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Northmarq Capital LLC Arranges $29M in Financing for Two MF Properties

27 Sep 2013, 9:54 pm

By Gabriel Circiog, Associate Editor

Northmarq Capital LLC recently announced that Senior Vice President and Managing Director of the company’s Kansas City regional office Greg Duvall has arranged $29 million in financing for two multifamily properties: 302 Cabana Boulevard in Panama City, Fla. and Waterford Place Apartments in Overland Park, Kansas.

Located at 11220 West 108th Street in Overland Park, Kansas, Waterford Place Apartments is a 192-unit, market-rate multifamily property. NorthMarq arranged the refinancing for the borrower through its relationship with a correspondent life company lender. The refinancing was based on a 20-year term and a 20-year amortization schedule.

In other local news, The City of Springfield recently launched a campaign to build a roadside park celebrating the city’s history as the birthplace of Route 66. The City Council has unanimously approved the use of $100,000 in fund balance reserves from the ¼ cent Capital Improvement Sales Tax Fund to kick-start the development.

The City has partnered with locally-based Crowdit to crowdfund the most important elements of the roadside park. The crowdfunding project will go live at the kick-off party which will take place on Oct. 2. The first fundraiser will aim to cover the construction costs on a re-creation of the iconic Red’s Giant Hamburg sign. Other projects include a relocated motor court cottage with restrooms and a sign replica; a filling station replica, vending machines and visitor information; and a Birthplace of Route 66 sculpture.

For further information on the revitalization project visit: www.crowdit.com/route66sgf

Photo Courtesy of: www.waterfordplaceaptskc.com

Lenexa City Council Approves 203-Unit Apartment Project in Lenexa City Center

6 Sep 2013, 11:33 pm

By Gabriel Circiog, Associate Editor

The City of Lenexa recently announced the addition of The Domain at City Center as part of their growing vision for the Lenexa City Center. The Lenexa City Council gave preliminary plan approval for the new 203-unit luxury apartment building at their recent meeting.

Located on the southwest corner of 88th Street and Penrose Lane, the new development will feature a mix of efficiency, one-bedroom and two-bedroom units with structured parking. The new construction will also feature a clubhouse with massage, tanning and personal training options for residents.

“We are pleased to see this project move forward,” said Beccy Yocham, director of community development for the City of Lenexa. “The Domain will exemplify the type of high-quality urban development that is a hallmark of Lenexa City Center and will give folks who want to live, work and play in this unique and exciting environment an exciting opportunity to do so.”

Terry O’Leary and Steve Coon, principles of ePartment Communities LLC, a company specializing in developing lifestyle-oriented residential communities and mixed-use developments, commented: “We are committed to providing a much needed mid-rise residential product type to the Kansas City market that provides amenities and finishes necessary to change our customers’ perception of leasing. Our residents of all ages look forward to coming home to a community where all their lifestyle needs are met, from concierge services, exercise facilities and the adjacency to other services within walking distance. Lenexa City Center will provide what our customers are looking for.”

The new residential project is scheduled to break ground in spring 2014, and the first phase of the development is expected to open approximately 15 month later. The construction is expected to be completed in approximately 18 to 20 months.

The Domain at City Center now joins other new developments at Lenexa City Center, including, as previously reported by Multi-Housing News, The Residences at City Center, a $64 million luxury apartment project. Other developments at Lenexa City Center include Renner89@City Center Lenexa, B.E. Smith’s headquarters and the ongoing construction of Perceptive Software’s headquarters.

Mazuma Credit Union Invests $15.9M in New Corporate Headquarters

6 Sep 2013, 11:26 pm

By Gabriel Circiog, Associate Editor

Mazuma Credit Union has broken ground on its new corporate headquarters in the Shoppes at Deer Creek Woods on the northwest corner of 135th Street and Metcalf Avenue in Overland Park, Kansas.

