$60 million 'The Residences at Galleria' to open in 2022

The Residences at Galleria, a $60 million multifamily complex located adjacent to the former Sprint World Headquarters in the Galleria 115 development in Overland Park, Kan., is set to begin construction this summer and slated to open in 2022.

The four-story, luxury apartment complex is included in the first phase of the 5-plus acre development by Block Real Estate Services, LLC (BRES). The $350 million Galleria mixed-use development master plan includes two apartment buildings, office space, retail and entertainment.

JLL Capital Markets (JLL) arranged $21 million in joint venture equity partnership with Hartford Investment Management Company (“HIMCO”) on behalf of BRES for the development of the 322-unit, Class-A, podium multi-housing community.

"We are excited to partner with HIMCO on this project, and, from the beginning of discussions with them, it was clear that we had a shared vision for the quality of this project and its high-demographics location within Overland Park” said Ken Block, BRES managing principal.

The Residences include 322 one-, two- and three-bedroom units and will average 927 SF. Features include high ceilings, large walk-in closets with custom shelving, high-end appliances and finishes, European-style cabinetry, outdoor terraces, in-unit laundry rooms with full-size washers and dryers, double-paned windows and more.

A hallmark of the new community, designed by Hoefer Wysocki, is the walkable lifestyle. Adjacent to the site is a thriving commercial corridor, multiple entertainment districts, theaters, and endless restaurant choices. Outdoor patios are linked to The Residences by walking trails that encircle greenspace, sitting areas, a rolling rock waterfall and dog park.

"We are very excited to work with Block Real Estate Services on the Galleria. This community will raise the bar on luxury living in the area,” said Hoefer Wysocki vice president and director of multifamily design, Chris Armer, AIA, NCARB.

The project will feature the best community amenities offered in the submarket and include a large resort-style swimming pool with shallow ledge features; pool deck with cabanas, hot tub, sports courts and water features; fitness center with Peloton bikes, massage therapy and virtual training; outdoor group fitness areas; clubhouse with fireplace, game room and social media room; executive business center; dog park and pet spa; and covered and surface parking.

“Galleria will be BRES’ most exciting project to date, building on our successful experiences with this high-end podium product, which allows for a large, outdoor amenity deck and other amenities that are unique in this market,” Block said. 

The JLL capital markets debt placement team representing the borrower was led by executive managing director Jody Thornton, senior director Mark Erland, director Matt Benson and analyst Kellan Liem.

Other partners on the development team include Titan, Polsinelli and McClure.

T.J. Maxx, Saltgrass Steak House, Cactus Grill and more say 'Yes' to Bluhawk

T.J. Maxx, Saltgrass Steak House, Cactus Grill, AT&T, Freddy’s Frozen Custard & Steakburgers, Gyu-Kaku Japanese BBQ and Panera Bread are among the most recent tenant additions at Bluhawk's development in Overland Park, Kansas.

The strong list of tenant commitments follows the recent award of $66 million in STAR bond funding from the Kansas Department of Commerce.

“This key STAR bonds approval and the wave of tenant commitments to Bluhawk represent a critical mass of achievements as we move forward with this highly-sustainable and desirable destination-anchored site,” said Bart Lowen, Price Brothers vice president of development.

T.J. Maxx will be located in the Marketplace Neighborhood of Bluhawk and is scheduled to open in spring 2020. Gyu-Kaku Japanese BBQ, Cactus Grill, AT&T, Freddy’s Frozen Custard & Steakburgers are also planning Spring 2020 openings. Saltgrass Steak House anticipates opening in fall 2020 and Panera Bread will open at the end of this year.

“Bluhawk is now in its next phase of progress and we are tremendously excited about its growth. We are thankful to the State of Kansas, the City of Overland Park and its residents for being so supportive of our vision for the property,” Lowen said.

Other areas of the site continue to move forward including AdventHealth’s South Overland Park ER expansion into a full-service hospital in 2021 and state-of-the-art apartment homes, The Residences at Bluhawk, which are open now and available for leasing.

Overland Park receives nation’s first LEED zero energy commercial project

In a collaboration between U.S. Green Building Council (USGBC) president and CEO Mahesh Ramanujam, and Brookridge developer Chris Curtin, a first-of-its-kind Memorandum of Understanding has been signed, forging a partnership that will create an ongoing process to achieve LEED and LEED Zero Energy certifications for Brookridge Development in Overland Park.

Brookridge, a cross-generational 200+-acre mixed-use development, will feature nearly 2 million SF of office capacity, high-quality urban living spaces, extensive retail, restaurant and entertainment venues.

It will also spotlight a multi-faceted focus on health and wellness, including approximately 50 percent green space, fountains, recreational golf, fitness facilities, miles of walking paths, connections hike/bike trails and both forested and open lawns.   

Brookridge will tap into the abundant supply of wind and solar sourced energy produced in the State of Kansas to address the goal of significantly reducing the carbon footprint of the project.

In recognition of the unique nature of this partnership and its focus on wind and solar generated energy, the State of Kansas has also joined the effort.

Last week, Kansas Secretary of Commerce David Toland co-signed the Brookridge Renewable Energy Initiative, placing the state at the forefront of sustainable development.

“The Brookridge development, with the support of the State of Kansas, is thinking differently in terms of how our spaces can be designed to support environmental and personal health. LEED is providing the framework and their commitment to achieve LEED Zero Energy is yet another sign of their leadership and drive to create a better world,” Ramanujam said.

Chuck Caisley, KCP&L (Evergy) senior vice president and chief customer officer, also joined the State of Kansas in endorsing the Brookridge Renewable Energy Initiative.

“Kansas is different than coastal or mega-cities. Great things happen when our public and private sectors work in close partnership. We create the synergy necessary for significant environmental and joint economic success,” said Curtin, founder of Curtin Property Company.

The comprehensive Green program at the Brookridge development is also designed to work harmoniously with Overland Park’s dedicated visioning and planning efforts laid out in the initiatives of the City of Overland Park.

“The leaders of Overland Park set forth a set of ideas around a built environment that is both sustainable and visually impactful, further advancing the community’s destination for business development, entertainment, leisure and family time,” Curtin said.

 “A project of the size and scope of the Brookridge development – along with the commitment being made to it – will serve to put the State of Kansas at the forefront of sustainable development,” added Kansas Governor Laura Kelly.

Other partners involved in the project include WDG Architects - Land Planning and Architecture and GBA - Civil Engineering.

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.