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~Sears is the latest retailer to be moving out of Crestwood Court~

The Sears store in Crestwood Court is on the chopping block.

Sears Holdings Inc. announced the closure this past Thursday, along with a list of approximately 100 to 120 other Sears and Kmart store closings, nationwide.

The Crestwood Court, formerly known as Crestwood Plaza, location is one of only two Missouri Sears stores that didn’t make the cut. The other Missouri store is the Grand/Essentials store in Lee’s Summit. All of the Illinois stores were spared.

According to a statement released by Sears last Tuesday, “Our past practice has been to keep marginally performing stores open while we worked to improve their performance.”  However, the statement goes on to say that, “we no longer believe that to be the appropriate action in this environment.”

Chicago-based Centrum Properties bought the flailing mall in 2008 from Australia-based Westfield Group. Sears is the mall’s largest remaining tenant.

For the past three years, Crestwood Court has been host to an art-based community, offering low rent and place for artists and artisans to develop their craft.

Art Space at Crestwood Court

However, the mall is once again slated for redevelopment.

~St. Louis mogul Stan Kroenke dips into Dallas’ downturn~

Stan Kroenke

St. Louis Rams owner, THF Realty partner and founder of the Kroenke Group Stan Kroenke has thrown his hat into the Dallas real estate ring. Kroenke has purchased Midtown Park, a Dallas development gone defunct.

Originally, Valencia Capital Management planned for Midtown Park to be developed into an $800 million mixed-use project including more than 4,000 apartments, 500,000 square feet of retail space and 1.25 million square feet of office space. However, the project was halted after only a small portion of the apartments were completed.

A rendering of what Dallas-based Midtown Park was originally intended to be.

The 80-acre site was caught in the aftermath of the downturned economy. Investment advisor Holliday Fenoglio Fowler was hired by court appointed receivers to liquidate the property.

According to the Dallas Morning News, the deal was financed with a $23.5 million loan from Wells Fargo.

~Lindelll Blvd. apartment complex gets a new tenant base~

Housing options for St. Louis University students are about to be expanded.

Education Realty Trust is a Mempis-based developer, owner and manager of college housing.  The real estate investment trust owns and/or manages 61 communities in 23 states.

According to city records, EdT has just secured the purchase of a four-story apartment complex located at 3949 Lindell Blvd. The cash deal carried a price tag of $28 million from Dallas-based seller, GB St. Louis 1 Temp LLC.

A view of the new SLU housing located at 3949 Lindell Blvd.

The property, which was originally constructed in 2008, contains 197 units, totaling 256 in a combination of studio, one-bedroom and two-bedroom units. In addition to walk-in closets, some of the rooms’ other features include a full-size washer and dryer, along with other appliances.

Amenities include an attached parking garage, swimming pool and a fitness center. Currently, the property is 91 percent leased for the 2011-2012 school year.

Hollywood Casino expected to open in February, pending final approval

Expect western Wyandotte County to become much busier in the next month. Hollywood Casino at Kansas Speedway has announced a tentative grand opening for the morning of February 3, pending final approval by the state of Kansas and the Kansas lottery.

The casino, built out of a joint venture of Penn National Gaming and International Speedway Corp., has been under construction for a year. Perched over Kansas Speedway’s turn 2, Hollywood Casino will include 2,000 slot machines, 52 table games, five restaurants and 100,000 square feet of gambling space.

Additional development is also planned for the casino, including a hotel and retail space. It’s expected to draw a high amount of tourism—around 4 million visitors annually for an approximate annual economic impact of more than $200 million.

Hollywood Casino joins a number of other attractions in the Village West area, including Kansas Speedway, Livestrong Sporting Park, CommunityAmerica Ballpark, Legends Outlets Kansas City and Schlitterbahn Vacation Village. Area development is ongoing, including construction on Cerner’s new corporate headquarters and continued growth at the Plaza at the Speedway retail district.

Images via Hollywood Casino

Cassidy Turley report indicates office growth

Kevin Thorpe. Image via Cassidy Turley

According to a recent report published by Cassidy Turley, the national office sector continues to show momentum after bottoming out in the first quarter of 2010.

