CBRE awarded bulk of Corporate Woods property management portfolio

CBRE’s Property Management business line has been awarded a significant portfolio by New York-based real estate co-investment firm, Group RMC.

The 34-building office and retail portfolio totals 3.38 million SF across the Kansas City metro area.

The assignment contains three Group RMC sub-portfolios; the largest component of the portfolio is Corporate Woods, a premiere office park in Overland Park, KS with amenities including wooded walking trails, a wide selection of cafés and restaurants and electric vehicle charging stations. The complete portfolio includes:

  • 2,167,784 SF in 22 buildings in Corporate Woods, Overland Park, KS

  • 806,864 SF along College Boulevard, Overland Park, KS

  • 397,627 SF in South Kansas City along Ward Parkway

The CBRE Property Management team of Cori McLain and Melissa Gray will be overseeing the assignment.

“We are thrilled to have the opportunity to service these best-in-class assets. CBRE has a complete spectrum of integrated services and an enterprising team that will be able to institutionally maintain these properties for years to come,” McLain said.

Group RMC currently oversees over 16.3 million SF representing over $2 billion in asset value in the U.S., principally in the midwest.

“I am consistently amazed at the world-class outcomes our Property Management team delivers to clients and this assignment speaks to that demonstrated success,” said Mike Klamm, CBRE Kansas City’s managing director.

CBRE assumed management of the properties effective October 1, 2019.

Kadean Construction awarded $17.7 million warehouse in KCI Intermodal BusinessCentre

Kadean Construction has been awarded a $17.7 million contract by developer Trammell Crow Company to construct LogisticsCentre V, a 542,640 SF warehouse/distribution building located in the KCI Intermodal BusinessCentre.

LogisticsCentre V will be a modern, cross-dock facility with three separate storefront entrances for multiple tenants and incorporate sustainable design construction features.

Kadean Construction previously built LogisticsCentre II, III and IV at the 687-acre distribution and logistics park adjacent to KCI Airport, and recently completed the tenant build-out of the 202,800 SF LogisticsCentre III.

“Like the other facilities we’ve built in the business park, LogisticsCentre V will have a structural steel frame, concrete tilt-up walls, a seven-inch thick reinforced concrete floor and a 36-foot clear height ceiling,” said Kadean vice president Austin Christensen.

“This building will also feature 98 dock positions, with 132 tractor and 324 car parking stalls. Earlier this year, we completed infrastructure work for this site, so we are pleased to be awarded the contract to construct LogisticsCentre V,” Christensen said.

Other project partners include M+H Architects, civil engineering firm Stock & Associates, CBRE and Clarion Partners.

Construction is scheduled to be complete in March 2020.

Insight: KC CRE pros use tech tools to improve outcomes

By Erik Dolan-Del Vecchio | Content Contributor

On the way to becoming an investment sales broker at CBRE, Holly Mills was a commercial appraiser for over a decade, which explains a lot.

Mills’ analytical background is integral to her approach to commercial property sales and leasing. Clients say her data-driven insights inform and equip them to understand the benefits of different alternatives, be it for an investment property to purchase, a corporate location to occupy or a space to lease.

State-of-the-art technology helps Mills, a CBRE vice president, collect, sift, sort and track voluminous amounts of data and information. She uses the firm’s proprietary commercial real estate relationship management software to track spaces, tenants, properties, owners, buyers and milestone dates of opportunities coming up… “things I need to track to make me more productive,” she says.

Mills also makes frequent use of mapping tools to help clients visualize data points. She tells the story of helping a physical therapy medical practice plan an expansion involving as many as 10 locations in three years. Mapping tools with demographic information overlaying locations and radius maps helped her provide points of comparison for the client to determine the locations that would be accretive to their market.

Accessing Information from Anywhere on the Fly

Bob Galamba, senior vice president of Colliers in Kansas City, agrees that technology propels his business every day, accelerating transactions and reducing friction along the way.

Galamba’s focus primarily is multifamily, including existing assets and land with a multifamily component.

He and his team track people and prospects in Apto, the leading commercial real estate software for brokers, and use Smartsheet collaboration software to share information and facilitate communication so everyone’s on the same wavelength and has the benefit of the intelligence. Historical data on people, and shared documents such as letters of intent, can be accessed from anywhere on the fly.