Officially announced in June, the project broke ground in July. The Kansas City Business Journal reports the new corporate headquarters will represent a $15.9 million investment by the Kansas City credit union. Mazuma’s current headquarters are located on 9300 Troost and will continue to serve as a branch for members in south Kansas City once the Overland Parking building is complete. The new headquarters is scheduled to open in September of 2014.

“We’re growing and our current headquarters no longer offers the space and infrastructure we need to expand,” said Brandon Michaels, president/CEO of Mazuma. “More importantly, we’re responding to the demand for services with the dramatic increase of Members in Johnson County. We’re establishing a presence to better serve our Members and expand services in that area.”

The new 60,000-square-foot building will feature a three-story atrium, a fitness center and a coffee bar. Other features will include a 1,700-square-foot community center available to local residents and a series of uniquely themed “innovation areas.” For this project Mazuma partnered with architecture firm Praxis 3, financial industry experts Level 5 and interior design group Sky Design. “We’re excited to bring Members, Overland Park and Kansas City a fantastic new landmark that everyone will be proud of,” Michaels said.

At the groundbreaking ceremony, Tracey Osborne, president of the Overland Park Chamber of Commerce said: “We’ve been looking forward to this day for a really, really long time. I know there’s a lot of excitement and energy already surrounding this building. This is an important and momentous occasion for the entire metro region.”

Rendering Courtesy of: www.mazumahq.com

Cerner Corp. Enters Agreement to Purchase 237-Acre Bannister Mall Site

13 Aug 2013, 5:13 pm

By Gabriel Circiog, Associate Editor

Cerner Corp., one of the world’s top healthcare software developers, recently announced that it has entered into an agreement to purchase approximately 237 acres of land on the site of the former Bannister Mall, in the Three Trails Crossing region.

The company plans to use the site to accommodate its expected growth. Currently Cerner employs 2,866 associates at its Innovation campus and has a total of 8,794 employees in the Kansas City metropolitan area. The new site aims to be an extension of the nearby Innovation campus, and it could potentially house between 12,000 and 15,000 additional associates upon build-out.

The magnitude of the construction would be based on Cerner’s growth and would occur over an extended period. The company anticipates that the extended campus would feature an on-site daycare center, a clinic for associates, fitness facilities, food service and training spaces. Depending on the needs of the company, it could also house data centers. Cerner could also make available a portion of the site for retail, restaurant or hotel development.

Commenting on the announcement, Kansas City Mayor Sly James said: “This is a great step forward for the former Bannister Mall site. South Kansas City has been on an impressive forward trajectory in recent months, but this site has remained an issue. Redeveloping the Three Trails Crossing region into a Cerner property will turn that area into a beacon of innovation. Cerner is a valuable community partner and I deeply appreciate the company’s commitment to our City. We look forward to working with Cerner to finalize a plan soon.”

“From Day One, my administration has pursued proven, fiscally responsible policies to make Missouri a more attractive place for high-tech, high-growth companies like Cerner to invest and expand,” Missouri Governor Jay Nixon said. “Today, we continue to see the results of this approach paying real dividends for communities in Kansas City and across our state. My administration will continue to work with Cerner and local officials as plans for this transformative project proceed.”

In other local news, IBC North America and Clean Tide Container are set to co-open a new facility in Chillicothe to manufacture and refurbish intermediate bulk containers. The sister companies will invest over $5 million in the new 50,000-square-foot facility, an expansion project which will create 87 new jobs.

“The entire Kansas City region celebrates this announcement today along with the addition of more than 80 skilled manufacturing jobs,” said Bob Marcusse, president and CEO, Kansas City Area Development Council. “American manufacturing is alive and well, and the KC region is an ideal location for the industry to grow.”

Photo Courtesy of: laflaneuse via flickr.com

Resource Real Estate’s REIT Enters Agreement to Acquire Another REIT’s Portfolio for $52.7M

30 Jul 2013, 9:53 pm

By Gabriel Circiog, Associate Editor

Resource Real Estate Opportunity REIT, a non-traded real estate investment trust sponsored by Resource Real Estate Inc. recently announced that it has entered into an agreement and plan of merger to acquire Paladin Realty Income Properties L.P.

