rate$346,000
NOI7,650
± SF Offering GLADescription
SRS National Net Lease Group & Evergreen Real Estate Services is pleased to offer the opportunity to acquire the fee simple interest (building on leased land with option for future ownership) in an absolute NNN, corporate guaranteed, Bar K investment property located in Kansas City, Missouri. The tenant will execute a brand new 15-year lease at the close of escrow (sale leaseback) with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease is corporate guaranteed and absolute NNN with zero landlord responsibilities making it an ideal, management-free investment for a passive investor.
Bar K is a unique destination featuring a modern bar, restaurant, event space and dog park. The company has multiple revenue streams including food & beverage, subscription-based Membership fees, guest entry fees, retail and others. With multiple sources of generating revenue, Bar K’s P&L can sustain a 10% rent-to-sales ratio. Furthermore, there are plans to construct a brand new dog daycare/boarding facility on the south edge of the property in the late spring 2021. Despite 215,239 residents, there is extremely limited competition in the surrounding 3-mile area with Bar K being the only dog daycare/boarding options. Daycare/boarding will generate $925K in additional annual revenue. Since its launch in 2018, the establishment has had over 390K visitors along with 275K dogs with an average dwell time of over 2 hours per customer. Built on the banks of the Missouri River, Bar K has embraced green development, repurposing 17 shipping containers for the building structure, installing 24 solar panels, and using recycled turf. The company has plans to expand into other markets by growing to 10 locations in 10 different cities over the next 5 years. Currently the St. Louis and OKC sites are being built. Additionally, the Kansas City Streetcar recently announced plans to expand the rail system to the Berkley Riverfront area. This area is an ideal location to expand to stimulate economic development in an underutilized area of Kansas City. This extension will not only connect downtown to the riverfront, but it will afford numerous other benefits in mobility, improved connectivity, and development. The proposed new rail line will run directly in front of Bar K, providing a direct consumer base to draw from.
Location
Bar K is strategically located with nearby on/off ramp access to State Highway 9 (206,000 VPD), Interstate 29 (103,500 VPD), and Interstate 35/70 (99,400), three major commuter thoroughfares serving the Kansas City downtown area. Additionally, the site is within walking distance to apartment complexes Union Berkley (407 units), Cold Storage Lofts (226 units), as well as 325 “pet-friendly” units currently under construction directly east of the subject property. The 5-mile trade area is supported by more than 215,000 residents and 255,800 daytime employees. Residents within 1 mile of the subject property boast a healthy average household income of $74,300.