Commercial real estate investor Brain Group recently purchased a three-building office complex in Overland Park, near Interstate 435 and Metcalf Avenue, for $22.8 million. At 81-percent leased, the building is a bit below the submarket average of about 91 percent, according to commercial real estate services firm JLL.
“They’re well-positioned for a value-add,” said Andrew Brain, a company co-principal.
Called Executive Centre I, II & III, the assets total 222,426 square feet situated on 14.1 acres. Tenants in the buildings include Lockton Companies, FedEx and Medtrack.
The previous owner was Onward Investors, based in Minneapolis, which renovated the buildings in 2016.
Brain does not plan a major overhaul of the properties, and is putting together a marketing package for prospective tenants. Company executives are targeting small and medium-sized businesses that are price conscious. Office rents in South Johnson County average $23.35, the highest in the metro area, and are rising steadily, according to JLL, which represented Onward in the transaction.
“We’re safe here,” said Brain Co-Principal Chad Sneed. “Once we get to 90 [percent leased], I don’t think we drop below that over the next 10 years.”
Brain owns a handful of assets in Kansas City, including the Plexpod Westport Commons share-office complex in Midtown on 39th Street, in the former Westport Junior High School. Sneed says the company is looking for more purchases, but it is a very competitive market for buyers right now.