Kadean Construction awarded $17.7 million warehouse in KCI Intermodal BusinessCentre

Kadean Construction has been awarded a $17.7 million contract by developer Trammell Crow Company to construct LogisticsCentre V, a 542,640 SF warehouse/distribution building located in the KCI Intermodal BusinessCentre.

LogisticsCentre V will be a modern, cross-dock facility with three separate storefront entrances for multiple tenants and incorporate sustainable design construction features.

Kadean Construction previously built LogisticsCentre II, III and IV at the 687-acre distribution and logistics park adjacent to KCI Airport, and recently completed the tenant build-out of the 202,800 SF LogisticsCentre III.

“Like the other facilities we’ve built in the business park, LogisticsCentre V will have a structural steel frame, concrete tilt-up walls, a seven-inch thick reinforced concrete floor and a 36-foot clear height ceiling,” said Kadean vice president Austin Christensen.

“This building will also feature 98 dock positions, with 132 tractor and 324 car parking stalls. Earlier this year, we completed infrastructure work for this site, so we are pleased to be awarded the contract to construct LogisticsCentre V,” Christensen said.

Other project partners include M+H Architects, civil engineering firm Stock & Associates, CBRE and Clarion Partners.

Construction is scheduled to be complete in March 2020.

NorthPoint “Crown Jewel” lands 500,000 SF tenant

Third-party logistics provider PAE will lease 500,000 square feet of warehouse space at Logistics Park Kansas City (LPKC), bringing 75 jobs to the Edgerton community. LPKC is adjacent to the BNSF intermodal facility in southwest Johnson County.

“PAE’s decision to locate at Logistics Park Kansas City is another example of the benefits of co-locating at the BNSF Intermodal and a reason that LPKC continues to be the ‘Crown Jewel’ of NorthPoint Development's portfolio,” said NorthPoint CEO and Founder Nathaniel Hagedorn. “The ability to readily access the BNSF intermodal and the interstate highway system provides substantial cost savings and enhances the movement of goods and products throughout the Midwest and the continental United States.”

PAE provides records handling and mail management services supporting the U.S. government in over 100 locations.

“LPKC continues to prove itself as perfectly positioned in the center of the county providing our tenants access to first class infrastructure connecting them directly to markets nationwide,” added Edgerton Mayor Donald Roberts. 

#FLEXKC Panel: Cold storage is next frontier for "on fire" Kansas City industrial market

Kansas City's industrial market remains strong, with more than 3 million square feet of speculative space currently under construction and 1.3 million SF completed in the first quarter.

But in order to succeed in the rapidly changing, omni-channel marketplace, communities and companies need to remain flexible on all fronts, ranging from operations to incentives to workforce development. That's the consensus of panelists at KC SmartPort's 2019 Industry Briefing, FLEXKC.

"While the economy and most indicators point to continued growth, the need for companies to increase flexibility in operations and hiring practices has never been greater. That is true of how companies build, use and occupy space as well,” said KC SmartPort President Chris Gutierrez.

One of the next waves in industrial development will be "Food on Demand" as consumers seek convenience and freedom from the kitchen. That means cold storage facilities are landing at the top of the shopping list for those scouting industrial locations.

"We are seeing an uptick in that sector," said Colby Tanner, BNSF Railway assistant vice president. "Over the last 18 months we have started to get a lot of inquiries from the cold storage sector asking how can we locate along the rail line or have rail access."

Although they come with significant investment and a subsequent boon to local coffers, cold storage facilities can present a challenge when it comes to incentives.

"These are really high-dollar projects, but they require a non-traditional workforce. So from an incentives perspective, you have a project with a huge investment but the challenge will always be workforce,” said Ann Petersen, Cushman & Wakefield managing director. 

Other barriers to entry include higher insurance costs, environmental impacts, and margins squeezed by waste.

"Food on demand is a challenging business, " observed longtime Amazon Site Selector and Keynote Speaker Mike Grella. "I think there’s room for growth there, but we are still in a period of experimentation and iteration." 

For a full event recap, click here.

Farm co-op plows ahead with plans for former Toys R Us building

The vacated Toys R Us Kansas City distribution facility in Lee’s Summit made national headlines when the retailer folded in early 2018. However, brisk demand for large, tenant-ready industrial space meant that the property sold quickly.

