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SENSENEY MUSICWichita, Kansas
Offering Memorandum
26,450 Square Foot Single Tenant Retail Opportunity
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NON-ENDORSEMENT & DISCLAIMER NOTICE
CONFIDENTIALITY & DISCLAIMERThe information contained in the
following Marketing Brochure is proprietary and strictly
confidential. It is intended to be reviewed only by
the party receiving it from Marcus & Millichap and should
not be made available to any other person or entity without the
written consent of
Marcus & Millichap. This Marketing Brochure has been
prepared to provide summary, unverified information to prospective
purchasers, and
to establish only a preliminary level of interest in the subject
property. The information contained herein is not a substitute for
a thorough due
diligence investigation. Marcus & Millichap has not made any
investigation, and makes no warranty or representation, with
respect to
the income or expenses for the subject property, the future
projected financial performance of the property, the size and
square foot-
age of the property and improvements, the presence or absence of
contaminating substances, PCB’s or asbestos, the compliance
with
State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business
prospects
of any tenant, or any tenant’s plans or intentions to continue
its occupancy of the subject property. The information contained in
this
Marketing Brochure has been obtained from sources we believe to
be reliable; however, Marcus & Millichap has not verified, and
will
not verify, any of the information contained herein, nor has
Marcus & Millichap conducted any investigation regarding these
matters
and makes no warranty or representation whatsoever regarding the
accuracy or completeness of the information provided. All
potential
buyers must take appropriate measures to verify all of the
information set forth herein. Marcus & Millichap is a service
mark of Marcus
& Millichap Real Estate Investment Services, Inc.
© 2017 Marcus & Millichap. All rights reserved.
ACTIVITY ID Z0050582
NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated
with, sponsored by, or endorsed by any commercial tenant or lessee
identified in this
marketing package. The presence of any corporation’s logo or
name is not intended to indicate or imply affiliation with, or
sponsorship or endorsement by, said corporation of Marcus &
Millichap, its affiliates or subsidiaries, or any agent, prod-
uct, service, or commercial listing of Marcus & Millichap,
and is solely included for the purpose of providing tenant
lessee
information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
DETAILS.
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COMPARABLE PROPERTIESSECTION 3 Lease Comparables
FINANCIAL ANALYSISSECTION 2 Pricing Details • Operating Data •
Rent Roll
TABLE OF CONTENTS
SENSENEY MUSICW I C H I T A , K A N S A S
01
09
PROPERTY DESCRIPTION SECTION 1 Offering Highlights • Regional
Map • Local Map • Investment Overview • Investment Highlights
13MARKET OVERVIEWSECTION 4 21
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This information has been secured from sources we believe to be
reliable, but we make no representations or warranties, expressed
or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any
projections, opinions,
assumptions or estimates used herein are for example purposes
only and do not represent the current or future performance of the
property.
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PROPERTYDESCRIPTION
SENSENEY MUSIC
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Year Built 1972
Square Footage 26,450 SF
Lot Size 2.49 AC
Construction Reinforced Concrete
Assessor APN 128-27-0-24-07-002.00 (Sedegwick County)
Zoning LC / GO
PROPERTY DETAILS
OFFERING HIGHLIGHTS
2300 E. Lincoln St.• Wichita, KS 67211
OFFERING PRICE
$1,900,000
SENSENEY MUSIC
CAP RATE
8.33%PRICE PER SQUARE FOOT
$71.83
400
Broa
dway
Broa
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E Lincoln St
E Harry St
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SENSENEY MUSIC
400
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George Washington Blvd
Was
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E Douglas Ave E Douglas Ave
E 1st St N
E Kellogg Dr NE Kellogg Dr N
E Lincoln St E Lincoln St
E Harry St E Harry St
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REGIONAL MAP
Dwight D. Eisenhower
National Airport
EASTBOROUGHWICHITA
BEL AIRE
DOWNTOWN
400
400
15
400
96
96
96
McConnell Air Force
Base
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INVESTMENT OVERVIEWMarcus & Millichap is pleased to present
2300 East Lincoln Street in Wichita, Kansas. The tenant is Senseney
Music which is a local music store that retails musical instruments
and provides repair services to musicians. Senseney Music has been
in business since 1984 by an experienced music educator. The tenant
provides products and services to not only private parties but also
local school systems. The asset is 26,450 square feet of double net
leased space. The property is a stand alone building that sits on
2.49 acres and is surrounded by parking. 2300 East Lincoln Street
had a new roof installed in 2010, the parking lot resurfaced in
2014 and new boilers installed in 2013. The property is located
just off of East Lincoln Street and less than 1,000 feet from
Interstate-135, making it very accessible for local and out of town
clients.
