Acquisitions by Arch Street and Artemis strengthens Logistics Park KC's Position as a key distribution hub

Arch Street Capital Advisors, headquartered in New York, and Artemis Real Estate Partners, based in Washington, D.C., have made a significant move to expand their industrial real estate portfolios by acquiring four prime properties in Edgerton, Kan. This new acquisition adds 2.4 million SF of Class A industrial space to their holdings, strengthening their presence in key logistics markets.

The properties, developed by NorthPoint Development between 2014 and 2017, are located within the Logistics Park Kansas City (LPKC), a 2,352-acre industrial park that is considered a key hub for distribution and warehouse operations. This master-planned development offers businesses a strategic advantage due to its close proximity to major transportation routes, including Interstates 29 and 435, as well as its accessibility to Kansas City International Airport. These factors make the park an ideal location for logistics and distribution companies looking to optimize their operations and reach broader markets.

The newly acquired portfolio includes four high-quality facilities that are fully leased to well-established tenants, including Amazon, Walmart, and Demdaco. These buildings are strategically situated within the park and vary in size, catering to different operational needs. The properties reflect the increasing demand for modern, high-specification industrial spaces in the Kansas City area, a region that continues to attract top-tier tenants due to its central location and robust infrastructure.

These facilities, located across several prime spots within LPKC, include properties such as a large warehouse space, which serves as a critical hub for distribution, as well as additional spaces that support a variety of logistics functions. The buildings’ size and functionality make them highly desirable, supporting a range of industries from e-commerce to consumer goods, and further cementing the area’s reputation as a logistics powerhouse.

This acquisition is aligned with Arch Street and Artemis’s ongoing strategy to target institutional-quality industrial assets in prime logistics markets. It also underscores the rapid growth and investment in the Kansas City area’s industrial sector, which has seen a surge in development and interest from major corporations in recent years. Logistics Park Kansas City, with its comprehensive infrastructure and advantageous location, continues to draw large-scale companies looking for efficient, high-performance distribution solutions. With this latest investment, Arch Street and Artemis help to further solidify the park’s status as a leading destination for industrial real estate investment, signaling continued growth and opportunity in the region.

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Header image An aerial view of Logistics Park Kansas City, a 2,300-acre+ industrial park, located near Interstates 29 and 435. Image courtesy of Hunt Midwest

Quadrant Communities moves forward with $40.9 million apartment project in Tiffany Springs

A significant residential and commercial development is set to enhance Kansas City's Northland with the introduction of Tiffany Square Apartments in the burgeoning Tiffany Springs area. Quadrant Communities has outlined plans for a 228-unit garden-style apartment complex on an 8.05-acre parcel located southwest of Ambassador Dr. and Old Tiffany Springs Rd. This $40.9 million project represents a key component of the expansive 31.3-acre master plan known as Tiffany Square. 

The proposed Tiffany Square Apartments will consist of five residential buildings offering a variety of floor plans, including studios, as well as one-, two-, and three-bedroom units. Residents will have access to 364 parking spaces featuring surface lots, carports, and garages. Amenities include a clubhouse, swimming pool, dog park, and pickleball courts. This development follows Quadrant's earlier success with the Edison at Tiffany Springs, a 243-unit complex that commenced operations nearby in 2022. 

The broader Tiffany Square master plan, primarily owned by the Longhorn Opportunity Fund based in Austin, Texas, envisions a total of 691 apartment units alongside multiple commercial pad sites. In August, the Kansas City Council approved a community improvement district to reimburse $6.3 million in anticipated public infrastructure costs associated with the site's development. 

Port KC has endorsed the Tiffany Square Apartments by approving incentives that include a 10-year partial property tax exemption and a sales tax exemption on construction materials. The tax incentive will phase out over a decade, starting with an 80% property tax reduction for the first five years, decreasing to 50% in years six and seven, and 30% for the final three years. This exemption is valued at approximately $3 million. In comparison, local jurisdictions are projected to collect $2.3 million in tax revenue during the same period, a significant increase from the $130,798 expected if the land remained undeveloped. Port officials emphasized that public financing was essential for the project's viability. 