As featured in the report, “net demand for office space in the U.S. registered at +9.0 million square feet—the third straight quarter of improvement. In addition, vacancy rates inched down for the first time in over three years, and rents are stabilizing.”

Although this activity presents an encouraging sign for the office sector, Cassidy Turley’s chief economist, Kevin Thorpe, predicts that a more complete recovery is still months away.

“ ‘The sustained improvement in demand for space, now spreading beyond the largest metros, coupled with tightening vacancy is certainly encouraging,’” Thorpe said in a release. “ ‘However, the employment situation does not inspire robust projections for 2011. The U.S. economy is on track to build on the growth in 2010, but the U.S. office sector is still a minimum of 18 months away from a balanced market.’”

This sort of connection demonstrates the correlation between the state of commercial real estate and a healthy labor market, Thorpe added.

Even though a more widespread recovery isn’t likely to happen in 2012, Cassidy Turley’s report indicates that the activity that occurred in late 2011 established a promising trend for what’s to come this year.

“Investors are still focusing on core assets, but recent data reveals that demand is beginning to trickle beyond major metro areas,” according to Cassidy Turley. “Moreover, a wave of new listings in October and November—more than double the pace from a year ago—suggest that investment sales are poised to extend this momentum in 2011.”

Landscape architects to co-host open house with Kessler Society

One of George Kessler's many Kansas City projects. Image via UMKC

If you’re interested in landscape architecture and the work of legendary Kansas City landscape architect George Kessler, make plans to attend a First Friday event from 5:30 to 9 p.m. on January 6 at 1801 McGee Street in downtown Kansas City.

Co-hosted by the Prairie Gateway Chapter of the American Society of Landscape Architects and the Kessler Society of Kansas City, the event will include a display of current landscape architecture projects from a variety of local firms, as well as information on Kessler and his role in shaping the city’s renowned parks and boulevard system.

Professionals from both organizations will be present to answer any questions about Kessler’s work and the industry in general.

Downtown building up for auction; bid deadline extended

A 12,000-square-foot building at 1532 Grand Boulevard in downtown Kansas City is up for auction, and Cates Auction has extended the bid deadline. Sealed bids are now due by 4 p.m. on January 31, 2012.

The building currently serves as the location for Kansas City Café and offices and recently underwent a $450,000 renovation. Located in the Crossroads District and near the Power & Light District and Sprint Center, the building includes a tax abatement, as well as a private parking lot, highway access and a fully operational restaurant/bar with second-level office space. The previous list price was $1.76 million, and according to Cates Auction, the published reserve is $840,000.

For more information on the building and auction, click here.

Overland Park Planning Commission to discuss proposed office building

Leawood-based Nueterra Healthcare LLC may be starting 2012 with plans for a new office building.

The national management and development company has proposed a new three-story office building on 125^th Terrace in Overland Park. Plans indicate that the 57,760-square-foot building will be designed by architecture firm ACI/Boland Inc., which has offices in Kansas City, St. Louis and Leawood. Engineering services will be provided by Olsson Associates, which has offices in several states, including Missouri and Kansas.

The Overland Park Planning Commission will discuss the project during its January 9meeting. MetroWireMedia will keep you up-to-date on the commission’s decision.

Two local Sears stores to close

Image via Retail Traffic magazine

As reported in Wednesday’s issue of MetroWireMedia, Sears Holdings Corp. announced that more than 100 stores will close as a result of disappointing sales during the 2011 holiday season.

The company has since posted a partial list of stores that will close, and two are in the Kansas City area: the Sears Grand store on Missouri 291 in Lee’s Summit, and the Sears store in Lawrence, Kan.

More closings are expected to be announced in the coming weeks. The Kansas City area is currently home to 15 Sears and Kmart stores.

UMKC hires firms to complete downtown UMKC arts campus feasibility study

Leo Morton. Photo via UMKC.

