Deal of the Week

JPMorgan Chase will open full-service bank in former Dean & Deluca space

The former Dean & Deluca space at Town Center Plaza in Leawood, Kan. will find new life as a full-service retail bank, part of JPMorgan Chase's push into the Kansas City market and deeper into Bank of America markets.

The largest bank in the U.S. has signed a lease to expand into the 9,000-square foot former gourmet food purveyor located at the northwest corner of Roe Avenue and 119th Street. An exact opening date is unclear.

Scott K. Miller and Adam Blue of AREA Real Estate Advisors brokered the lease on behalf of the building's owner. The deal comes less than a year after the prime retail outparcel adjacent to Town Center Plaza hit the market.

"We had a lot of interest from premier retailers due to its high-profile location," Miller said. "Everything from restaurants to service retailers and soft goods retailers looked at the space. Ultimately the best fit for everybody ended up being JPMorgan Chase."

Jeff Berg and Coleby Henzlik of Colliers International represented JPMorgan Chase in the transaction.

Last week, JPMorgan Chase announced plans to open its first full-service Kansas City area locations in 2019, with up to 15 branches in the works, according to The Kansas City Business Journal.

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.