New Trails LLC Land Appraisal: Key Insights and Market Valuation
New Trails LLC Land Appraisal: Key Insights and Market Valuation
Introduction
A recent appraisal report by Valbridge Property Advisors evaluates the New Trails LLC land, a 25.08-acre development site located at I-35 and Highway 56 in Gardner, Kansas. The study, commissioned by Old Missouri Bank, determines the market value of the property for loan underwriting purposes.
Key Findings
1. Property Overview
Location: South of I-35 and Highway 56, west of Clare Road.
Size: 1,092,348 square feet (25.08 acres).
Zoning: Agricultural District (A), but planned for higher-density development.
Flood Zone: X (not prone to flooding).
Topography: Level and suitable for development.
2. Market Valuation
Estimated Fair Market Value: $1,910,000 ($1.75 per square foot).
Current Contract Price: $1,743,060 ($1.60 per square foot).
Reasonable Exposure/Marketing Time: 12 to 24 months.
3. Highest and Best Use
Primary Use: Industrial or flex-space development as demand grows.
Alternate Use: Commercial development if rezoned.
Most Probable Buyer: Land developers or speculators.
4. Market Comparison
Eight comparable land sales in the Kansas City metro were analyzed.
Adjusted land values ranged from $1.10 to $2.93 per square foot.
The subject land’s valuation aligns with recent market transactions.
Key Assumptions & Limitations
Extraordinary Assumptions
Access Availability: The report assumes the property has adequate access for development.
Potential Access Issues: Discussions are ongoing with KDOT, the airport commission, and adjacent landowners to secure proper access.
If access is not secured, the valuation may need adjustments.
Hypothetical Conditions
None identified in the report.
The New Trails LLC land is strategically located in Gardner, KS, with proximity to Logistics Park Kansas City (BNSF Intermodal Facility), a major economic hub. While the site is currently zoned for agriculture, its development potential for commercial or industrial use makes it a valuable asset. However, accessibility challenges remain a key factor in realizing its full market potential.
Comparable Land Sales Analysis: How Does New Trails LLC Land Compare?
The New Trails LLC land appraisal included an analysis of eight comparable land sales in the Kansas City metro area. These sales were adjusted for location, size, zoning, utilities, and other key factors to determine the fair market value of the subject property.
➡ Subject Property (New Trails LLC Land) was valued at $1.75 per sq. ft., falling within the range of comparable sales.
1. Key Adjustments and Market Insights
Location Adjustments
Sales in Olathe (Sales #1, #6, #7, and #8) were adjusted downward due to their stronger demand and higher market values.
Sales in Gardner (#2, #4, and #5) were adjusted upward since the area has lower land values but is experiencing growth.
Size Adjustments
Larger parcels typically sell for lower prices per square foot.
The subject land (1.09M sq. ft.) is smaller than many comparables, leading to slight upward adjustments.
Utilities & Access Adjustments
Some comparables lacked full utilities, requiring upward adjustments.
The subject land is assumed to have access, but if that changes, its value could drop.
Zoning Adjustments
Industrial-zoned land (M-2, BP) commanded higher values, while rural/agricultural land (like the subject property) had lower values.
If New Trails LLC land is rezoned for industrial or commercial use, its market value could increase.
2. Market Value Conclusion
The average adjusted sales price was $1.80 per sq. ft., while the median was $1.74 per sq. ft.
Final valuation: $1.75 per sq. ft. → Total land value: $1,910,000.
Development potential is strong, but the biggest risk is access.
3. Key Takeaways for Developers & Investors
Strong Market Growth – Gardner is seeing rising land values, especially near Logistics Park Kansas City (BNSF Intermodal).
Potential for Rezoning – If rezoned for commercial or industrial, the property’s value will likely increase.
Access Challenges – If KDOT or adjacent landowners don’t approve access, development potential could be limited.
Current Pricing is Competitive – The contract price ($1.60/sq. ft.) is below market value ($1.75/sq. ft.), making it a potential bargain for investors.
Economic Drivers & Future Land Trends in Gardner, KS
Gardner, KS, is one of the fastest-growing suburbs in the Kansas City metro area, making it a prime location for commercial and industrial development. The New Trails LLC land sits in a high-potential zone near I-35 and Highway 56, an area experiencing rapid economic and infrastructure growth.
1. Key Economic Drivers
Logistics Park Kansas City (LPKC) – A Major Growth Catalyst
LPKC is a 1,700-acre logistics hub anchored by the BNSF Intermodal Facility, one of the largest rail-to-truck freight transfer points in the U.S..
It has over 14 million sq. ft. of warehouse and distribution space, with Amazon, UPS, and Kubota as major tenants.
Proximity to LPKC increases demand for industrial, flex-space, and commercial land like the New Trails site.
I-35 Corridor – A Distribution Powerhouse
I-35 serves as a major freight corridor, connecting Texas, the Midwest, and Canada.
The Gardner/Olathe stretch has become a prime location for logistics, e-commerce, and manufacturing.
Increased truck and freight activity boosts demand for hotels, quick-service restaurants, and industrial parks.
Rapid Population Growth & Housing Expansion
Gardner’s population grew by 4.89% in 2023, making it the fastest-growing city in the KC metro.
New residential developments along 167th St. and Kill Creek Rd. are increasing local consumer spending power.
This supports demand for retail centers, restaurants, and service-based businesses.
Commercial Developments & Investments
Grata Development is planning a $200 million mixed-use project nearby, including retail, offices, hotels, and apartments.
Several industrial parks have been approved, driving up land prices in surrounding areas.
Potential rezoning of New Trails land from agricultural to commercial/industrial could significantly increase its value.
2. Future Land Trends in Gardner
Increasing Land Values in High-Growth Zones
Industrial land near LPKC has appreciated by 30%+ in the past 5 years.
Retail and commercial land values along I-35 and Highway 56 are rising due to increased demand.
Vacant land near Gardner’s urban center is being rezoned for mixed-use development.
Agricultural to Commercial/Industrial Rezoning Shift
The subject property is currently zoned Agricultural (A), but most land in the area is being rezoned for industrial or mixed-use.
If rezoned, New Trails land could see an immediate 20-30% value increase.
Infrastructure & Transportation Upgrades
Kansas DOT (KDOT) is planning road expansions along I-35 and US-56 to support regional growth.
Potential Clare Road access improvements would directly benefit the subject property’s development potential.
Shift from Large Industrial Parks to Smaller Flex-Space Developments
Demand is growing for smaller industrial parks (10,000-50,000 sq. ft.) rather than massive warehouse centers.
This trend makes New Trails land more attractive for multi-use or flex developments.
3. Investment Outlook for the New Trails LLC Land
Prime Location for Future Development – Near LPKC, major highways, and residential expansion zones.
High Demand for Industrial & Commercial Uses – Perfect for warehouse, flex-space, or retail centers.
Potential for Rezoning & Increased Value – If rezoned, land value could jump from $1.75/sq. ft. to $2.25-$2.50/sq. ft..
Access Issues Need Resolution – Investors should ensure KDOT and adjacent landowners approve access.
Undervalued Contract Price ($1.60/sq. ft.) – Potential investment opportunity below market value.
With Gardner’s rapid growth, the New Trails site is a strong candidate for future development. However, the key factor in its success will be accessibility and rezoning approvals. If these challenges are addressed, this land could see significant value appreciation within 3-5 years.