The University of Missouri-Kansas City has selected three firms to complete a feasibility study for a proposed downtown UMKC arts campus: Helix Architecture + Design, Integra Realty Resources and HGA Architects and Engineers. As part of the study, the firms will “develop a preliminary program and cost estimate for the project, look at potential downtown properties, develop site and concept plans and gather feedback from UMKC and the community over the next several months,” according to a release.

The UMKC arts campus is part of the Kansas City Chamber of Commerce’s “Big 5” ideas. The campus would include the relocation of the Conservatory of Music and Dance, and have the potential to house other programs like the Kansas City Repertory Theater, KCUR 89.3 FM and the UMKC Theatre program.

“We are intrigued by the public’s interest in having a downtown performing arts campus,” said UMKC Chancellor Leo E. Morton in a release. “We want to conduct our due diligence to make sure that this is in the best interest of our students, the University and the Kansas City community.”

Report shows commercial lending strong despite economy

If CBRE’s Capital Markets Lender Forum third quarter report is any indication of what’s to come, next year will be a good year for the commercial real estate industry. The report’s primary conclusion? “Commercial real estate lending activity in 3Q11 was ‘surprisingly strong,’” according to a synopsis of the report from the CCIM Institute. “While commercial mortgage-backed securities activity remains in the single digits, government-sponsored enterprises and life companies have picked up the slack, accounting for the majority of loan originations through 3Q11.”

The CRE picture isn’t completely rosy, however. The report also found that the number of days between a loan application and closing increased to an average of 59 days, up from 47 days in the first quarter of 2011. According to CCIM, “The increase suggests that buyers and lenders are examining deals more carefully. Volatile capital markets, roiled by the European debt crisis and continued global unrest, are also causing borrowers to re-evaluate bids and loan spreads, which can also delay closing.”

~Pancake lovers rejoice in Ladue~

Colonial Marketplace, in Ladue, formerly known as Lammert Center, is expected to be the home of The Original Pancake House.

The Original Pancake House comes to Ladue

This will be the second St. Louis location for the pancake empire. The first store was opened approximately five years ago in Chesterfield by franchise owner Gordon Manus.

Manus expects to finalize the lease on the 5,000-square-foot property in early January 2012. Construction is expected to begin in late spring with an anticipated opening date of late summer 2012.

According to listing agent Mike Anthon, the DESCO Group bought the center from Reliance Bank after Reliance foreclosed on the center.

The 69,936-square-foot center can hold up to 15 tenants and is in the early stages of renovation.

Manus chose not to disclose the details of the agreement, but likened it to the investment that was required to open the Chesterfield store, saying that it was a “million dollar investment” funded by a private investment group.

Due to a more dense population and the presence of nearby business, Manus expects store sales to top numbers in Chesterfield. For the time being, Manus will manage both locations, but expects to hire approximately 25 workers to staff the Ladue store.

~Lambert International Airport gets a facelift~

Renovations at Lambert-St. Louis International Airport are complete.

Lambert St. Louis International Airport gets a $70 million renovation.

The recent improvements to Concourse A are the result of phase two of the $70 million Airport Experience program. Phase one began in 2008. The renovated concourse provides passenger service for Delta, United and U.S. Airways.

Newly remodeled bathrooms in Lambert's Concourse A.

Updates include redesigned restrooms near Gate A2, new tile in the central corridor and new signage. Gates B and D, which provide passenger service for American, Frontier and Cape Air airlines, also include newly reconfigured checkpoint lanes, new terrazzo flooring and an expanded post-security area.

As part of Lambert’s Art and Culture program, nine local artists have been hired to design art glass screens, which have been installed in Concourse A. Each screen is comprised of three panels that stand 5 and a half feet high and are three feet wide.

Locally commissioned art glass work installed at Lambert.

Lambert officials say more art glass panels have been commissioned and will be installed in Concourse C, which is scheduled for April 2012.

 ~Pace Properties finds upswing in downturn~

Roughly four months after going out of business, Borders Bookstores are welcoming new tenants in nearly all of their former St. Louis locations.

The now-defunct book retail giant had one advantage that is still working in its favor. In real estate, it’s all about location, location, location.

Michael’s, the national craft chain, is capitalizing on this proven real estate adage. In fact, they are poised to open their fourth St. Louis location in Brentwood Square, which was formerly occupied by Borders.

