Coming Soon: Lane4's Liberty Logistic Center

by MWM Staff

LANE4 Property Group plans to break ground within a month on a major development in Liberty, Missouri.

The new development, named Liberty Logistics Center, will be located on a 68-acre tract of land at MO Highway 69 and Liberty Parkway, adjacent to the Ford Assembly Plant and visible from Interstate 35.

“We love this project for a variety of reasons,” said Hunter Harris, partner at LANE4. “Because of its immediate access to I-35 and 10-minute access to I-70, the site is ideal for distribution and logistics-focused users looking for supply chain advantages. Liberty is one of the fastest growing communities in the region, responsive to economic development and a prime location for a growing workforce. Overall, this project encompasses all the characteristics we look for when deciding where to invest.”

The development will feature three large buildings, built on a speculative basis, available for commercial manufacturing and distribution operations.

The largest and first to be constructed building will be 741,000 SF with 36-floor ceilings and up to 146 dock doors. The two smaller buildings will be 80,000 SF and 132,000 SF with 32-foot ceilings, accommodating smaller users. All the buildings will feature 50 by 50-foot column spacing with 60-foot speed bays, office storefronts and clerestory windows around the exterior.

Additionally, the development will include a retail portion, Liberty Parkway Plaza, containing eight pad sites fronting I-35 and the Logistics Park. These pads are ideal for restaurants and retailers to cater to the logistics center tenants and employees, as well as the surrounding population.

This development embodies LANE4’s evolution from a retail-focused brokerage firm to a geographically-focused, full-service firm developing multiple asset classes. The transition into multifamily, senior living and industrial projects began with the firm’s first mixed-use project, 39Rainbow in Kansas City, KS in 2012.

Since then, LANE4 has invested heavily in non-retail assets through both acquisition and development, and now maintains a well-diversified portfolio.

“We’ve developed a solid set of real estate fundamentals that guide our endeavors. Our strength is in understanding the commercial real estate landscape of Kansas City and the Midwest region, and recognizing the potential for successful projects, regardless of asset class,” Harris said.

Construction is expected to begin within a month and the first of three buildings will be complete in late 2020.

LANE4 Property Group serves as the developer for the entire project as well as leasing/sales agent of the retail component. Joe Orscheln with CBRE is providing industrial leasing services. Architecture and engineering services are provided by Davidson Architecture and Engineering.

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.”