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.

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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.

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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.

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Chart Courtesy of: Cassidy Turley.