MetroWireMedia e-publications

Summit, tour encourage living downtown

An estimated 7,000 tourgoers took  part in last weekend’s Urban Living Tour – a record attendance for the event where guests tour 29 residential properties that wind through nine neighborhoods of greater downtown Kansas City.  Leading up to the tour, a Downtown Kansas City Housing Summit was held Friday to focus on the importance of urban residential development, trends and what residents say they want out of urban living. Both the Downtown Council and the City of Kansas City agree with the national standards that the Downtown residential population needs to reach 2 percent of the region’s population to create a sustainable urban community.  Above, Doug Stockman of el dorado architects; Rick Usher, assistant city manager; and Steve Taylor of DST Realty talk  during a break  at the Downtown Marriott.

Local and national  leaders came together as expert panelists for the Downtown Housing Summit. Back row, from left, are Bill Jones of Swope Community Enterprises; Shirley Winn of the City of Kansas City.; Tom Trabon of Trabon Consulting; and Kevin Collison, panel moderator. Front row, from left, are Troy Schulte, interim City Manager.; Paul Levy, president and CEO of the Center City District Philadelphia; Matt Meier of the Alexander Company; and Christina Boveri of Boveri Realty Group.

Lynn Craghead of U.S. Bank and chair of the Downtown Council; Dana Gibson of Gibson Realty and chair of the Downtown Council’s Housing Committee; and Christina Boveri of Boveri Realty Group and chair of the Urban Living Tour, celebrate the launch of the first Downtown Housing Summit.

Stats show homeownership still a priority for most Americans

A recent study by Fannie Mae of more than 3,000 consumers found that despite the current housing downturn, Americans continue to value homeownership and think about their homes in ways that go much deeper than the financial investment. They are more cautious, however, about assuming a mortgage, recognize the requirements, and favor standard long-term fixed-rate loans with predictable payments. The study also found that people strongly believe in the importance of upholding the financial commitment involved in buying and owning a home, even during these challenging times when home values have fallen. 

Another key finding is that two-thirds of Americans (65 percent) still prefer owning a home.  On the cautious die, nearly a quarter of renters polled (23 percent) said they will buy a home later than once planned. In addition, Americans with traditional, fixed-rate mortgages with predictable payments are significantly more satisfied than those with other types of mortgages.

Sprehe stresses the importance of hometown lenders

In residential real estate, it’s important for both agents and buyers to establish relationships with local mortgage lenders, to understand a buyer’s loan limit and where interest rates stand. Recently, MetroWireKC spoke with Andy Sprehe, branch manager of First National Bank’s Residential Mortgage Lending division in Overland Park, about recent trends in mortgage lending. Sprehe conducts many finance seminars for Realtors, educating them on all phases of loan programs, construction loans and costs.

How does your bank review a prospective mortgage differently today than it did 3 years ago?

Underwriting the borrower today for a home loan has seen credit standards drastically revised. The benchmark minimum credit score of 660 for underwriting guidelines has increased to at least 700 and in some cases 720 for certain loan products. Investors have severely tightened the loans they will buy, and that has pushed many mortgage brokers out of the business. First National Bank has recently launched a new initiative to rev up their loan production with the re-introduction of servicing their own loans and not selling the servicing rights to outside investors. This move will greatly control our pricing, as all FNB loans will be sold direct to Fannie Mae and Freddie Mac. The benefit to the borrower will be low competitive rates as well as more flexible underwriting guidelines.  In addition, special niche loan products such as the Portfolio ARM loans, Jumbo loans, Construction loans will become part of the menu of loan products offered.

Where do mortgage rates stand and where do you foresee them going?

Mortgage interest rates are still near an all-time low, dating back to 1963, with 30-year rates hovering around 5 percent and 15-year rates at 4.375 percent.  Pressure on rates draws from many factors, but the single most important indicator today is the staggering and uncertain economy. As the economy improves, you will see rates inching up possibly by the end of 2010. The Mortgage Bankers Association feels we will see rates approaching 5.8 percent.

Last Thursday, over 50 real estate brokers, governmental officials and members of the economic development community participated in a chipping contest and dined on local favorite Oklahoma Joe’s. But the event wasn’t just a summer BBQ for Kansas City business-people, it was the unveiling of the KCI Intermodal BusinessCentre.

“We’re open for business,” Brian Staton with CB Richard Ellis said about the event.

The CB Richard Ellis industrial team and the Trammell Crow Company co-sponsored the open house last week to give the Kansas City brokerage community the opportunity to get a firsthand look at the infrastructure that has been completed within the business park.

There are pad ready sites able to accommodate a total of 1.8 million square feet of bulk distribution and/or warehouse buildings. This project is one of three major intermodal projects, which are bringing Kansas City’s industrial market to the national forefront as an important distribution center.

