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Metcalf 103 on the rise

The large shopping center known as Metcalf 103 is on the rise.

Above, Craig Cooper with NAI, d’Bronx manager Rose Davis, Betsy Bell and Kelsy Burvee; CBRE – David Hickman (Senior Vice President, retail leasing and Bud Light ironman triathlete); and TIC Properties Management – Diane Davis (regional property manager).

After four years of gradual decay under the management of a now defunct Idaho corporation, Metcalf 103 has landed in the capable hands of TIC Properties Management, an asset management company based in South Carolina.  Daily operations are the responsibility of Kansas City’s NAI Capital Realty, whose offices along nearby College Blvd. allow for frequent contact with the tenants. NAI President Kevin Wilkerson said “these (Metcalf 103) owners are great to have working beside us.  They are actively involved, are smart and know exactly what they are doing.  It makes our job a lot easier.”

The former property management company, DBSI Inc., declared bankruptcy a year ago and left a trail of hundreds of properties nationwide in various stages of disrepair. 

When the bankruptcy was filed, the owners of 99% of Metcalf 103 went into action to save it.  They started an internet based discussion group, began having weekly conference calls, and hired a property attorney, an asset management company and a property management company to run the asset while they worked to extricate it from the DBSI bankruptcy case.  The effort was massive and successful.

The owners who a year ago were in a mild state of shock and confusion are now very much involved in the property’s comeback.  They have taken control and set out to undo the damage that prior management caused over the past few years.

NAI’s Craig Cooper and Melissa Staley report that there is an entirely new and optimistic outlook in place across the entire tenant spectrum.

Those driving by the property, which runs from 103rd to 105^th Street on the east side of Metcalf, will immediately notice the new mansard roof shingles that have been systematically replaced over the past two months.  Less visible is the interior courtyard work that is underway, which will be followed by repainting of the property exterior.  The parking lots have been repaired, sealed and restriped, exterior lighting has been replaced or repaired and the large monument sign in front of the property is once again operating at night.  Not seen is the below ground work.  Deteriorated water pipes have been replaced and significant foundation repair has been completed in the corner of one building where settling had occurred.

The work on Metcalf 103 has not gone unnoticed by outside interests either.  Talks are underway with a prospective tenant which would be making its first inroad into the K.C. marketplace.  And existing tenants are negotiating new leases in the much improved surroundings. 

NCRI goes green

For more than 38 years, NCRI – National Catastrophe Restoration Inc. has been responding to and restoring disasters across the KC Metro Area. Below, Darin Carnahan, Jeffrey McKinzy, Angel Arteaga and warehouse coordinator Steve Luttman. 

A total disaster restoration company, NCRI also is the only Certified Woman Owned, ISO Certified 9001, GSA Contract Holder, and Full Service Restoration Company in the world.  They provide emergency power, window board up, water removal, remodel reconstruction and document drying. Their vast and diverse work experience includes entities such as commercial and residential properties.

NCRI  with Brenda Smith, VP of Human Resources and Patricia Easter, President, prides itself on providing 24/7 emergency mitigation and turn-key restoration of damage caused by fire, smoke, water, wind, earthquake and all types of natural and man-made disasters to companies across the economic spectrum. From its onset, NCRI’s personal commitment, proven methods, specialized services and technically advanced procedures have established them as a global leader.

NCRI also is a member of the Green Risk Professional program, demonstrating a commitment to green practices. NCRI is one of the restoration companies in the KC Metro Area to have certified Green Risk Professionals (GRP) on staff.  These GRP’s have an exceptional understanding of not only green building materials and cleaning products but also understand the sustainability issues regarding green risks and how green risks impact insurers and the claim process. Their experienced and certified technicians insure your environment is free of fire, soot, smoke, water, and mold contamination using the latest technology and green products for a healthier work and living surroundings. To reach NCRI or to schedule a free estimate, call 913-663-4111 or visit www.ncricat.com

KC Riverfront dedicates bridge

Kansas City’s Riverfront area got a boost recently when the Port Authority and its project partners kicked off the Town of Kansas Bridge enhancements with a holiday lighting ceremony.  This latest riverfront improvement drew of festive crowd of about 200 guests, including (above) Port Authority Chairman Trey Runnion, Interim Kansas City, Missouri City Manager Troy Schulte, and reStart Executive Director Evelyn E. Craig, who “flipped the switch” at the Town of Kansas Pedestrian Bridge illuminating newly installed signage.

