Redevelopment

West Bottoms’ first micro apartment project moves forward

Cleveland-based developer has secured $52 million in financing for its West Bottoms Flats multifamily project, clearing another hurdle in its effort to redevelop five historic warehouse buildings into so-called micro apartments.

The $66 million redevelopment includes 265 one-room apartments plus structured parking and more than 5,000 square feet of commercial space. Grandbridge Real Estate Capital LLC and Brown Gibbons Lang & Co. LLC facilitated the finance package on behalf of MCM Co. Inc.

With an average footprint of about 600 square feet, micro apartments-or microflats- are considered the next frontier in multifamily housing. Designed to appeal to Millennials, the units are self-contained living spaces that include a kitchenette, sitting space, sleeping space, and bathroom. With completion targeted for 2020, West Bottoms Flats apartments are expected to rent for between $1,000 and $1,200 a month.

“The target market is young professionals who desire smaller units at a lower price point in a heavily dense, urban community with strong neighborhood amenities and connectivity,” said Doug Bates, Grandbridge vice president for the Kansas City market. “The concept is relatively new to Kansas City, but other Midwestern cities have a seen a great deal of deliveries and success with this concept.”

Situated on 2.4 acres between Ninth Street and St. Louis Avenue, Hickory and Wyoming streets, West Bottoms Flats is the first historic multifamily project in the West Bottoms neighborhood just west of Downtown Kansas City and the first metro-area project for MCM Co. Inc.

“Given its linkages to and the strong demand drivers in the neighboring River Market, Downtown, and Crossroads markets, the West Bottoms is well positioned to be the up and coming urban lifestyle community in Kansas City,” Bates added.

The financing package includes more than $24 million in federal and state historic tax credits equity secured through partners Enhanced Capital and Historic Equity Inc., as well as a $31.85 million senior construction loan and $20 million historic tax credit bridge loan. Project lenders include Kansas City-based Blue Ridge Bank & Trust, Jefferson City-based Hawthorn Bank, and Ohio-based Huntington National Bank.

A variety of incentives and abatements were secured through programs administered by the City of Kansas City and Jackson County, Missouri.

With new tenants and timeline, Mission Gateway seeks financial partner

Mission Gateway has landed a 90,000-square foot destination entertainment tenant that “will be like nothing in the Kansas City market.” That’s the word from Tom Valenti of The Cameron Group, which is redeveloping the former Mission Center Mall site in partnership with GFI Development.

“The lease is signed. These are seasoned operators, with six units throughout the country, mostly in the south. They know what they are doing,” Valenti said of the unnamed tenant.

The concept will be an ideal complement to the 40,000-square foot food hall concept celebrity “Top Chef” Tom Colicchio is bringing to Mission Gateway and comes as plans for an Element by Westin hotel are being finalized.

“These new tenants have caused us to accelerate our business plan,” said Andy Ashwal of GFI Development. “We originally told the City (of Mission) we will build in phases, but we will now go ahead with the entire project.”

The new timeline also is accelerating the need for working capital.

“We just finished the offering memorandum to go out and raise money,” Valenti said. “We’ve hired Mission Capital to put together a capital stack that will add up to $140- $150 million for the entire project. That way we can move forward all at once.”

Mission Gateway’s first phase began last fall and includes 170 market-rate apartment units located above ground-floor retail in three buildings. Neighbors Construction is expected to complete the multifamily portion of the project in April 2020.

Fogel-Anderson Construction Co. is serving as construction manager for the entire redevelopment project at Johnson Drive and Shawnee Mission Parkway.

El Dorado, Inc. designed the overall master plan. NSPJ is architect of record for the Element hotel.

Oggi Lofts redevelopment brings 25 market rate units to downtown KC

The former Oggi Modern Furnishings building at 600 Central St. in downtown Kansas City’s former Garment District has found new life as Oggi Lofts, a 25-unit market-rate apartment project.

Ted Murray of Colliers International teamed up with Andy Homoly of Homoly Construction on the $6.7 million redevelopment designed by architecture firm Clockwork Architecture + Design. Rosin Preservation helped secure historic tax credits for conversion of the 110-year old, five-story brick building located on the National Register of Historic Places.

As with any historic redevelopment, Oggi Lofts offered its share of surprises and conundrums.

“Anytime you get into an older building that needs to be gutted, there are always surprises,” said Murray, who pursued the project independent of his role as Co-CEO of Colliers’ Kansas City office. “This project was so different and really created a need for problem solving during the construction process.”

For example, the building’s entire stair tower required full replacement, yet historic preservation standards required that the original hardwood flooring remain. Another hurdle involved successfully obtaining approval from the National Park Service to add windows on the north side of the brick building. But perhaps the biggest challenge involved designing and constructing units around the building’s many columns, which could not be touched in the name of structural integrity.

