Developer completes Longview Farms stabilization effort

The stabilization of four historic buildings at Lee’s Summit’s Longview Farm has been completed, setting the stage for full restoration of several structures central to the former show farm’s future redevelopment.

“These buildings serve as a historic cornerstone for Lee’s Summit’s New Longview development area and its $80 million in ongoing housing and commercial projects,” said Mark Moberly, Director of Development with Sunflower Development Group.

The stabilization project included structural repairs and weatherization related work to prevent further deterioration of two red-roofed barns, a farm house, a dairy manger house, and the show farm’s signature arch on the north end of the property.

The City of Lee’s Summit, along with Mariner Real Estate Management, now called Platform Ventures, and Sunflower Development Group, used tax-increment financing to cover costs of the stabilization effort. Full restoration projects will be completed with assistance from TIF district revenues to fund the additional improvements.

The City of Lee’s Summit worked with developers to inspect, plan and design the stabilization work, which will help ensure responsible redevelopment of both Longview Farms and the New Longview area, according to Lee’s Summit Mayor Randy Rhoads “Because historic redevelopment can be complicated and costly, the City was mindful of not over-investing in these structures. The goal was to stabilize, weatherize and shore up the buildings in anticipation of future investment,” said Mayor Rhoads.

In December, Sunflower Development Group announced it would complete $3 million in renovations to the 101-year-old Longview Mansion, 1200 SW Longview Park Dr., by late 2018.
Sunflower Development Group is known for historic restorations of several downtown Kansas City properties, including conversions to hotel, housing and other commercial uses.

Sunflower will secure private financing for the restorations, but public financial support is still needed to cover the extraordinary costs associated with stabilizing and rehabilitating the unique structures, according to Moberly.

“Working with the City of Lee’s Summit, State of Missouri and National Parks Service to secure the TIF and historic tax credits is extremely important due to the financial gap that exists with rehabilitating each property,” Moberly said.

While work on the Mansion began in February, the timeline for full rehabilitation of the remaining structures is uncertain due to the need for significant new construction commercial projects in the TIF, like a new theater, to happen first.

Sunflower Development Group maintains ownership of buildings it restores and leases them to tenants.

**Picture provided by Sunflower Development Group

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 Corporation, Spartan 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. 

Burns & McDonnell pumps up design-build presence with veteran hire

Burns & McDonnell is aiming for a bigger slice of the Kansas City commercial construction market, hiring KC architecture and design veteran Trevor Hoiland to lead its growing commercial design-build team.

In the newly created position of Design Manager, Hoiland brings 20 years of experience designing some of Kansas City’s most visible projects, including the world headquarters of H&R Block and AMC Entertainment.

“My world has been the corporate office environment and office campus master plans. I think now as I'm designing, it is a faster speed-to-market that I find intriguing,” Hoiland said. “Adding engineering and construction to the whole process really makes a lot of sense to me.”

According to Burns & McDonnell Senior Vice President Mike Fenske, having the entire team under one roof saves time and money while boosting collaboration, creativity and productivity.

“Our integrated design-build method is attracting top talent in our industry, like Trevor, because they are passionate about working on a project from concept to completion,” Fenske said. “This approach, common in the era of master builders a century ago, is now disruptive to tradition.”

Hoiland plans to bring a unique “inside out” conceptual design approach to a wide range of commercial projects within Burns & Mac's Global Facilities Group, from office to multifamily and even industrial facilities.

“The ultimate is to create something that we don’t know we need or want-- and finding those things in projects is what gets me excited,” Hoiland said.

Veteran KC architect Trevor Hoiland will help Burns & McDonnell boost its design-build presence. 

Five minutes with JE Dunn MW President Paul Neidlein

Paul Neidlein stepped into the role of Midwest region president for JE Dunn Construction on January 1. The 22-year veteran of the Kansas City construction industry succeeded Dirk Schafer, who retired from Kansas City's top construction company in December. 

MetroWire Media caught up with Neidlein to take his pulse on the 2018 market and beyond:

MWM: What do you expect from the market in the next 18-24 months?

Neidlein: We feel good about 2018. In Kansas City, as well as in every market that we have an office, the arrow is pointed straight up. It will be a record year and 2019 will be as well. I'm not smart enough to predict after that.

MWM: Where does JE Dunn see the most short-term growth potential?

Neidlein: We feel bullish about federal work because we have done a fair amount of it, and JE Dunn has even started a separate federal group to manage those projects. Government facilities are a growth area for us. Part of that is strategic from a diversity standpoint because public work can help balance things out when the corporate side slows down. Anything and everything related to health care has been steady, including medical office. 

MWM: Historically, public projects have been JE Dunn's bread and butter. Do you expect that to continue?

Neidlein: Public projects remain a leading area for us. We still think there is a fairly large program being planned in Missouri with construction of state prisons and county jails. Municipal work on civic centers and community centers still looks pretty positive for us too.

MWM: What do you see as a market headwind?

Neidlein: There is a healthy skepticism about how long this boom is going to last. We will see major players get into trouble and get overextended. It goes back to the capacity side of things. Creditworthiness becomes more important when you think everything is good. 

MWM: What is the impact of all this activity on the trade contractors?

Neidlein: Contractor supply and workforce issues are real. The biggest issue is the capacity of individual companies and labor and what that does to pricing and availability.

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