How CRE Transforms Healthcare in Kansas City: Insights from the 2025 Healthcare Summit

More than 49,000 people die each year of suicide, including both adults and children.  Thirteen million two hundred thousand people contemplate suicide.  Three million eight hundred thousand people make a suicide plan, and 1.6 million have attempted suicide.  These were among the alarming statistics Bobby Eklofe, EVP of inpatient operations at Camber Mental Health, shared with the audience at MetroWire Media KC’s 2025 Healthcare Summit last week.

Eklofe was joined by panelists Michael Comer, VP at JE Dunn Construction, Robert Koenig, associate principal/senior project manager at Hoefer Welker, and Catie Smith, director of planning and design at Children’s Mercy Kansas City, to discuss a recently opened mental health hospital located at the Olathe Medical Center campus.  Rob Welker, co-CEO/partner at Hoefer Welker, served as the facilitator.

The $53 million, 72-bed inpatient mental health facility known as the Children’s Mercy + Camber Mental Health Mental Wellness Campus serves both children and adults.  The 72,700 SF project opened in December, 2024, eight weeks earlier than planned.  It is a joint venture partnership between Children’s Mercy Kansas City and Camber Mental Health, a subsidiary of KVC Health Systems

According to Smith, in 2023, Children’s Mercy saw 4,000 visits to its emergency department by children in mental health crisis.  Children’s Mercy does not have a patient psychiatric floor, so often the children are boarding in the emergency department for hours or even days at a time awaiting placement, she said.

“The emergency department and schools are a lot of the time where these kids are first accessing care and where their needs are first being recognized.  But, there’s a big gap between where they are in the emergency department and where they need to go, where they need to land to get the right kind of help,” Smith said.

The project first was contemplated in 2016.  Hoefer Welker and JE Dunn were awarded the job, which got shelved until 2022. 

“It takes a lot to get yourself to a psych hospital standard. . . . The struggle for many people in design and construction is to come up with the safest, least amount of risk.  At the end of the day, something that is truly ligature resistant, but more importantly where we don’t promote a suicidal incident to occur,” Koenig said.

Comer said the key goal in designing the facility was ensure that patients and the staff are safe.

“We’re looking at safety, we’re looking at walls.  How do we make them abuse resistant? . . . How do we deal with glass?  How do we keep glass from breaking and chards from breaking off.  The patient’s eating the shards of glass.  It evacuates the frame.  They escape,” said Comer.

The team tested different materials for the walls and glass, using crowbars and sledgehammers to test resistance to damage.

Koenig said that a tremendous amount of effort was made to reduce trigger points in the facility.

“One thing you don’t see is where an ambulance or law enforcement might bring someone.  We’ve actually created a hidden sally port that you really don’t pay attention to and you really don’t perceive,” he said.

Dignity and respect for a patient’s experience is important.

“So the person coming in, out of respect, coming in an ambulance or the secure transport, dignity and respect coming in.  If you’re coming in through the front door, I don’t think a parent wants to see someone coming in on secured transport either, so we do have that secure entrance and a nice beautiful wall that helps with that confidentiality for that secure entrance,” Eklofe said.

“We really focused on making this space feel welcoming and comforting and light and bright while we were meeting all these technical challenges about ligature resistance. . . . The main thing is we’re trying to put ourselves in the shoes of the people who are coming into this building and saying how are they feeling when they are coming in here and how does that experience start to help their therapeutic process begin right from the moment that they enter the door,” said Smith.

All the patient rooms in the facility--24 adult rooms and 48 youth rooms--are single rooms.  Comer said the only differences between the youth and adult rooms is that the adult rooms feature ensuite bathrooms, and adults have control over the room lighting.  The adults and youth are housed in separate areas at all times.

“Once these individuals enter the facility, they no longer, by law, really can see each other and be a part of each other’s therapies.  And so from a design perspective, at the front door, we split them at the lobby.  So there are two inner lobbies—one adult and one for adolescents,” Koenig said.

The facility has six interior and exterior courtyards, large dayrooms and dining and activity spaces.

In addition, it will be the first behavioral health facility to use artificial intelligence (AI) to add another level of security.  Comer said the building already has 200 cameras built into it.  An AI partner company has been hired and soon will activate a server to tie into all of the cameras. 

