KANSAS CITY, MO. —Ross Dress for Less, Petco and Ulta are scheduled to open in the coming months at Twin Creeks Center in Kansas City. The retailer additions are part of a $15 million renovation to the 409,060-square-foot retail center, which is currently anchored by Target and Kohl’s. The expansion will add 200,000 square feet to the property, which is situated on 16 acres. Ulta opened its 10,000-square-foot store earlier this month. Ross is slated to open its 24,946-square-foot store in October, followed by Petco in February 2019. United Development Co. and Falcon Realty Advisors are the property owners. Tom O’Leary and Wes Buckley of Lane4 Property Group are the leasing brokers for the property.
As most that pay attention to commercial real estate know, the retail real estate market is constantly evolving. That said, with change comes opportunity, and we are both recognizing and capitalizing on that opportunity in the Kansas City market. As has been the case for the last few years, we continue to see a significant amount of “right-sizing” from big box and junior box retailers. Although e-commerce remains a prevalent means of purchasing for consumers, retail closures are not as abundant as many have predicted. Rather, many retailers are tweaking their square footage needs in search of the perfect footprint to optimize in-store sales in conjunction with e-commerce. While e-commerce continues to gain market share, it still accounts for less than 10 percent of retail sales nationwide, as of last year. The need for brick-and-mortar stores remains imperative to the success of most retailers. In the Kansas City metro area, retail vacancy rates remain low at 5.6 percent as of the second quarter. While that is a slight increase over 5.5 percent in the first quarter, it is a significant improvement over last year’s second-quarter figure of 6.3 percent. A few major 2018 transactions contributing to the positive net absorption …
ST. LOUIS — MCR has sold the 195-room Hilton St. Louis Downtown at the Arch. The hotel is located at 400 Olive St. Amenities include a business center, bar area, fitness room and meeting rooms. The buyer was not disclosed. MCR, which purchased the property in December 2016, generated a 44 percent internal rate of return on its initial investment. The sales price was not disclosed, but the property has an appraised value of nearly $7 million, according to the St. Louis Post-Dispatch. MCR’s investment strategy is to purchase well-located hotels, improve operations and sell opportunistically, according to Tyler Morse, CEO and managing partner.
BLUE SPRINGS, MO. — Pine Tree LLC has assumed operational responsibility for Adams Dairy Landing, a 552,000-square-foot regional shopping center in Blue Springs, 19 miles east of downtown Kansas City. Pine Tree will manage and lease the property. Developed by RED Development in 2007, the center is located at the southeast corner of I-70 and Adams Dairy Parkway. Target, TJ Maxx, HomeGoods, Ross Dress for Less, Petco, Michaels and Ulta anchor the property.
LEE’S SUMMIT, MO. — JVM Realty Corp. (JVM) has acquired Summit Ridge Apartments in Lee’s Summit, a suburb of Kansas City, for an undisclosed price. The 432-unit apartment community features a pool, fitness center, dog park and resident lounge with a coffee bar, business center and conference room. JVM plans to renovate the property, built in 2001, by upgrading units, installing a package delivery facility and expanding the fitness center. The seller was not disclosed. JVM Management will manage the property. Mac Crowther of ARA Newmark brokered the transaction.
CLAYTON, MO. — Pinnacle Real Estate Advisors LLC has arranged the sale of a 3,600-square-foot property occupied by Qdoba, a fast-casual Mexican restaurant, in Clayton for $1.8 million. The single-tenant building is located at 6701 Clayton Road across the street from a Schnuck’s grocery store. Qdoba has operated at the location since 2016. Zach Wright, Rob Edwards and Tom Ethington of Pinnacle represented the buyer, a Texas-based investor. A local real estate company was the seller.
It has been a banner year thus far for the St. Louis industrial market with yet another milestone achieved. Mid-year absorption totaled 2.5 million square feet of space, a number more closely suited for the entire year versus the halfway point. Fueled by continued absorption, the market has more than 5 million square feet of space under construction with vacancy of approximately 4.9 percent. The continued success is no surprise. But economic incentives, often overlooked and underappreciated, are the unsung heroes behind each industrial development around town. Gaining knowledge Economic incentives have been a prerequisite in attracting or retaining businesses like Amazon, World Wide Technologies and Best Buy. But they do not just benefit large corporations; local and regional users are able to enjoy new Class A real estate in these developments as well. Why? Incentives help bridge the gap for the developer and the user to account for being in a low-rent, high-construction cost market, which is not a great recipe for new development. Yes, St. Louis boasts some of the lowest asking rents in the Midwest, currently averaging $4.70 per square foot for available industrial space. One would think that businesses would flock here because of the low …
SIKESTON, MO. — Midas Hospitality has opened a new Hampton Inn hotel in Sikeston in southeastern Missouri. The $11 million project spans 57,000 square feet and four stories. The 92-room hotel features an indoor swimming pool, fitness center, business center and meeting rooms. The hotel is located within the 100-acre Cotton Ridge development, which will include restaurants, a movie theater and other retail tenants. Midas Hospitality will own and manage the hotel. Sister company MC Hotel Construction was the general contractor for the project. Gray Design served as the architect. Bank of Missouri financed the project. Hampton Inn is part of the Hilton chain of hotels.
PACIFIC, MO. — HDA Architects has designed a new corporate headquarters for ADB Cos. in Pacific, about 35 miles west of St. Louis. ADB is part of the Keeley family of companies, which also includes a construction arm and development group. The project consists of a 36,852-square-foot office building and a 24,137-square-foot maintenance building. Plans call for a two-story lobby entrance and a lounge space. Completion of construction is slated for December.
ST. LOUIS — Tarlton Corp. has completed a $28 million renovation of two historic buildings that formerly housed Shriners Hospital for Children and Central Institute for the Deaf in St. Louis. The general contractor converted the adjacent buildings into a 160-unit apartment property known as The Core Apartment Residences. Amenities include common kitchens, a community room, game room, media lounge, fitness center and music practice space. The scope of work included restoring the existing masonry facade, window repair or replacement, installation of new mechanicals, plumbing, electrical systems and fire protection, paving and landscaping. The Shriners and CID buildings, both of which originally opened in the 1920s, are listed on the National Register of Historic Places. BOBB was the developer and Lawrence Group served as the project architect.