“Tonight, we’re kicking off another exciting construction project that includes major enhancements to the Town of Kansas Bridge,” Runnion said. “During 2010, the Port Authority will be enhancing the bridge to increase the ease of use for bicyclists, including the installation of a “U-Rail” track system within the stair tower.”

Below, Vincent P. Gauthier (Executive Director, Port Authority) and Joanne Collins (Commissioner, Port Authority), at the ceremony.

KEM Studio serves as the project designer and lead architect, el dorado architects and James Woodfill are project artists, Patti Banks Associates is the landscape architect consultant and Dimensional Innovations is the signage fabricator. As part of the Riverfront Heritage Trail, the Town of Kansas Pedestrian Bridge adds access from Riverfront West and Berkley Park to the historic River Market area, while providing an excellent scenic overlook of the Missouri River.  The Port Authority hopes to establish a new holiday tradition with the addition of a Riverfront Lighting Ceremony each holiday season.

Mark T. Sonnenberg is Senior Vice President/Principal and director of Industrial Sales and Leasing for Colliers Turley Martin Tucker. He’s been a broker for 12 years, spending a year with Cohen-Esrey before coming to CTMT.

“I am a strong believer in the power of mentoring and teaming,” he said. “I was fortunate enough to have a great mentor who helped me elevate my skill sets and work more quickly that I could have done on my own. I’ve tried to pass those same lessons down to younger brokers in our office.”

Teaming, he said, has become a very important part of the brokerage business over the last decade.

“It is the best way to leverage yourself so you can stay focused on the things you do best and it provides a better service to your clients,” he said. “I have very few clients who believe that one single broker can provide the level of service they are expecting on any given assignment.”

What is the “state of real estate” today?

The local industrial market is still very slow on both leasing and sales. I was lucky enough to broker several deals in different  markets outside of  Kansas City this past year and there are very few signs of  improvement even in many of the first-tier markets. I am optimistic that the local market will start to improve by mid-year.

What’s your game plan for 2010?

Last year was a year of small wins, no real big wins. It was a very tough year. My local brokerage business was way down. Luckily, I had some national tenant rep work that helped weather the storm. Moving into 2010, I think the best place an industrial broker can be is focusing their new business efforts on pursuing owner/user sale listings. In my opinion, this is the best opportunity to make money in 2010 as sellers start to get realistc on the current value of their buildings, and buyers start to take advantage of adjusted pricing. That’s my game plan.

What’s your niche?

Anything industrial fits in my niche. Most of my business right now is coming from three areas — institutional landlord rep, land sales and national tenant rep. Those areas will change over time as the market changes and new opportunities arise.

What’s the market like right now in KC compared to other areas?

The biggest difference between the KC industrial market and most markets we compete with for deals is that KC still has a relatively low vacancy rate. We did not get overbuilt during the last development  cycle like most competing markets. Hopefully, this will equate to a quicker transition back to the development cycle. With that said, local deal velocity is still very slow and that needs to pick up before we can start thinking the development cycle.

Tell me a little about yourself and your hobbies.

I have two young sons (Grant, 3, and Crews, 1) so my main hobby is spending time with my family. My wife and I love to travel without the kids when we can pull it off. I am also really focused on losing the 10 plus pounds I just gained eating and drinking my way  through the month of December. And contrary to what most brokers think, Mike Sonnenberg (broker with LaSala-Sonnenberg) is not my younger brother. He is my older brother by two years. So please do us a favor and stop hurting his feelings by asking him if he is my younger brother. Honestly, I don’t know why people think I am older, other than that I am taller and better looking.

Grand Lofts

Rosemann & Associates, Architects is leaving another big mark on Kansas City’s development scene. The firm recently completed the design, and construction has begun, on the conversion of the 17-story historic 1006 Grand building into 134 apartment units to be called Grand Boulevard Lofts.

This $18 million project is a bright spot of development in our downtown, which has seen recent growth but also has seen many projects stall in the current economy.

“The downtown area has experienced revitalization and there is now a great demand for quality affordable housing inside the downtown loop,” says Donald Rosemann (above), who sits at the helm of the firm. The building at the corner of 10^th and Grand has been vacant for more 10 years, but now is about to receive the historic preservation it deserves. 