There may not be buildings on site yet, but the over $15 million infrastructure improvements that have completed Phase 1 of the project is apparent. There are utilities, roads, street lights and side walks all in place, just waiting for businesses to come in make the park their home.

Members of CB Richard Ellis said the event was definitely a success. The open house not only showed people all the potential of the business park, but it allowed everyone to have a little fun.

“It was a beautiful day and we had a great turn out,” said Nicki Garrett with CB Richard Ellis.

And all the empty land went to good use as each participant got two chances to win a gift certificate in the chipping contest. Winner, Ed Elder, of Grubb & Ellis, wasn’t even hindered by the small clubs provided.

“It looked like Ed Elder, who is well over six feet, was mini golfing,” Garrett added.

To find out more about what’s next for this project (mini-golfing opportunities aside) I sat down with the CB Richard Ellis team: Brian Staton, Nicki Garrett, Joe Orscheln and Mike Mitchelson (David Hinchman is also on the team, but was not present). Here’s what they had to say about the project:

What are some of the strategic advantages of being near the airport?

There are definitely economic advantages. Being so close to the airport means companies can really do business anywhere in the world. This location also means access to an excellent and well-mainatined interstate system. This business park  is also close to other rail intermodal and facilities business parks.

What kind of businesses do you anticipate will be going into this area?

We’re marketing the leasing of the project to a wide variety of companies. Essentially, any company needing a central location with a lot of access to highways would be a good fit for the area. Companies interested in foreign or national trade would find it easy to set-up in this business park as it is so close to Kansas City’s airport. More specifically, we could see logistics and manufacuring companies, and maybe even air cargo, coming into this business park.

What was your role during this project?

We’re working on marketing the leasing of this project. To get the ball rolling, we held an open house to show brokers and economic development folks the property and the infrastructure that’s been put into place. As of right now, we have a very a generic site plan in place, but we’re pursuing all different opportunities. Maybe the plan will be permanent, but right now it’s a concept that we can work with.

What other companies have been involved on the project?

Well, the Kansas City Aviation Department put in the infrastructure and Trammell Crow Company are the developers on the project. Some other companies that have been involved include: TranSystems Corporation, Patti Banks & Associates and McAninch.

To learn more about the site check out the website: www.kcilogistics.com

Dozens of Keller Williams agents turned out recently to help their local communities during RED Day, which stands for Renew, Energize and Donate. Above, Michael Hagen and Perry Cockayne drag a mud-filled rug to the dumpster as they help improve a local neighborhood. Below,  a group of agents start a big painting project. RED Day is a Keller Williams Realty service initiative.  All their associates in the United States and Canada were asked to donate their time this month.

 

Above, John Petrehn lends a hand in supporting the back porch pillar.

Kirk Blinzler (above) is covered in paint chips as he scales the roof. Below, the gang gets together for a celebratory shot. From left are Perry Cockayne, Josephine Roberts, Jeanne Cockayne, Scott Kelly, Sara Armer, Kristal Myers, Matt Myers, Mary Payne and David Conderman.

April rush translates to big gains for Midwest home sales

Sales of newly built, single-family homes nationwide surged 14.8 percent to a seasonally adjusted annual rate of 504,000 units in April as consumers rushed to beat the deadline for expiring home buyer tax credits, according to data released by the U.S. Commerce Department. This was the strongest level of new-home buying activity since May of 2008. And which area of the country saw the biggest gains? The Midwest, which registered a 31.6 percent gain, the South, a 10.8 percent gain, and the West, a 21.7 percent gain. The Northeast posted no change in sales activity from the previous month. So now that the program is over, experts say great buying incentives continue – including exceptionally favorable mortgage rates, very attractive home prices and the steadily improving economy. That means there is good reason to expect the positive momentum to continue.

cc

Industrial

The Denzer Group leased 65,714 square feet of industrial space to Castle Creations, Inc. at Lindenwood Business & Technical Center, located at 540 N. Rogers Road in Olathe, KS.  Erik Murray, CCIM of Point Commercial represented the tenant and Tom Haverty of Grubb & Ellis/The Winbury Group represented the landlord in the transaction.

Kansas City, Missouri Parks and Recreation Department has purchased 27,000 square feet on five acres at 1520 W. 9^th Street from Robert & Sharon Doran Trust, represented by Whitney E. Kerr, Jr., SIOR, CCIM, of Cassidy Turley.

NT Realty leased 10,560 square feet of industrial space to BAM, Inc. located at 422 East 16^th Avenue, North Kansas City, Missouri. John F. Delzer of Grubb & Ellis|The Winbury Group represented the Tenant in the transaction, and Tom Demesko of NT Realty represented the Landlord.