“The amount of interest from all over the country was quite impressive,” said Joe Accurso, executive director of Cushman & Wakefield. “The availability of a high-quality, fully racked, industrial building of this size doesn’t come along very often.”

More than two dozen potential buyers toured the 725,000-square foot facility at 420 SE Thompson Dr. near U.S. Hwy 50 and Mo. 291. Coincidentally the first company to come calling, Mid-States Distributing LLC, emerged as the winning bidder for the 41-acre property.

“This facility was an ideal fit for our rapidly growing company. When we learned of its availability, we knew the stars were aligning for us in a very special way,” said Mid-States President & CEO Tom Mahlke. “The Toys R Us situation, while very unfortunate for many, became our great fortune. We worked hard and aggressively because this was a great location geographically for our members.”

The leading farm and ranch retail store cooperative plans to invest more than $35 million in the distribution center, which will service a network of 39 member companies and nearly 700 retail locations in the U.S. and Canada. Mid-States will commence operations in the facility by the end of the year with immediate plans to hire between 30 and 35 employees within the next month to launch the operation.

Lee’s Summit Economic Development Council President Rick McDowell said the high level of interest in the former Toys R Us space signals ongoing strength in the warehouse and distribution market and room for more activity in south Lee’s Summit.

“We had tremendous interest in that building,” McDowell said. “That leads me to believe that the addition of Mid-States will serve as a catalyst for ongoing business expansion and attraction in Lee’s Summit’s south side commerce corridor.”

Added Cushman & Wakefield’s Joe Accurso: “This property has created a wealth of opportunity for Lee’s Summit. I’m happy to see the building and area full of activity again.”

Eyeing potential along I-49, NorthPoint breaks ground on 148-acre golf course redevelopment

NorthPoint Development officially broke ground Wednesday morning on Southview Commerce Center, a 148-acre flex industrial campus at 16001 S. Outer Road just east of Interstate 49. At full buildout, the redevelopment of the former Southview Golf Course will create an estimated 1,400 jobs with an annual wage impact of $57 million.

“NorthPoint continues to expand its footprint in the Kansas City industrial market and we are pleased to announce our newest business park, Southview Commerce Center. This project shows our focus on investing in parks with great access, labor, and a strong public/private partnership like we have with the City of Belton,” said NorthPoint Development CEO Nathaniel Hagedorn, in a release.

Belton Mayor Jeff Davis noted NorthPoint Development’s success in helping transform communities through the development of quality business parks and thanked the development team for bringing its vision for the abandoned private golf course to the City.

“After sitting vacant for more than a decade, we believe that the redevelopment of the former Southview Golf Course will create new economic opportunity for the next generation of Belton residents,” Mayor Davis said. “The City is eager to continue working with NorthPoint to attract advanced manufacturing, warehouse and distribution operations to our community.”

Southview Commerce Center is master-planned for five state-of-the-art buildings ranging from 235,000 to 622,000 square feet, for a total footprint of more than 2 million square feet. The project’s construction timeline will be market driven based on leasing activity.

NorthPoint plans to invest more than $100 million in the redevelopment project.

“We always say, 'capital goes where capital is welcomed,’ and we feel very welcomed in Belton,” Hagedorn said. “Southview Commerce Center represents a large capital investment from our firm, which in turn will create significant job opportunities for the residents of Belton, Cass County, and the surrounding area.”

At the groundbreaking, NorthPoint Vice President Brent Miles credited the persistence of Belton Economic Development Director Carolyn Yatsook for NorthPoint’s initial interest in the site.

“We believe in Belton, and we believe in this site,” Miles said. “I wouldn’t be standing here today if I hadn’t decided to go to Big Cedar Lodge for Thanksgiving and ended up sitting on I-49 and seeing the site and saying, ‘Well, Carolyn continues to call me every three months, I think I’ll call her back.’ ”

Yatsook said the City has worked hard to create a business-friendly environment that allows developers like NorthPoint and business prospects to have an expedited, hassle-free experience as they move through the approval process.

“We offer a single departmental contact to help guide our development partners every step of the way-from initial consultation through to project delivery,” Yatsook said. “We also recognize that many projects are time sensitive. NorthPoint was able to move from land acquisition to today’s groundbreaking in under six months, which means they will be able to take advantage of this historically strong industrial market.”

Mark Fountain of True North Industrial Realty will lead leasing efforts for Southview Commerce Center.