Overstock.com leases 517,000 SF in KCK, plans to hire 200

Overstock.com has leased 517,000 square feet for a new distribution center at 5300 Kansas Ave. in Kansas City, Kan. 

Luke Burbank and Kyle Roberts with Newmark Grubb Acres in Salt Lake City led the national site search for Overstock.com. Mark Long and John Hassler with Newmark Grubb Zimmer teamed with Newmark Grubb Acres to provide assistance with lease negotiations in the Kansas City region.  The building is owned by BH Properties based in Los Angeles, California. 

“Selecting Kansas City as the home of Overstock’s newest fulfillment center allows us to offer over 99 percent of our US customers two-day shipping options, improving shopping experiences by getting orders into the customer’s hands as soon as possible,” said Carroll Morale, Overstock.com vice president of supply chain. “We’re extremely thankful for all of the support and collaboration we’ve received from state and local officials and the Kansas City Area Development Council during this expansion process.”

Check out the official news release from KC SmartPort!

Chris Gutierrez, president of KC SmartPort, led economic development incentive efforts with regional partners including the State of Kansas Department of Commerce and the Wyandotte Economic Development Council. Overstock.com will begin to move in immediately and will employ up to 200 people.

“Kansas offers a great central location and the best workers in the country for any company looking to relocate here. We are thrilled that a successful company such as Overstock has selected Kansas City for its latest distribution center,” said Kansas Gov. Jeff Colyer, M.D. “Opening for business in Kansas will provide Overstock.com with an excellent strategic location and creates hundreds of well-paying job opportunities for Kansans.”

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.

Florida healthcare technology company expands to metro with new Lenexa distribution center

Convey Health Solutions has expanded into the Kansas City region with a new 38,000-square foot distribution facility at Lackman Business Center, 106th Street and Lackman Road, in Lenexa. The leased space will accommodate the company’s expected growth in the government sponsored healthcare market, allowing Convey to more than triple its shipping capacity.

“As we continue to provide end-to-end OTC solutions for major health plans in the Medicare and Medicaid markets, we want to operate in a central location to provide better service to our clients and their members,” Convey Executive Vice President Jonathan Starr said. 

Convey’s benefits program is designed to help members better manage their day-to-day health while at home. With volume projected to grow more than 50 percent in 2019, the company’s new location will include the latest logistics technology to increase efficiencies and streamline the distribution process.

Convey plans to hire 40 employees at its Lenexa facility. Phil Algrim of Jones Lang LaSalle represented Convey in the transaction; Joe Accurso and Rob Holland of Cushman & Wakefield represented the landlord. Additional partners included the State of Kansas, City of Lenexa, Kansas City Area Development Council, and KC SmartPort. 

“Kansas City continues to attract distribution centers due to our access to markets and customers throughout the U.S., and Convey recognized this locational advantage,” said KC SmartPort President Chris Gutierrez. “We expect to see another great year of locational decisions in KC with manufacturing, regional distribution and e-commerce facilities.”

“It is always exciting to welcome a fast-growing company like Convey Health Solutions to our region,” added KCADC President and CEO Tim Cowden. “The KC region continues to rise to the top of the list of cities that are ideal for logistics, supply chain and distribution operations and we’re honored to be the newest home for Convey.”

Additional comments from project partners:

“Our state’s central location always makes Kansas the prime choice for companies looking to locate a distribution center, and combined with the Kansas City area’s already strong concentration of healthcare service companies, Convey Health Solutions couldn’t have picked a better location for its new facility,” said Kansas Governor Jeff Colyer, M.D. “We are excited to have this pioneering technology company expanding in Kansas and look forward to our continued partnership.”

“We are very pleased that Convey Health Solutions has chosen Lenexa for their new facility,” said Lenexa Mayor Mike Boehm. “This operation will feature top of the line technology and will serve as a showcase for the industry. I think Convey will be a great addition to the region.”

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 Corporation, Spartan 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.