Developed by Sherman Associates, of Minneapolis, the Grand Boulevard Lofts project is being financed by the Missouri Housing Development Commission (MHDC), the Department of Housing and Urban Development (HUD), the city of Kansas City, and various private lenders and investors.  Rau Construction Co. is the general contractor for the project which is scheduled for completion at the end of 2010.

Rosemann’s design concept preserves the historic context of this building.  1006 Grand was built in 1909 as a five-story building known as The Gates Building.  Over the next 20 years additions were completed to expand the building to its current 17- story height. It then became known as the Homes Savings Association building.  This conversion will maintain the integrity of the historic qualities of this building, while offering all modern apartment amenities. 

 Rose Construction breaking ground 

Anyone in the commercial real estate business these days will tell you that industrial building construction has come to a halt. That’s why Russell Pearson (belowe, left) and Nathan Anderson (below, right) with the Harbinger Property Group are keyed up about a recent development:  B. Dalke Custom Design, LLC, headquartered in Lenexa, has hired Rose Construction Co. to design and build a 9,000 square foot office/manufacturing center at Parkside Business Center, which is near Ridgeview and Kansas City Road in Olathe.

According to The CoStar Group, this represents the only industrial building in the entire five-county KC metro area to begin construction during the second half of 2009, and the third industrial building start for the full year. “This really is the only industrial building that’s being started in the last two quarters,” Pearson said. B. Dalke Custom Designs is a custom interior design/build company that specializes in custom furniture, interior architectural pieces, and hand-made trophies and awards. The building will be a showcase for their work as well as a custom fabrication shop.

Pearson and Anderson represented Rose Construction in the transaction. The buyer considered more than 15 new and build-to-suit options in the Olathe and Lenexa areas before choosing Rose Construction to build the new facility due to competitive pricing, a preference for the design-build process, and overall workmanship quality of Rose’s past projects.

Harbinger Ping Pong Qualifier

Harbinger has also been active with the Fist Annual Harbinger Ping Pong Tournament. Pat Mereaz (above) with Harbinger Property Group defends the home turf with his best impression of Forrest Gump. The ping pong qualifier was held a few weeks ago to seed the tournament to begin around March Madness.  32 players from companies all over Kansas City are playing for bragging rights, miscellaneous prizes, and the Grand Prize Title Belt. Gary O’Dell (below) with Jones Lang LaSalle gets ready for a wicked backhand very reminiscent of John McEnroe, however no tirades were shouted towards the official.

Susan Richards Johnson recently received the Architect of the Year Award from the American Institute of Architects Kansas City chapter for her role in improving the quality of the built environment in Kansas City.

Susan Richard Johnson & Associates, Inc. is a woman-owned, full service firm with extensive experience in historic restoration and renovation, adaptive re-use, and planning and construction for residential and commercial construction.

It’s no wonder, then, that her offices are located on the 11^th floor of the historic Scarritt building at 818 Grand. Described as “a direct representative of turn of the century preoccupation with natural light,” the exterior facades exemplify some of the finest, intricately molded ornamentation in the country today.

Light streams into her office from all sides, and the 14-feet ceilings adorned with plaster moldings all have been completely renovated with Johnson at the helm.

What interesting projects have you recently completed or have on the drawing board for 2010?

We are under contract with the National Parks Service, Midwest office, to do their historic structures within the national parks. We also have just been selected to be part of a team for the Liberty Memorial project that involves stone assessment, security and other issues.

We’re also really excited about a project we just finished up – the Women’s Leadership Fountain at 9^th and Paseo. You wouldn’t have ever known it was a fountain if you saw it before hand, it was just like a rock pile when we started. Now we brought it back to life, and it’s been commemorated to women. It’s kind of cool to have a “girl fountain” in Kansas City. We also restored other monuments within the three-block area (the Meyer Monument, The Terrace and Fitzsimon’s Memorial)

What do you enjoy most about your niche?

Saving something that has been so dilapidated, and being able to help revitalize, it’s really a form of creating. It makes you feel wonderful, like you’re filling that gap of lost history. I’m not a “pure preservation person,” in that it’s all about taking it back to the original use. I’m more of an “adaptive re-use” person, like this building I’m in, for example, which we did most of the work here around 1995. My office is the original law library of Judge Scarritt back in the early 1900s.

