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Stoltz, the management company for Corporate Woods, recently treated friends and associates to a Casino Party on one of the top floors in Building No. 40. Joe Unruh (above), Ed Blosser and Troy Fuqua, all with Stoltz, tried their hands at Blackjack, where Fuqua was proving himself to be the big winner. “I’d better move to another table,” Unruh joked.

And that was easy to do considering how extravagant the party was, complete with a buffet (see Brian Bowers above, with Caldwell Banker Commercial. He wasn’t shy to fill up his plate).  Don Gessen with Block Real Estate Services joined Chad LaSala of LaSala-Sonnenberg at another table (below) for some friendly gambling.

Then Tracy Wilson with Stoltz (below) pulled away friends from the tables —  Brandi Battese, Phil James and Ryan Schneider — to get this shot under the cards.  Jan Miller, who helped organize the “Casino Night at Corporate Woods” event, said the party was Stoltz’ way of saying thanks, especially to commercial real estate companies who tour the park and bring tenants and proposals to them.

CCIM HOSTS HOME RUN DEAL BREAKFAST

CCIM held its annual Home Run Deal breafast event recently to honor the biggest deals of the year. They’ve been doing this for years, and it’s an upbeat event that everyone looks forward to, said Gib Kerr. One of the most noteworthy aspects about this year’s awards is that  although 2009 was a downbeat year for the commercial real estate industry, the total dollar volume of this year’s deals (as far as anyone knows) is the highest ever, he said.
“I would say the mood was very upbeat, and that it was interesting to think back on how terrible the economy was one year ago, when these guys were putting together these deals (the stock market was crashing, banks were getting taken over by the government, layoffs at all-time highs, etc.), and how much more stable things seem this year.”

The Home Run Deal winners (see below) included:  Jay Ruf and Bucky Brooks with First Scout Realty Advisors, Inc. for their  Burns&McDonnell lease of 486,000 SF at Ward Parkway HQ.  Total value:  $165,908,684.
Jerry P. Fogel, SIOR  (Kessinger/Hunter&Company).  Coleman Company build-to-suit of 1,107,000 SF distribution facility in Gardner.  Total value:  $35 million.  Jeff Berg,  Owen Buckley, Trip Ross and Justin Kaufmann with Lane4 Property Group; for Corinth Square, The Village in Prairie Village, and The Fairway Shops.  Total value:  $62.1 million.
Aaron Mesmer, Block Real Estate Services, LLC, and Patrick Meraz, Harbinger Property Group, LLC. Sale/leaseback of YRC HQ  I-435&Roe.  Total value:  $76,81,461.

Robert Fagan has been with CB Richard Ellis since 1993.  Prior to that he was a partner in a general contracting firm specializing in commercial construction.  ”I was drawn to this business by the individuals,” he said. “ I had long-term relationships with several people who were working at CBRE and other brokerage houses.  Many of them seemed to be enjoying great success and seemed to strike a real balance in their lives. I joined CB as an Office Broker.   After being in this business for a number of years I realized that the intangible benefits were unlike almost all other industries.  We use the term “co-operating broker” in our daily vernacular, but it really means something in this business.  Working for a national company like CB, I work with brokers in other markets on nearly a daily basis.  My impression is that Kansas City is one of the best atmospheres in the country to operate. By way of example, I have served as an arbitrator for the Kansas City Board of Realtors for the past seven years.  In that time there have only been three commercial disputes that have gone to arbitration.  I’m much more likely to join a direct competitor at a Royals game or on a duck hunting weekend than at the arbitration table.”

 Tell us what’s been going on at the Sprint Campus. 

The Sprint Campus is one of the most intriguing leasing listings ever offered in the Kansas City area.  It is great opportunity to work for a world-class client with a world-class lease offering.  The Sprint Campus is unique in this area and arguably it is replicated in only a few spots across the country.

 Tell us about any interesting deals you’ve been involved with recently.