For deal management with clients, Galamba uses Real Capital Market’s Deal Rooms, in which he can maintain property marketing pieces, confidentiality agreements, offering memorandums and more.

 “As a property remains on the market or a deal progresses, you’re still updating financials each month and rent rolls, and able to share that information with buyers who have expressed interest. It also provides a reason to reach out and contact prospects, and a seamless way to keep all the [transaction] information updated and together.”

Notably, Apto and Real Capital Markets are software integration partners, which facilitates information sharing and reduces redundant data entry between the two services.

Blockchain and Predictive Analytics are Game-Changers for Real Estate

Laird Goldsborough is no stranger to information and technology either. Information is the chief currency of his business, which is determining the value of real estate and advising clients on all manner of real estate and investment decisions as senior managing director of the regional office of Valbridge Property Advisors.

Goldsborough relies on a variety of technology tools and services, including demographic information from CCIM’s Site to do Business. He sees technology as helping to make real estate information more transparent and properties faster to transact.

Goldsborough describes blockchain technology, fast evolving, as a game-changer for real estate. He calls blockchain “distributed ledger technology” that allows all participants in the chain (versus one person) to have access to information. With blockchain, Goldsborough says, everyone owns the information, which removes opacity and thus risk.

If information on real estate assets becomes more transparent, not only will sales happen faster, but more buyers will become attracted to the asset class, which would expand the market for investors.

The commercial real estate sales cycle is too long, Goldsborough says. If you want to accelerate the sales cycle, unmask the information, which would speed up and standardize the process of trading assets, akin to trading Apple shares in the stock market.

The other technology Goldsborough sees as on the verge of benefitting real estate professionals is predictive analytics, a form of artificial intelligence. 

“You have a huge pool of data on real estate and sales and markets — a lake with minnows and trout and sharks. If we allow a machine to go out and fish out what we need, we could make better predictions based on historic data and cycles,” he says.

The result: “As an appraiser I’ll be able to give you a value today and look back and with a much higher degree of accuracy suggest what the building may be worth three years from now.”

Sprint campus sale, new DT office tower among most anticipated CRE events of 2019

The expected sale of Sprint's 4 million square foot Overland Park campus will be a bellwether event for the Kansas City regional commercial real estate market in 2019. That's the consensus from panelists at MetroWire Media's KC Market Forecast held Jan. 8, at Johnson County Community College. The event was moderated by Kansas City Area Development Council (KCADC) President and CEO Tim Cowden.

"It's going to have a monumental impact. We're talking about 25 percent of the KC office market trading hands in 2019," said Mike Klamm, Managing Director for CBRE's Kansas City office. "The new owner will have new objectives, motivations and strategies to put tenants on that campus."

The sale could bring an estimated 1 million to 1.5 million square feet of Class A office space up for lease in the historically strong Johnson County submarket by the middle of the year. 

Beyond Overland Park, Sprint's pending merger with T-Mobile will reverberate throughout the region's office market as communities seek creative ways to backfill the carrier's inventory of older office space.

"We have a lot of Class B space in Platte County," said Alicia Stephens, Executive Director of the Platte County Economic Development Council. "To see what Sprint did when it first opened and then when it downsized- and now with the merger-  I think it has a long-term impact for us."

As Sprint seeks suitors for its campus, Copaken Brooks will continue to build its case for a new, Class multi-tenant high-rise office building in Downtown Kansas City. The 250,000-square foot tower would be the first of its kind in about 30 years.

"We think people will pay a premium for something new and innovative in terms of layout, size and technology. The task is figuring out how deep is that market, and how much do people really want to pay?" said Jon Copaken, Principal of Copaken Brooks. "We feel the time is right to explore than and get that done."

Other top development stories to watch in 2019, according to MetroWire Media panelists:

*Construction of the new KCI (Alicia Stephens)

*Growth in Data Center, K-12 Educational projects (Randy Bredar, JE Dunn Construction)

*Fruition of several sports-themed mixed-use projects, such as Bluhawk in South Overland Park (Bart LowenPrice Brothers Development)

*KC Streetcar extension to UMKC (Jon Copaken)

*Access to Opportunity Zones (Mike Klamm, CBRE)

Check out a slideshow from the event here. Photos courtesy of Jacia Phillips, Arch Photo KC.

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 CorporationSpartan 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