It’s been a tough year for architects. What’s next year hold for you?

I’ve been very, very blessed and lucky because preservation project have not been cut. And while people might not have the funding for new, they are thinking about fixing something they already have. There’s a rise in renovation projects. And the big incentive is that both the state of Missouri and the federal government have rehabilitation tax credits people can take advantage of, which is a huge economic tool. They can get funding up to 45 percent if they take advantage of both taxes.

You obviously love old buildings. Where did that love come from, and do you live in a historic home in Kansas City?

I live in Coleman Highlands in a home built in 1915 that at one time was owned by Truman, although he never lived in it. It’s a two-story, native stone and stucco house with a green, clay tile roof. It’s very eclectic inside with plaster walls and hardwood floors.

When I was at KU, I selected a minor in historic preservation and started studying the Renaissance and Baroque. I was so enamored with the details of old building and the expression of volume, the cathedrals and just their scale and the light coming in. It was just that feeling of “awe.”

More than 250 Kansas City community leaders, including former Chiefs GM Carl Peterson and his wife, Lori, and Jim Holland, Hunt Midwest Chairman of the Board, came together December 7 at the Foolish Club at the new Arrowhead for a retirement party honoring Lee Derrough. Following a 42-year career working for Lamar Hunt’s family – first with the Kansas City Chiefs, then with Worlds of Fun and most recently as president and CEO of Hunt Midwest Enterprises – Derrough will retire at the end of the year. He will remain on the Board of Directors for Hunt Midwest, the Kansas City Chiefs and Hunt Martin Materials.

“Under Lee’s guidance, HME grew into a multifaceted company with holdings in real estate, amusement parks and mining,” HME Chairman Jim Holland said. “HME will remain focused on real estate development, services and mining, and Lee has left the company well positioned for the future.”

Ora Reynolds, vice president and general manager of Hunt Midwest Real Estate Development, Inc., will be promoted to president of the real estate company as of January 1. Below, the Hunt family congratulates Derrough on his 42 years working for business entities owned by their family. From left,  Sharron, Dan, Norma, Clark, and Lamar, Jr. (with Derrough second from right).

Block Real Estate Services recently leased the  77,828-square-foot Six Pine Ridge Plaza Office Building to Uhlig, LLC, a leader in advanced-technology publishing systems.The company expects to move into the new space in Lenexa at 8455 Lenexa Drive by mid-February, allowing Uhlig to consolidate two of its four current locations in the Kansas City area.

“Kansas City has a lot of great potential locations, but we believe that this is at the top of the list,” said Mark A. Uhlig, the company’s chief executive officer, who added that the company had conducted a careful, two-year selection process before choosing the Pine Ridge location. “In terms of geography, construction and the high-quality infrastructure that our company requires, we think that this is an ideal fit.”  Block Real Estate Services representatives Kenneth Block, Gene Elsas, and Brian Bock represented the landlord while Rollie Fors, Tom Volini, Ed Elder, and Tom Haverty of Grubb & Ellis, The Winbury Group represented Uhlig. The three-story building was constructed in 2000 by Block Development Company and has been the headquarters for Kiewit Power Constructors for the last nine years. Kenneth Block heads the Block sponsored investment group that currently owns the building. Kiewit recently expanded this last July to a new 150,000-square-foot headquarters at Renner Corporate Centre I, at 95th & Renner in Lenexa, KS. 

”When we built the building for Kiewit in 1990, we made sure that the quality of the building was at the very top of the market,” said Kenneth G. Block, principal of Block Real Estate Services.  “We felt that a Class A building, in a superb location such as Pine Ridge Business Park, with visibility and direct access to Interstate 35 and Highway 69 would keep its value for the long term. We think this quality was beneficial in attracting a fine company like Uhlig, and we look forward to their upcoming move into our Pine Ridge Business Park community.”

Colliers Turley Martin Tucker is the winner of the first annual MetroWireKC pumpkin carving contest! Several commercial real estate groups competed against each other, but their “company divided” pumpkin (one half KU, one half MU) won over the judges, who even thought they might have brought in a professional. Their prize? Bagels from Panera. Thanks to everyone who took part in the fun.

