Industrial

Farm co-op plows ahead with plans for former Toys R Us building

The vacated Toys R Us Kansas City distribution facility in Lee’s Summit made national headlines when the retailer folded in early 2018. However, brisk demand for large, tenant-ready industrial space meant that the property sold quickly.

“The amount of interest from all over the country was quite impressive,” said Joe Accurso, executive director of Cushman & Wakefield. “The availability of a high-quality, fully racked, industrial building of this size doesn’t come along very often.”

More than two dozen potential buyers toured the 725,000-square foot facility at 420 SE Thompson Dr. near U.S. Hwy 50 and Mo. 291. Coincidentally the first company to come calling, Mid-States Distributing LLC, emerged as the winning bidder for the 41-acre property.

“This facility was an ideal fit for our rapidly growing company. When we learned of its availability, we knew the stars were aligning for us in a very special way,” said Mid-States President & CEO Tom Mahlke. “The Toys R Us situation, while very unfortunate for many, became our great fortune. We worked hard and aggressively because this was a great location geographically for our members.”

The leading farm and ranch retail store cooperative plans to invest more than $35 million in the distribution center, which will service a network of 39 member companies and nearly 700 retail locations in the U.S. and Canada. Mid-States will commence operations in the facility by the end of the year with immediate plans to hire between 30 and 35 employees within the next month to launch the operation.

Lee’s Summit Economic Development Council President Rick McDowell said the high level of interest in the former Toys R Us space signals ongoing strength in the warehouse and distribution market and room for more activity in south Lee’s Summit.

“We had tremendous interest in that building,” McDowell said. “That leads me to believe that the addition of Mid-States will serve as a catalyst for ongoing business expansion and attraction in Lee’s Summit’s south side commerce corridor.”

Added Cushman & Wakefield’s Joe Accurso: “This property has created a wealth of opportunity for Lee’s Summit. I’m happy to see the building and area full of activity again.”

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.

 

Metropolitan Warehouse & Delivery trucks into KC market

New Jersey-based Metropolitan Warehouse & Delivery is expanding into the Kansas City market, leasing 20,000-square feet at 3518-3522 Enterprise Dr. near Interstate 435 and Interstate 70.

Metropolitan Warehouse & Delivery offers "white glove" in-home delivery and packaging of high-end furniture and antiques and works with retailers Costco and Restoration Hardware. The company has an estimated 2 million square feet of warehouse and distribution space under lease nationwide, including facilities in Wichita, Denver, and Dallas.

"The Kansas City lease rounds out the company's Midwestern footprint," said Ben Boyd of NAI Heartland, who represented Metropolitan Warehouse and Delivery in the transaction. "They try to set up distribution hubs every 200 to 300 miles, and proximity to the I-70 trucking corridor is obviously very strategic."

Metropolitan Warehouse and Delivery took occupancy of the building at Stadium Industrial Park Sept. 1. Mark Fountain of True North Industrial Realty, LLC represented the landlord in the transaction. 

"I believe that as more and more companies develop their 'last mile' strategy, they will find that Stadium Industrial Park is an ideal location," Fountain said.

Kubota completes land purchase for future logistics campus and Midwest Division Office in Edgerton

Kansas Governor Jeff Colyer tours future site that will solidify Kubota’s Midwest footprint

Kubota Tractor Corporation has completed a 200-acre land purchase within Phase II of Edgerton's Logistics Park Kansas City, making the company the first major tenant for the industrial park. Kansas Gov. Jeff Colyer and Kubota officials on Thursday toured the site where Kubota will construct two, one million square-foot, state-of-the-art logistics facilities for its new North American Distribution Center (NADC)

The move signals Kubota's intention to plant solid roots in Kansas to expand distribution capacity and streamline logistics processes for the timely delivery of its branded service parts and equipment to the U.S. market.

“Kubota is ready to begin this exciting project along with our city, county and state partners to expand our infrastructure and create solid footing in the Midwest, the Heartland of America,” said Masato Yoshikawa, president and CEO of Kubota Tractor Corporation. “We are proud to make this significant investment here in Kansas, a state that shares our values and supports our ambitious goals for the future.”

Kubota first leased space in Logistics Park KC in 2015 with a 765,000 square foot facility, and offered increased access to its 1,100-strong dealer network. That building, which employs 150, will remain in operation and continue to be the source for Kubota parts and equipment for worldwide export until the new facilities are complete. 