We were able to capture three of the top 10 leases last year in the Kansas City area at the Sprint Campus.  These three leases total 303,000 square feet and prove to the market that the Campus does have the ability to be broken into a multi-tenant park.  The park was not designed for more than one user and the challenges presented to us in the first months of the assignment were fascinating. We helped create the ground-up systems and processes that would allow Sprint to sign leases with initial terms and renewal rights stretching 20 years.

How did you fare in 2009 and what’s your strategy for 2010?

In January 2009 there was no clear picture of how the year would end up.  By mid- year, consumer confidence had stabilized which, in turn, led to stabilization of office employment.  A stable environment allowed tenants to take advantage of the market and strike longer deals than one or two years which resulted in a terrific year overall. The market is still in flux and tenants will continue to take advantage of a downturn in pricing.  We will see flight to quality and savvy landlords will have to work very hard to maintain tenants and to overcome the aggressive leasing terms being offered.

What do you do outside the office?

This career is a real blessing in that I get to go home at night and impress on my kids that you can find a career that you really love — something that is truly enjoyable and lucrative at the same time. When I am not working, I hunt as much as possible during the season and fish when I can. I coach softball in the summer and spend a lot of the school year sitting in the stands or at Scout events.  My wife and I have decided that when we vacation with the kids we are going to explore America .  By the time they enter high school they will have covered an enormous amount of country .  Our hope is that they gain a real education through travel.

Ronald Altoon (center) of Altoon & Porter Architects (with Walt Clements, director of the Lewis White Real Estate Center, UMKC, and Michael Song, executive director, UMKC Institute for Entrepreneurship and Innovation, both with the Henry W. Bloch School of Business and Public Administration) was the featured speaker at the “Thinking Globally, Acting Locally: an Entrepreneur’s Survival Guide” conference that was held earlier this week at The Kauffman Foundation. Henry Klover of Klover Architects, also was part of the panel (below with Bob Lindeblad with BHC Rhodes, John Stacy with J.P. Stacy & Co., Inc., commercial real estate services, and Bill Prelogar, Jr.,  principal architect of NSPJ Architects).

Altoon, author and former president of the American Institute of Architects, spoke about the challenges of creating an international business. Altoon, a visonary international leader in architecture with Altoon + Porter, has offices in Los Angeles, Amsterdam and Shanghai. The firm has won more than 65 international awards for design excellence for their work in mixed-use, retail, office, institutional and transit projects. Some of the most notable projects include the Atrium in Moscow, the Kingdome Centre in Saudi Arabia, and the Queen Ka’ahumanu Center in Maui. Guests Michael Lally, vice president, Olsson Associates, and Chris Heinz with Hollis and Miller Architects (below), and others attending the event said one of the points that resonated with them the most was the importance of “believing in yourself and your abilities and exporting them on an international basis. You have to immerse yourself in the culture, the food, how  they do business before you can even go over there.”  

 Stag Commercial acquires downtown building in Shawnee

Kevin Tubbesing (below)  of Stag Commercial is bringing back a bit of history to downtown Shawnee.

He has acquired the Commerce Bank property directly across from City Hall at 11110 Johnson Drive.  The purchase includes the bank building, a 3,359-square-foot former municipal firehouse adjacent the bank, and associated parking lots in the downtown area. Located in a Neighborhood Revitalization area, strong tax incentives and loan programs are available for landlord and tenants, Tubbesing said.

The original structure was built for Shawnee State Bank in 1909. In 1971, a black spandrel glass with aluminum framing façade was applied to the skin of the building.  “We’ll start transforming the building by uncovering and restoring the original stone of the bank,” he said.  As many parts of the expanded building are cinder block construction, Stag Commercial will reface the building in complementary natural stone.  The former entrance directly at the corner of Johnson and Nieman Drives will be reopened, bringing back the charm of one of Shawnee’s most recognized historic images. Internally, the building will be bisected north to south creating separate tenant spaces.  On Johnson Drive, three individual entrance spaces will be created, each with a unique stone façade on their section of the building.  The south facing entrance adjacent the parking lot will be attractive for a retail or restaurant operation offering strong visibility and signage to passing traffic.

