Midwest Gateway groundbreaking signals new industrial product for booming Edgerton

The threat of a severe thunderstorm couldn't stop heavy equipment from firing up at Wednesday's official groundbreaking for Midwest Gateway, Copaken Brooks' half-million square foot speculative industrial building in Edgerton. 

Midwest Gateway will be marketed to users seeking between 50,000 and 300,000 square feet, providing an alternative to the so-called "big bomber" industrial projects of over 500,000-1 million square feet that are the hallmark of NorthPoint Development's adjacent Logistics Park Kansas City, according to NAI Heartland's Russell Pearson.

"This is the first project of its kind in Edgerton that will be designed for 'smaller' users, small being relative, I suppose," said Pearson, who is co-brokering the project along with Nathan Anderson and Bucky Brooks. "We will be targeting distribution, manufacturing, and warehousing users who understand what drayage savings means for their businesses; as well as providing the opportunity to own or lease a custom-built facility in an irreplaceable location."

Located near the entrance to the BNSF Intermodal rail hub and virtually across the street from a newly announced UPS distribution hub, Midwest Gateway is poised to leverage the intermodal's advantages to help tenants reduce operating and drayage costs and maximize supply chain efficiencies thanks in part to proximity along I-35's heavy haul corridor.

"The supply and demand drivers for this size of building are unmet at the BNSF Intermodal," said Aaron Schlagel, vice president, development at Copaken Brooks. "The buildings allow flexibility for industrial users who need a more efficient building footprint and increased operational efficiencies due to Midwest Gateway's unique locational benefits."

Midwest Gateway marks Copaken Brooks first foray into speculative industrial development. Construction will be completed by early 2018.

"We are excited to deliver Midwest Gateway to the burgeoning Kansas City logistics and distribution market," said Bucky Brooks, principal at Copaken Brooks. "Midwest Gateway is an ideal project for us to extend our infill development expertise and deliver a state-of-the-art industrial project on a premiere site at the heart of the BNSF intermodal."

The buildings will feature tilt-up concrete walls and architectural glass, a minimum 32-foot clear height, 7” floor slab and T-5 motion sensor lighting. Accommodating multiple industrial uses, the buildings will have ample docks with the ability to expand, plus truck parking and trailer storage.

Project team members include GMA Architects, ARCO National Construction, Shafer, Kline & Warren, Krudwig & Associates, and Metro Air. Interested parties click here, or email Russell@NAI-Heartland.com for more information.

Insight: How business leaders drove Lee's Summit's $16 million interchange investment

Reconstruction of the 40-year-old bridge and interchange at Route 291 South and U.S. 50 in Lee's Summit has been a long-standing priority for the business community. 

Its bottlenecks and congestion actually led Chip Moxley, owner of Tingle Flooring, to choose a location farther north for his headquarters. Going through the site selection process enlightened Moxley that prosperity for south Lee's Summit would be held hostage until the intersection was improved. As a result, Moxley joined forces with the Gateway Business Alliance to lobby for public awareness and investment in transportation projects.

"This interchange is among the most important initiatives we have undertaken, and it is hugely gratifying to finally break ground on this project," Moxley said at the recent groundbreaking for the $16 million, taxpayer-funded diverging diamond project, which includes reconstruction of the Route 291 overpass bridge and an adjacent roundabout.

The interchange won't be completed until late 2018, but Lee's Summit Economic Development Council President and CEO Rick McDowell said its benefits from a business recruiting standpoint are immediate.

"This project opens up hundreds of acres for commercial development," McDowell said. "With The Grove mixed-use development to the southeast slated to begin spec industrial construction this year, and Pinetree Plaza shopping center on the northwest quadrant targeted for redevelopment, this new interchange truly will serve as a new gateway to the south side of Lee's Summit."

The interchange also will help ease congestion through a heavily traveled residential and commercial route while enhancing safety and improving access for pedestrians and cyclists, according to Lee's Summit Mayor Randall Rhoads. 

Radmacher Brothers Construction based in Pleasant Hill, Mo., is providing general construction services for the project, and GBA Architects and Engineers of Lenexa, Kan. provided engineering and design services. Additional project partners include the Lee's Summit Chamber of Commerce, Downtown Lee's Summit Main Street, and Friends of Lee's Summit.

The interchange is funded through a three-part cost sharing agreement, with the City of Lee's Summit paying $8 million; the US Department of Transportation paying $6.8 million through funds secured through the Mid-America Regional Council; and the Missouri Department of Transportation paying the remaining $1.22 million.

Behind the Deal: ‘Speed to market’ tipped Terracon build-to-suit

Timing played a key role in Terracon’s decision to build its new $21 million corporate headquarters in Olathe rather than relocate to existing office space in the region. With 10 to 15 percent annual growth, the engineering consulting firm needed space to fit new employees that it expects to hire to accommodate burgeoning business.

John Coe of Copaken Brooks worked as Terracon’s corporate real estate advisor and says the company had a need for speed.

“We started in June of last year and did an exhaustive search of opportunities throughout the metro,” Coe said. “‘Speed to market’ would be one way to describe it.”

Terracon plans to be in its new 65,000-square foot, two-story headquarters in the first quarter of 2018, but getting to the deal's finish line took some rapid legwork on the part of the multiple parties.

The company began evaluating headquarters options in July 2016, looking at 11 existing buildings and 18 build-to-suit options in Kansas and four existing buildings and two build-to-suit options in Missouri.

By December, Terracon narrowed down its list to three existing properties-- two in Kansas and one in Missouri-- but ultimately determined its preference was to stay in Olathe, its headquarters home for more than decade. With no available existing buildings to accommodate the company’s growth, moving forward with a build-to-suit emerged as the preferred course of action.