                           Wednesday Q & A – Don Dagenais

Mr. Dagenais specializes in commercial real estate purchase, sale, mortgage, lease, development, management and land use projects for commercial developers, builders, investors, condominium developers, banks, mortgage lenders and property managers.  His work includes handling all legal aspects of projects including apartment complexes, shopping centers, office buildings, condominiums, warehouse and industrial projects, retail stores, hospitals and nursing homes.  He also works in the areas of construction law, zoning, foreclosures, and loan workouts; Americans with Disabilities Act requirements pertaining to commercial space; and all other related issues.

Mr. Dagenais is a frequent guest speaker before groups interested in real estate development and management, such as the Building Owners and Managers Association (BOMA), Kansas Land Title Association and others.  He is also a lecturer in seminars for attorneys on advanced real estate law for professional organizations such as The Missouri Bar, Kansas City Metropolitan Bar Association, National Business Institute, Lorman Educational Series, and civic boards and organizations.

What legal issues are at the forefront of today’s real estate market?

 As everyone knows the commercial real estate market is tough right now; the key issue is really whether commercial lenders are going to be getting back into the game.  A few are dipping their toes in here and there, but many are still waiting it out.  I think the big issues are when lenders are going to get back into the market, and when they do, what kind of loan underwriting requirements they will have.  If loan underwriting requirements are too tough on borrowers, e.g. require extremely low loan to value ratios, require lots of personal guaranties, etc., then the market will still be pretty tight.  Loan funds pretty well drive commercial real estate, so this is today’s key issue from my perspective.

You were active in the early 1990′s liquidating real estate portfolios.  Do you anticipate that a mechanism will be created in the coming years similar to the Resolution Trust Corporation to help liquidate real estate portfolios?

I don’t think so.  The RTC became necessary because lots of savings and loans simply went out of business and the government ended up taking over their loan portfolios and had to dispose of them quickly.  Along with my colleagues at Lathrop & Gage, I did a lot of work in helping the RTC dispose of these portfolios through a series of high-profile real estate and real estate loan auctions back in the 1990′s.  In the present climate, not too many of the lenders have really gone under, and those that have, are generally being purchased by existing companies, so the portfolios are ending up with the private purchasers of the assets, not with the government itself.

I do believe that the mechanism used by the RTC in disposing of real estate assets, i.e. high profile real estate auctions, is still a very valid way to quickly liquidate major portfolios.  It must be used correctly, with plenty of disclosures and transparency to the buyers, and it must utilize a very fair procedure to make sure that all potential bidders have an equal opportunity to value the portfolios and to make their bids.  I think that the auction procedure, if correctly done, could be useful to current lenders, and to those who may purchase their assets, as a way of liquidation.  But I believe it will be done on a private basis, and not by a government agency.

From a legal standpoint, what common mistakes do you see owners, brokers, and developers make on a typical transaction (other than not hiring you to do their legal work)?

I’m not sure I would call them “mistakes,” but certainly all parties need to think through all aspects of the transaction to make sure that they anticipate future developments and needs.  For example, a buyer who purchases real estate who fails to anticipate the needs of a future lender, such as needs for due diligence investigations (title, survey, environmental, engineering, etc.), may find itself with a piece of unfinanceable real estate due to a failure to anticipate a lender’s need for this information and a failure to understand the review standards that the lender will employ.  As another example, a tenant who leases property and who fails to anticipate the possible sale of the company, or its possible need to expand or contract the leased space, may find itself with a lease that reduces the company’s value rather than enhances it.  Another example would be a developer which fails to appreciate issues that may arise with neighbors or adjacent property owners; the developer may find itself unable to develop the property in the way it had envisioned.  I think that good professional advice can help all parties to a transaction think through these kinds of implications and avoid unpleasant surprises later on in the process.

How are you and other real estate attorneys in your office staying busy despite a decrease in transactions?

We have actually been fortunate in being busy on a number of fronts.  There are always the loan workouts and loan extensions, and the occasional foreclosure, that require our aid.  But we are still doing new deals, although they often involve more inventive real estate financing techniques, such as more assistance from governmental sources, than was the case in the past.  The availability of tax credits for certain kinds of deals is still important, as there are still companies out there making money which are ideal potential purchasers of tax credits.  There is still commercial lease work to be done, as companies are assessing their future needs in light of both the current recession and the anticipated uptick in real estate activity over the next couple of years. 