Michaels moves into the former Borders location in Brentwood Square.

Brentwood Square is managed by Pace Properties.

Brentwood Square is managed by Pace Properties.

The craft retailer is expected to take occupancy in September of 2012.

In other Pace Properties news, BuyBuy Baby, an outlet specializing in baby strollers, toys and other apparel has signed a lease to  occupy 28,150 square feet of retail space in Ballwin’s Central Plaza, located at 15299-15333 Manchester.

Kristin Keane of Pace Properties, Inc. represented the landlord in-house for the deal, which will give lease space to the store for all of suite five. The strip center sits on 165 acres in West County. Neighboring retailers include Famous Footwear, OfficeMax and Avenue.

photos courtesy of Google Images

Luxury apartments planned near the Plaza

A rendering of the proposed apartments at 51st and Main streets, Kansas City. Image via the Kansas City Star

The area around the Country Club Plaza continues to be a hotspot for development. As progress on the West Edge and 46 Penn projects move forward, another development may change the landscape south of the Plaza.

A luxury apartment complex, to be developed by Caymus Real Estate, Land Development Strategies and DST Realty, has been proposed for a two-acre piece of land at 51^st and Main streets. 360 Architecture will serve as the project’s designer.

In addition to 204 units, the proposed apartment complex would include a ground level of retail space, creating a mixed-use project that fits in well with the existing variety that includes restaurants and businesses. In addition, the UMKC campus is nearby, as is Kirkwood, another DST Realty development.

The site of the proposed project is currently zoned as commercial and residential. The developers are expected to ask the City of Kansas City for a zoning change in January. If the zoning request is approved, construction could begin in late 2012 with a tentative completion date in mid-2014.

Preliminary report identifies best downtown transportation option

The Mid-America Regional Council’s KC Smart Moves organization has released a downtown corridor transit study that identifies modern streetcars as the locally preferred alternative.

“The Partnership Team, consisting of representatives from the City of Kansas City, Mo.; Kansas City Area Transportation Authority; Mid-America Regional Council; and Jackson County, Mo.; and consultants conducted a very detailed analysis of the options before recommending a modern streetcar on Main St. from Grand Blvd. to Crown Center as the preferred alternative,” according to the report. “The Team developed the recommendation in coordination with stakeholders and the community through a series of public meetings and small group discussions.”

The study examined three types of transportation: modern streetcars, expanded bus service and a no-build alternative.  Modern streetcars were selected as the most viable option for several reasons, including their ability to operate in mixed-traffic conditions—ideal for a downtown area that sees a mix of cars, buses, pedestrians and bicyclists.

The planned starter route will run approximately two miles, starting at 3^rd Street and Grand Boulevard and ending at Grand Boulevard and Pershing Road. According to the report, the streetcars will be powered by electricity, will share traffic lanes with automobiles and will carry 100 to 150 passengers per vehicle.

The project is estimated to cost $100 million, and although it represents a sizable economic investment, it’s expected to help support ongoing economic development throughout the downtown area. According to the report, the streetcar will “provide an attractive transit option to more conveniently connect people and places within the downtown corridor.”

Now that a preliminary report and recommendation has been complete, the partnership team will coordinate and establish a group of major stakeholders to pursue federal funding and low-interest financing. According to the anticipated timeline, design/build construction for the streetcar will begin in January 2013, with a tentative opening scheduled for April 2015.

Images via Transit KC

Sears, Kmart to announce store closings

Image via Retail Traffic magazine

Although the holiday shopping season is barely over, Sears Holdings has announced that it will close between 100 and 120 Sears and Kmart stores as a result of disappointing holiday sales.

The closings have not yet been announced, leaving the fate of 15 Kansas City-area stores uncertain.

“Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce ongoing expenses,” said Lou D’Ambrosio, Sears Holdings CEO, in a release.

In general, retail stores have faced an uphill battle in recent years. A turbulent economy has resulted in less consumer spending, and in turn, more and more brick and mortar stores have closed their doors. In addition, competition from online retailers continues to rise as stores struggle to find a way to compete with online shopping incentives like no sales tax, free expedited shipping and, in some cases, a larger selection.

