Deal of the Week

Eyeing potential along I-49, NorthPoint breaks ground on 148-acre golf course redevelopment

NorthPoint Development officially broke ground Wednesday morning on Southview Commerce Center, a 148-acre flex industrial campus at 16001 S. Outer Road just east of Interstate 49. At full buildout, the redevelopment of the former Southview Golf Course will create an estimated 1,400 jobs with an annual wage impact of $57 million.

“NorthPoint continues to expand its footprint in the Kansas City industrial market and we are pleased to announce our newest business park, Southview Commerce Center. This project shows our focus on investing in parks with great access, labor, and a strong public/private partnership like we have with the City of Belton,” said NorthPoint Development CEO Nathaniel Hagedorn, in a release.

Belton Mayor Jeff Davis noted NorthPoint Development’s success in helping transform communities through the development of quality business parks and thanked the development team for bringing its vision for the abandoned private golf course to the City.

“After sitting vacant for more than a decade, we believe that the redevelopment of the former Southview Golf Course will create new economic opportunity for the next generation of Belton residents,” Mayor Davis said. “The City is eager to continue working with NorthPoint to attract advanced manufacturing, warehouse and distribution operations to our community.”

Southview Commerce Center is master-planned for five state-of-the-art buildings ranging from 235,000 to 622,000 square feet, for a total footprint of more than 2 million square feet. The project’s construction timeline will be market driven based on leasing activity.

NorthPoint plans to invest more than $100 million in the redevelopment project.

“We always say, 'capital goes where capital is welcomed,’ and we feel very welcomed in Belton,” Hagedorn said. “Southview Commerce Center represents a large capital investment from our firm, which in turn will create significant job opportunities for the residents of Belton, Cass County, and the surrounding area.”

At the groundbreaking, NorthPoint Vice President Brent Miles credited the persistence of Belton Economic Development Director Carolyn Yatsook for NorthPoint’s initial interest in the site.

“We believe in Belton, and we believe in this site,” Miles said. “I wouldn’t be standing here today if I hadn’t decided to go to Big Cedar Lodge for Thanksgiving and ended up sitting on I-49 and seeing the site and saying, ‘Well, Carolyn continues to call me every three months, I think I’ll call her back.’ ”

Yatsook said the City has worked hard to create a business-friendly environment that allows developers like NorthPoint and business prospects to have an expedited, hassle-free experience as they move through the approval process.

“We offer a single departmental contact to help guide our development partners every step of the way-from initial consultation through to project delivery,” Yatsook said. “We also recognize that many projects are time sensitive. NorthPoint was able to move from land acquisition to today’s groundbreaking in under six months, which means they will be able to take advantage of this historically strong industrial market.”

Mark Fountain of True North Industrial Realty will lead leasing efforts for Southview Commerce Center.

 

Olathe pioneer spec building sells to investors

The region's first large speculative industrial building at 167th Street and Lone Elm in Olathe has sold to a Dallas investment group. Developed by Kessinger/Hunter, the 600,000+ square foot warehouse and distribution facility at 22101 W. 167th St. in I-35 Logistics Park is fully occupied by FedEx and Bushnell Corp.

Developer Dan Jensen of Kessinger/Hunter saw the current industrial real estate wave coming over a decade ago and worked with Sun Life Assurance to get the building approved, financed and out of the ground.

“This was the first large spec building in our market. It was very rewarding to take this project from an idea back in 2007, through design, permitting, construction, leasing, management and finally sale ten years later," said Jensen, who brokered the building's recent sale to Sealy & Co.

When Jensen first proposed the Lone Elm spec, commercial real estate investment was in a deep freeze. Nonetheless, Jensen persisted and successfully made his case about the potential for growth in Kansas City due to its interstate highway access and central U.S. location. Today, the metro is one of the top 10 industrial markets in the country.

"It is incredible the way the Kansas City metro has exploded with quality big box distribution facilities over the past 10 years. I do not see this slowing down anytime in the near future," Jensen said.

Jensen, meanwhile, continues to ride the wave he helped create. Kessinger/Hunter just announced construction plans for its third warehouse facility in I-35 Logistics Park, a "semi-spec" project that is partially pre-leased. For those keeping track, that brings Jensen's team to just under 2 million square feet of industrial space developed in South Johnson County.

Holliday Fenoglio Fowler, L.P. (HFF) negotiated the sale on behalf of the buyer. Kessinger/Hunter will continue to manage the Lone Elm building.

Burns & McDonnell sets hiring record in 2018, announces $42 million expansion

Burns & McDonnell will build a 142,000-square foot office building and 550-stall parking garage at its Kansas City World Headquarters, a $42 million expansion that will complete the engineering firm’s local campus and grow local employee capacity by 22 percent.