CREW gets a green update

David Long with Heartland Business Capital, Jim Sheridan with Sheridan Franchise Systems, and Paul Wagner with Prosser Wilbert Construction (above) attended a recent CREW event (and no, they weren’t the only men there, they said). This month, the topic was “Green By Design: Investing In The Future: Sustainable Real Estate in a Changing Economic Environment.” One interesting example given by a speaker centered on leasing a building where some of the tenants are taking initiatives to go green and save money on utilities, etc., and others aren’t, and how does a landlord deal with those issues that often include financial consequences. In general,  speakers Walt Clements, Hans Nettelblad, Associate Principal, BNIM, Curtis Petersen, J.D. LEED® AP, Attorney, Polsinelli Shughart PC, and Joy Hays, J.D., attorney, Polsinelli Shughart PC, talked about the financial impact on your rate of return when using sustainable real estate concepts in your existing building or new construction plans; how those ideas work in today’s landscape; and solutions to legal issues that arise when doing business in sustainable real estate, especially relating to leases, contracts and the LEED certification process. Below,  also attendig were Amy Slattery with BNIM and Naomi Menefee with Highwoods Properties; and Diana Ennis of Stewart Title with Mary Jane Judy and speaker Curtis Petersen.

Gibson (“Gib”) Kerr, CCIM, serves as a senior advisor for Sperry Van Ness in Kansas City, where he specializes in the sale and leasing of office and investment properties.  With over 20 years of commercial real estate experience, Kerr has completed numerous landmark sales in recent years, including the sale of 95 Metcalf Square (151,000 SF retail/office complex in Overland Park), the City National Bank Building at 18^th & Grand (65,000 SF), the Argyle Building at 12^th & McGee (117,000 SF), and the Screenland Building at 17^th & Washington (45,000 SF). Prior to joining Sperry Van Ness in 2006, Kerr served as vice president at Tower Properties where he oversaw leasing of a roughly 2 million SF office and industrial portfolio.

We heard you are involved in downtown real estate deals. Tell us about those projects.

I’ve been working the downtown market since I moved back to KC in 1992.  I was a downtown guy before downtown was cool.  It probably would have been a lot easier to work the suburban office markets, but I’ve always loved the history and architecture of the older parts of Kansas City and it’s a personal challenge for me to help breathe new life into the urban core.

What is your niche? What is your company’s area of expertise and what makes it stand out?

Sperry Van Ness is a national brokerage firm that specializes in the sale of investment properties.  With over 900 brokers in about 150 markets throughout the country, Sperry Van Ness provides me with an outstanding national platform for marketing local properties to investors from all over the country.  It has been exciting for me to sell  KC properties to investors from California to the East Coast and places in between.  We are a very “broker friendly” company and, unlike many of our competitors, it is our policy always to split our fees with buyers’ brokers on all of our listings.  We believe that’s in the best interests of the sellers whom we represent, and it’s simply the right thing to do. I am excited to announce that I have entered into a strategic alliance with RED Brokerage to expand our respective investment sales and office leasing services in Kansas City.  I have relocated my office to RED’s office at 4717 Central and am getting used to working on the Plaza after 18 years downtown.  Teaming with RED will allow me to better serve my office clients, while building the investment brokerage business for both our firms.

Tell me about an interesting deal this past year or one in the works.

Sperry Van Ness’s Accelerated Marketing Team was just selected this week to auction off a major portfolio of historic warehouse properties owned by the estate of Tom Levitt in the Freight House/Crossroads area.  Altogether we will be offering six buildings totaling about 225,000 SF, along with three parking lots, most of which are eligible for historic tax credits and/or TIF.  For buyers who like exposed brick & timber, along with colorful KC history, in one of the area’s most desirable cultural locations, this will be a great buying opportunity. It may be the biggest commercial real estate auction in KC since the RTC days in the early ’90s.

