Lee's Summit study finds city is ripe for fresh multi-family development

The City of Lee’s Summit could support up to 2,300 additional market rate apartments over the next decade beyond existing supply or projects in the pipeline, according to a 2017 multi-family housing study commissioned by the Lee’s Summit City Council and conducted by Vogt Strategic Insights.

“Lee’s Summit continues to see strong activity and interest in multi-family construction, and this study will help inform the city’s economic development decisions as it considers future projects,” Ryan Elam, director of the Lee’s Summit Development Center, said in a release.

Multi-family construction in Lee’s Summit dried up after the 2008 housing crisis but saw signs of life in 2016 when NorthPoint Development opened The Residences at New Longview, a 309-unit, luxury apartment community that saw the developer’s fastest lease-up to date. 

“New Longview’s success essentially became a proof-of-concept for Lee’s Summit multi-family development, leading to a sharp uptick in permits and proposed projects,” said Lee’s Summit Economic Development Council President Rick McDowell. “In 2016, the city approved five new apartment complexes, for a total of more than 1,400 living units.”

The study found that Lee’s Summit’s existing market is very strong with a 98.4 percent occupancy rate, with about 30 percent of renters coming from outside the area. In addition to identifying strong capacity for market-rate apartment development, the study found that Lee’s Summit could support up to 503 additional units of age-restricted housing, as well as up to 400 additional units of affordable apartments.

To conduct the study, Vogt Strategic Insights completed a field survey of 27 apartment projects in Lee’s Summit and 101 projects throughout the region, comparing rents and amenities among more than 22,000 rental units in Independence, Blue Springs, Grandview, Overland Park, Olathe, Lenexa, and Lee’s Summit.

The 200-page housing study considered factors such as demographics, population growth forecasts, household income and the regional suburban Kansas City apartment market, and used a conservative 4.4 percent predicted growth in households over the next 10 years.

Pickwick Plaza gets dolled up for new generation

Pickwick Plaza, the 1930's-era hotel renowned for attracting high-profile visitors like Harry S Truman and Kansas City "Boss" Tom Pendergast, has been successfully transformed into luxury apartments and retail space. Developed by Gold Crown Properties Inc., the East 9 at Pickwick Plaza mixed-use development includes 260 units and 35,000 square feet of street-level commercial space.

East 9 at Pickwick Plaza is poised to attract a diverse group of renters, particularly Millennials seeking a downtown Kansas City address with quick access to nightlife, the central business district, and public transportation.

However, one well-known Empty Nester – Kansas City Mayor Sly James—said he would consider the property when he leaves public office.

“… my wife and I will be looking around town to figure out where we're going to live. This is certainly going to be a place on the list,” James said at the recent East 9 Grand Opening event, adding that he wants to live near the KC Streetcar line.

Construction on the $65 million adaptive reuse project was completed in less than two years, but Gold Crown Properties’ vision for giving the historic hotel a grand make-over dates to 2010. 

More than 70 percent of the units are already leased with full leasing expected by the end of 2017. Amenities include a fitness center, swimming pool and spa, community rooms, business center, wine lockers and wine tasting room, free Wi-Fi, and 314 parking spaces. Commercial tenants include UPS, City Gym and an unnamed restaurant and bar.

Local artist Joe Munson provided design services for the lobby, as well as exterior retail signage. Metropolitan Capital Advisors, MR Capital Advisors, Rosin Preservation, HarenLaughlin Construction, Helix Architecture + Design and Krudwig Structural Engineers rounded out the development team. ThirdRail provided marketing services for the project. 

Vertical construction moves forward on Belton Gateway Phase Two

Infrastructure, pad site preparation and road reconstruction for the $63 million Phase Two of Belton Gateway are underway, with the first restaurant scheduled to open later this year and five new retailers on target to open in early 2018.

The future home of Kneaders Bakery is under construction at Christie Development Associates LLC's 47-acre, $136 million retail center just west of I-49 along Y Highway, and crews are preparing pad sites for Ross Dress for Less, Marshalls, Party City, Petco, and Five Below.

“Belton Gateway is quickly becoming Cass County’s premier retail destination, thanks to its location just west of I-49 and Y Highway,” said Belton Community and Economic Development Director Jay Leipzig. “We are seeing a tremendous amount of activity in this corridor, which offers retailers great visibility and convenient highway access due to a new interchange.”

Relocation of Turner Road is on target for completion in the third quarter of 2017 and will improve traffic flow from Y Highway/163rd Street to Belton's North Scott Redevelopment Corridor. 

Developed by Christie Development, Belton Gateway’s two phases include more than 182,000 square feet of developable space adjacent to the recently constructed I-49/Y Highway interchange that carries an estimated 85,000 vehicles daily.

The project’s $70 million Phase One developed in conjunction with Block & Company, Inc. included a 58,000 square foot Academy Sports and Outdoors store, 55,000 square foot Hobby Lobby, and two multiple-tenant retail buildings that are home to Belton Family Dental Care, Fazoli’s, and Cricket Wireless. The project's master plan includes construction of a 20,000 square foot hotel.

SubTropolis emerges as leading logistics location for animal health industry

Hunt Midwest SubTropolis is carving out a niche in the animal health logistics space, growing its veterinary industry footprint to 250,000 square feet. Over the past 12 months, three animal health companies - French veterinary pharmaceutical company Virbac, Ceva Animal Health, and IodiTech - have announced new or expanded warehouse and distribution operations in SubTropolis, which offers commissioned facilities in a naturally cool underground environment.