The building was constructed in 1972 as a build-to-suit for a
financial institution featuring 13,255 square feet on the main
floor with a full finished basement, which also contains a vault.
The asset would be easily divisible to accommodate perhaps four
tenants with the open floor plan. The landlord has minimal exposure
with most of the larger ticket improvements already completed. The
tenant has occupied the property since 1996 and has “fair market
value” escalations in the option periods, creating future upside
potential.
Wichita is a growing mid-western city of 389,000 people and
accommodates the headquarters of numerous nationally recognized
companies and installations including Cessna Aircraft, Koch
Industries, Spirit Aerosystem, Bombardier Learjet, and McConnell
Air Force Base. It is also home of Wichita State University, Kansas
State University, and University of Kansas. Wichita metro is home
to over 8,000 engineers and engineering technicians which is one of
the highest concentrations in the United States. Considering the
100 largest metro areas in the United States, Wichita is number one
in manufacturing jobs on a percent of all jobs; number three in
percent of manufacturing jobs classified as “high-tech” (2014);
number 22 in jobs classified as science, technology, engineering
and math (2013). Money magazine listed Wichita as “one of the best
cities in the United States to live”.
This opportunity is being offered at a 8.33 percent
capitalization rate going in with a 10.72 percent cash-on-cash
return on current financials.
WICHITA, KS RETAIL OFFERING
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► Built-In Upside with “Fair Market Value” Escalations in Two
10- Year Option Periods
► Well Known, Established Local Tenant in Occupancy Since
1996
► Very Accessible Via Interstate-135
► 10.72% Cash-on-Cash on Current Financials
► Several Recent Capital Improvements Already Completed
► Lease is Personally Guaranteed by Tenant
► Contains an On-Site Vault
► Versatile Building, Able to be Converted
► $71.83/SF, a Fraction of Replacement Cost
OUSAM VOLUPTIA CONSEQUISQUE
VOLLITATUR? QUID
GIAM, SAPIENIA SUNDAM FUGITA
SITIBUS ET ES
INVESTMENT HIGHLIGHTS
COX COMMUNICATIONS
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DOWNTOWN WICHITA
SENSENEY MUSIC
KS-135
KS-135
E Kellogg Ave
E Kellogg Ave
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FINANCIALANALYSIS
SENSENEY MUSIC
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PRICING DETAILS
*Loan information is subject to change. Contact your Marcus
&
Millichap Capital Corporation representative.
OPERATING DATA
INCOME 2018 PROJECTED
Scheduled Base Income $168,000
Total Operating Expenses $9,641
Net Operating Income $158,359
Debt Service $88,800
Net Cash Flow After Debt Service $71,287
OPERATING EXPENSES 2018 PROJECTED
Groundskeeping $4,200
Snow Removal $400
Maintenance Expenses $3,361
Management Fee $1,680
Total Expenses* $9,641
Expenses/SF $0.36
PRICE $1,900,000
Down Payment 35% / $665,000
Price Per SqFt $71.83
Rentable Built Area (RBA) 26,450 SF
Occupancy 100%
RETURNS
CAP Rate 8.33%
Cash-on-Cash 10.72%
Debt Coverage Ratio 1.78
FINANCING
Loan Amount 65% / $1,235,000
Debt Service $88,880
Loan Type New
Interest Rate 5.25%
Amortization 25 Years
Term 5 Years
*Tenant pays all utilities (water & sewer, gas &
electric), trash, janitorial, security, taxes and
insurance directly.