“So no infrastructure, no added cost.  They come in, they bring their system, it ties in, and it can give warnings.  It’s watching all 200 cameras at once,  And it’s self-learning.  And it will give the alarms.  If it sees that tailgating, it will send an alarm out to the staff that’s on duty.  If it sees a fight happen, it will send a notice.  If it sees a crowd forming, if it sees someone climbing a fence.  And there’s like 100 of these different threat detections that come standard with this service,” said Comer.

Since it opened and through March, the facility has served approximately 600 people in need of care.

“One thing that’s great about this facility is that it’s setting a standard, and there are people from around the country that are coming to look at this. . . . A lot of thought and a lot of sweat and tears in this project, but what a wonderful thing we’re giving back to the community,” Eklofe said.

CRE Market: Signs of Stability?

Recent data from Crexi's National Commercial Real Estate Report indicates growing stability in commercial real estate markets. This positive trend is expected to make strategic planning for owners, investors, and developers more reliable. Asking prices across property types have steadied, with minimal fluctuations between January and February. Cap rates and leasing activity also held steady month-over-month, reinforcing market resilience.

Retail properties experienced slight market shifts, with a decrease in asking prices from $261.19 per square foot in February, down from a high of $280.24 in July 2024. Despite this, cap rates remained stable at 6.55%, suggesting investor confidence in retail as a lower-risk asset type due to strong occupancy rates and modest lease growth. However, external factors like tariff strategies could pose challenges for consumer spending in the future.

Asking price stability, flat cap rates, and steady leasing activity showcase the commercial real estate market's ability to adapt amid economic pressures. These indicators highlight the potential for renewed confidence and growth in Kansas City's real estate sector as property types continue to demonstrate resilience.

Revitalizing the Crossroads District

Kansas City's Crossroads area is experiencing a remarkable transformation, thanks to ongoing development projects that are breathing new life into the neighborhood. Once known as an eclectic arts district, the Crossroads is now a hub of growth, drawing both businesses and residents who recognize its potential.

The upcoming South Loop Park project, slated for completion in 2026, promises to be a game-changer. This urban green space aims to foster community engagement, enhance property values, and elevate the district's appeal as a prime location for investment. As the park takes shape, its impact on the surrounding area is anticipated to be nothing short of transformative—making the Crossroads an even more dynamic and desirable destination.

Michael Collins, president of Grayson Capital, a key player in mixed-use developments in the area, shared his enthusiasm for the project.

"At Grayson Capital, we see the South Loop Park as a transformative urban infrastructure investment. This reconnection will serve as a powerful economic and cultural catalyst, enhancing walkability, livability, and unlocking tremendous value for small businesses between the Central Business District and Crossroads. From my own experience leading the planning and implementation of the Berkley Riverfront master plan development, I've seen firsthand how intentional infrastructure investments can generate long-term value," Collins said.

The Crossroads area has long been known for its artistic charm, with galleries, studios, and creative spaces dotting the landscape. However, recent developments are adding a commercial dimension to this vibrant neighborhood. Businesses are flocking to the Crossroads, attracted by its unique blend of creativity and commerce. This influx of commercial activity is driving demand for retail spaces, office buildings, and mixed-use developments, further enhancing the area's appeal.

One of the key drivers of this transformation is the strategic location of the Crossroads district. Situated near downtown Kansas City, the area offers easy access to major highways, public transportation, and key amenities. This accessibility makes it an attractive destination for both businesses and residents, contributing to its rapid growth and development.

Moreover, the South Loop Park project is set to play a pivotal role in the area's revitalization. This urban green space will provide a much-needed recreational area for residents and visitors, fostering community engagement and enhancing the quality of life in the Crossroads. The park's design includes walking paths, green lawns, and spaces for public events, making it a central gathering place for the community.

For those looking to seize new opportunities, the Crossroads offers a unique blend of artistic charm and commercial promise—a combination that’s hard to resist. Investors and developers are taking note, recognizing the potential for long-term growth and stability in this dynamic neighborhood.

Acquisitions by Arch Street and Artemis strengthens Logistics Park KC's Position as a key distribution hub

Arch Street Capital Advisors, headquartered in New York, and Artemis Real Estate Partners, based in Washington, D.C., have made a significant move to expand their industrial real estate portfolios by acquiring four prime properties in Edgerton, Kan. This new acquisition adds 2.4 million SF of Class A industrial space to their holdings, strengthening their presence in key logistics markets.

