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$30M Boost to Kansas City’s Urban Core29 Sep 2015, 3:43 pm
By Anca Gagiuc, Associate Editor
The former mayor of San Antonio, now U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro, announced that Kansas City is one of the five winners nationwide to receive $30 million in federal money as part of a $150 million Choice Neighborhoods Initiative that aims to redevelop severely distressed public housing and revitalize surrounding neighborhoods. The other four winners are Atlanta, Memphis, Milwaukee and Sacramento.
Kansas City will use the grant to replace Choteau Courts and improve the Paseo Gateway. Built in 1958, Choteau Courts is a Kansas City Housing Authority property located northeast of Independence Avenue and the Paseo. The existing structure will be demolished and replaced with a multi-phased mixed-income community comprising 360 units. Moreover, the grant will help improve education, business development, social services and healthcare in the neighborhood.
“What we would like to see is a community that is working together not just to improve housing but to improve job prospects, access to transit and here they are looking at it from a holistic prospective and that’s what really impressed us at HUD,” stated Secretary Castro.
The HUD grant is for the Paseo Gateway district that spreads out from I-35 to Chestnut Trafficway and from Cliff Drive to Ninth Street. The project is estimated to be completed within five years. About two-thirds of the money will be directed to new housing, while the remaining $10 million will be used to improve Paseo Gateway corridors and parks, help spur economic development and improve public safety.
Image courtesy of Paseo Gateway
$80M Redevelopment in the Works at Liberty Commons23 Sep 2015, 8:01 am
By Anca Gagiuc, Associate Editor
Northland’s Liberty Commons has entered a redevelopment phase estimated at $80 million.
Located on the southeast corner of Interstate 35 and Missouri Highway 152 in Liberty, the project is scheduled to reopen in fall of 2016 as a 325,000-square foot shopping center with restaurants, new-to-trade area shops, a 110-key Residence Inn Marriott hotel, and a specialty grocery store.
Behind the project is Legacy Development, whose founder Dan Lowe started the retail boom in Northland with BarryWoods Crossing back in 1997, when he was with RED Development LLC.
Joanna Shawver, senior vice president of leasing for Legacy, said the company had “tremendous response to the project from national brands looking to come north of the river”. She added that the new center will complement existing retail landscape in the area as well as take advantage of the strong demographics.
The sports, outdoor and lifestyle retailer Academy Sports + Outdoors will be the anchor tenant, having secured a lease for 62,917 square feet. Other announced retail and restaurant tenants include Spin Neapolitan Pizza, Off Broadway Shoe Warehouse, Natural Grocers by Vitamin Cottage, McAlister’s Deli, Louie’s Wine Dive, Aveda Lifestyle Salon, Maurices, Kirkland’s, Five Below, Gordmans, and Ulta Beauty.
Rendering courtesy of Legacy Development
Steadfast REIT Enters Missouri, Expands in Texas9 Sep 2015, 4:07 pm
By Adriana Pop, Associate Editor
In two separate transactions totaling $157 million, Steadfast Apartment REIT acquired four multifamily communities offering a combined 1,072 units. The company is now planning to renovate the properties, which are located in Missouri and Texas.
With these acquisitions, Steadfast has now invested approximately $844.3 million in 22 apartment communities containing 7,237 units in 10 states.
In Missouri, the REIT purchased Carrington Park, a 298-unit multifamily property located 15 minutes north of downtown Kansas City. The acquisition marks Steadfast’s first foray into the state.
Carrington Park offers one-, two- and three-bedroom configurations that average 1,112 square feet. Interior amenities include a chef’s kitchen, a black appliance package, nine-foot ceilings with crown molding, walk-in closets, home intrusion alarms, ceiling fans and full-size washer/dryers. The 38-acre property also offers a variety of on-site facilities, including a fitness room, a resident entertainment center with billiards, a playground, a resort-style swimming pool, an auto detailing bay, barbecue grills and a dog park.
At the time of the sale, Carrington Park was 98 percent leased. And given the fact that the property is in good condition, Steadfast’s value enhancement plan includes only limited interior improvements, common-area upgrades and the construction of 30 additional detached garages.
Some of the region’s largest employers and retailers are located in the community’s proximity, including St. Luke’s Northland Hospital, Ford Motor Co. and Zona Rosa, a 1.3 million-square-foot retail center. Furthermore, Kansas City is projected to have an increase of between 75,000 and 100,000 residents over the next decade, due to the Twin Creeks infrastructure improvement currently underway that will transform 13,000 acres of previously undevelopable land into buildable commercial and residential sites.
Steadfast’s other three acquisitions are located within the Dallas/Fort Worth/Arlington Metropolitan Statistical Area, the largest metro area in Texas.
