Hamilton Zanze Snaps Up Kansas City Asset
Cityscape Residential sold the downtown property.
In its fourth acquisition of the year, Hamilton Zanze has purchased Crossroads Westside, a 222-unit community in downtown Kansas City, Mo. Mission Rock Residential, an affiliate of Hamilton, took over the property’s management. Cityscape Residential sold the asset, according to Yardi Matrix data.
Cityscape debuted the property in 2018. In 2015, the project landed a $29 million construction loan originated by the Security Bank of Kansas City, the same source reveals. Two years after its launch, JLL originated a $32.8 million Fannie Mae loan, the same source shows.
According to a housing and population report by the Downtown Council of Kansas City, the total project costs for the development envisioned by Helix Architecture + Design amounted to $52.5 million.
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The 360,000-square-foot property rises five stories, encompassing one- and two-bedroom floorplans ranging between 614 and 1,252 square feet. Units feature granite countertops, open-concept layouts and private patios or balconies, to name a few.
Community amenities include a saltwater pool, a gym, coworking spaces, an entertainment lounge, a business center, as well as a private art garden, among others.
Located at 601 Avenida Cesar E. Chavez, Crossroads Westside rises between Interstate 35 and Broadway Boulevard. Several quick-service restaurants operate nearby, while LEGOLAND Discovery Center and Penn Valley Park are less than 2 miles away.
According to prepared remarks by Cityscape Vice President Ryan Adams, the developer worked for five years on the project as its location posed some unique challenges. Among these were the presence of nearby billboards, which the project had to avoid blocking, as well as the noise of the onrushing traffic of I-35, which was solved with soundproofing.
Advertised asking rents go up in Kansas City
“There were a number of things that appealed to us about Crossroads Westside,” said David Nelson, president and chief investment officer at Hamilton Zanze. “For starters, the in-place assumable debt was better than market, and the tax abatement in place is long-term and beneficial. More broadly speaking, the Kansas City metro is experiencing some of the best rent growth in the nation as well as steady occupancy rates. Supply and demand are in balance, and people are moving to Kansas City. We’re bullish on the area and look forward to expanding our presence in the metro to gain more economies of scale.”
According to a recent Yardi Matrix report, the multifamily advertised asking rental rates in Greater Kansas City rose by 3.4 percent year-over-year as of June—one of the top rent growth markets, outperformed only by Milwaukee (3.8 percent), Bridgeport-New Haven (3.9 percent), New York City (4.8 percent) and Louisville (5.5 percent).
As of July, the downtown Kansas City multifamily inventory comprised 22,002 units totaling some $3.2 billion in costs, as reported by the Downtown Council of Kansas City. What’s more, the under-construction projects were valued at $572 million in total, with another $1.1 billion in planned developments.
Three Light Luxury Apartments, a 288-unit community in downtown Kansas City, contributed to the submarket’s stock following its opening in September 2023. The Cordish Cos. topped out the $140 million development in March 2023.