“SubTropolis is the total package for animal health companies and their unique requirements for product safety and climate control, providing significant operational cost efficiencies,” said Hunt Midwest President and CEO Ora Reynolds.

Virbac is currently consolidating its North American product warehousing and distribution operations in the underground business complex. According to Virbac President and CEO Paul R. Hays, the SubTropolis location will help the 8th largest veterinary pharmaceutical company better align itself within the Kansas City Animal Health Corridor, which churns out more than half of the sales generated by the global animal health industry.

“By bringing processes and people together at this Kansas City facility, we are boosting collaboration and efficiency within our manufacturing operations," Hays said. 

In addition, Ceva Animal Health and IodiTech Inc. both announced expansions in the Energy Star rated facility over the past year. Hunt Midwest Vice President Mike Bell attributes SubTropolis' success in the animal health space to a "compelling value proposition" for companies that must adhere to industry product standards by maintaining strict temperature and humidity levels.

“The underground’s protective layer of limestone essentially offers ‘natural’ cooling that saves companies between 70 and 80 percent on utilities and equipment compared to a building on the surface,” Bell said. “There’s an ‘Aha Moment’ when companies fully realize how a SubTropolis location can substantially improve their bottom line.”

Ceva Animal Health is a case in point. CEO Craig Wallace says that consistent conditions and the ability to easily expand underground were two key reasons Ceva chose SubTropolis for a new North American warehouse and distribution center in 2015. Within a year, Ceva had outgrown its space and was able to quickly scale up to meet ongoing demand. 

“The underground location is a great solution for Ceva’s current and future warehousing needs,” Wallace said. “As we add products and expand into new categories, we require scalable space and partners like Hunt Midwest who can accommodate our growth and evolve with us.”

Kansas City-based IodiTech Inc. opened a distribution operation in SubTropolis in 2016. The company manufactures and ships a variety of iodine derivatives – including animal feed minerals – throughout North America and the world.

“The ability to ship to up to 85 percent of the U.S. within two days was of critical importance,” IodiTech President Curtis Thomas said. “Our location in SubTropolis is the perfect complement to our nearby manufacturing facility.”

The growing collection of animal health assets within SubTropolis is creating an “industry cluster within a cluster” for Kansas City’s Animal Health Corridor, which will hold its annual Animal Health Investor Forum and Animal Health Homecoming Dinner August 28-29.

“Hunt Midwest SubTropolis is a valued strategic partner as we work on behalf of the Kansas City Area Development Council to attract global animal health companies to the Greater Kansas City region,” said Kimberly Young, president of the KC Animal Health Corridor.

Roll out the red carpet; New Urbanism project lands entertainment anchor

Construction officially began Wednesday on B&B Theatres New Longview 7, a boutique luxury cinema located in Lee's Summit's New Longview commercial district. The 'New Urbanism' project is being co-developed by Box Real Estate Development and Platform Ventures, both Kansas City-area based firms, and is yet another example of Lee's Summit's long list of recent exciting project announcements. 

"This has been three years in the making, which is often the case with mixed-use projects," said Developer Russ Pearson of Box Development. " 'New urbanism' design by nature produces more density, extends buildings to the street and offer limited parking, all in an effort to promote walkability and random interactions between people. We couldn't be more excited to have B&B Theatres anchor this project." 

The project took shape through collaboration of a design "charrette," an intensive planning session involving developers, designers, neighborhood leaders and civic stakeholders, according to Pearson. 

"This truly is a team effort and it's been a great process working with our design team that includes Hollis + Miller Architects, Olsson Associates, Confluence and Henderson Engineers. The result is an exciting design and an amazing project," Pearson said.

The theaters will feature art deco design elements reminiscent of the early 1900's when Kansas City lumber baron R.A. Long was in his heyday, spearheading construction of Kansas City's World War I Memorial and building more than 60 structures at Longview Farms, the largest development project in the U.S. at the time. 

The 7-screen cinema will include more than 600 electric leather reclining chairs, reserve seating, a lounge and bar, as well as 30-foot-wide screens, and an outdoor seating experience that will include fireplaces and big screens. 

"We are looking forward to sharing the magic of the movies with Lee’s Summit early next year," B&B Theatres President Bob Bagby said. 

Several factors influenced B&B Theatres' decision to open in New Longview, including Cerner's new world headquarters in South Kansas City, residential and commercial development in Lee's Summit and the nearby location of Metropolitan Community College-Longview. 

The project adds momentum to Lee's Summit's flourishing west side along the View High Corridor, according to Lee's Summit Economic Development Council President Rick McDowell. 

"We call all of this new development along View High Drive our very own 'West Side Story' and are thrilled to see so much commercial and residential construction taking place between historic Longview Farms and extending north to I-470 with the Paragon Star Soccer Village. It is a very exciting time for Lee's Summit," McDowell said.

City of Lee's Summit Mayor Randall Rhoads said he looks forward to hearing movie themes played in the new theater, but the real music he loves "is the tractors you hear right now."

Developers are still seeking office, restaurant and retail tenants. Click here for more information. 

Rendering of B&B Theatres New Longview 7.