Paladin Realty Income Properties is the operating partnership through which Paladin Realty Income Properties Inc., a non-traded REIT that focuses on multifamily investments, owns its real estate investments. Excluding closing costs and subject to some price adjustments, the merger consideration has been agreed upon at $52.7 million.

Paladin Realty Income Properties at the moment owns equity interests with certain priority rights in 12 different real estate joint ventures with operating partners. One of the properties owned by the joint ventures is currently under contract to be sold before the close of the merger. The assets which will be purchased by Resource Real Estate Opportunity are expected to consist of 10 multifamily assets with a total of 2,513 units and two office properties featuring 75,518 rentable square feet. The properties include Hilltop located at 6700 East 87 Street in Kansas City, Mo.; Pheasant Run located at 1102 North East Independence Avenue in Lee’s Summit, Mo.; and Retreat at Shawnee located at 11128 West 76th Terrace in Shawnee, Kansas. Other multifamily assets include Champion Farms (Louisville, Ky.), Fieldstone (Woodlawn, Ohio), Coursey Place (Baton Rouge, La.), Pines of York (Yorktown, Va.), Stone Ridge (Columbia, S.C.) and Conifer Crossing (Norcross, Ga.). The two office buildings are Two and Five Governor Park in San Diego.

Resource Real Estate Opportunity will own all of Paladin Realty Income Properties’ interests in the joint ventures and will own a majority interest in nine of them upon completion of the merger. At the moment Resource Real Estate Opportunity and its affiliates oversee around 27,000 multifamily units.

Photo Courtesy of: www.rentpheasantrun.com

Holland 1916 Inc. Relocates to Liberty, Mo.

19 Jul 2013, 9:53 pm

By Gabriel Circiog, Associate Editor

Holland 1916 Inc., a private company that is corporate parent for five manufacturing companies, has recently announced it will relocate its corporate headquarters and three of its companies to Liberty, Mo.

Mike Stradinger, CEO of Holland 1916, said: “We needed a facility that could accommodate future growth, provide a more attractive work environment for our current employees and become a centerpiece of future marketing efforts to new customers and new employees. After an extensive search, we determined that the Liberty facility best accomplished those goals.”

The company has leased a 95,000-square-foot facility at 2901 Heartland Drive in the Heartland Meadows Industrial Park and plans to start operations at the new location in August. Holland 1916 Inc. was represented by Patrick J. McGannon, SIOR of Kessinger/Hunter & Co. The owner of the building, Monmouth Real Estate Investment Corp., a public REIT, was represented by Dan Jensen, SIOR and Michael Watson also of Kessinger/Hunter & Company.

The Missouri Department of Economic Development, the City of Liberty and LEDC came up with a strategic economic incentive package to assist Holland 1916 with its expansion. “This move signifies a lot of effort and collaboration among many partners including LEDC, the city and the state,” said Rick McDowell, LEDC executive director. “LEDC is pleased to welcome Holland 1916 Inc., along with the 62 new jobs it brings to Liberty.”

Besides the corporate headquarters relocation, the company will also move its manufacturing operations for Holland Interface Solutions Inc., Holland Integrated Metal Solutions Inc. and Osprey Evaporation Technologies LLC. Holland will keep the other two subsidiaries, Holland Nameplate Inc. and Holland RFID Inc., in North Kansas City, Mo.

Photo Courtesy of: www.mreic.com

Hunter Hotel Advisors Closes on Sale of Holiday Inn Express; Blue KC Announces First Live Blue Center in Zona Rosa

25 Jun 2013, 9:46 pm

By Gabriel Circiog, Associate Editor

Hunter Hotel Advisors recently announced the firm closed on the sale of the 84-guestroom Holiday Inn Express & Suites Wichita Airport in Wichita, Kansas.