The properties, developed by NorthPoint Development between 2014 and 2017, are located within the Logistics Park Kansas City (LPKC), a 2,352-acre industrial park that is considered a key hub for distribution and warehouse operations. This master-planned development offers businesses a strategic advantage due to its close proximity to major transportation routes, including Interstates 29 and 435, as well as its accessibility to Kansas City International Airport. These factors make the park an ideal location for logistics and distribution companies looking to optimize their operations and reach broader markets.

The newly acquired portfolio includes four high-quality facilities that are fully leased to well-established tenants, including Amazon, Walmart, and Demdaco. These buildings are strategically situated within the park and vary in size, catering to different operational needs. The properties reflect the increasing demand for modern, high-specification industrial spaces in the Kansas City area, a region that continues to attract top-tier tenants due to its central location and robust infrastructure.

These facilities, located across several prime spots within LPKC, include properties such as a large warehouse space, which serves as a critical hub for distribution, as well as additional spaces that support a variety of logistics functions. The buildings’ size and functionality make them highly desirable, supporting a range of industries from e-commerce to consumer goods, and further cementing the area’s reputation as a logistics powerhouse.

This acquisition is aligned with Arch Street and Artemis’s ongoing strategy to target institutional-quality industrial assets in prime logistics markets. It also underscores the rapid growth and investment in the Kansas City area’s industrial sector, which has seen a surge in development and interest from major corporations in recent years. Logistics Park Kansas City, with its comprehensive infrastructure and advantageous location, continues to draw large-scale companies looking for efficient, high-performance distribution solutions. With this latest investment, Arch Street and Artemis help to further solidify the park’s status as a leading destination for industrial real estate investment, signaling continued growth and opportunity in the region.


Header image An aerial view of Logistics Park Kansas City, a 2,300-acre+ industrial park, located near Interstates 29 and 435. Image courtesy of Hunt Midwest

Quadrant Communities moves forward with $40.9 million apartment project in Tiffany Springs

A significant residential and commercial development is set to enhance Kansas City's Northland with the introduction of Tiffany Square Apartments in the burgeoning Tiffany Springs area. Quadrant Communities has outlined plans for a 228-unit garden-style apartment complex on an 8.05-acre parcel located southwest of Ambassador Dr. and Old Tiffany Springs Rd. This $40.9 million project represents a key component of the expansive 31.3-acre master plan known as Tiffany Square

The proposed Tiffany Square Apartments will consist of five residential buildings offering a variety of floor plans, including studios, as well as one-, two-, and three-bedroom units. Residents will have access to 364 parking spaces featuring surface lots, carports, and garages. Amenities include a clubhouse, swimming pool, dog park, and pickleball courts. This development follows Quadrant's earlier success with the Edison at Tiffany Springs, a 243-unit complex that commenced operations nearby in 2022. 

The broader Tiffany Square master plan, primarily owned by the Longhorn Opportunity Fund based in Austin, Texas, envisions a total of 691 apartment units alongside multiple commercial pad sites. In August, the Kansas City Council approved a community improvement district to reimburse $6.3 million in anticipated public infrastructure costs associated with the site's development. 

Port KC has endorsed the Tiffany Square Apartments by approving incentives that include a 10-year partial property tax exemption and a sales tax exemption on construction materials. The tax incentive will phase out over a decade, starting with an 80% property tax reduction for the first five years, decreasing to 50% in years six and seven, and 30% for the final three years. This exemption is valued at approximately $3 million. In comparison, local jurisdictions are projected to collect $2.3 million in tax revenue during the same period, a significant increase from the $130,798 expected if the land remained undeveloped. Port officials emphasized that public financing was essential for the project's viability. 

Although the apartments will not feature designated affordable housing units, Quadrant has committed to contributing $1 million to the city's Housing Trust Fund. Based on previous allocations, this contribution could support the creation of approximately 73 affordable units elsewhere in the city. 

Construction is slated to begin by fall 2025 and be completed by mid-2027. The comprehensive master plan includes additional apartment communities to the west and commercial sites intended for retail, restaurants, and service businesses. Portions of the development are already advancing, with approvals secured for establishments such as Express Oil Change & Tire and a potential 7 Brew Coffee drive-thru. 

The site, previously owned by Sam's Club for a planned but unbuilt store, is now poised for transformation as part of Northland's ongoing expansion. This development aligns with the area's growth trajectory, offering new residential and commercial opportunities in the Tiffany Springs vicinity. 


Header image: A preliminary rendering of what the new 228-unit garden style apartments at Tiffany Square might look like in North Kansas City, Mo. Image courtesy of Port KC