About Us

Photo

In the News

Wednesday, February 13, 2019
PacSun will close Olathe center; facility goes on the market for $21.75M

  

By: Miranda Davis

Source: https://www.bizjournals.com/kansascity/news/2019/02/13/pacsun-olathe-distribution-center-closes.html

Pacific Sunwear of California Inc. plans to close its Olathe distribution center and will relocate its operation to Ohio in the wake of its consolidation with Eddie Bauer last year.

The 448,479-square-foot distribution building includes 28,254 square feet of office and sits on about 70 acres at 21800 W. 167th St., near Interstate 35 and Lone Elm Road.

 

The building is being marketed for sale at $21.75 million or for lease at $3.50 a square foot. Michael Block, a principal at Block Real Estate Services LLC, is handling the transaction.

According to a May 2017 story in the Kansas City Business Journal, an investment group led by Block Real Estate Services bought the PacSun center for about $19.4 million in a sale-leaseback deal.

Michael Block said undeveloped land to the west of the facility could be part of package sale for an additional $3 million.

PacSun plans to be out of the building by May, he said, but it has a long-term lease it remains obligated to if a new tenant or owner is not found.

Built in 2007 for $39 million, the PacSun facility was one of the first major big-box industrial deals in southern Johnson County and helped establish Kansas City as a Midwest distribution hub outside more congested freight capitals as Chicago, Memphis and Indianapolis. The company did not respond to a request for comment.

The company was drawn to Olathe for several reasons, including the state's new-at-the-time property tax exemption on business machinery and equipment, and the potential of what would become a logistics park.

The deal also was sweetened with a 10-year tax abatement by Olathe that expired after 2017. In 2018, the property taxes jumped to $636,341.88 from $347,460.93 in 2017, according to Johnson County property records.

The deal brought 150 jobs to the area, with a potential for more that didn’t materialize. In 2008, the company announced that it was shifting all its distribution to its Olathe facility and shuttered its Anaheim, Calif., property.

In June 2018, private equity firm Golden Gate Capital, announced a merger between two companies within its portfolio: PacSun and Eddie Bauer LLC.

Tags:    Michael Block   Industrial Real Estate Listings   Block Real Estate Services   Commercial Real Estate Listing   Commercial property for sale   Brokerage services in Kansas city   Industrial Spaces   BRES