Located just north of Wichita Mid-Continent International Airport, on West Kellogg Avenue and just west of Interstate 235 and downtown Wichita, the 5-year-old Holiday Inn Express & Suites Wichita Airport is conveniently situated close to numerous companies in the aviation sector and close to several regional attractions such as Town West Mall, Botanica Gardens, Museum of World Treasures and Exploration Place.

Hunter represented TNJ Group as the seller, and arranged the sale of the asset to KAJ Hospitality who also owns two other IHG properties in the local market. Marilyn Cox, vice president of Hunter Hotel Advisors, said: “This is a strong performing asset that is positioned to reap the benefits of the strengthening Wichita economy.”

In other news, in Kansas City, Blue Cross and Blue Shield of Kansas City (Blue KC) has announced the launch of the Live Blue service mark, an innovative center which will focus on wellness and education. The first Live Blue center is scheduled to open on Aug. 1 in Zona Rosa, and the company expects to finalize and open a second location in Prairie Village this fall.

“Blue KC is taking our leadership position in health and wellness to the next level with Live Blue,” said David Gentile, president and chief executive officer, Blue Cross and Blue Shield of Kansas City. “Live Blue is a tangible example of our dedication to help the Kansas City community be inspired, be informed and be well.”

The nearly 4,000-square-foot space will include a multipurpose room for seminars, fitness classes and a hospitality area for demonstrations on healthy eating. A dynamic calendar wall will also be displayed with details of the Live Blue offerings as well as runs, walks and healthy lifestyle events occurring throughout the community.

Block Plans $100M Industrial Development on Agricultural Site

4 Jun 2013, 3:17 pm

By Gabriel Circiog, Associate Editor

Block Real Estate Services Inc. recently closed on the purchase of a 118.5-acre Lenexa site which is set to be transformed into a $100 million industrial development.

The Kansas City Business Journal reports Block Real Estate Services Inc. has closed the $4.6 million sale for the buyers, Renner 113 Associates, a partnership led by Block which includes investment partner Chymiak Logistics LLC. The former agricultural land, located on the west side of Renner Road north of 113th Street, was sold by Busch Farms. Ken Block, Michael Block and Lou Serrone of Block Real Estate Services Inc. represented the buyers.

The L-shaped site will be developed into the Lenexa Logistics Centre, which is expected to feature over 1.6 million square feet of industrial space. The project will be built in two phases. A roughly 80-acre phase will have frontage on 113th Street and Renner Road. and a 40-acre phase will have frontage on College Boulevard.

Principal with the firm, Michael Block, told the journal that construction of the first building within the project, which will cover 260,000 square feet, is set to start in July. Occupancy is scheduled for May or June 2014.

The building was set to be built on a speculative basis but Michael Block revealed that they have already received several proposals, including one for the whole construction. The first building of the project could turn into a build-to-suit.

The project plan calls for the construction of a total of 10 buildings, including some build-to-suits and some specs. The buildings will range in size from 72,000 square feet to 350,000 square feet.

PQ Corp. Invests $120M in Kansas City Plant Expansion

18 May 2013, 2:38 am

By Gabriel Circiog, Associate Editor

PQ Corp. recently announced plans to invest $120 million in the expansion of its chemical plant in Kansas City, Kansas. The expansion would add between 40 and 50 jobs to the 100 existing jobs.

The Kansas City Star reports the Pennsylvania-based company held a ceremonial groundbreaking with Governor Sam Brownback and other state and local officials in attendance. Design and engineering work has already started at the plant located at 1700 Kansas Avenue. Construction is expected to be completed by the end of 2014.

PQ Corp. has several other manufacturing plants across the country but said it chose the one in Kansas City, for expansion due to its dedicated workforce, existing infrastructure and the strong backing it has received from the state. The investment demonstrates the company’s commitment to Kansas, Wyandotte County and the Kansas City area.

Business incentives for hiring additional employees and sales tax incentives for capital construction purchases to be used in the expansion were received as economic development aid from the state. The State and local governments will also offer around $25 million to the company in grants, loans and training costs. State officials said they expect to recover their investment in the next two years.