“Kubota has been an ideal leasing tenant, and we are thrilled to welcome them as our newest neighbor as they fully integrate into the local community. The central proximity of Edgerton within the U.S., and its world-class inland port and intermodal facility, give companies like Kubota direct connections to the global supply chain and the ability to quickly and efficiently ship goods by rail and truck to their final destination," said Edgerton Mayor Donald Roberts. "Edgerton and our partners have a proven track record of thoughtful planning and significant investment in infrastructure attracting businesses to Edgerton and growing our local economy."

With 150 employees already in Edgerton, Kubota's expansion will add more jobs to the area as well as expand the company's 1,500-employee Great Plains operations in Salina

"Kubota’s continued investments in Edgerton makes it one of our state’s greatest business success stories,” Gov. Colyer said. “Today’s announcement is a testament to the company’s commitment to continue strengthening the state’s manufacturing and logistics base and creating future job growth. We thank Kubota for believing in the potential of our state and investing in the future of our residents."

Once complete, the new facility will allow Kubota to continue to receive and process shipments from Asia and Europe, in addition to goods from suppliers in North America, with more capacity and with accelerated shipping speed for the timely delivery of Kubota parts and equipment.

“Kubota will anchor the expansion of Logistics Park Kansas City, and NorthPoint is proud to continue our more than four-year partnership with the company to see their future plans come to fruition here in Edgerton,” said Patrick Robinson, NorthPoint Development.

“As Kubota’s construction partner, Clayco’s focus and commitment extends far beyond the structures we are building,” said Anthony Johnson, Clayco executive vice president. “Our team’s goal is to ensure we are providing an environment where Kubota’s employees can operate safely and efficiently, and can deliver high quality products to their customers every day.”

As the company continues on a high-growth trajectory, Kubota maintains its commitment to expanding its product offerings, with operational excellence as a priority. “Increasing the capacity of our parts and logistics operations in Kansas will enable us to achieve even greater operational efficiencies to make Kubota’s business stronger and more competitive to meet our growing customer demand,” Yoshikawa continued.

The new campus will also house Kubota’s newest Midwest Division office, which is an extension of the company’s existing divisional operation structure that provides regional support to Kubota dealers. Kubota’s division offices are located in Suwanee, Ga.; Fort Worth, Texas; Columbus, Ohio; and, Lodi, Calif.; and, soon to be in Edgerton, Kansas.

Check out photos below from Gov. Colyer's site tour and official announcement. Click to advance the slideshow.

Unique incentive, multi-tenant footprint attract companies to Hunt Midwest Business Center

Hunt Midwest is seeing strong leasing activity for two Class A industrial buildings at Hunt Midwest Business Center (HMBC), a 2,500-acre commercial development in Clay County at I-435 and Parvin Road.

Four new tenants totaling about 250,000 square feet are leasing space in HMBC Logistics I and II, including American Tire Distributors Inc.ORBIS CorporationSpartan Motors, Inc., as well as a leading supplier to the e-commerce industry set to open in April.

Each tenant qualified for a 100 percent, 25-year tax abatement. According to CBRE’s Austin Baier, who handles leasing for the buildings, the Enhanced Enterprise Zone incentive is helping close deals.

"The unique tax abatement available at HMBC really gets the attention of warehouse users. Once a tenant qualifies, then the whole building is qualified, so both HMBC Logistics I and II are solidified and locked in. That guarantees companies a true 100 percent tax abatement for 25 years," Baier said. 

Mike Bell, Hunt Midwest vice president of commercial real estate, agreed: "The EEZ is a game changer for companies looking to locate in HMBC. With the tax incentives offered, companies are benefiting greatly from substantial savings."

The robust leasing activity validates Hunt Midwest’s strategic decision to invest in multi-tenant facilities geared to tenants starting at 40,000 square feet, according to Hunt Midwest President and CEO Ora Reynolds. The strategy has been so successful, a third multi-tenant building is on the books.

"Phase 5 of the Hunt Midwest Business Center includes a third 200,000 SF multi-tenant building along with room for additional buildings ranging from 450,000 to 1.2 million square feet. As businesses grow, we will have the inventory to meet their growing demands within HMBC," Reynolds said.

Hunt Midwest co-developed the buildings with Chicago-based HSA Commercial