Amerimar Enterprises Acquires Key Telecom Carrier Hotel in Kansas City

By Gabriel Circiog, Associate Editor

Real estate development, investment and management firm, Amerimar Enterprises Inc. announced it has acquired 1102 Grand Avenue, a fiber-rich building located in downtown Kansas City. Amerimar Enterprises partnered with telecom industry veteran Hunter Newby to own and operate the property.

Situated on the southwest corner of Eleventh Street and Grand Avenue, the 26-story property was originally developed in 1931 as an office building and is listed on the National Historic Registry. Since then, the 194,000-square-foot property has been redeveloped into the most fiber-dense, network-neutral facility in the Kansas City Metro area. 1102 Grand Avenue is considered one of the fastest growing telecommunication hubs in the Midwest. With immediate access to the Axon ring, the fiber optic loop that connects the Johnson County area of the Kansas City Metro with Downtown Kansas City, the building’s location is of particular interest to telecom businesses. The property also offers highly reliable data center operations with its robust power and HVAC infrastructure.

Jerry Marshall, president and chief executive officer of Amerimar said: “1102 Grand fits squarely within Amerimar’s strategy to acquire properties with stable cash flow and the opportunity to add value over time through infrastructure improvements. 1102 is a natural fit for the Amerimar platform, and we’re thrilled to be working with Hunter Newby on yet another telecom property.”

Amerimar Enterprises, which specializes in redeveloping and repositioning real estate assets, has acquired over 50 properties totaling approximately 10.5 million square feet of office, 870,000 square feet of retail, 2,600 residential units and 3,200 hotel rooms since 1993.

For more market data from Kansas City, click here.

Photo Courtesy of: www.facebook.com/1102GRAND

Velocity to Cross State Line to New, 33K-Sq.-Ft., Headquarters in Mo.

By Gabriel Circiog, Associate Editor

The Missouri Department of Economic Development announced the Kansas City, Kansas-based information technology company Velociti is moving its headquarters to Riverside, Mo.

The company, which provides technology deployment services globally, plans to consolidate its primary operations at a new location in Platte County. The move is expected to create 97 new jobs. Chris Pieper, acting director of the Missouri Department of Economic Development, said: “We are thrilled that another high-tech, IT-based company is moving to the Show-Me State.” He added: “This announcement is more evidence of the positive direction of Missouri’s economy under the leadership of Governor Nixon, with thousands of new jobs created in the past two years and an unemployment rate that remains consistently well below the national unemployment rate.”

The Kansas City Star reports the Velocity move is being helped by $1.5 million from Missouri’s Quality Jobs program and $49,500 in recruitment assistance. The firm will leave its 1146 Booth St. quarters. By early next year, it will occupy around 33,000 square feet in a new 175,000-square-foot building, currently under construction in the 260-acre Horizons Industrial Park.

Velociti CEO, Michael Kahn said: “We’ve spent the past year looking at potential spaces on both sides of the state line. While we found excellent facilities throughout the metropolitan area, we believe that the newly constructed Horizons Industrial Park will best accommodate our rapidly expanding call center and state-of-the-art staging and configuration facility, and that its proximity to an international airport will be appreciated by our global and out-of-town visiting customers and suppliers.”

According to the latest figures available, 17,900 new jobs were created during the month of August, taking the total number of new jobs created by Missouri for 2011 and 2012 to-date combined to over 46,000. Velociti is the fourth company in recent weeks to announce crossing the state line. Murphy-Hoffman, a regional truck dealership will move 100 jobs from Kansas City to Leawood. Larson Binkley, an engineering firm, will move 40 jobs from Overland Park to Kansas City, and Hantover Inc., a distributor for the food processing and general manufacturing industries, will move 91 jobs from Kansas City to Overland Park.

Rendering Courtesy of: www.riversidehorizons.com

MAA Acquires 323-Unit Urban Mid-Rise in Kansas City

By Gabriel Circiog, Associate Editor

Memphis, Tenn.-based MAA has acquired Market Station, an upscale urban mid-rise apartment community in Kansas City.

The acquisition of the Market Station property represents the entrance of the self-administered, self-managed apartment-only real estate investment trust into the Kansas City market. MAA currently owns or has ownership interest in 49,687 apartment units.