Based in Malvern, Pennsylvania, PQ Corp. produces inorganic specialty chemicals and engineered glass materials.

In other local real estate news, The Kansas City Star reports a record $115 million in construction activity was reported in April by Overland Park city officials. Around two-thirds of the total was due to a significant increase in residential construction activity with $59 million in apartment construction and $17 million in single-family housing.

Logo Courtesy of: www.pqcorp.com

Lenexa City Council Approves $64M Luxury Apartment Development for City Center

22 Apr 2013, 4:30 pm

By Gabriel Circiog, Associate Editor

A new luxury apartment project has been approved by the Lenexa City Council for the City Center mixed-use development.

The Kansas City Star reports the $64 million development project, which was previously turned down after a 5-to-3 vote from the planning commission, will go ahead as the Lenexa City Council decided against the recommendation of its planning commission. The commission initially rejected the proposal due to concerns regarding its density and the effect it will have on traffic.

The project, dubbed as the Residences at City Center, will feature a total of 306 units in the first phase, out of which 168 will be one-bedroom apartments and 138 will be two-bedroom units, in four- and five-story buildings. Located on a 28-acre site northeast of 87th Street Parkway and Renner Boulevard, the development is being built by Block Real Estate Services. With an additional 246 units planned for the second phase, the project will end up delivering a total of 552 units targeting young professionals and empty-nesters. The new apartment project will also include covered parking, outdoor fireplaces, elevator access and a center green space.

According to the newspaper, the city community development director, Beccy Yocham, said the council considered the project will fit with the strategic plan for City Center. She also mentioned that the city planning staff recommended its approval.

The City Center project has made significant progress recently after Perceptive Software moved its headquarters there from Shawnee last year. Lenexa approved $11 million in tax increment financing for the $50 million headquarters development and up to 1,000 employees are expected to work there upon completion of the building. Other recent activity at the City Center includes the leasing of office space by B.E. Smith in a four-story existing building. Grand Street Café also announced it was opening on the first floor. Another 20,000-square-foot office and retail building is also planned along with a major civic center which will include a recreation and fitness center as well as an auditorium.

For more market data from Kansas City, click here.

Rendering Courtesy of: www.lenexacitycenter.com

Gladstone Announce $28M Mixed-Use Project to be Developed by Flaherty & Collins

5 Apr 2013, 9:41 pm

By Gabriel Circiog, Associate Editor

Gladstone officials have announced plans for a $28 million apartment-retail project in downtown Gladstone. The project is set to be developed and managed by Indianapolis-based Flaherty & Collins Properties, The Kansas City Star reports. The development will include 222 market-rate apartments, 10,000 square feet of retail space and a 272-space interior surface parking lot.

The apartment development, dubbed the Heights at Linden Square, is part of a plan undertaken by Gladstone officials to build a new city center in the area which already includes a two-story office building. The office buildings are set to open in June, and will include the North Kansas City Schools Natatorium and the Gladstone Community Center. The apartment project’s site is located at the southeast corner of North Locust Street and Northeast 70th Street, an area referred to by local officials as Linden Square.

Around 50 percent of the apartments at the Heights at Linden Square will be one-bedrooms; 26 percent two-bedrooms; 5 percent studio units; and the balance will be two-level, two-bedroom units which will also include attached garages.

The mayor said a Chapter 100 incentive, with a 25-year property tax abatement on the project, is being provided to the developer. The city will issue bonds to finance the development, which will be repaid by the developer. The developer will also invest around $3 million in infrastructure works for the apartment project, including streets and sewers improvement. Construction is scheduled to start in the summer, and the first apartments are expected to be finalized and ready for occupancy in 2014.

For more market data from Kansas City, click here.

