How Midwest CRE Advisors Identified Value in a Secondary Market and Negotiated a Discounted Office Acquisition in 54 Days
Case study: acquisition of a 2,920 SF office building at 11516 Crestwood Drive in Basehor, Kansas.
When a small office building in Basehor, Kansas hit the market, most buyers overlooked it.
The property was located outside of the primary Kansas City submarkets, in a secondary corridor that many investors and owner-users tend to dismiss in favor of more recognizable locations like Overland Park or Lenexa.
At the same time, the asset itself didn’t fit the profile of what many buyers were actively chasing. It wasn’t a large institutional building, it wasn’t newly constructed, and it wasn’t fully turnkey.
As a result, the opportunity sat in a category that many market participants avoid.
But those same factors created the opportunity.
While others focused on perceived drawbacks—location, size, and condition—we focused on fundamentals, usability, and pricing relative to market inefficiencies.
Rather than competing in saturated submarkets, we identified a path to value where competition was limited.
Inside a Kansas City Office Acquisition: 11516 Crestwood Drive Sale Overview
Identifying Opportunity Where the Market Sees Obstacles
The biggest challenge with this transaction was perception.
Many buyers dismissed the opportunity based on three assumptions:
In reality, those assumptions created a gap between perception and value.
The property was located within a short drive of the Kansas City metro, offering accessibility without the pricing pressure of primary submarkets. At the same time, its size made it highly efficient for an owner-user—particularly a service-based business that didn’t require a premium location to operate successfully.
Instead of viewing the property as a drawback, we viewed it as a strategic positioning opportunity.
Structuring the Acquisition Through Strategy, Not Competition
As the deal progressed, the distinction between our approach and the broader market became clear.
Many buyers approached the transaction with conditions:
We approached it differently.
Our strategy focused on:
By removing uncertainty and presenting a clean, executable path to close, we positioned our client competitively without overpaying.
At the same time, we recognized that the property’s imperfections created leverage.
Rather than avoiding those factors, we used them to negotiate.
Negotiating Value Through Market Awareness
The outcome of the negotiation reflected that strategy.
While other buyers focused on what the property lacked, we focused on how those factors impacted pricing.
By aligning the offer with real-world conditions—location, condition, and market demand—we were able to secure a meaningful discount.
For our client, this translated into acquiring a permanent home for her insurance business at a basis that allowed for both operational stability and long-term upside.
Why Secondary Markets Continue to Present Opportunity
This transaction highlights a broader dynamic in commercial real estate.
Primary markets often attract the most attention, which drives pricing and competition. Meanwhile, secondary markets—like Basehor—are frequently overlooked despite offering strong fundamentals for certain users.
For owner-users in particular, these markets can provide:
The key is understanding where perception diverges from reality.
In many cases, value is not found in the most competitive locations—but in the ones others ignore.
Transaction Outcome
Through a disciplined, strategy-driven approach, the transaction was completed efficiently and at favorable terms.
The buyer secured a long-term home for her business at a discounted basis, while the seller achieved a successful exit without extended market uncertainty.
Transaction Results
Considering Buying or Selling in Secondary Markets?
Not all opportunities exist in the most competitive zip codes.
Secondary markets often provide advantages that are difficult to achieve in primary submarkets, particularly for owner-users and strategic buyers.
At Midwest CRE Advisors, we help clients identify where value exists—not just where attention is focused.
If you're evaluating acquisition opportunities or looking to position a property for sale, our team can help you approach the market with a strategy designed to create results.
FAQs About Buying Office Properties in Secondary Markets
Are secondary markets riskier than primary markets?
Not necessarily. While they may have less visibility, they often provide lower entry costs and reduced competition, which can improve overall outcomes.
Why do owner-users benefit from secondary market locations?
Owner-users often prioritize functionality over visibility, making secondary markets a strong fit for cost-efficient operations.
How does property condition impact negotiation?
Properties that are not fully turnkey can create opportunities for buyers to negotiate pricing based on required improvements.
What creates leverage in a competitive market?
Execution certainty, clear strategy, and data-driven decision making can create a significant advantage in negotiations.
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