“We had to conserve space, and Andy (Homoly) and the construction team really thought through how to integrate all the vertical columns into the various units,” Murray told MetroWire Media during a tour of the project.

A hallmark of Oggi Lofts is a rooftop deck with panoramic views of the Missouri River, and Charles B. Wheeler Downtown Airport. The property includes a basement fitness center and dedicated storage units as well as on-street parking and door locks and utilities with smartphone access. With rents between $1,000 to $2,265, each unit includes hardwood flooring, onyx countertops, and washer/dryer.

For Murray, the historic redevelopment was a refreshing departure from his work with Colliers, which involves primarily office, retail and industrial leasing and sales.

“This has been so much fun,” Murray said. “I love downtown and I’m just thrilled with how this turned out. It’s been a labor of love.”

Oggi Modern Furnishings vacated the property in 2007. Tax abatements were approved through Kansas City’s Land Clearance for Redevelopment Authority (LCRA).

Launch Development prepares for liftoff of new mixed-use at former Loehmann's site

Construction is wrapping up on the first phase of The Promontory, a $98 million, 291-unit residential-over-retail redevelopment at 91st and Metcalf in Overland ParkLaunch Development Inc., in partnership with Jim Harpool and Evergreen Real Estate Services, plans a grand opening this spring.

“One of the big differences between this and any other project we have is that all the residential parking is separate from the retail parking,” Harpool said. “The units are wrapped around three sides of the parking garage, and you can park on the level that you live. So you just walk in and you’re home.”

All the Promontory’s one- and two-bedroom units include high-end finishes, 12-foot ceilings, balconies, and walk-in showers. Common spaces include a clubhouse with demonstration kitchen/bar, multiple flat-screen TVs, ample gathering space, and workstations.

Outdoor living spaces include a swimming pool/deck area and courtyard/green gathering area connected by a breezeway, or “cave,” that can be closed off depending on the weather. The breezeway features a big-screen TV, bar and fireplace. The indoor mezzanine area is home to a yoga studio and fitness center with treadmills overlooking the pool deck.

Harpool, a longtime proponent of Metcalf Avenue redevelopment efforts to the north and south of 95th Street, said the Loehmann’s project was not without challenges. Overland Park stormwater retention requirements added $1.3 million to site prep costs.

“We had to create a 12- to 14-foot high detention basin beneath the parking lot. You can park 17 semis under there,” he added.

The Promontory is part of multifamily redevelopment boomlet taking place between 95th and 80th streets along Metcalf Avenue. The residential projects aim to piggyback off about 1 million square feet of new or redeveloped office space taking shape in the corridor.

“You’re going to have between 800 and 900 units close to Downtown Overland Park opening in 2019,” Harpool said. “Between Tim Barton’s office building, Avenue 82 anchored by BRR Architecture, and Shamrock Industries across the street planning to hire 1,000 people, we have a little hub here.”

KC Wine & Liquors opened a new store at The Promontory in December, and additional leased space is available for retail stores and restaurants. At full buildout, The Promontory will include a total of 490 retail units and more than 150,00 square feet of retail space.

For retail leasing at The Promontory, email Ryan Robertshaw at Ryan@KCEvergreen.com

View a promotional video of The Promontory.

Check out a gallery of The Promontory clubhouse and residences below.

Opus' mixed-use poised to trigger Westport Road redevelopment

The Opus Group's new six-story mixed-use apartment project at the corner of Westport Road and Broadway Boulevard is expected to serve as a catalyst for neighborhood redevelopment along Westport Road between Broadway and Main Street. 

Although it won't be completed until the spring of 2020, the 254-unit multifamily project with 10,000 square feet of ground-level retail already is attracting tenant interest.

"Westport hasn't seen a project of this size in 50 years. This redevelopment will revitalize the neighborhood," said Chris Kamberis, a Kansas City-based commercial developer who owns property adjacent to the multifamily project and is seeking tenants to add to the unique neighborhood feel and expansion.

With plans in the works to extend the Kansas City Streetcar to Westport, Kamberis added, the OPUS multifamily project is right on time.

"With the addition of OPUS' mixed-use apartment complex and new tenants, Westport will continue to be an attraction for both locals and city visitors," said Kamberis, owner and president of CTK Real Estate.

The Opus Group began construction of the mixed-use project this fall. Opus Development Company, LLC is the developer in partnership with CTK Real Estate; Opus Design Build, LLC is the design-builder; and Opus AE Group, LLC is the interior designer, architect and structural engineer of record. Financing for the project is provided by Central Bank of the Midwest.