A.L. Huber grows in scope and size

Coming off a record year in 2018, A.L. Huber is building on its longtime reputation for quality construction and positioning itself for growth in additional market niches such as healthcare, industrial, and information technology.

 “We are a 116-year old company and in a successful time of transition,” said A.L. Huber President Phil Thomas who assumed majority ownership of the company in 2015. “It’s been a great 3 ½ years. Along with my ownership, we have four additional owners as well. Our future is very exciting.”

 A.L. Huber’s revenue topped $83 million in 2018, up more than 70 percent from $48 million in 2017. Thomas says the growth is largely due to the firm’s strong preconstruction team, which has tripled over the past five years and has helped transform A.L. Huber’s business model.

“A lot of times, people think because we are doing preconstruction work that our pipeline is two years out, but we actually can build 6-8 months down the road,” Thomas said. “We collaborate closely with owner and design team and move projects through the design phase quickly. We know that if we can get the budget and schedule to the owner early, that means we don’t have hiccups when submitting for permits and don’t end up over-budget.”

In the technology market, A.L. Huber recently completed Fishtech Group’s new Cyber Security Operations Center in Martin City as well as Sprint’s new 5G Experience project. The firm reinforced its industrial division in 2018, completing a 315,000-square foot manufacturing facility for Aspen Products in Kansas City and a 255,000-square foot distribution center for TVH in Olathe. On the healthcare front, A.L. Huber is expanding geographically – currently completing construction of a hospital addition in Fall Rivers, S.D..

A.L. Huber’s founding family, the Huber’s, remain partners and very active in the storied construction firm, with Augie Huber serving as CEO. Thomas and Senior Vice President Keith Dorrian guide the firm’s day-to-day operations.

“One of the unique things about our story is that my only job has been at A.L. Huber, and Keith’s only job as been at A.L. Huber. I started here 35 years ago and Keith 23 years ago, so try to drive best practices from everyone we meet—including our peers,” Thomas explained.

With more than 100 years as a family-run business, A.L. Huber prides itself on low turnover. Once they start, employees typically stay with the firm for the remainder of their career.

“It’s still a family culture here, and we truly work hard at finding the best people and then we work hard at keeping them together.”

NorthPoint “Crown Jewel” lands 500,000 SF tenant

Third-party logistics provider PAE will lease 500,000 square feet of warehouse space at Logistics Park Kansas City (LPKC), bringing 75 jobs to the Edgerton community. LPKC is adjacent to the BNSF intermodal facility in southwest Johnson County.

“PAE’s decision to locate at Logistics Park Kansas City is another example of the benefits of co-locating at the BNSF Intermodal and a reason that LPKC continues to be the ‘Crown Jewel’ of NorthPoint Development's portfolio,” said NorthPoint CEO and Founder Nathaniel Hagedorn. “The ability to readily access the BNSF intermodal and the interstate highway system provides substantial cost savings and enhances the movement of goods and products throughout the Midwest and the continental United States.”

PAE provides records handling and mail management services supporting the U.S. government in over 100 locations.

“LPKC continues to prove itself as perfectly positioned in the center of the county providing our tenants access to first class infrastructure connecting them directly to markets nationwide,” added Edgerton Mayor Donald Roberts. 

CBKC's Blue Parkway building hits full occupancy

Mid-America Assistance Coalition (MAAC) has leased 3,000 square feet at 4001 Blue Parkway, bringing the 69,000-square foot office building developed by Community Builders of Kansas City (CBKC) to 100 percent occupancy.

“With average occupancy for commercial real estate in Kansas City at 91 percent in the fourth quarter of 2018, we are especially excited to announce full occupancy at one of our flagship developments,” said Art Chaudry, president and CEO of CBKC, KC’s largest urban core developer.

Built in 2003 with a $10.5 million investment by CBKC, the building was one of the developer’s first projects in the Blue Parkway corridor as part of its nationally recognized Mt. Cleveland Initiative. In partnership with Ross Simpson of Colliers International, CBKC has continued to transform the space into a community service hub, with tenants including Boys and Girls Clubs of Greater Kansas City, Catholic Charities Kansas City-St. Joseph, Junior Achievement of Kansas City, and Legal Aid of Western Missouri. 

“Since the opening of this building, CBKC has carefully curated a group of like-minded organizations who are dedicated to serving the urban core, and Mid-America Assistance Coalition perfectly complements and completes the offering here,” Chaudry added.