Are there any special volunteer organizations that keep you busy over the holiday season?

I am a lover of the theater and classical music and opera, and I have been very involved in theater, music and opera organizations.  These groups face the same kinds of challenges that for-profit businesses face, i.e. how to attract customers (audiences), how to control costs, how to plan for the future and how to anticipate future needs and future growth.  These kinds of issues present challenges for us all, and I enjoy working on them so that we can preserve and hopefully enhance the artistic experiences that enrich the community for all of us.

The Downtowners gathered at the Hollywood Room on Wednesday for a festive holiday luncheon meeting.

      Above, Bill Zahner, CEO of Kansas City-based A. Zahner Co., was the featured speaker who, among other things, talked about his metal creations that adorn everything from museums in Canada to New York City high-rise condos (he said Martha Stewart lives in one his company worked on and her car is transported up several flights to her door).

     Babette Macy, Board President of the Downtowners, welcomed Zahner before he began a presentation that showed clips of many projects the company has completed and is recently finishing up around the world.

     For more than 100 years, the Zahner Company has been at the forefront of the architectural metal industry, combining engineering design, art and function.  Zahner talked about how his company uses metals such as titanium, steel and copper (one of his favorite) to create one-of-a-kind projects — they did the first Apple store in Soho and the new crown at Royals Stadium.

      He said the trademark of his company is its attention to detail.

     “If you can make the detail come out, time and time again, that’s what counts,” he said. “Our reputation is our high level of quality, and we never sacrifice that.”

      He got several laughs from the group, including one where he told a story about a man who was visiting a building Zahner helped create. The man said, “Can you believe this beautiful façade was made in some podunk place in Missouri?”

    Although the company works on projects across the globe, including several recently in Canada and the Middle East, Zahner said the giant metal pieces are created and assembled in the Kansas City plant with the help of designers and engineers.

     He said 2009 was a good year, despite the economy.

    “We love the work we do and we have a lot of fun,” he said. “We’re adding on … and hopefully growing.”

Above, Gib Kerr (from left), Kathy Schikevitz and Jayne Siemens enjoyed the presentation.

KC CREW and CCIM Holiday Party

Drinks flowed and guests networked as KC CREW and CCIM teamed up for a holiday party after hours Tuesday at JE Dunn’s new downtown headquarters.

 Around 150 members and guests enjoyed food from PB&J catering as well as tours of the new building at 11^th and Locust.

Most who attended simply enjoyed mingling in the spirit of the holiday season.

 “This is always a fun event,” said Linda Laurence, representing sponsor Missouri Bank. “And it’s good for an organization like KC CREW that promotes women in commercial real estate to network, especially with the men in our field.”

Linda Laurence with Missouri Bank, Chris Blair with KC CREW, and Vickie Stewart with Rosemann & Associates

   Many attending hadn’t seen the new and impressive JE Dunn building, designed to complement the existing architecture of nearby City Hall, the Federal Courthouse and the Department of Transportation Building.

Mike Specht with CBRE and Teresa Campbell with Trammell Crow enter the new JE Dunn building

 As guests entered for the party, they proceeded down a long hallway toward meeting rooms. One boardroom (which not many people saw because it was behind the bar) featured giant round balls of lighting across the ceiling and sleek contemporary furnishings that were the standard throughout the building.

One of the more interesting parts of the evening was learning that JE Dunn designed the first LEED™ Gold certified Corporate Headquarters project in Kansas City. JE Dunn had to recycle or divert at least 75% of all construction waste from the landfill; they had to use energy alternatives to help curb gas usage; and among other things, 10-20% of all materials used in the building will be extracted, processed, and manufactured within a 500-mile radius of Kansas City.

Bess Kessinger with Q10 Triad Capital Advisors (left), Rosana Privitera Biondo, president of Mark One Electric Company, Inc., and John Parker with Q10 were among the sponsors.

Exterior Decorators Sponsor Highlight

Exterior Decorators, a Kansas City- based company, has been maintaining the grounds on both residential and commercial properties for 40 years.  Started in 1969 by Tom Schumm (and now run by Kevin Schumm, Tom’s son), the company has increased its reach across the metro by word of mouth alone, regularly being referred out by clients who know and appreciate the extensive care and thorough workmanship of the Exterior Decorators fleet. 