Located at 240 West 2nd Street in the River Market area, the 323-unit apartment community is just north of the Central Business District in downtown Kansas City and offers easy access to various entertainment venues in downtown Kansas City, such as The Sprint Center, the Power and Light District and Crown Center.

With units ranging in size from 553 square feet to 1,264 square feet, Market Station offers various amenities such as a state-of-the-art fitness center overlooking the Missouri River, a resort style swimming pool with spa and grill stations, a billiards lounge, a gourmet coffee cafe and access gates. Featured indoor amenities include island kitchens, large walk-in closets and private patio and balconies in select units.

Al Campbell, executive vice president and chief financial officer at MAA said: “We are pleased to be expanding our footprint into the well diversified economy of the Kansas City market. We believe this market is a strong addition to our secondary market portfolio and supports our strategy to provide attractive investment returns for our shareholders through capital deployment across both large and secondary markets.”

According to a recent market report released by Cassidy Turley, Kansas City’s apartment market had one of its best performances in years in the first half of 2012. Occupancy and rents increased and the frequency of concessions was down. The metro-average occupancy reached 95 percent at mid-2012, a performance that has not been seen since the end of 2000.

Image Courtesy of: www.marketstationapts.com

Chart Courtesy of: Cassidy Turley

Wichita Mid-Continent Airport Breaks Ground on New Terminal

By Gabriel Circiog, Associate Editor

Ground has been broken on a new 12-gate terminal for Wichita Mid-Continent Airport, The Wichita Business Journal reports.

The new terminal will be built to the northwest of the existing terminal and is scheduled to open in February 2015. Most of the existing terminal, which was built in 1954 and was last renovated in 1989, will be demolished. The project has a total budget of $160 million, out of which $101.5 million is for the terminal construction. Key Construction and Detroit-based Walbridge were awarded the construction contracts and are expected to start excavation and foundation work in about five weeks. Full construction is scheduled to be underway by early November.

Designed by Kansas City-based HNTB, in association with GLMV Architecture, the new 273,000-square-foot terminal will feature two floors. The first floor will be for arriving and departing passengers, ticketing, retail, baggage claim, ground transportation, and airline and operations support. The second floor will feature exhibit space, food venues, retail, security and departure and arrival gates.

Philip Hannon, HNTB senior project manager, said: “The building is designed to reflect the importance of the history and future of aviation in Wichita. The shape of the roof is designed to remind visitors of flight and an aircraft’s wing. Other elements of the design also reinforce this theme, including large naturally lit passenger spaces with generous glazing and skylights that will maintain a link with the outside and its changing sky.”

The project, which is expected to create around 1,250 direct jobs, also calls for a new $40 million parking garage which will be built under a separate contract which is set to go to bid early next year. The construction of the parking structure is expected to start by next summer and to be finalized in about 18 months.

Rendering Courtesy of: www.hntb.com

Chambers Street Properties Acquires 1.1M SF Warehouse/Distribution Facility

By Gabriel Circiog, Associate Editor

Chambers Street Properties, formerly CB Richard Ellis Realty Trust, has closed on the purchase of a 1.1-million-square-foot state-of-the-art warehouse/distribution facility in the Kansas City suburb of Gardner, Kan.

The Maryland self-managed REIT, headquartered in Princeton, N.J., currently owns a portfolio which includes 124 properties spread over three continents, totaling close to 31 million square feet and boasting a 98 percent occupancy rate.

Located within Kansas City’s north-south I-35 freight corridor and close to BNSF Railway’s $250 million railroad-to-truck Intermodal Center which is due to be completed in 2013, the single-story building was developed by LS Commercial Real Estate and completed in 2009. The area also benefits from a KCS rail intermodal and the air/truck intermodal at Kansas City International airport. The facility is the primary U.S. distribution center for the Coleman Co., a subsidiary of Jarden Corp. The property, which is leased until January 2020, has been described as “an excellent facility with a quality tenant in one of the most accessible markets in the U.S.” by Philip L. Kianka, executive vice president and COO for Chambers Street Properties.

The purchase also includes an adjacent 20.3-acre land parcel which is currently zoned for up to around 450,000 square feet of extra warehouse/distribution space. “We look forward to long-term ownership of this asset and the potential to adding further value through the flexibility to develop additional space on the adjacent parcel,” Philip L. Kianka added.

