AREA BlogKeeping you up-to-date on Kansas City commercial real estate trends.

Hand & Land Will Soon Call Renovated Luzier Cosmetics Building Home

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AREA Real Estate Advisor’s Tiffany Ruzicka is proud to have helped Hand & Land join the women-led business lineup at the newly restored Luzier Cosmetics Building at 3216 Gillham in Kansas City.

Butch Rigby is the developer on the 17,600 SF building, that is being repurposed into restaurant, retail and office space. Rigby says it has been one of the most challenging of his renovations. The 2-story building was designed by renowned female architect Nelle Peters in the late 1920’s for Luzier Cosmetics before standing vacant for almost 20 years. Rigby is focused on preserving the architecture as much as possible.

Hand & Land will take 1,700 SF on the south side of the building. The lifestyle shop, which opened at Park Place in Leawood in 2015, will be moving to their new location this fall. Hand & Land owners, Jessica Moler and Nicole Lobdell, are dedicated to offering natural and organic beauty products, essential oils, jewelry, home goods and gifts.

Other tenants at the Nelle Petters building include 2 concepts from Filling Station founder and Unbakery owner, Robin Krause. Billie’s Grocery, a restaurant featuring healthy American cuisine will occupy 4,500 square feet on the second floor. Apothé, a traditional apothecary will occupy about 1,000 square feet on the first floor.

The remaining first and second floor spaces are in lease negotiations and the building is set to open this fall.

To learn more about Hand & Land and the products they sell, check out their website.

Local Favorite Completes Woodside Village’s Retail Lineup

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Local foodies rejoice! Unforked will be completing the impressive retail lineup at Woodside Village thanks to AREA brokers, Tiffany Ruzicka and Andy Epstein. Unforked is a local hot spot featuring a full menu with options ranging from “barking pig” tacos to 100% akaushi beef burgers to kale salads, and of course, Sheridan’s frozen custard. All their food items are crafted with local and seasonal ingredients. The popular eatery is opening its third location, following their existing locations at 119th & Blue Valley Pkwy in Overland Park and inside of Crown Center in Kansas City.

Unforked’s newest spot is a 4,170 SF space on the southwest corner of Woodside Village shops at 47th Place & Rainbow Boulevard in Westwood, KS and will include an outdoor patio. The restaurant joins Blue Sushi, Eat Fit Go, The Roasterie, Ulah Men’s Apparel and Home Furnishings, Shelby Harrick Salon, and Blue Valley Physical Therapy. Woodside Village integrates the Woodside Health & Tennis Club with 333 luxury residential units on top of the 36,000 SF of retail shops.

The new location will offer Boulevard Beers, FrozUN Margaritas and other specialty wines and beverages. It will also feature a grab UN go counter for quick lunches, those leaving their workouts or just passing on their way home.

Tiffany represented Woodside Village in this transaction, and Andy represented Unforked.

To check out their menu, visit Unforked’s web site here.

KC Biz Journal’s Table of Experts Featuring Tim Schaffer

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Last week, The Kansas City Business Journal’s Table of Experts edition, “What’s Hot and What’s Not in Commercial Real Estate”, featured AREA’s President, Tim Schaffer as a panelist. The Kansas City Market Outlook included 3 other real estate experts from First National Bank, Bank Midwest and UMB Bank, as well as Stacie Prosser of the Business Journal as the Moderator. The group gathered to discuss which real estate sectors (industrial, office, multi-family and retail) will offer the most future opportunity, and give insight into the Kansas City Real Estate Market.

Some insights to take away from this discussion:

Perception of the Current Market: We are seeing an unprecedented level of development and redevelopment activity, and in a lot of areas that have been overlooked in the past. Kansas City’s growth has been more moderate than other markets, and has stayed fairly stable across the different sectors. 

Future Opportunities: Office vacancy rates are some of the lowest in the last decade, showing a possible future need for office development and redevelopment, particularly in the urban core of the city.  Older retail centers need to reconfigure to include some office and multi-family components to help with the increased vacancy rates. The industrial sector will continue to grow, with our central location, highway and railroad proximity and where we are with the need for big-box industrial space. There is room for some additional multi-family in the right areas.

Parking In Urban vs. Suburban Environments: There is a misconception that there is no parking downtown, but really people just don’t know where it is. Ride-sharing is going to be a huge component of how people get around in the future, and the streetcar expansion will help people rethink how they get to work.

Opportunity Zones: The main challenge is location, and how to maximize investment in these distressed areas. The development that is likely going to occur in these areas is going to be in the path that we are already seeing development today. This is the case for Multi-Family included, you can’t lead into new areas and convince a large number of people to move to newer areas. The Opportunity Zones are positive for real estate investment, just how big they get is the real question.