“We are on track to hire 300-400 additional employees in Kansas City this year alone, and 1,000 employees company-wide,” Burns & McDonnell CEO and Chairman Ray Kowalik said. “Lower oil and gas prices have driven growth over the last year, and the economy is strong as a whole.”

Targeted for completion in 2020, Burns & McDonnell will use an integrated design-build approach for the four-story building. VanTrust Real Estate will provide development services for the project, which will be constructed between the existing 9400 Ward Parkway office building and the campus’ parking garage along 95th Street.  

“Our diverse business lines allow us to provide full-service solutions to our clients,” Kowalik said. “Our clients reap the benefits of a quicker and more seamless experience from beginning to end. It’s a model that helps grow our success.”

The new building will primarily include additional employee work stations and conference rooms, adding 780 spots and bringing the campus’ potential headcount to 4,300, according to Brittney Swartz, Burns & McDonnell design project manager.

Sustainability will be a priority, with additional charging stations and a high-tech shade system allowing for energy efficiency through daylight “harvesting.” Conference rooms will have integrated technology and camera systems allowing for quicker, smart meetings with clients across the globe.

Rapid growth in the energy and power transmission markets, as well as public infrastructure, are driving demand for space and creating a race against the clock.

“We will have space problems between now and the opening of the new building,” Kowalik said.

TrialCard expansion caps off bi-state trifecta of customer service operations

TrialCard’s announcement that it will create 225 jobs at a new Northland client service center marks the third large-scale customer support operation for the Kansas City region in less than a month, bringing the total number of new jobs in that sector to just under 1,000.

The pharmaceutical solutions company’s expansion follows insurer EXL’s announcement that it will hire 250 at a new support hub in Lee’s Summit by the end of the year and auto insurer GEICO’s plan to add 500 new jobs at a new Lenexa operation over the next five years.

“The Kansas City region is quickly becoming a popular destination for companies looking for a central location in the U.S., employees with a strong work ethic, and highly efficient customer support operations,” said Tim Cowden, president and CEO, Kansas City Area Development Council. “The entire KC region is attracting new jobs and talent, with companies locating in nearly every corner of the region so far in 2018.”

Cushman & Wakefield represented TrialCard in its 23,000-square foot operation in the Kansas City Business Center, 2001 NE 46th St. Keith Baker and Matt Eckert of CBRE represented the landlord in the transaction.  

"We’re excited to see an employer bring over 200 jobs to Kansas City, but the people that are aware of the entrepreneurial culture in this city aren’t surprised companies want to be here," said Cushman & Wakefield Managing Principal Mike Mayer.

"You look at the rapid growth of local companies like Spring Venture Group, Mediware, and Cerner, but also smaller startups like Blooom, C2FO, Lead Bank, Charlie Hustle, Orbis Biosciences-- and a lot of other companies that people might not have heard of but have certainly caught the interest of investors and major companies around the world-- and you recognize Kansas City is a great place to do business.  Part of that is the city, but a bigger part is the people and the culture," Mayer added.

Indeed, North Carolina-based TrialCard cited the region's diverse, highly-educated workforce, an affordable cost of living and numerous cultural amenities as reasons it found Kansas City to be a very desirable place to live and work.

“We are pleased to be expanding into Kansas City, a vibrant community made up of thousands of small businesses, tech start-ups, and top-notch health care," said TrialCard President and CEO Mark Bouck. 

Photo courtesy: TrialCard

USFP forms new property management partnership

Longtime commercial real estate veteran Michael T. Lanning is partnering with US Federal Properties (USFP) to oversee its property management portfolio. USFP acquires, develops, finances and manages properties primarily leased to the U.S. federal government.

Lanning will lead US Asset Services, a newly formed entity that has acquired USFP's Class A portfolio of 35 properties representing more than two million square feet in 14 states.

"We worked with Mike for 12 years at CBRE and have continued to maintain a great relationship with him over the years," said USFP Principal Rick Baier. 

"This partnership is an opportunity for Mike - who has been with large commercial real estate firms his entire career - to own, manage and develop his own company. It is equally beneficial for USFP since it allows us to focus on our core business of developing commercial properties."

The acquisition and partnership does not affect the development efforts of USFP Principals Rick Baier, Dan Carr, Cathy Baier and Kevin Kelly. Additionally, USFP's sister company, CBC Real Estate Group, will continue its development activities.

"The USFP acquisition gives us a national platform on which to build US Asset Services, which is focused on owners of government-occupied buildings and healthcare real estate," Lanning said. "I'm excited to take the best practice learnings from my 30-year career with large brokerage firms and partner with USFP to leverage its portfolio to service existing and future property management clients."

Anne Lemon, CPM, will join Lanning as Managing Principal at US Asset Services. US Asset Services will retain USFP's Property Management associates and clients and will co-office with USFP/CBC.

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