The acquisition was yet another big move in the industrial real estate market in the Kansas City region. As previously reported on this page, Comprehensive Logistics Inc. recently signed a 5.5-year lease for a 517,000-square-foot industrial building located at 5300 Kansas Avenue. The company also leased an additional 120,000 square feet in an adjacent facility.

Photo Courtesy of: www.usrealco.com

Comprehensive Logistics Signs Lease for 517K SF Industrial Space

By Gabriel Circiog, Associate Editor

B.H. Properties LLC announced it has concluded the negotiations to lease a 517,000-square-foot industrial building in Kansas City to Comprehensive Logistics Inc.

Comprehensive Logistics, a third-party logistics provider, has signed a 5.5-year lease for the property located at 5300 Kansas Avenue. The company has also leased an additional 120,000 square feet in an adjacent facility.

BH Properties, a Los Angeles-based commercial real estate investment firm, was represented by Mark Long of Zimmer Real Estate Services, while Howard Moss of Omni Consulting and Jack Allen of Karbank Real Estate Co. represented Comprehensive Logistics.

Bill Hardy, vice president of asset management and leasing at BH Properties, said: “Comprehensive Logistics has been a great local partner for us in the Kansas City market. We were happy to be in a position to accommodate the growth of their successful operation.”

Comprehensive Logistics opened in 2010 and initially had some 40 employees and occupied less than half of its current warehouse space. Long said the new lease represents a change in terms as the company switches to a long-term lease after a series of one-year leases.

According to a recent report released by Cassidy Turley, Kansas City’s industrial vacancy, which peaked at 8.8 percent early in 2011, has dropped to 8.0 percent as of June of this year and is trending down. In the first half of this year the net absorption and construction completions almost equaled all of 2011. Several build-to-suit projects are scheduled to be completed this year which will add at least one million square feet to absorption for the year, making it the most successful year since 2008.

Image Courtesy of: www.bhproperties.com
Chart Courtesy of: Cassidy Turley

LANE4 Lands Two Major Healthcare Tenants for $50M Mixed-Use Development

By Gabriel Circiog, Associate Editor

Two major healthcare tenants will be anchoring the second phase of LANE4 Property Group’s 39Rainbow, a $50 million mixed-use development in Kansas City, Kan.

In the second phase, The University of Kansas Hospital will relocate an inpatient acute rehabilitation center from one of the older buildings on campus to the second floor of the new building. The tenant will occupy 27,800 square feet. Kansas City Transitional Care Center LLC, a subsidiary of Skilled Healthcare Group, Inc., will lease 55,600 square feet on the third and fourth floor to operate a post-acute skilled nursing rehabilitation facility.

The first floor of the new building, adjacent to 17,000 square feet of additional retail and dining space, will offer a common lobby serving both tenants. Additional features include a rooftop terrace for outdoor rehabilitation.

Site demotion is underway, and the 100,000-square-foot second phase is expected to be completed in the fall of 2013. President of LANE4, Owen Buckley, said the building will be designed in a traditional, but Parisian-inspired, style aimed to blend in with the older buildings in the area. Speaking about the two anchor tenants, he said: “We are very excited to attract these two outstanding healthcare providers to our project. We believe it’s a perfect fit for the area and helps complete our overall mixed-use development objectives.”

The first phase of the project, located at the southwest corner of 39th Street and Rainbow Boulevard, near The University of Kansas Hospital and the University of Kansas Medical Center, is already underway and expected to open soon. Phase I of the development features a new 83-room Holiday Inn Express and Suites, as well as a Five Guys Burgers & Fries and other retailers on the first floor

Rendering Courtesy of: www.lane4group.com

Hyatt Plans to Return to Kansas City with 229-Room Mixed-Use Development

By Gabriel Circiog, Associate Editor

Hyatt Hotels Corp. announced plans to re-enter the Kansas City market with a new 225-room luxury hotel near the Country Club Plaza, The Kansas City Star reports.

The Chicago-based hospitality company saw its flagship replaced, after 30 years, by the 730-room Crown Center by Sheraton earlier this year. Mike Daood, vice president of development for Hyatt Hotels Corp., said the company is excited by the chance to come back to Kansas City.

