LENEXA, KAN. — Copaken Brooks has arranged the sale of a 37,585-square-foot industrial flex building in Lenexa for $4 million. The property is located at 10749 West 84th Terrace in the Pine Ridge Business Park. The building was renovated to a half-office and half-warehouse layout in 2005. John D. Coe of Copaken Brooks arranged the sale on behalf of the seller, Peavey Properties. Easterly Government Properties Inc. purchased the building.
SALINA, KAN. — Marcus & Millichap has arranged the sale of a Chick-fil-A ground lease in Salina, located in central Kansas, for $1.6 million. The 3,000-square-foot property is located at 2245 S. 9th St. The Chick-fil-A was newly constructed in 2016 and features a 15-year ground lease. Craig Fuller, Scott Wiles and Erin E. Patton of Marcus & Millichap marketed the property on behalf of the seller, a New York-based private fund. Adam O’Sullivan, Nathan D. Whalen, Damien Yoder and Jeremie Johnson, also of Marcus & Millichap, represented the buyer. Greg Bates, broker of record in Kansas City, assisted in closing the transaction.
The pace of retail construction remains brisk in Wichita with national retailers showing an increased interest in the market. In the first quarter, developers started construction on nine buildings totaling 112,961 square feet, reports brokerage firm NAI Martens. Completions during the first quarter totaled 117,300 square feet. Notable store openings included Sprouts Farmers Market at Central Avenue and Rock Road; Save-A-Lot grocery store at 1640 S. Broadway; Cavender’s western wear store in Greenwich Place at K-96 and Greenwich Road; Andy’s Frozen Custard at NewMarket Square along 21st Street; and a freestanding Starbucks at Wichita State University on the school’s innovation campus. In short, developers in Wichita appear to be making up for lost time. As a result of the Great Recession, the local economy shed 30,000 jobs between 2009 and 2011, many of them related to the aviation industry, according to the Wichita Metro Chamber of Commerce. Commercial real estate activity ground to a halt at that point. “Between 2008 and 2012 and maybe into 2014, we just didn’t have much development at all. There were some plans on the drawing boards, but nothing really reached fruition,” recalls Thomas Johnson, president of NAI Martens. But consumer confidence gradually began to …
EDGERTON, KAN. — United Parcel Service Inc., in collaboration with NorthPoint Development, is developing a 197,000-square-foot distribution center in Logistic Park Kansas City (LPKC) in Edgerton. The facility will include a UPS Customer Center and will dispatch trucks for routes in the area. Missouri-based NorthPoint is the real estate developer for LPKC, a 1,700-acre distribution hub now containing over 10 million square feet of warehouse and distribution space. The new UPS operation will be located on the west side of LPKC at 19400 Essex St. The location is less than a mile from the BNSF intermodal facility and is accessible to I-35 via Homestead Lane.
OVERLAND PARK, KAN. — KeyBank Real Estate Capital has arranged a $19 million Fannie Mae loan for the refinancing of Plaza at Overland Park in Kansas. The 202-unit multifamily property was built in 1999 and renovated in 2014. Chris Black of KeyBank arranged the 10-year loan, which includes a 30-year amortization schedule. The borrower was not disclosed.
EDGERTON, KAN. — Copaken Brooks has begun development of Midwest Gateway, a 500,000-square-foot industrial property near the BNSF intermodal facility in Edgerton. The property will include two speculative buildings of 301,603 square feet and 186,107 square feet. The project is designed to meet the needs of warehouse, distribution and manufacturing users of smaller footprints. The buildings will feature 32-foot clear heights, motion sensor lighting, docks, truck parking and trailer storage. Construction is slated for completion in February 2018. Midwest Gateway is the closest development site to the BNSF intermodal, according to a press release. Bucky Brooks of Copaken Brooks, along with Nathan Anderson and Russel Pearson of NAI Heartland, are marketing the property for lease. Project team members include GMA Architects, ARCO National Construction, Shafer, Kline & Warren, Krudwig & Associates and Metro Air.
OVERLAND PARK, KAN. — Lane4 Property Group has begun the demolition of the vacant Metcalf South Mall in Overland Park. The mall, which opened in 1967, officially closed to the public in September 2014. Early phases of demolition will occur on the interior of the building, making visible demolition on the exterior not likely until next month. The mall is located at located at the southeast corner of 95th Street and Metcalf Avenue. Once the mall has been razed, site work will begin to level the land and construct frontage roads. Construction of a Lowe’s store is scheduled slated to begin this fall. The overall project plan also includes a number of smaller-format retail buildings and restaurants, but potential tenants have yet to be announced. Lane4 worked with both the Overland Park Historical Society and the Johnson County Museum to preserve items of historical significance from within the mall. Lane4 and The Kroenke Group jointly purchased the Metcalf South Mall site in 2014.
CHICAGO — Blueprint Healthcare Real Estate Advisors, a Chicago-based brokerage firm, has negotiated the sale of 18 skilled nursing facilities located throughout the Midwest for $82 million. The portfolio included nine properties in Kansas, six in Missouri, two in Iowa and one in Nebraska. The specific names and locations of the properties were not disclosed. The regional portfolio comprises 1,843 total licensed beds and generated approximately $110 million in revenue on a trailing basis at the time of sale. Most of the facilities are situated in suburban neighborhoods, while several of the centers were in secondary markets within driving distance from Kansas City. The seller, a publicly traded owner-operator, was looking to exit the Midwest region to create a tighter geographic density for its properties, as well as focus on hospital partnerships. The buyer is Illinois-based Cascade Capital Group, which went through several rounds of bidding. The sale includes an undisclosed level of HUD mortgage debt and two leased assets. The sales price equates to $45,000 per bed. Ben Firestone, Christopher Hyldahl and Michael Segal of Blueprint structured the transaction.
TOPEKA, KAN. — Payless ShoeSource has filed for Chapter 11 bankruptcy and announced plans to immediately close nearly 400 underperforming stores. The company, which bills itself as the largest specialty family footwear retailer in the Western Hemisphere, currently operates approximately 4,400 stores in more than 30 countries. The shoes and accessory retailer was founded in 1956 in Topeka, Kan. “This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” says W. Paul Jones, the company’s CEO. “We will build a stronger Payless.” Payless has entered into a Plan Support Agreement (PSA) with its lenders to reduce its debt load by almost 50 percent. The plan will also allow Payless to lower its annual cash interest costs, access additional capital and provide a path to emergence from Chapter 11 with a sustainable capital structure. The agreement will also allow Payless to invest in areas that may provide further growth, including omnichannel expansion, product and inventory initiatives, and international expansion in Latin America and elsewhere. The company plans to optimize its store footprint through the immediate store closures, as well as managing its existing real estate lease portfolio. This may include modifying …
EDWARDSVILLE, KAN. — Emery Sapp & Sons (ESS) and Lane 4 Property Group have broken ground on the $60 million Village South development in Edwardsville. The 32-acre site is located at the corner of 110th Street and I-70. The mixed-use project will include both a Holiday Inn and La Quinta hotel in addition to a 22,000-square-foot conference center and 17,000 square feet of retail space. Six additional pad sites will be available for retail uses. Minnesota-based Compass Commodity Group III is the landowner and master developer. Lane 4 is managing the first phase of construction, while ESS is doing all of the earthwork. Other members of the development team include BHC Rhodes as project engineer, Lamont Cos. as hospitality developer, Base4 Architects and Engineers as design partner and Polsinelli PC as legal counsel. Phase I construction is slated for completion in summer 2018.