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RENT ROLL & TENANT SUMMARY
TENANTSQUARE
FEETLEASE COMM.
LEASE EXP.ANNUAL RENT/SF
TOTAL RENT/MONTH
LEASE TYPE
CHANGES ON
CHANGES TO
RENEWAL OPTIONS
Senseney Music26,450
100%10/1/2007 9/1/2024 $6.35 $14,000 NN - -
Two 10-Year Options at Fair Market Value
Total Square Feet: 26,450 Total Monthly Rent $14,000
Total Occupied Square Feet: 26,450 Total Annual Rent
$168,000
Total Occupancy: 100%
Ab o u t Se n S e n e y Mu S i c
At Senseney Music, the merchandise they carry includes band and
orchestral instruments, guitars and amplifiers, percussion,
acoustic and digital pianos, accessories, and printed music for
choral, instrumental, vocal, piano, and guitar musicians. They
select merchandise from the most respected manufacturers and
publishers in the industry. They also offer music lessons and
on-site instrument repair services.
Founded in 1984 by a music educator, Senseney Music strives to
provide exceptional products and services to musicians of all types
and abilities with a staff containing over 200 years’ experience
who are committed to helping others make music, and enjoy being a
part of the arts community in Wichita and the surrounding area.
They support many professional, educational, amateur, and youth
music and arts organizations with donations, grants, scholarships,
program advertisement, and time.
Their relationship with you is very important. Their success has
been determined by the loyalty of customers who return again and
again. They promise to listen and recommend solutions that will
bring the most value to each purchase you make. If quality,
selection, and a knowledgeable staff are important to you, they
think you will be happy doing business with them.
They provide private music lessons for Percussion, Voice, Piano,
Guitar, Bass, Ukulele, Banjo, Trumpet, Oboe, Flute, Clarinet,
French Horn, Trombone, Baritone, Violin, Viola, Cello, String Bass,
and Theory & Composition.
Their private lessons are taught by their staff of trained and
experienced instructors who are accomplished musicians in their
respective fields. Private lessons are available all year.
Senseny Music has been in the current location since 1996.
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COMPARABLEPROPERTIES
SENSENEY MUSIC
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LEASE COMPARABLES– SUMMARY
SENSENEY MUSIC
MONEY TOWN PAWN SHOP
RANGE 54
HICKERSON FURNITURE GALLERIES
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841-847 S. HILLSIDE DR.4
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E Kellogg Dr N
E Lincoln St
E Harry St
E Mt. Vernon St
E Pawnee St
George Washington Blvd
E Lincoln St
E Harry St
E Mt. Vernon St
E Pawnee St
400
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MONEY TOWN PAWN SHOP2425 S. Oliver St. Wichita, KS
1
LEASE COMPARABLES
AVERAGE RENT/SF $6.35
Occupancy 100%
Available SF 0 SF
Lease Type NN
ADDITIONAL INFO
Year Built 1972
Gross Leasable Area 26,450 SF
SENSENEY MUSIC2300 E. Lincoln St. Wichita, KS
AVERAGE RENT/SF $8.00-$9.00
Occupancy 100%
Available SF 0 SF
Lease Type NNN
Date of Survey 10/4/2018
ADDITIONAL INFO
Year Built 1988
Gross Leasable Area 19,451 SF
Money Town Pawn Shop
KEY TENANTS
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LEASE COMPARABLES
HICKERSON FURNITURE GALLERIES6905 E Harry St. Wichita, KS
3RANGE 545725 E. Kellogg Dr. Wichita, KS
2
AVERAGE RENT/SF $7.00-$8.00
Occupancy 100%
Available SF 0 SF
Lease Type NNN
Date of Survey 10/4/2018
ADDITIONAL INFO
Year Built 1989 / 2015
Gross Leasable Area 20,000 SF
Range 54
KEY TENANTS
AVERAGE RENT/SF $8.00-$10.00
Occupancy 100%
Available SF 0 SF
Lease Type NNN
Date of Survey 10/4/2018
ADDITIONAL INFO
Year Built 1969
Gross Leasable Area 32,600 SF
KEY TENANTS
Hickerson Furniture Gallery
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841-847 SOUTH HILLSIDE DRIVEWichita, KS
4
AVERAGE RENT/SF $10.00-$12.00
Occupancy 100%
Available SF 0 SF
Lease Type NNN
Date of Survey 10/4/2018
ADDITIONAL INFO
Year Built 1940
Gross Leasable Area 4,732 SF
Labor Finders Hillside Family Denstis
KEY TENANTS
LEASE COMPARABLES
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EWMARKET
OVERVIEWSENSENEY MUSIC
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WICHITAOVERVIEW
Boasting a diverse economic base of manufacturing, aircraft,
healthcare and professional services, the Wichita market is
composed
of five counties and supports a population of roughly 649,000
people.