As a result, the International Council of Shopping Centers is working to pass legislation that would require online retailers to collect state sales taxes, thereby leveling the retail playing field.

–Katy Ryan Schamberger

Briarcliff Realty Co. buys Tuileries Plaza, announces nearby apartment project

December has proven to be a big month for Briarcliff Realty Co. Earlier this month, the company announced that it’s planning a 298-unit high-end apartment project to be located at the southwest corner of NW 63^rd Street and North Cosby Avenue in Kansas City’s Northland.

The complex, to be named Village at Burlington Creek, will include seven four-story buildings and an accompanying clubhouse. Construction is slated to start in early spring, with tentative completion scheduled for late 2013.

Signifying a further investment in the area, Briarcliff Realty Co. also purchased the flailing Tuileries Plaza, an upscale, mixed-use development near North Cosby Avenue. As part of the purchase, Briarcliff Realty Co. will also brand the project under the Village at Burlington Creek name, creating a large-scale mixed-use development that includes an ideal audience of nearby residents.

Aside from a prime Northland location, Burlington Creek is expected to be a smart purchase for Briarcliff Realty because of the versatility of space available within the project. Retail and restaurants are already included, and a large amount of medical office space is available, too. Tentative plans for the project also call for a fitness center, an assisted living center and possible large-scale retailers such as a grocery or hardware store. Space will be available for lease in a variety of parcels that range from just over 6,000 square feet to more than 30,000 square feet. Land that’s included within the project is also expected to be developed, offering even more opportunities for interested tenants.

For Briarcliff Realty, Burlington Creek is a chance to expand the company’s successful real estate and development profile, which includes the 900-acre Riverside Horizons business park, further into Kansas City’s Northland.

National, local housing markets show signs of strength

Image via Flickr.com/samdogs

The National Homebuilders Association reports that, for the third consecutive month, builder confidence has risen in the housing market. The Housing Market Index is now at its highest point since May 2010.

“This is the first time that builder confidence has improved for three consecutive months since mid-2009, which signifies a legitimate though slowly emerging upward trend,” said NAHB Chief Economist David Crowe in a release. “While large inventories of foreclosed properties continue to plague the most distressed markets and consumer worries about job security and the challenges of selling an existing home remain significant factors, builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”

Image via Home Builders Association of Greater Kansas City

Closer to home, other signs are indicating the slow yet steady strengthening of the housing market. The Home Builders Association of Greater Kansas City reports that November home permits were relatively strong in Jackson County, Mo. and Johnson County, Kan.

An NAHB report based on census data shows that Kansas City is the only growing market in Missouri or Kansas through the first 10 months of the year with the exception of Columbia, Mo., according to the HBA.

Cities that have experienced recent housing growth include Blue Springs, Independence, Greenwood, Oak Grove, Lee’s Summit, Lenexa and Overland Park.

Shane Spencer recognized by Forbes’ 30 Under 30

Shane Spencer. Image via Forbes.

Earlier this year, commercial real estate broker Shane Spencer won the 2011 Student Entrepreneur of the Year award for his company, Green REIT.

Now, Spencer’s forward-thinking entrepreneurial idea has landed him on Forbes magazine’s 30 Under 30 list as part of the real estate category.

The 25-year-old earned recognition in the magazine for raising 9 figures to start Green REIT, which acquires and develops real estate assets based in renewable energy and green technology.

Spencer, who works as a broker for Heise-Meyer Commercial Real Estate and is finishing his MBA at the University of Missouri-Kansas City, began developing Green REIT over two years ago.

“I noticed an opportunity in the market to just buy property,” he says. “There were a lot of deals in the market without a lot of capital from banks, so there wasn’t much trading going on in real estate.”

And with an increasing prevalence of renewable-based projects, including solar development deals, Spencer realized that now was the ideal time to launch Green REIT.

“The Green REIT is a good way to see these renewables start happening,” he says. “Renewable projects are also great long-term assets, so the REIT hits a lot of areas.”