 A ‘Can Do’ attitude, dedication to continued education and training in grounds maintenance, and an eye on innovations in the industry are some of the services that Kevin Schumm says keeps his company at the forefront of the market locally.  Combine that with the focus that Exterior Decorators has on providing the most complete care and cost effective solutions for its clients, and the result is a very satisfied client base, zero at-fault slip and falls, and a return on services that is unmatched by competitors.

Wednesday Q & A – Paul Neal

Paul began his career in Industrial Real Estate Sales & Leasing in 1989 and is consistently a leading producer in Kansas City , completing over $150,000,000 worth of transactions representing over 15 million square feet during his tenure.  Paul is one of the leading brokers in volume and square footage over the last several years.  Paul carries the SIOR and CCIM designations and has more than 15 years of experience in the brokerage business in Kansas City .  Paul earned his CCIM degree in 1995 and is Past President of the Kansas City chapter of CCIM.  Paul is also a member of the Missouri Association of Realtors and the National Association of Realtors Million Dollar Clubs.  Paul attended Rockhurst Jesuit High School and graduated from the University of Missouri-Columbia in 1986 with a BA in Economics. 

What’s new at Grindstone Industrial?     

Grindstone has had a good run this fall. I am seeing strong activity in the larger  “ A” buildings. Grindstone is doing a lot of work helping building owners overcome financial and economic hardships.  

What are the advantages to operating a small, highly specialized firm like Grindstone as opposed to affiliating with a larger, national firm?  

The advantages of clients working with Grindstone are significant. What is best for our clients is Grindstone’s focus. Not what HQ in New York or St Louis think is best for HQ. I’m not feeding a machine and I can invest in making sure my clients properties get leased and sold.  I answer to my customer and my customer only-what they say goes.  

How would you describe the current state of Kansas City Industrial Real Estate?  

Opportunity .  Yes, the economy is making it a challenge. Landlords and Sellers have to invest in the presentation of their properties. Pricing is more important than in the past. Tenants with good industrial agents have an advantage. I’ll never buy into doom and gloom. When the sky is falling it always rains money for the people who get up early and work hard building buckets.   

In what ways do you anticipate the Kansas City industrial market changing over the next 10 years?  

Crystal Ball-financing and re-financing will be tough. There will be a lot of opportunities for buyers to purchase great value. Owners with financing will be able to invest in improvements, and commissions, and have an advantage. Development will be slow for 3-4 years but like always will overcompensate after that. If the government enacts any union vote, cap and trade, or health care mandates, the recovery could take significantly longer.

In what ways do you anticipate the brokerage business changing over the next 10 years?  

The technology, the economy, and the cost of overhead will motivate even more brokers to be entrepreneurial. I’m building a business that has value. If any good brokers are interested, let’s talk.  

We understand you’re an excellent the musician, what type of instruments do you practice and what is your favorite type of music to play?  

“Practice” is the key word here. I can fake my way on the guitar and keyboards. I like playing mandolin and the banjo. It’s hard to pin down a favorite.   I’ve always been a fan of great classic songwriters like Dylan or Neil Young. Or more obscure artists like Tom Waits. My favorite music these days is the alt-whatever. Bands like Wilco or  Ryan Adams.

Industrial
 
Aaron Rents leased 123,735 square feet at 1 Kansas Avenue in Kansas City, Kansas.  Paul Neal of Grindstone Properties represented the Landlord in the transaction. 
 
Iron Mountain Information Management renewed its lease of 131,764 square feet of space at Kansas Commerce Center, 15300 W. 99th Street, Lenexa, Kansas. Dan Jensen, SIOR of Kessinger/Hunter & Company along with Phil Algrim and Erik Lund of NAI Capital Realty negotiated the renewal.

International House of Prayer leased 28,000 square feet of space at 4429 139th Street, Grandview, Missouri. Rob Holland and Patrick J. McGannon, SIOR of Kessinger/Hunter & Company and Craig White of Glad Heart Realty negotiated the lease.