Multi-Family Opportunities: Millennials are waiting longer to buy houses, and Empty Nesters don’t want a house to take care of. This is driving the growth in the multi-family market. However, the market could stand to pause and see how all of this past growth is being absorbed. There are still areas that can continue to drive growth, but not to the level we have seen in the past. People want to live close to their jobs, so there is a demand for additional multi-family around employment centers in the suburbs. The high-end, Class A market is starting to get saturated; however, there’s opportunity for Class A with less amenities in the Crossroads; continued growth opportunity for high B to low A units between Plaza and CBD, especially if the streetcar expansion goes through; and a demand for higher amenity, newer Class A and high Class B apartments in the suburban areas. 

Johnson County Office Market: The opportunity here is to go in and renovate older buildings that were built in the 1980s and 1990s. Many owners haven’t reinvested because they haven’t seen rents move up with the rest of the market. Many tenants are seeking mixed-use buildings with amenities in walkable areas. Edison District & City Place are prime examples of suburban office developments that are providing tenants with what they aren’t finding in other suburban office locations. The uncertainty of the Sprint Campus has required investors and developers to be more conservative in Johnson County. 

Retail & Online Buying: The shift to online purchasing has had an obvious negative effect on the retail market, but online retailers are realizing that people still want a brick-and-mortar store. A presence is needed, but not as many locations. Needs-based retail on the other hand is still pretty strong and businesses with goods you can’t buy online continues to grow. We probably won’t be seeing anymore large power centers, they will be on a smaller scale in high-traffic areas. Online retailers are also using their online presence to gain data on the customers before they open a traditional store; information that most traditional retailers don’t find out about consumers until they open their first location. Same-day delivery is another factor that is going to effect brick-and-mortar retail. We are in a transition period, so we will have to see how it plays out, but we are starting to see redevelopment of interior malls.

Financing Issues: Fast growing tech firms need space now, and need to be able to grow rapidly, finding it difficult to sign a long-term lease. There is also a disconnect between these firms and how they look at financials differently than commercial lenders. They are burning through their cash as a result of their rapid growth. Most of the time investors in these companies can’t provide credit enhancements, so their best solutions are quality, second-generation space that is plug-and-play and is a low capital proposition for both sides. Other options include a negotiation that makes the lender more comfortable with the credit quality of the tenant and/or restructuring the financing, finding the middle ground. Lenders don’t want to be too aggressive; they look at the tenant, but also at who is backing the project, their experience, and what they have done in both up and down cycles. 

To read the article in it’s entirety, click here, or download a PDF.

46Penn Centre

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46Penn Centre, the newest high-rise development on the Country Club Plaza, is set to open in July 2020.  The 14-story, 220,000 +/-  SF mixed-use building is currently under construction.  It is set to be constructed with only 4 columns on 1.17 acres of land, making for maximum space plan efficiency.  The building will offer state-of-the-art, world class amenities including 11,000 +/- SF of restaurant spaces below the 209,000 +/- SF of office space.  One restaurant (3,100 SF) will be located on the lobby level, while the second (7,000+ SF) will be located on the ground floor level. The ground floor will be above the lobby floor, but also accessible from the street.  Each of the spaces overlook the Country Club Plaza with access to the covered parking garages. AREA’s Andy Epstein is leading the charge in the leasing of the restaurant spaces.

The Country Club Plaza’s popularity and reputation is one that is recognized throughout the country.  The 15-block shopping district has over 150 shops and dozens of fine restaurants, making it Kansas City’s premier retail, dining and entertainment destinations.  This new development, located at 46th and Pennsylvania, is hands down the best remaining redevelopment site on the Plaza.   Stay tuned for more updates to come!

For further information, click here for the marketing package or contact Andy Epstein.

Menards to Anchor New Retail Development in KCK

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Waterside is a new-to-market retail shopping center development, located in a regional, entertainment and tourism destination in Kansas City, Kansas.  The Kansas City Business Journal has released the news that Menards will anchor the development. Waterside, located at at the northeast quadrant of Interstate 435 and State Avenue, plans to include a mix of restaurants and retail stores in addition to junior anchors.   This location provides the best visibility and access in this thriving corridor. The work, live, play corridor is comprised of The Kansas Speedway, Sporting Park, The Legends Outlets, Nebraska Furniture Mart, Hollywood Casino, the T-Bones Stadium and Great Wolf Lodge. The additions of Cerner’s 600,000 SF campus and the 100,000 SF Dairy Farmers of America World Headquarters (Kansas City’s Largest Private Employer) have added an office component. The area attracts over 12 million visitors a year and continues to grow with the future US Soccer Training Center, the Legends Auto Mall and the newly announced relocation of the American Royal.

AREA Real Estate Advisors’ Tiffany Ruzicka and Matt Vaupell represented the seller in this transaction.