In addition, the metro is growing faster than the national
average, with
gains of more than 21,100 people forecast by 2022. Wichita
State
University also lies within the city limits, enrolling a student
body of
nearly 14,500 in both graduate and undergraduate programs.
METRO HIGHLIGHTS
ECONOMY
DIVERSE MANUFACTURING BASEManufacturers of aviation,
air-conditioners, turf equipment, food products and
telecommunications are active in the metro.
LARGE GOVERNMENT PRESENCEMore than 7,000 workers are employed by
the state of Kansas and the U.S. government, providing a large
contingent of employment to the metro.
EDUCATIONAL CENTERHome to Wichita State University, education is
a key driver of the economy. Public school districts and the
university provide more than 10,000 jobs.
Aviation is a integral part of the economy, with Spirit
AeroSystems, Cessna Aviation and Beechcraft Corp. hiring more than
25,000 workers. Boeing and Bombardier Aerospace also have a
combined 5,500 employees.
Via-Christi Health is one of the largest employers in the
Wichita metro, with more than 10,000 workers on local payrolls.
Numerous other active distribution and manufacturing companies
in the metro include Cargill Meat Solutions, Koch Industries Inc.,
and York International. Together these firms employ approximately
4,000 people.
Several telecommunications firms have established a base of
operations in the market. Both T-Mobile and Cox Communications have
payrolls exceeding 800 positions each.
DEMOGRAPHICS
2017POPULATION:
649KGrowth
2017-2022*:
3.3%
2017HOUSEHOLDS:
251KGrowth
2017-2022*:
4.5%
2017MEDIAN AGE:
35.5U.S. Median:
37.8
2017 MEDIAN HOUSEHOLD INCOME:
$54,700 U.S. Median:
$56,300
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DEMOGRAPHIC SUMMARY
POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection
Total Population 12,260 107,705 236,211
2017 Estimate
Total Population 12,491 110,209 239,316
2010 Census
Total Population 12,220 107,954 235,032
2000 Census
Total Population 12,475 111,127 236,369
Current Daytime Population
2017 Estimate 14,004 144,571 289,747
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection
Total Households 5,406 44,931 98,000
2017 Estimate
Total Households 5,447 45,394 97,805
Average (Mean) Household Size 2.25 2.36 2.38
2010 Census
Total Households 5,301 44,220 95,561
2000 Census
Total Households 5,518 47,200 98,185
Occupied Units
2022 Projection 5,406 44,931 98,000
2017 Estimate 6,075 52,183 108,852
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate
$150,000 or More 2.21% 2.58% 3.71%
$100,000 - $149,000 5.46% 5.24% 7.18%
$75,000 - $99,999 8.03% 6.92% 8.45%
$50,000 - $74,999 17.77% 16.65% 18.53%
$35,000 - $49,999 15.37% 16.08% 15.52%
Under $35,000 51.15% 52.53% 46.63%
Average Household Income $46,093 $45,917 $53,292
Median Household Income $34,186 $33,103 $38,188
Per Capita Income $20,324 $19,329 $22,128
POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection
Total Population 12,260 107,705 236,211
2017 Estimate
Total Population 12,491 110,209 239,316
2010 Census
Total Population 12,220 107,954 235,032
2000 Census
Total Population 12,475 111,127 236,369
Current Daytime Population
2017 Estimate 14,004 144,571 289,747
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection
Total Households 5,406 44,931 98,000
2017 Estimate
Total Households 5,447 45,394 97,805
Average (Mean) Household Size 2.25 2.36 2.38
2010 Census
Total Households 5,301 44,220 95,561
2000 Census
Total Households 5,518 47,200 98,185