What have you heard recently that’s stuck with you, in regards to the outlook for 2010 and beyond?

The investment brokerage business was decimated in 2008 and 2009.  There are some promising signs for 2010, though, as investors gain confidence and sellers recognize the realities of today’s reduced valuations.  More and more lenders are moving assets off their books, and this is leading to some great buying opportunities.  But the deal flow is still more of a trickle than the “tsunami” many predicted.

What are your biggest challenges these days?

The biggest challenge is bridging the gap between buyers’ and sellers’ expectations.  Too many buyers today expect to pick up properties at 30 to 40 cents on the dollar, like in the old RTC days.  In most cases, the sellers aren’t that desperate.  Sellers who can afford to ride out the storm are doing exactly that.

What are you involved in outside of work?

With four kids, my life revolves around their activities (football, hockey, baseball, soccer, basketball, etc.), but when I get a chance, I love to get out and hunt (upland birds and turkeys) and fish.  And when I’m not nursing an injury, I am an avid runner and swimmer. On the community front, I am proud to have started the Downtowners organization, which has grown to over 800 regular attendees.  We are now entering our 10^th year and are recognized as a leading organization for networking and downtown engagement.  I have also been very active as a board member for the Kansas City CCIM chapter, which is one of the top CCIM chapters in the nation.

CREW MEMBERS GETS AN UPDATE ON DOWNTOWN PLANS

It was time to talk big at the recent CREW luncheon, big as in plans for downtown Kansas City. Members of the city’s planning department with Crew president Diana Ennis of Stewart Title (above with Gerald Williams, Kellie Johnston and Robert Langenkamp) talked about the long-range plan for downtown, a plan that emphasizes a walkable downtown and doubling the downtown population to 34,000 (which still would be less than half of what it was in 1950 – 90,000. ) And as far as land use development is concerned, ”mixed use, and looking at height restrictions to protect views,” Langenkamp said. Below, Heidi Pollman with Confluence, Patty Brehm with The Mission Bank, and Robin Wells of Country Club Bank. They thought one of the plans discussed – connecting the 18th & Vine District to the Crossroads with development – sounded particularly interesting.

 ECONOMIST LENDS INSIGHTS TO CCIM MEMBERS

CCIM members were treated to a report by economist Chris Kuehl (below right with Don Gessen) at their recent monthly meeting. Among other issues, Kuehl commented on how banks in Kansas City haven’t taken the hard hits, mostly because they are old-school and traditional when it comes to lending. “They have that funny notion that if you loan to a person, they should be able to pay it back,” he joked. “Now these banks are stronger. They have money to loan, but you still have to prove that you’re loan worthy.” That was good news to hear for Sue Drakeford of Hillcrest Bank and Lisa Provence with Alpha Title (also below). 

Kuehl then moved on to what many in the crowd wanted to hear about – the commercial real estate outlook. “These are not fun times in KC,” he said. “But if you compare across the country … 10 percent of all foreclosures are in Nevada, and half of all foreclosures have been in four states – California, Arizona, Nevada and Florida. He also said the commercial property crisis is very spotty – in one town everything’s fine, and then 10 miles away, it’s all falling apart. “It is so connected with the economy.” Below, Charles Connely, Bucky Brooks and Gib Kerr discuss business after the luncheon.

ULI YOUNG LEADERS DISCUSS GREEN ISSUES Our local Urban Land Institute Young Leaders Group (above) has grown by leaps and bounds since it was formed in 2004. Recently, the group held a luncheon to discuss the green-building industry. Julia Taylor, LEED AP, an attorney with Sonnenschein Nath & Rosenthal LLP, moderated a roundtable discussion among Jenny Bloomfield Sciara, LEED AP with J.E. Dunn Construction, Richard M. Kniss, LEED AP with Gould Evans, Brad Nies, LEED AP with BNIM Architects representing the US Green Building Council Central Plains Chapter – Kansas City, and Eric Bosch, a city architect with Kansas City. The discussion centered around the practical and legal challenges of developing sustainable projects as well as the implications of shifting standards of care for professionals engaged in these projects.

