NorthPoint Development Breaks Ground on $30M Apartment Project at Village West

By Gabriel Circiog, Associate Editor

Ground was recently broken on the Village West Luxury Apartment development, the first residential development in the Village West district. The $30 million upscale apartment project, situated close to the Kansas Speedway, will feature 306 units. According to Nathaniel Hagedorn, president and chief executive of NorthPoint Development, the first apartments are expected to be available by this fall, The Kansas City Star reports.

Located along 110th Street near the Kansas City T-Bone’s stadium, the development will be comprised of six residential buildings and a clubhouse. The height of the buildings will range from four- to five-stories. Around two-thirds of the units will be one-bedroom with the balance being two- and three-bedrooms. Community amenities will include a cardio and strengthening center, yoga and pilates studio, concierge service and a resort-style pool with grilling area and cabanas. Monthly rents will be from $770 to $1,500. Prairie Village-based NSPJ Architects designed the project which is being built by Neighbors Construction. The development is financed by USBank.

Hagedorn told the newspaper that NorthPoint Development is expecting to attract 450 residents and considers the location of Village West Luxury Apartment development to be its biggest asset. Apart from being within walking distance of the CommunityAmerica Ballpark and the Legends shopping center, the gated community is also close to the Cerner office complex which is currently under construction and which is expected to employ 4,000 people.

Village West has managed to attract numerous retailers including Nebraska Furniture Mart and Cabela’s, as well as two large sporting venues: CommunityAmerica Ballpark, home of the T-Bones, and Sporting Park, home of Sporting Kansas City. After more than 10 years since its opening, Village West is adding a residential component to the mix. Heights at Delaware Ridge, a 228-unit market-rate apartment development, is also being built about two miles west of Village West.

For more market data from Kansas City, please click here.

Rendering Courtesy of: www.liveatthelegends.com

Irongate Pays $98M for Kansas City Multifamily Portfolio

By Georgiana Mihaila, Associate Editor

Pursuing its goal of increasing holdings throughout the country, Irongate Realty Partners LLC has recently acquired three multifamily properties in Kansas City for $98.65 million.

The Class A multifamily portfolio consists of three apartment communities composed of 846 residential units and more than 950,000 square feet.

Villas at Carrington Square, Carrington Place and Carrington Park are all luxury communities with a wide array of custom features, including gourmet kitchens with built-in microwaves and black appliances, attached garages with individual driveways and private entries, and walk-in closets.

“We purchased all three of these luxury properties from a local builder,” said Robert Mascaro, vice president of acquisitions for the Irongate platform.  “The deal closed in a single transaction. This is our third acquisition under this brand in the past 14 months for a total of eight properties and 2,115 units, in excess of $230 million in transactions.”

The company, currently looking to increase its portfolio by targeting both A and B+ properties throughout the country, intends to improve upon the operations of the portfolio by establishing a regional presence in Kansas City. According to an official company release, Irongate will focus on maximizing the economics of the properties and will continue to seek additional investment opportunities in the Kansas City market during 2013.

Irongate will also be seeking properties in other markets, including South Florida, Eastern Tennessee, Charlotte, North Carolina, and the coast of South Carolina.

Image: Villas at Carrington Square via ForRent.com

Koch Industries to Build 210K SF Building on Wichita Campus

By Gabriel Circiog, Associate Editor

Koch Industries Inc. recently announced plans to expand its Wichita campus. Following the completion of a feasibility study, the company plans to enlarge its campus located on 37th Street North between Oliver and Hillside, a project which will include the construction of a new 210,000-square-foot office building.

The new three-story building, which will also include a lower level, will be located on the northwest side of the campus. The company, which currently employs over 2,800 people in Wichita and plans to significantly increase that number, will be able to accommodate 745 employees in the new construction.

The free-standing building will connect to the other buildings on the campus via walkways and tunnels. The construction represents the first phase of a long-term master plan to manage the company’s potential future growth. Ground breaking of the new building is scheduled in the fall of 2013, and the ribbon-cutting ceremony is expected in mid-2015. Apart from the office space, the new building will also feature a satellite Café Koch and training space.