Occupied Units
2022 Projection 5,406 44,931 98,000
2017 Estimate 6,075 52,183 108,852
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate
$150,000 or More 2.21% 2.58% 3.71%
$100,000 - $149,000 5.46% 5.24% 7.18%
$75,000 - $99,999 8.03% 6.92% 8.45%
$50,000 - $74,999 17.77% 16.65% 18.53%
$35,000 - $49,999 15.37% 16.08% 15.52%
Under $35,000 51.15% 52.53% 46.63%
Average Household Income $46,093 $45,917 $53,292
Median Household Income $34,186 $33,103 $38,188
Per Capita Income $20,324 $19,329 $22,128
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DEMOGRAPHIC SUMMARY1-Mile Radius
Population
Employment
Housing
Race and Ethnicity
Income
Households
In 2017, the population in your selected geography is 12,491.
The population has changed by 0.13% since 2000. It is estimated
that the population in your area will be 12,260.00 five years from
now, which represents a change of -1.85% from the current year. The
current population is 49.83% male and 50.17% female. The median age
of the population in your area is 32.66, compare this to the US
average which is 37.83. The population density in your area is
3,972.07 people per square mile.
In 2017, there are 5,355 employees in your selected area, this
is also known as the daytime population. The 2000 Census revealed
that 51.80% of employees are employed in white-collar occupations
in this geography, and 48.11% are employed in blue-collar
occupations. In 2017, unemployment in this area is 7.46%. In 2000,
the average time traveled to work was 18.00 minutes.
The median housing value in your area was $78,090 in 2017,
compare this to the US average of $193,953. In 2000, there were
3,019 owner occupied housing units in your area and there were
2,498 renter occupied housing units in your area. The median rent
at the time was $335.
The current year racial makeup of your selected area is as
follows: 69.14% White, 11.89% Black, 0.04% Native American and
2.78% Asian/Pacific Islander. Compare these to US averages which
are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race. People of Hispanic origin make up 22.31% of
the current year population in your selected area. Compare this to
the US average of 17.88%.
In 2017, the median household income for your selected geography
is $34,186, compare this to the US average which is currently
$56,286. The median household income for your area has changed by
9.00% since 2000. It is estimated that the median household income
in your area will be $38,968 five years from now, which represents
a change of 13.99% from the current year. The current year per
capita income in your area is $20,324, compare this to the US
average, which is $30,982. The current year average household
income in your area is $46,093, compare this to the US average
which is $81,217.
There are currently 5,447 households in your selected geography.
The number of households has changed by -1.29% since 2000. It is
estimated that the number of households in your area will be 5,406
five years from now, which represents a change of -0.75% from the
current year. The average household size in your area is 2.25
persons.
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SENSENEY MUSIC
E X C L U S I V E LY L I S T E D B Y
BARRY HIGGINSSenior Vice President Investments
Denver, ColoradoOffice 303.328.2012
[email protected] CO EA 748415
BRANDON PEARSONAssociate
Denver, ColoradoOffice 303.328.2032
Brandon [email protected] CO FA. 100075629
COLBY HAUGNESSSupervising Broker
License 00241410