Dan Sight ( left)  is heading up a new venture these days — Reece Commercial. With more than 25 years of commercial real estate experience, Sight brings with him a long list of accomplishments — leadership roles with Johnson Board of REALTORS, the Kansas City CCIM Chapter, the Kansas Association of REALTORS, and Region Vice President for the National Association of REALTORS. Currently he is Vice-Chair of NAR Commercial. As a CCIM (Certified Commercial Investment Member), he gives his clients confidence and insight when considering property decisions. Dan also owns and manages investment properties. He is known for his hands-on philosophy and his dedication to long term-relationships with his clients.

What’s Reece Commercial all about?

First, I would like to say what a incredible company I have joined. Reece and Nichols has 20 offices, 35 affiliates, over 2,000 agents and sell 39 houses a day. The managers at this company are top notch. They train their agents, and help them be successful. But there are no two better people to work for than Jerry Reece (above right) and our company President LindaVaughan. Reece and Nichols does an amazing job on the residential side. My job as the head of Reece Commercial is to build a company that is as successful on the commercial side as we are on the residential. Below, Sight with his team – John Sweeney, CCIM, and Shari Turek.

When and why did Reece Commercial start?

Reece Commercial Started in October, 2009. It started because of the of the long term relationship that Jerry Reece and I had. Over the years I had received a lot of referral business from residential agents and brokers that I knew. I approached Jerry on a vision I had for create a formal commercial division at Reece and Nichols could look like.

What have you been focusing your efforts on so far?

I have spent the 3 three months building the commercial tools for Reece Commercial. Websites, email system, marketing materials. At the same time talking to potential agents, and going to each of our 20 residential offices and talking to the agents about increasing their income by referring clients to Reece Commercial.

What is your niche?

Our niche is that while we are the newest commercial real estate company in Kansas City, we are associated with the dominate residential company in town, Reece and Nichols, and our parent company Home Services of America is the 2nd largest real estate company in the country, but the most profitable. Oh, and our real parent is Berkshire Hathaway. Reece Commercial has the backing and strength to build a top notch commercial real estate company. Jerry Reece said, “We felt with our market share in residential, adding commercial would be a natural complement.”

Tell us about some interesting deals you’re working on these days.

I have never been busier in the business. But I guess I am most proud that I have taken my investment properties and driven them to 95% occupancy. I can provide insight to our property owners as to how to be an owner of commercial real estate in 2010.

What are your goals in 2010?

To build a new commercial real estate brokerage model. We want to deliver a remarkable commercial real estate experience for our clients, built on our core values that Jerry and I have built.

Tell us about yourself and your family.

I have been married for 27 years to Melynn, my No. 1 fan and inspiration. I have two college students, Jessie, who is studying to be a high school English teacher at UMKC, and Spencer, who is studying psychology at Naropa University in Boulder. We have a Wheaten terrier, Snickers. I like to snow ski, scuba dive, go to our lake house and once I did a parachute jump. I have been a Chiefs fan since I was 4, and have been to most of the games since then. I also am a MU Tiger fan.

It’s been a busy winter for the Downtowners as members recently hosted speaker AIA chapter 2010 president Kevin Klinkenberg (above with Dawn Kirkwood) to talk about Design Week in Kansas City, which wraps up today. “Kansas City Design Week is basically a whole week to highlight the importance of design,” Klinkenberg said.”Our target audiences are the design community, the general public and the business community.” All week there have been activities, day and night, centered around interesting issues such as “branding Obama,” how to take cities into the 21st century in terms of design, and the product and process of what is Garmin. The week wraps up today with “39 & Counting: Steve Frykholm & Herman Miller,” from 11:30-1:00 at the KCAI- Epperson Hall. Then there’s a “design scavenger hunt” tonight in the Crossroads, followed by a wrap-up party at 8:30 p.m. at Kemper at the Crossroads. Klinkenber’s talk was well attended with a full house including (below) David Scott with Avid Communications, City Councilwoman Jan Marcason, and asst. city manager Rick Usher.