“It was a long shot that a build-to-suit option would come through because timing was tight,” Coe said. “But VanTrust stepped up and proved they could work within that time frame.”

VanTrust Real Estate and Terracon wasted no time in requesting project incentives from the City of Olathe, which approved a 10-year, 65 percent property tax abatement, as well as industrial revenue bonds that allow for a sales tax exemption on construction-related materials.

Terracon won’t have to move far; its new headquarters will be in Corporate Ridge Office Park near Kansas Highway 10 and Ridgeview Road, just around the corner from its existing office at 18001 W. 106th.

“This investment represents the passionate commitment of our employee-owners to progress our growth," Terracon President Swaminathan Srinivasan said in a release. "Inspired by new surroundings, we will focus our future on serving clients in new, innovative ways and seeking out opportunities to make positive impacts on the communities where we live and work.”

The project’s development team includes property owner VanTrust, which will lead the design-build team, as well as McCownGordon Construction, general contractor.

Terracon provides environmental, facilities, geotechnical and materials services from more than 140 offices serving all 50 states.

Former Loehmann's Plaza site is Metcalf Avenue's next development domino

Rubberneckers may be trying to catch a glimpse of Metcalf South Mall’s demolition, but that’s not the only teardown taking place this spring along Metcalf Avenue in Overland Park. The old Loehmann’s Plaza shopping center is coming down to make way for The Promontory, a $98 million mixed-use redevelopment that at full buildout will include 430 residential units with an attached 550-space parking structure, and 130,000 square feet of retail space.

Launch Development Inc. is leading the project in partnership with Jim Harpool, Evergreen Real Estate Services, and Matt Dennis, R.H. Johnson Co. Located on the northeast corner of 91st Street and Metcalf Avenue, the first of 290 residential units and over 21,00 square feet of retail space at The Promontory is slated to open in November.

The Promontory is the next redevelopment domino to fall in the Metcalf Avenue corridor and aims to take advantage of its central location south of Downtown Overland Park where at least four mixed-use multifamily projects are in various phases of construction—and north of the former Metcalf South Mall, which is being torn down to make way for an $80 million retail project anchored by Lowe’s.

“The thing that is unique about The Promontory is that the residential and retail parking are totally separate and you can park in secured structured parking on the level that you live,” Harpool said. “I think this is a different model from anything we’ve seen in Kansas City.”

Existing parking in front of the retail portion of The Promontory will be re-paved, re-lit and landscaped, with a separate multilevel parking structure planned for residents. Harpool said reasons for separating retail and residential parking were twofold: “First, so retailers aren’t fighting with residents about parking, and secondly, so you can conveniently park on the level where you live and you don’t end up having to drag groceries in and up from the ground level.”

Developers hope to capitalize on its location near two ambitious cultural projects slated to open this spring: The Johnson County Arts & Heritage Center and the InterUrban ArtHouse.

Located at the site of the former King Louie bowling and skate center at 8788 Metcalf Ave., the Arts and Heritage Center will open May 8 and will be home to Theatre in the Park productions, the Johnson County Museum and other arts events. The InterUrban ArtHouse, 8001 Conser St., is a 10,000-square foot co-working space with a dozen shared studios designed exclusively for artists located in the former post office and plans a June 15 opening.

The Promontory's amenities include an on-site park with walking trail; rooftop terrace; and outdoor common spaces including fire pits, movie screen, pool, bar, and game area. Retail activity is underway, according to Harpool, with a 50,000-square foot anchor tenant opportunity available along 91st Street and Bo Lings set to re-open in its new space by the end of June.   

Stag's Creek success spurs Shawnee spec office construction

Construction is underway for Stag Commercial's new $7.5 million office project on the northwest corner of Goddard and Shawnee Mission Parkway. The three-story building will be the anchor of the $15.5 million Stag's Creek mixed-use project and is the culmination of a 5-year neighborhood revitalization effort. 

“With an innovative design of steel and glass, Stag’s Creek is filling a strong need for Class A office space in northern Johnson County.” said Kevin Tubbesing, principal with Evergreen Real Estate Services, which is developing the site.

The purely speculative, 35,000-square foot office building will be Shawnee’s first to include enclosed, heated parking and provides the only class A office space along the I-35 corridor between Lenexa and Downtown Kansas City.

Slated for a fourth quarter delivery, the building rounds out a broader redevelopment that involved demolition of a pawn shop, Texas Tom’s restaurant and used-car lot to make way for a new Raising Cane’s restaurant, now under construction, as well as an Andy’s Frozen Custard shop.

“We are turning a distressed commercial area into a new gateway for the City of Shawnee. It’s something the city has been talking about for 30 years," Tubbesing said.

The site presented significant design challenges including flood control requiring realignment of a Turkey Creek tributary. 

“This has been an extremely difficult infill project. I don’t know many projects where you had to relocate a creek,” Tubbesing said. “We were able to create a true public/private partnership with the City of Shawnee to obtain funds for flood control through the county and the City of Shawnee's Economic Development Fund to move the creek and enlarge the developable area.”

Tubbesing said it’s been rewarding to turn the project’s challenges into unique opportunities; typically anchor tenant commitments help finance projects, with pad sites filled later. For Stag’s Creek, the process worked in reverse.

“Because we had interest in these one-story retail pad sites, we were able to take advantage of those demands in the marketplace and sell those pad sites early. That really helped our ability to finance the project,” Tubbesing said. “And I like infill because it creates a change in landscape from what everyone has experienced for years into something new for the community.”

Interested in finding out more?  Click here to download the marketing flyer.

The Stag's Creek mixed-use project is the culmination of a 5-year neighborhood revitalization effort that involved realigning a Turkey Creek tributary.