The proposed new Hyatt hotel would anchor an $80 million high-rise development at 4622 Pennsylvania Avenue, currently home of the Victory Court Apartments. The project will be developed by Hyatt and locally based Block Real Estate Services, while the hotel will be operated and owned by Hyatt.

Block Real Estate Services acquired the 37-unit Victory Court Apartments last year. Built in the 1950s, the apartment community will be replaced by a 12-story development which will have a four-level base that will include an 8,000-square-foot restaurant and a lobby on the second floor, as well as two floors of office space. Meeting rooms, a kitchen, a bar and a terrace overlooking the Plaza will be included on the fifth floor, while the hotel rooms will occupy the remaining upper half of the building. The development will also include a 300-car garage.

An official development proposal has been submitted to the Kansas City Tax Increment Financing Commission. According to Doug Stone, attorney at Polsinelli Shughart, who represents the development entity, the exact amount of the tax-increment financing assistance sought for the project has not yet been determined.

The architects are Overland-based Hoefer Wysocki and Wichita-based Law Kingdon.

Logo Courtesy of: www.hyatt.com

UMKC Releases Downtown Arts Campus Studies

By Gabriel Circiog, Associate Editor

The University of Missouri-Kansas City announced it has narrowed down the search for the future location of the Downtown Campus for the Arts to three potential sites.

As previously reported by Commercial Property Executive, the planned downtown art campus, which is set to feature in the first stage a new UMKC Conservatory of Music and Dance, was proposed in the Big 5 Ideas of the Greater Kansas City Area Chamber of Commerce.

The university has commissioned a series of studies, including a study of potential sites and costs, prepared by Integra Realty Resources, Helix Architecture + Design and HGA Architects and Engineers; an economic impact study carried out by the Mid-America Regional Council as well as an internal UMKC analysis on the impact of relocating the arts program to downtown. As a result of these studies the university has identified the Barney Allis Plaza, Crossroads/Kauffman East and Crossroads/Kauffman Southwest as the three possible sites for the new campus.

According to the plans, the second phase of the project would be the phased move of the UMKC Theatre and the Kansas City Repertory Theatre, followed by KCUR Radio and the UMKC Departments of Art & Art History, Communication Studies, and Architecture, Urban Planning and Design.

The project would be phased over a period of 20+ years and, according to the studies, at a cost ranging between $152 million and $272 million. The economic impact study forecasted between $375 million and $442 million in increased Gross Domestic Output over 25 years, compared to what would occur without the creation of the campus.

Photo Credits: www.umkc.edu

Kansas City Council Prepares Hefty Tax Incentive Package to Attract Freightquote.com

By Gabriel Circiog, Associate Editor

The Kansas City Council is preparing a hefty tax incentive package to lure Freightquote.com to cross the state line, The Kansas City Business Journal reports.

The current headquarters of the online shipping company is in Lenexa at 16025 West 113th Street, but Kansas City proposes a $65 million Chapter 100 bond issuance which includes waivers of typical conditions of the city’s policy regarding these incentives.

Freightquote has been the most recent company involved in the bi-state border war since the March announcement that it was searching for a new location. The company has focused its search mainly on the southern metro area, where most of its employees reside, and it has ruled out downtown. Bearing in mind that Freightquote currently employs 960 employees, and it plans to hire another 200 within two years, the end result of the tug-of-war between Missouri and Kansas over the shipping company will represent an important achievement for either victor.

The Kansas City Council has proposed a new 200,000-square-foot building located at Carondelet Drive and State Line Road, near St. Joseph Medical Center, as the new headquarters for Freightquote. The city’s offer would abate 100 percent of incremental increases in real property taxes over 23 years and wouldn’t require any payments in lieu of taxes. Full abatement for 15 years would be given on personal property taxes, with 50 percent PILOT payments starting after five years of the abatement. To make the offer even more attractive, the Tax Increment Financing (TIF) Commission of Kansas City plans to propose a new TIF district for Freightquote that would redirect, for 23 years, 50 percent of economic activity taxes generated at the Freightquote site back to the development.

Besides the economic development incentives package proposed by the city, state-level incentives such as Missouri Quality Jobs, state sales tax exemptions and Missouri Build are also expected to be offered.

The economic development incentive was sponsored by Kansas City Mayor Sly James and council members John Sharp and Scott Taylor.

Logo Courtesy of: www.freightquote.com