Located in the city of Euless, approximately 30 and 20 minutes from the Dallas and Fort Worth central business districts, respectively, Kensington by the Vineyard is a 259-unit apartment community that was built in 1997. The property spreads across 14.7 acres and comprises a leasing office, maintenance building and 37 two-story apartment buildings with one-, two-, three- and four-bedroom layouts. Apartments have an average size of 1,077 square feet, with average in-place monthly rents of $1,552. Amenities include three swimming pools, a business center, a picnic and barbecue area, a 24-hour health club, a coffee and tea bar, a tennis court, a playground, and walking and jogging trails. Kensington by the Vineyard was 95.8 percent occupied as of Aug. 24, 2015. Steadfast is now planning to make moderate exterior upgrades and rebrand the property.
The Delano at North Richland Hills is a 263-apartment community in North Richland Hills. The property features a mix of one-, two-, three- and four-bedroom apartment homes in eight different layouts ranging from 722 to 1,954 square feet. Most units come with an attached garage. Residents also have access to a swimming pool, a sand volleyball court, a 24-hour fitness center, a playground, a picnic area and a business center. Steadfast’s renovation plans for the property include major interior upgrades, as well as moderate exterior enhancements and rebranding of the community.
Located in the same city, The Meadows at North Richland Hills was built in 1999 and comprises a mix of 252 units in two-, three- and four-bedroom designs that average 1,140 square feet and $1,209 in in-place rents. Amenities include a 24-hour fitness center, a sand volleyball court, two swimming pools, a dog park, a basketball court, a tennis court, a picnic area with barbecue stations and a playground.
The Meadows at North Richland Hills is currently 97.6 percent occupied. Steadfast is planning to rebrand the property and launch a major revitalization strategy to update unit interiors and common areas.
“We believe the apartment market is bountiful, with opportunities for quality assets in diverse economies that attract a younger, well-educated workforce,” Ella Neyland, president of Steadfast Apartment REIT, said in prepared remarks. “We believe our latest purchases fit that description and are in line with Steadfast’s strategy of targeting communities in vibrant suburban settings with access to lifestyle services and downtowns that cater to the younger demographic.”
According to Neyland, the Dallas/Fort Worth/Arlington MSA is a very prolific market in terms of economic growth. Major employers including AT&T, JPMorgan Chase, Exxon Mobil, Neiman Marcus and airline companies help support apartment demand and fundamentals. Rents in the area are in fact expected to increase by 3.5 percent annually in the next five years.
It is also the largest MSA in the South and the fourth largest in the country, marked by a steady annual population growth of approximately 2 percent over the past decade. Additionally, the metro boasts a strong five-year employment growth of 12.6 percent, projecting to add 116,500 new jobs in 2015 alone. As of May 2015, the unemployment rate in Dallas MSA was 3.8 percent, well below the 5.5 percent national average.
GI Partners Connects in KCMO10 Aug 2015, 4:24 pm
By Veronica Grecu, Associate Editor
Private real estate investment firm GI Partners recently added a new colocation facility to its portfolio of commercial assets.
The San Francisco-based company announced it has acquired 10828 NW Airworld Drive, a 78,000-square-foot data center located in Kansas City, Missouri, adjacent to the Kansas City International Airport. The acquisition price remained undisclosed, but the deal was closed through DataCore, L.P., a $500 million fully discretionary core real estate fund managed by GI Partners.
Previously owned by Layered Technologies, the facility was completed in 1982 and went through renovations in 2009, 2012 and most recently in 2015. The property is fully leased on a long-term basis to Datapipe, a New Jersey-based cloud and managed services provider that acquired Layered Technologies in August 2014.
“The facility’s robust infrastructure, connectivity, and location make it an attractive addition to the DataCore portfolio. We believe that Kansas City is a compelling and growing data center market and are excited to complete our first acquisition in the MSA,” Mike Armstrong, Principal of GI Partners, said in a prepared statement.
Marcus Corp. Parts Ways with Kansas City Hotel30 Jul 2015, 4:45 pm
By Ioana Neamt, Associate Editor
The Marcus Corp. is parting ways with the Hotel Phillips in Kansas City, Mo. after 14 years. The Milwaukee-based company has signed an agreement to sell the property to an affiliate of Chicago-based Arbor Lodging Partners. Financial terms were not disclosed.
“We consider this a highly strategic opportunity to acquire this beautiful historic hotel in Kansas City and to contribute to the future growth of the downtown area,” said Vamsi Bonthala, CEO of Arbor Lodging Partners. “As with other historic properties in our portfolio, we are planning a comprehensive renovation and the hotel will be managed by NVN Hotels, our hotel management affiliate.”
The Marcus Corp. purchased the 217-key property at 106 W. 12th St. back in 2001 and invested in renovations and new amenities shortly after the acquisition. The hotel, housed in a historic 1931 building with an Art Deco lobby, features approximately 11,000 square feet of flexible meeting space, as well as a restaurant and a lounge. It is located just two blocks from the Arvest Bank Theatre at the Midland and nearby the Kauffman Center for the Performing Arts in downtown Kansas City.
According to Gregory Marcus, president & CEO of The Marcus Corp., the purchase of Hotel Phillips is consistent with the company’s corporate strategy of maximizing shareholder value and focusing on growth through new management contracts. The property’s sale and management transition is expected to occur in September 2015.
Image courtesy of Kenny Johnson Photography via the Hotel Phillips Facebook page