MAAC offers information systems, training and advocacy to residents and social services providers.

“We're excited to join the tenants in the 4001 Blue Parkway space and look forward to serving Jackson, Clay and Platte County with our programs including our newly added Low Income Home Energy Assistance Program (LIHEAP),” said John Rich, executive director of MAAC.

CBKC has developed more than $225 million in urban renewal projects in Kansas City since its founding in 1991. It currently operates more than 700 units of rental housing and 200,000 square feet of commercial real estate. 

For more information, visit http://www.cb-kc.org/.

EPC's McKeen sees stability in KC multifamily market

By Marcia Charney | MWM Contributing Writer

Stable. Steady. Cautious. Opportunity.

Those are the words Mike McKeen is using these days to describe the state of Kansas City’s apartment market. The principal and president of EPC Real Estate Group, LLC spoke to a record-breaking crowd of more than 150 brokers and real estate professionals at the April meeting of the Kansas City chapter of CCIM. 

Areas that will continue to succeed in the multifamily market will have “charm, character and are walkable, with jobs in good proximity,” McKeen said, noting that strong players currently include Lenexa City Center, downtown Overland Park, Olathe, Mission; and downtown Kansas City, Missouri, which leads the area in multifamily development. 

The living preferences of Millennials are driving the market. Some of EPC’s current products are Millennial-based, including Avenue 80 in downtown Overland Park, where Millennials comprise 70 percent of the tenant base. Empty nesters, who no longer want to maintain their homes and are seeking to live life a little differently, are another growing tenant segment.  

McKeen discussed how e-commerce is changing multifamily development. With the explosion of package delivery, developers are installing electronic parcel delivery systems, which allow tenants to retrieve packages by entering a security code. McKeen said that without these delivery systems, the buildings would need a massive storage room for delivered packages and staff to monitor receipt and storage.

McKeen said that developers now have to consider for the first time the amenities and unit size that Generation Z wants. He stated that studio apartments are the “quickest thing to fly off our lists right now because they hit a certain price point of affordability but they also cater to that lifestyle of people who spend most of their time playing video games.” McKeen added that the amenity most requested by Gen Z is blackout shades for better game screen visibility. 

McKeen discussed the challenges currently facing multifamily developers which include a decline in the number of skilled craftsmen; the threat of tariffs, causing suppliers to raise prices to offset the impact of possible future tariffs on costs; future tax treatment; the passage of city ordinances which impact the use of development incentives; aging infrastructure; low supply and high demand, particularly for precast concrete products; and rising operating costs.

McKeen also recognized new opportunities for multifamily developers such as the creation of new inventory to meet the demands of Millennials and empty nesters, affordable housing, and opportunity zones. In addition, new product types like micro-units, which range in size from 350 to 500 square feet, are in high demand with rising rents.  

Noting that “site selection is everything now,” McKeen said the average occupancy of multifamily properties in the Kansas City area has remained steady, staying between 93 and 95 percent.  

VanTrust, JE Dunn, and HOK partnership takes flight with TIA deal

VanTrust Real Estate, JE Dunn Construction Co., and HOK have leveraged their collective strength in the Kansas City market land a large-scale office development project adjacent to Tampa International Airport (TIA).  

The Hillsborough County Aviation Authority (HCAA) awarded a contract to VanTrust to develop a 9-story, 270,000-square foot office building near TIA, which served 21 million passengers in 2018. The tower will be the first commercial structure linked to the airport by a people mover.

“This will be a Class A office building in an excellent location with unrivaled access to Tampa International Airport,” said TIA Executive Vice President Chris Minner. “With easy connectivity to the Airport, downtown Tampa and St. Petersburg, this is really the ideal location for a wide range of companies.”

Located in a prime spot in the new SkyCenter development, the building will feature an elevated pedestrian walkway connecting its atrium to the SkyConnect station at the airport’s rental car center. Other amenities include a conference center, fitness center, café and access to multipurpose trails that will eventually join with Tampa Bay’s regional trail network.

 The building will serve as the primary home for HCAA employees and will comprise the nerve center for all airport operations. By relocating its in-terminal offices to the new building, HCAA is making way for expanded curbside service, with express lanes for passengers who aren’t checking bags.

Construction should be completed in 2021. VanTrust is leading development of the office building and adjacent parking garage; J.E. Dunn will provide construction services of the office building, and HOK will handle design.