Although the apartments will not feature designated affordable housing units, Quadrant has committed to contributing $1 million to the city's Housing Trust Fund. Based on previous allocations, this contribution could support the creation of approximately 73 affordable units elsewhere in the city. 

Construction is slated to begin by fall 2025 and be completed by mid-2027. The comprehensive master plan includes additional apartment communities to the west and commercial sites intended for retail, restaurants, and service businesses. Portions of the development are already advancing, with approvals secured for establishments such as Express Oil Change & Tire and a potential 7 Brew Coffee drive-thru. 

The site, previously owned by Sam's Club for a planned but unbuilt store, is now poised for transformation as part of Northland's ongoing expansion. This development aligns with the area's growth trajectory, offering new residential and commercial opportunities in the Tiffany Springs vicinity. 

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Header image: A preliminary rendering of what the new 228-unit garden style apartments at Tiffany Square might look like in North Kansas City, Mo. Image courtesy of Port KC

Parade Park’s next chapter is a bold vision for affordable and modern housing

Parade Park Homes, established in 1963, holds a significant place in Kansas City's history as the city's oldest Black-owned housing cooperative. Situated near the historic 18th and Vine District, the complex originally featured 510 townhouse units, providing affordable housing and fostering a sense of community among its residents. 

Over the years, Parade Park faced numerous challenges, including deteriorating infrastructure and financial difficulties. By 2022, the cooperative defaulted on a $10 million loan, leading the U.S. Department of Housing and Urban Development (HUD) to take control of the property. Inspections revealed unsafe living conditions, prompting HUD to initiate foreclosure proceedings in 2023. 

In response to these challenges, Kansas City officials developed a plan to preserve and revitalize Parade Park. In December 2023, the City Council authorized the acquisition of the property from HUD, aiming to protect current residents and prevent displacement. The city partnered with Flaherty & Collins Properties, a real estate developer based in Indianapolis, to spearhead the redevelopment efforts. 

The redevelopment plan, announced in early 2024, is a comprehensive $275 million initiative designed to transform Parade Park into a vibrant, modern community. The project envisions the construction of over 1,000 new residential units, including market-rate, affordable, family, and senior housing options. Additionally, the development will feature 15,000 SF of commercial space and 26.61 acres of open space, enhancing the neighborhood's appeal and functionality. 

Above: The Parade Park Homes redevelopment Master Plan showing the breakdown of housing categories. Image courtesy of the City of Kansas City, Missouri.

A significant milestone in the redevelopment effort occurred in January 2025, when HUD awarded a $15.5 million grant through its Section 202 Supportive Housing for the Elderly Program. This funding is allocated to provide capital and rental assistance for low-income seniors aged 62 and above at Parade Park Homes, ensuring that the community remains inclusive and supportive of its aging residents. 

The redevelopment is planned in phases, with the initial phase focusing on constructing 200 market-rate housing units, 200 low-income tax credit housing units, an 80-unit intergenerational senior housing development, and the aforementioned commercial space. This approach aims to revitalize the neighborhood while preserving its historical significance and cultural heritage. 

Community engagement is a cornerstone of the redevelopment process. Residents and stakeholders are encouraged to provide feedback and share ideas to ensure the project aligns with the community's needs and aspirations. This collaborative approach aims to create a revitalized neighborhood that honors its rich history while offering modern amenities and housing options. 

The transformation of Parade Park Homes represents a significant investment in Kansas City's East Side, reflecting a commitment to preserving affordable housing and fostering community development. By addressing past challenges and implementing a forward-thinking redevelopment plan, Parade Park is poised to become a vibrant, inclusive community that honors its historical roots while embracing future growth.