KCBS, LLC leased 1,596 square feet of industrial space to Christian Brothers Roofing, LLC located at 6309 Northwest Kelly Drive, Unit 3, Parkville, Missouri. Douglas M. Hedrick of Grubb & Ellis|The Winbury Group represented the Landlord in the transaction, and Nick Suarez of Zimmer Real Estate Services represented the Tenant.

Progressive Rail Services Corporation has leased 14,100 square feet at 3801 Selsa Road, Ste. 1, 2, & 3 in Independence, Missouri from Kidwell Enterprises, LLP.  William Glasgow of Block & Company, Inc., Realtors negotiated the transaction.

Glenlo Enterprises, Inc., d.b.a. Glenlo Awnings and Window Company has leased 12,590 square feet at 2501-A NW Jefferson in Blue Springs, Missouri from Guier Fence Co., represented buy Russell Pearson, Harbinger Property Group, William Glasgow of Block & Company, Inc., Realtors negotiated the transaction for Glenlo.

Office

The Molding Company, dba Forte Product Solution, has inked a sub-lease agreement on a three-story office building at One Ward Parkway in the Country Club Plaza in Kansas City, Mo. The office will house the corporate administrative offices of The Molding Company. The operational and manufacturing will remain in Farmington, Mo. Allan Kaufman, SIOR, of Zimmer, represented the sub-landlord, Wells Fargo Bank, N.A. in the transaction, while Tom O’Leary, of Lane4 Group, represented The Molding Company.

Bobwhite Meadow L.P. leased 7,909 square feet of office space to Motorola, Inc. located at 1321 Wakarusa Drive, Lawrence, Kansas. Marilyn Bittenbender of Grubb & Ellis|The Winbury Group represented the Landlord in the transaction, and Gregory W. Swetnam of Kessinger/Hunter & Company, L.C. represented the Tenant.

Kansas City Life Insurance Company renewed the lease of 5,694 square feet of office space to The Otologic Center located at 3100 Broadway, Kansas City, Missouri. Adam L. Tilton and Phillip L. James of Grubb & Ellis|The Winbury Group represented the Landlord in the transaction, and Larry Glaze of Jones Lang LaSalle represented the Tenant.

Kansas City Series of Lockton expanded an additional 10,182 square feet of space at Valencia Place, 444 W. 47th Street, Kansas City, Missouri. Greg Swetnam and Sharon Gartin of Kessinger/Hunter & Company and Tim Schaffer of RED Brokerage negotiated the expansion.

CAPE, Inc. leased 2,048 square feet of space at Executive Centre III, 10901 Lowell, Overland Park, Kansas. Sharon Gartin of Kessinger/Hunter & Company and Matt Stover of Grubb & Ellis/The Winbury Group negotiated the lease.

Kansas City Metropolitan Bar Association, represented by Matthew A. Eckert and Michael T. Mayer, SIOR, of Cassidy Turley, has leased 15,764 square feet at 2300 Main Street, Suite 1100 from Gateway Harrison, Inc.

Clarke Properties purchased 18,900 square feet of space at 32515 Lexington Avenue, DeSoto, Kansas. Audrey Navarro and Ward Nicolay of Kessinger/Hunter & Company and Russell Pearson of Harbinger Property Group negotiated the sale.

Digital Ally, Inc. leased 7,469 square feet in the ADM Milling Company Building located at 8000 W. 110^th St. in Overland Park, KS.  Robert Keatley, SIOR of NAI Capital Realty and Matt Stover of Grubb and Ellis|The Winbury Group negotiated the transaction.

Retail

Salon Moxie leased 1,400 square feet of space at 629 NE Woods Chapel Road, Lee’s Summit, Missouri. Miles McCune, Jim Gates, SIOR, and Sher Blandford of Kessinger/Hunter & Company negotiated the lease.

Crown Liquors, LLC leased 1,200 square feet of space at 11930 S. Strangline Road, Olathe, Kansas. Audrey Navarro and Andrew Thomas of Kessinger/Hunter & Company negotiated the lease.

National Vision, Inc., d.b.a. America’s Best Contacts & Eyeglasses has leased 3,163 square feet in Summit Fair Shopping Center located on the NEC of 50 Highway & Chipman Road in Lee’s Summit, Missouri from Summit Northridge LLC.  David Block and Becky Goodman of Block & Company, Inc., Realtors negotiated the transaction.

DayDream Oasis Salon and Spa LLC has leased 2,000 square feet at 611 SW 3^rd Street, Unit A in Lee’s Summit, Missouri from Langsford Development, Inc.  Charles McAlpin of Block & Company, Inc., Realtors negotiated the transaction.