Colliers International

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/.

Mission Gateway development lands key financing

The developers of Mission Gateway have secured intermediate financing needed to get construction moving on all fronts of the long-awaited mixed-use project located at the site of the former Mission Center Mall.

GFI Development and The Cameron Group are eyeing 2021 for the project’s full completion, thanks to $20 million in fresh financing secured through Metropolitan Commercial Bank. The funds will allow construction to commence on the project’s 130,000-square foot entertainment portion by the end of April. Site preparation began for Mission Gateway’s three apartment-over-retail buildings last fall and those structures are on target for delivery by the end of 2020.

 “The financing we have secured and closed will allow us to continue to deliver what we promised,” Tom Valenti of The Cameron Group told MetroWire Media.

Mission Gateway’s entertainment area will include an unnamed anchor tenant who will operate a 90,000-square-foot entertainment complex to complement a 40,000-square-foot food hall from Chef Tom Colicchio’s Crafted Hospitality.

“We were out there looking for financing, and it is coming to us in two ways. We secured the first wave of financing done through Metropolitan Commercial Bank, our lending partner. And we continue to work with Mission Capital, our capital advisors throughout the process,” said Andy Ashwal of GFI Development.

In January, GFI and the Cameron Group announced they were seeking a finance partner and bumping up the construction timeline after landing the unnamed destination entertainment tenant.  

Mission Gateway snapshot:

-Colliers International will handle Mission Gateway’s office and retail leasing.

-Neighbors Construction is expected to complete the multifamily portion of the project in April 2020.

-Fogel-Anderson Construction Co. is serving as construction manager for the entire redevelopment project at Johnson Drive and Shawnee Mission Parkway.

-El Dorado, Inc. designed the overall master plan. 

-NSPJ is architect of record for the Element by Westin hotel.

 For more info, please visit www.missiongatewaykc.com

JPMorgan Chase will open full-service bank in former Dean & Deluca space

The former Dean & Deluca space at Town Center Plaza in Leawood, Kan. will find new life as a full-service retail bank, part of JPMorgan Chase's push into the Kansas City market and deeper into Bank of America markets.

The largest bank in the U.S. has signed a lease to expand into the 9,000-square foot former gourmet food purveyor located at the northwest corner of Roe Avenue and 119th Street. An exact opening date is unclear.

Scott K. Miller and Adam Blue of AREA Real Estate Advisors brokered the lease on behalf of the building's owner. The deal comes less than a year after the prime retail outparcel adjacent to Town Center Plaza hit the market.

"We had a lot of interest from premier retailers due to its high-profile location," Miller said. "Everything from restaurants to service retailers and soft goods retailers looked at the space. Ultimately the best fit for everybody ended up being JPMorgan Chase."

Jeff Berg and Coleby Henzlik of Colliers International represented JPMorgan Chase in the transaction.

Last week, JPMorgan Chase announced plans to open its first full-service Kansas City area locations in 2019, with up to 15 branches in the works, according to The Kansas City Business Journal.

Oggi Lofts redevelopment brings 25 market rate units to downtown KC

The former Oggi Modern Furnishings building at 600 Central St. in downtown Kansas City’s former Garment District has found new life as Oggi Lofts, a 25-unit market-rate apartment project.

Ted Murray of Colliers International teamed up with Andy Homoly of Homoly Construction on the $6.7 million redevelopment designed by architecture firm Clockwork Architecture + Design. Rosin Preservation helped secure historic tax credits for conversion of the 110-year old, five-story brick building located on the National Register of Historic Places.

As with any historic redevelopment, Oggi Lofts offered its share of surprises and conundrums.

“Anytime you get into an older building that needs to be gutted, there are always surprises,” said Murray, who pursued the project independent of his role as Co-CEO of Colliers’ Kansas City office. “This project was so different and really created a need for problem solving during the construction process.”

For example, the building’s entire stair tower required full replacement, yet historic preservation standards required that the original hardwood flooring remain. Another hurdle involved successfully obtaining approval from the National Park Service to add windows on the north side of the brick building. But perhaps the biggest challenge involved designing and constructing units around the building’s many columns, which could not be touched in the name of structural integrity.

“We had to conserve space, and Andy (Homoly) and the construction team really thought through how to integrate all the vertical columns into the various units,” Murray told MetroWire Media during a tour of the project.

A hallmark of Oggi Lofts is a rooftop deck with panoramic views of the Missouri River, and Charles B. Wheeler Downtown Airport. The property includes a basement fitness center and dedicated storage units as well as on-street parking and door locks and utilities with smartphone access. With rents between $1,000 to $2,265, each unit includes hardwood flooring, onyx countertops, and washer/dryer.

For Murray, the historic redevelopment was a refreshing departure from his work with Colliers, which involves primarily office, retail and industrial leasing and sales.

“This has been so much fun,” Murray said. “I love downtown and I’m just thrilled with how this turned out. It’s been a labor of love.”

Oggi Modern Furnishings vacated the property in 2007. Tax abatements were approved through Kansas City’s Land Clearance for Redevelopment Authority (LCRA).

KC retail experts weigh in on the future of Independence Center

It appears that economic challenges and increased nearby competition are forcing Simon Property Groupto sell Independence Center. According to research firm Trepp, the debt-strapped regional shopping mall is in foreclosure and headed for sale to a special servicer next week.

It's no secret that shopping malls and their brick-and-mortar retailer tenants have been hit hard by the e-commerce boom. Here's a snapshot of local expert commentary on the retail climate in Kansas City:

"This news highlights the pressure that all brick-and-mortar retailers are facing to deliver an experience that cannot be matched by online shopping. Everyone is searching for that magic mix of unique dining, amenities and brands that keeps traffic flowing through the doors."

-Dave Claflin, Legacy Development

"Independence Center remains one of only two malls in the greater Kansas City area. The International Council of Shopping Centers (ICSC) estimates that of the roughly 850 malls around the country, only the top 550 malls will remain standing in the next five years. The landscape of retail is changing, and many malls are being back-filled with office, hotels, entertainment and residential components." 

-Kimberly Tranbarger, Colliers International

"Within the last few years, Independence Center has added a number of stores including Dick's Sporting Goods and H&M and remains home to multiple national, regional and local retailers. The retail market is changing but it's not going away. Retailers are right sizing and even expanding as landlords move toward a strategic mix of retailers, entertainment and restaurant tenants."

-Eric Mann, retail developer and broker

"As 2018 begins, LANE4 anticipates another year influenced by advances in technology and shifts in consumer preferences. As experience and entertainment become key components to successful business, we are eager to learn which tenants can effectively fill spaces formerly occupied by high-profile retailers and which retailers can keep up with technology by enhancing online presence and in-store technology."

-LANE4 Property Group, 2018 Kansas City Retail Report