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Header image: A rendering shows what the new apartments could look like in the new Parade Park Homes community. Image credit: Moody Nolan

The evolving office space trends shaping the future of commercial real estate

The commercial office space market is undergoing significant shifts as it adapts to a post-pandemic world. Office valuations, which have been slipping since the pandemic, continued their decline in 2024. According to data from CommercialEdge, the average sale price of office buildings dropped by 11% last year, reaching $174 per SF, down from $196 in 2023. This decline comes as businesses adjust to hybrid work models and reduce their office footprints, further pushing down demand for traditional office spaces.

The federal government is also facing real estate challenges. The General Services Administration (GSA), which manages a substantial real estate portfolio, has been actively reassessing its needs and has already started trimming its office space. In the Washington, D.C. area, leases with early termination clauses are expected to be among the first targets for cuts, as they provide more flexibility. These measures reflect broader efforts within the government to optimize its real estate holdings, potentially impacting millions of square feet of office space over the coming years.

In the private sector, the commercial real estate market continues to evolve as tenant expectations shift. The rise of hybrid work models, along with economic pressures, has led to increased vacancy rates, particularly in central business districts (CBDs). Companies are looking for spaces that foster collaboration, creativity, and employee well-being, which has led to a demand for high-quality, amenity-rich properties. Amenities such as wellness centers, green spaces, and on-site cafes have become priorities for tenants seeking to enhance their workplace environments.

Developers are responding by reimagining office spaces to meet these changing needs. Sustainability features, including energy-efficient designs, green building certifications, and smart technologies, are becoming more common as businesses prioritize environmental responsibility. At the same time, many older office buildings are being repurposed into mixed-use developments or residential properties, creating opportunities for investors who can navigate these complex conversions.

While the demand for traditional office space has decreased, there are still opportunities for flexible office spaces and suburban developments. As more companies decentralize their offices, suburban areas are seeing a resurgence in demand for well-located office properties that balance accessibility and cost-effectiveness. Investors and developers focusing on these emerging trends are poised to capitalize on new growth areas.

Looking ahead, the commercial office market is expected to continue evolving, driven by changes in work habits, tenant preferences, and environmental considerations. As the market adapts to these new realities, developers and investors must remain agile and open to innovative solutions, including flexible office spaces, suburban office developments, and sustainability-focused properties. While the market may never fully return to pre-pandemic conditions, opportunities remain for those who are prepared to navigate the ongoing changes in the commercial real estate landscape.

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Header image: 46 Penn Centre just off the Country Club Plaza in Kansas City, Mo. Image courtesy of Block & Company

$20 million parking project aims to improve accessibility and infrastructure in 18th & Vine

Kansas City, Missouri, has partnered with Grayson Capital to develop a new 470-space parking facility in the 18th & Vine District, a historic and culturally significant area. The project will not only increase parking capacity but also improve infrastructure and connectivity, supporting the District’s growth as a hub for entertainment, culture, and history.

The parking garage at 1819 Lydia Ave. will serve as a key transit hub, providing much-needed space for the District’s visitors and residents. Funded by a $20 million allocation from the City Council, the project will enhance accessibility for the area’s ongoing revitalization efforts.

Mayor Quinton Lucas emphasized the development's importance in fostering the long-term growth of the Jazz District, noting that this project will support future developments while preserving the District’s cultural heritage. City Manager Brian Platt highlighted the project's broader impact, which is one of many revitalization efforts underway in the 18th & Vine area, bringing investment and job opportunities to Kansas City’s East Side.

Councilwoman Melissa Patterson-Hazley pointed out the significance of the public-private partnership, calling it a milestone for community development and economic growth. Councilwoman Melissa Robinson also expressed her enthusiasm, noting the improvements in walkability, safety, and access that the new facility will bring to the area.

The facility, currently in the design phase, is slated for completion ahead of the 2026 FIFA World Cup. Once finished, the City of Kansas City will own and operate the garage, ensuring its role in supporting local businesses and attractions for years to come. JE Dunn Construction will collaborate with Grayson Capital to bring the project to fruition.

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Header image: A conceptual rendering of the 470-space parking garage at the18th and Vine District. Image courtesy of Grayson Capital