Rendering Courtesy of: www.flahertycollins.com

Olathe’s Mayor Announces Plans for New $51M Embassy Suites Hotel and Conference Center

8 Mar 2013, 10:16 pm

By Gabriel Circiog, Associate Editor

Olathe’s Mayor Michael Copeland announced, at his State of the City Address at the Holiday Inn Olathe Hotel, plans for a new $51 million Embassy Suites Hotel and Conference Center.

The Kansas City Business Journal reports the Olathe City Council is set to vote on a preliminary development plan with developer Heart of America Group. The Moline, IL-based developer came up with the plan shortly after the Olathe City Council terminated a development agreement with John Q. Hammonds Hotels due to the fact that their affiliate, JQH-Olathe Development LLC, informed city officials it could not obtain financing for the project.

Located in the Corporate Ridge Office Park, at the southeast corner of Kansas Highway 10 and Ridgeview Road, the Olathe Embassy Suites Hotel and Conference Center could be up to 10 stories tall, according to the proposed pre-development agreement. The proposed 200-room, 175,000-square-foot hotel will feature a swimming pool and fitness center, a high-end restaurant and lounge, as well as a business center. The development also plans to include a 22,000-square-foot conference center with a seating capacity of between 750 and 1,000 people in the main ballroom.

An estimated $19.6 million or 38.4 percent of total project costs in tax increment financing and community improvement district revenue would be redirected to the project. The proposed TIF plan could redirect incremental property taxes, 100 percent of the City’s 1 percent sales taxes and 100 percent of transient guest taxes. The reimbursement would occur on a pay-as-you-go basis semi-annually, after payment of specials. A CID would raise sales taxes 2 percent in the district boundaries and the city would issue up to $12 million GO CID special assessment revenue bonds. The City could also issue industrial revenue bonds to permit sales tax exemption on building materials and equipment purchases.

If the proposed development calendar is approved, the Embassy Suites Hotel and Conference Center could open within two years of construction start.

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

Photo of Holiday Inn Olathe Hotel Courtesy of: www.ichotelsgroup.com

UMKC to Add First Student Housing to Hospital Hill Campus

9 Feb 2013, 2:08 am

By Gabriel Circiog, Associate Editor

The first student housing project for the Hospital Hill Campus was recently green lighted by The Board of Curators of the University Missouri System. The panel voted to allow the University of Missouri-Kansas City to issue bonds and request proposals from developers.

Located near the intersection of 25th and Holmes streets, the Hospital Hill Campus includes UMKC’s Schools of Dentistry, Medicine, Nursing and Pharmacy. UMKC Chancellor Leo E. Morton said in a press release that student housing near the Hospital Hill campus would help the university’s efforts to grow enrollment in its health professions schools as well as boost other life-science-related activities in the area.

“About 3,000 students are in our Schools of Dentistry, Medicine, Nursing and Pharmacy, and we need to grow that enrollment to help meet the growing need for healthcare workers,” Morton said. “Already there are more healthcare jobs than there are qualified people to fill them, and that deficit will grow. We know that 60 percent of our graduates stay in the metro area to practice, so this project will help us attract and retain top talent for the benefit of the region.”

The housing project calls for around 245 beds in an apartment-style design. The development also plans to include a dedicated parking structure which would feature 196 parking spaces. Developers have until March 5 to submit their proposals, according to Bob Simmons, UMKC associate vice chancellor of facilities. The student housing facility is expected to be LEED certified. The addition of student housing is expected to aid in the redevelopment of the surrounding neighborhoods. City leaders also expect it to attract numerous stores and restaurants which would give UMKC students a more diverse campus experience.

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

Logo Courtesy of: www.umkc.edu

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

25 Jan 2013, 10:47 pm

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

11 Jan 2013, 9:21 pm

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

18 Dec 2012, 4:55 pm

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.

For more market data from Kansas City, click here.

Westside Housing Announces Plan to Redevelop School Buildings into Affordable Housing

26 Nov 2012, 11:14 pm

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

12 Nov 2012, 10:40 pm

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

29 Oct 2012, 5:58 pm

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.

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

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

12 Oct 2012, 10:02 pm

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

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