On Demand Technology renewed its lease of 34,070 square feet of space at 9271-9291 Cody, Overland Park, Kansas. Patrick J. McGannon, SIOR of Kessinger/Hunter & Company negotiated the renewal.

Advanced Food Services, Inc. renewed its lease of 21,710 square feet of space at Lackman Place, 9807 Lackman, Lenexa, Kansas. Matthew Severns, CCIM of Kessinger/Hunter & Company negotiated the renewal.

Cintas Corporation No. 3 leased 17,450 square feet at Lackman Business Park “A”, Lenexa, KS from Oddo Development Company.  Lessee’s Agent: Mike Mitchelson, CB Richard Ellis. Lessor’s Agent: Joe Orscheln, CB Richard Ellis
 
 
Office
 
 
Millenium Education leased 21,000 square feet at 6200 N Corporate Dr., Kansas City, MO from Enterprise Prop. Lesee’s Agents: Jason Lewis and Bob Fagan, CB Richard Ellis.
 
IKON Office Solutions has renewed their lease of 19,398 square feet in Westbrook III located at 8050 Marshall Drive in Lenexa, Kansas.  Phillip Algrim, SIOR and Erik Lund of NAI Capital Realty negotiated the transaction along with Jason Lewis of CB Richard Ellis.
 
UMKC leased 15,858 square feet in the Pershing Building, 215 W. Pershing, KCMO.  Gib Kerr of Sperry Van Ness represented the landlord.
 
Continental Casualty Company leased 14,158 square feet at 5901 College Blvd. in Overland Park, Kansas.  Jeffrey Kembel and Matthew Hanson of NAI Capital Realty negotiated the transaction along with Jim Buddress of Swearingen Realty Group.
 
Baker University expanded to 5,900 square feet of space at 1278 NE Windsor Drive, Lee’s Summit, Missouri. Debbie Schulte, SIOR of Kessinger/Hunter & Company represented the tenant.
 
Retail
 
GenX Clothing leased 22,000 sf at the Landing Shopping Center at 1104 East Meyer Blvd.  Darren Siegel of Block & Company represented the landlord and Dionna Farbstein of Boveri Realty represented the tenant
 
Panda Buffet  leased 6,000 sf, 10 year lease at 9764 Quivira in Broadway Plaza Shopping Center.  Darren Siegel of Block and Company represented the landlord.

Grubb & Ellis 2010 Market Forecast

Grubb & Ellis / The Winbury Group hosted a Commercial Real Estate Forecast Event Tuesday morning at the Downtown Marriott.  The breakfast event featured a prestigious panel of speakers including Bradley Scott of B.M. Scott & Associates, LLC, Mark Jorgenson of US Bank, and Terry Dunn of JE Dunn Construction Group, Inc. 

The panel was moderated by Chris Lester of the Greater Kansas City Chamber of Commerce.  The CEO of Grubb & Ellis / The Winbury, Bryan Johnson delivered the opening remarks to the large audience and introduced Grubb & Ellis’ Chief Economist, Robert Bach.   Bach delivered a National Market Forecast focusing on forces driving national real estate recovery (or lack thereof) such as geopolitical influences, job creation, and lending.  While the outlook for the overall economy appears foggy short term, the feedback was much more positive for the Kansas City market.  The overall sentiment from both Robert Bach and the panel was that Kansas City was sheltered from much of the extreme overvaluations of real estate and should land much more softly.  The panel of self- proclaimed optimists wanted to portray as positive an outlook as they could, but warned that this recession maybe a “W” rather than and “L” or “V” shape and that we may have another serious dip prior to long term recovery.

Judy Peery, Bob Bach, and Brent Hansen enjoyed networking during the breakfast prior to the forecasting event.

Blue Beetle

Mitch Shipman’s Blue Beetle Termite and Pest Management has been in the bug business since 2003.  The family-owned and operated company services both residential and commercial accounts throughout Kansas City, proudly noting a 99% retention rate with its commercial clients. 

There is a lot to like about Blue Beetle beyond its ability to eliminate your bug and bird infestation problems; the company’s rapid response time and same day service ensures your problems will be taken care of in a very timely manner and all service calls go straight to Mitch himself, ensuring that your problems are heard and will be dealt with effectively.  Blue beetle understands that pest management must be quickly, discreetly, and effectively implemented in the commercial setting and the company successfully delivers that service to its clients.