And next week’s luncheon should be a sell-out as the Downtowners also have announced that Tom McDonnell, CEO of DST Systems, Inc. will receive the 2010 Jim Davis Award on Wednesday, Feb. 10, at 12: 15 p.m. at the Hereford House Hollywood Room in the Crossroads District. In addition to focusing on the growth of DST Systems on the west side of downtown, McDonnell was a guiding force in the development of Union Station. He was instrumental in assembling the sites for the Sprint Center and the Entertainment District, and in bringing to downtown the new Internal Revenue Service Center with more than 6,000 jobs. Below, Joe Close with Country Club Bank, Paula Pratt with Harvesters (the Downtowners gave a donation to the food bank) and Ryan Duffy of Duffy Creative.

ICSC Networking Event

The ICSC, or International Council of Shopping Centers, held a “Networking. Deal Making and Education” conference in Kansas City recently at the Hyatt Regency Crown Center hotel.  Among the hundreds attending were Bob Lindeblad with BHC Rhodes and Mark McConahay with Block & Company, Inc. (below); and  Jeff Haney with Red Development, Audrey Navarro with Kessinger Hunter, and W. David Hickman with CB Richard Ellis (also below). These conference-goers said they enjoyed the two-day event, especially the part that focused on positioning yourself for that much-anticipated market rebound, and wrapped up their session with some friendly “deal making.”

 B2B Group Gathers at Screenland Theatre building

Ed Elder is president of Grubb & Ellis | The Winbury Group, a full service commercial real estate firm headquartered in Kansas City with an office in Lawrence.  Elder has logged more than two decades in the business, and specializes in the sales and leasing of industrial real estate. K-State fans will remember him from his glory days on the basketball court, playing for the Wildcats for four years, graduating in 1986 and garnering academic honors along the way.

How did Grubb & Ellis fare last year, considering the economic climate and the state of the commercial real estate industry as a whole?

We battled, but given the state of the industry, felt pretty good about where we ended up in’09. Our office guys remain busier than ever sourcing new business. However, looking forward I still anticipate 2010 to be more of a bridge year, with more of the same — a slow burn. I don’t foresee a huge bounce of any kind in the next six to nine months.

 What makes Grubb & Ellis stand out in the business?

It’s definitely the people. Sounds corny, but If you have “good athletes” who can anticipate and execute, you will put yourself in a position for success. In times like this, it’s easy to think the sky is falling. In the end, it’s pretty simple - it just comes back to the work and are you willing to commit, showing up a little earlier and staying a little later will pay dividends

As a former K-State basketball player (Elder stands six-foot-nine), are you still involved with the university and its program?

Yes. I stay very close to the program and go back to as many games as possible. I’ve especially enjoyed the resurgence of the program these past years.

What have you been focusing on outside work these days?

Hot Yoga with my wife is my new deal, I can almost touch my toes! Coaching basketball and focusing on not-for-profit work. I’m involved with Notre Dame De Sion High School, and I’m the past president for Genesis School in Kansas City. When my wife, Lynne, was diagnosed with a rare form of liver cancer about 18 months ago (she is currently cancer free and doing well) I shifted my focus to raising funds for the national Carcinoid Cancer Foundation. My wife and I recently held a fundraiser where we raised more than $80,000 for this cause.

Can you give us a feel for any new or interesting projects you are working on in 2010?

Up to this point, I have been focused on basic transactional work. But, am close to announcing a fairly significant built to suit in the Edwardsville, KS market representing 150,000 square feet. If this happens, it will be one of the few built to suit projects in 2010.