The company had planned an expansion since May of this year when it announced it was outgrowing its 1,025,000-square-foot Wichita headquarters. Over the course of the year, Koch has undertaken two projects to design and build out existing, underutilized space on its campus.

“We have more than a dozen Koch companies with a presence here in Wichita,” said Dave Robertson, president and COO of Koch Industries. “Our growth has come about as a result of exciting innovations of all kinds. Our goal is to continue this rate of innovation as well as the pursuit of other opportunities and acquisitions. The result of all this is that Koch will create new jobs in Wichita.”

In order to accommodate the new building and additional parking, as well as possible future growth, Koch is collaborating with the City of Wichita on plans to reroute 37th Street North around one-quarter mile north of its current location. The costs would be fully paid for by Koch.

Locally based Howard + Helmer architecture is the architect of the project and Professional Engineering Consultants is the project engineer.

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Westside Housing Announces Plan to Redevelop School Buildings into Affordable Housing

By Gabriel Circiog, Associate Editor

The Westside Housing Organization has announced plans to transform 5.5 acres housing long-vacant school buildings into a 10-building mixed-use affordable housing development, The Kansas City Business Journal reports.

The announcement was made at a community meeting. Gloria Ortiz-Fisher, the organization’s executive director, said the plan calls for the transformation of the long-vacant Switzer High School and West Junior High located in Kansas City into 98 units of low-income and market-rate housing. The properties have been vacant for over 30 years, and the new mix, 60 percent low-income and 40 percent market-rate, aims to revive the site located along Madison Avenue between 18th and 20th streets.

The Westside Housing Organization has submitted an application to the Missouri Housing Development Commission for an allocation of federal Low-Income Housing Tax Credits. The commission is expected to issue a response by Jan. 1st.

The project is being designed by Kansas City-based BNIM Architects and is set to feature one-, two- and three-bedroom units. Ortiz-Fisher said the development will also feature space for educational facilities and confirmed the Westside Housing Organization has spoken with William Jewell College and the University of Missouri-Kansas City about using the space.

The development would be similar to the low-income housing at the Villa del Sol, located across the street from the proposed site, and would not be a Section 8 or voucher public housing project. Eligible applicants would have to earn at least $1,200 a month but not make more than 60 percent of Jackson County’s median income in order to live in the fixed-income housing.

For more market data from Kansas City, click here.

Logo Courtesy of: www.westsidehousing.org

Investors Purchase Former Time Equities Office Property

By Gabriel Circiog, Associate Editor

City Center Square, one of the largest office buildings in downtown Kansas City, has been acquired by an investment group led by three principals, The Kansas City Business Journal reports. The 30-story office building was under contract for around a month, but a sale price was not disclosed.

Located at 1100 Main Street, the 650,000-square-foot building was bought by Alex Sassoon, a partner in Seattle-based McKnight Realty Partners; Ellie Schwartz, CEO of New York-based The Nightingale Group; and David Werner, a Brooklyn-based real estate investor. The property had been owned by New York-based Time Equities Inc., and the note on the building had transferred to a special servicer.

The listing agents for City Center Square, which is currently 49 percent leased, were Rob Jones and Bryan Johnson of Colliers International. The leasing duties at City Center Square will be handled by Brian Bacon, vice president at CBRE Inc. in Kansas City and Brent Roberts, CBRE first vice president.

Designed by Skidmore, Owings & Merrill LP, City Center Square was built in 1977 in the heart of downtown Kansas City. City Center Square is adjacent to the Sprint Arena and the new Kansas City Live entertainment district. The building is surrounded by parking and offers easy access to Interstate 70, Interstate 35 and Highway 169. The high-rise features various amenities including valet parking, a full-service fitness center, 24-hour security and on-site building maintenance and management.

Overall the Kansas City office market is slowly recovering, according to a recent report released by Cassidy Turley. Although the number of companies expanding, and the sizes of their spaces are significant, the net result is expected to lower vacancy by just around half a point. Cassidy Turley expects it will take Kansas City’s office market some time to return to a healthy vacancy in the low teens.

For more market data from Kansas City, click here.

Chart Courtesy of: Cassidy Turley.

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