Hub Shopping Center 16611-16703 East 23rd Street South Independence, Missouri Drew Quinn CCIM Martin Maguire Lori Fetterling Senior Vice President Senior Research Director Transaction Services +1 816 726 2642 +1 816 556 1102 +1 816 556 1103 [email protected] [email protected] [email protected] Executive Summary The Hub Shopping Center (the “Property”) is a 92% occupied, 160,000 SF retail center in the Kansas City Adding to the potential MSA anchored by Price Chopper ($28.5m sales), the dominant grocer in the market, with upside potential upside for the property, through lease-up of 12,600 SF of remaining vacancy. our discussions with the City of Independence suggest there is a Investment Highlights Total Building Area strong likelihood of an investor being able to create a Community 160,423 SF 1. Dominant Grocer at -2% occupancy cost Improvement District (CID). Assuming a one percent CID, • Price Chopper (AWG) sales of $28.5 Property Address annual revenues generated would • AWG (Associated Wholesale Grocers) has more than 16611-16703 East 23rd Street South, be approximately $300,000. 3,000 locations in 28 states, more than $10BB in sales These funds can be used for Independence, Missouri 64055 Capital Improvements. Please 2. Excellent location at strong intersection with multiple refer to the City of Independence Economic Development Policy for ingress / egress points Strong Demographics more detail. 3. Recent leasing momentum with new Dollar Tree lease Click to view the Independence 4. Upside potential through lease-up of 12,600 SF of Economic Development vacancy Community Improvement District’s Website 25,415 114,380 $70,809 Population within Population within Average house- 5-minute drive 10-minute drive hold income Hub Shopping Center | | 2 Property Summary Location 16611-16709 E 23rd St S, Address Independence, Missouri 64055 Submarket Independence Zoning C-2 - General Commercial The C-2 zoning district is primarily intended to accommodate community and regions serving retail sales and service uses. Building Size and Features Price Chopper - 1972 / 1996 Small shops - 1972 Year Built / Remodeled Firestone - 1990 Burger King - 1990 Dollar Tree - 2021 Building Size 160,423 SF Total Site Area 15.92 acres Occupancy 92% Tenants 11 tenants, 2 vacant spaces, effective 3/1/22 Buildings 3 Parking Spaces 843 Parking Ratio 5.25 Hub Shopping Center | | 3 Location Highlights Population Overview 3-mile 5-mile 2020 Total Population 66,561 146,223 The Hub Shopping Center is located in a densely populated, mature market without the risk of new retail development nearby. The adjoining 2025 Projected Population 67,342 148,278 neighborhoods have established traffic patterns for daytime shopping and Population Change 2020-2025 1.2% 1.4% daily commuters feed directly to the shopping center. Household Income Overview 3-mile 5-mile 2020 Average Income $67,159 $71,013 2025 Projected Average Income $72,191 $77,416 Hub Shopping Center | | 4 Area Map The Hub Shopping Center is in an “in-fill,” mature, densely populated submarket of Independence, Missouri. The 291 Highway and 23rd Street North area is a commercial property hub, KCI Airport surrounded by dense residential development. The area includes schools, apartments, senior housing Liberty and one of the area’s top golf courses, Drumm Farm Golf Club. The Price Chopper grocery is strategically located in the center of all these residential neighborhoods. The small shops and outparcel tenants provide the “daily needs” for the tremendous traffic North Kansas City flow coming to the center from all The Hub Shopping Center directions. Highway 291 & 23rd Street Kansas City, Kansas Kansas City, Missouri Independence Blue Springs Shawnee Raytown Overland Park Olathe Lee’s Summit Hub Shopping Center | | 5 Wide Aerial Site E 23RD STREET E 23RD STREET 30,717 VPD 17,991 VPD 21,345 VPD 14,405 VPD DRUMM FARM GOLF CLUB 291 E R D MIZE ROAD TRUMAN HIGH SCHOOL S LEE’S SUMMIT ROAD BOLGER SQUARE INDEPENDENCE COMMONS WILLIAM YATES ELEMENTARY 57,080 VPD SYCAMORE HILLS ELEMENTARY CENTERPOINT MEDICAL CENTER 221 BEDS S NOLAND ROAD E 39TH STREET 18,962 VPD 22,344 VPD INDEPENDENCE CENTER 67,966 VPD 94,682 VPD 98,074 VPD THE PAVILIONS 23,515 VPD 291 Hub Shopping Center | | 6 Zoom Aerial E 23RD STREET 30,717 VPD 17,991 VPD FUTURE 291 33,922 VPD BETHEL BAPTIST 33,922 VPD CHURCH E R D MIZE ROAD 291 Hub Shopping Center | | 7 Grocery Competition Aerial Site 5-mile 3-mile 1-mile Hub Shopping Center | | 8 Property Demographics Market Households & population Race Overview Hub Shopping Center 146,223 148,278 5 mile radius Current total population 5 Year total population Household & population characteristics White population Black population American Indian population 60,546 61,210 Asian population Current total households 5 year total households Pacific islander population Other race population Education Population of two or more races $53,910 $130,027 65.3% Median household Median home value Owner occupied Business income housing units 9% No 33% high school Some college diploma 35% 23% 40.2 51.9% 48.5% 3,662 46,356 High school Bachelor's/graduate/prof Median age Female population % Married (age 15 graduate degree Total businesses Total employees or older) Annual lifestyle spending Annual household spending Employment $1,860 $62 $69 59% 27% $1,713 $125 $2,990 White collar Blue collar Travel Theatre/operas/ Movies/museums/ Apparel & Computers & Eating out concerts parks services hardware 12.1% $49 $4 $4,293 $4,790 15% Services Unemployment rate Sports events Online games Groceries Health care Hub Shopping Center | | 9 Site Plan 120 140 160 180 100 130 150 170 200 250 300 Suite Tenant SF 400 100 Vacant 8,400 120 The UPS Store 2,834 130 State of Missouri 2,400 500 140 Independence Licensing Office 4,610 North 150 Belle Nail Studio 2,800 160 Independence Family Eye Care 3,492 170 Fantastic Sams 2,165 Vacant 180 (Kansas City Home Medical Supply is current 4,200 tenant but expected to vacate 2/28/22) 200 Cosmo Prof 4,800 250 Dollar Tree 12,000 Price Chopper 300 103,322 (Advance Auto Sublease) 400 Burger King ground lease 2,800 500 Firestone ground lease 6,660 Hub Shopping Center | | 10 Featured Tenants Price Chopper Dollar Tree Burger King Fantastic Sams Discount Superstore Fast Food Grocery Hair Salon dollartree.com bk.com mypricechopper.com fantasticsams.com For more than 40 years, Price Chopper Dollar Tree is a national company Every day, more than 11 million guests In 1974, Sam Ross opened the first has been serving customers the with thousands of stores conveniently visit Burger King around the world. Fantastic Sams beauty salon in freshest food at the lowest price. From located in shopping centers and Burger King restaurants are known Memphis, Tennessee, with the goal of one family-owned store to more than malls. They offer products at extreme for serving high-quality, great-tasting, creating an affordable salon experience 40, Price Chopper has grown and discounts including housewares, and affordable food. Founded in 1954, that was accessible to everyone. Now, evolved to serve the greater Kansas cleaning supplies, snacks and food, Burger King is the second largest fast Fantastic Sams is one of the world’s City area exceptional quality and health and beauty, toys, gifts, party food hamburger chain in the world. largest full-service hair care salons, with outstanding customer service. supplies, stationery, books, decor, and The original Home of the Whopper, more than 1,000 locations throughout more! their commitment to premium North America. ingredients, signature recipes, and family-friendly dining experiences is what has defined their brand for more than 50 successful years. Firestone Tire Company Cosmo Prof firestonecompleteautocare.com Beauty Supplier cosmoprofbeauty.com Since 1926, drivers have trusted Firestone Complete Auto Care to keep Cosmo Prof is an exclusive salon their vehicles running well. Firestone partner with access to 25,000+ beauty is the leading provider of maintenance, supply products salon professionals repairs, and tires. Their services and can purchase at wholesale prices. repairs are backed with a nationwide There are more than 1,200 Cosmo Prof warranty that’s good at each of their stores to shop at, as well as online. more than 1,600 convenient store locations. Hub Shopping Center | | 11 Kansas City Retail Market While consumer confidence has not returned to pre-pandemic levels, it has seen a recent upswing. The recent shift of consumers from services to goods backed the sentiment that retail spending held up much better than expected in 2020. While store sale growth was negative, a major surge in online sales boosted total retail sales by 2.2% relative to 2019. The latest UM consumer sentiment report in March 2020 reached a one-year high index of 84.9, well above market forecasts. The current conditions rose favorably based on the third disbursement of relief payments and momentum related to mass vaccination rollouts. By year-end 2020, Kansas City retail vacancy rates stood at 7.4% within shopping centers, and 5.4% for total retail product. Shopping Center vacancy rates increased 40-basis points relative to this time a year ago, while total retail vacancy increased by 20-basis points from one year ago. Currently, total retail average asking rents stand at $13.62/SF, a slight decline from $13.68/SF at the beginning of 2020. There are many positive indicators beginning to emerge within the retail sector. Most of the retail growth continues to be focused on well-performing suburban submarkets with strong demographics related to population, traffic, and income growth. Several traditional brick-and-mortar retailers opened new locations throughout the Kansas City metro in 2020, while a handful of retail entertainment concepts were delivered.