Kubota completes land purchase for future logistics campus and Midwest Division Office in Edgerton

Kansas Governor Jeff Colyer tours future site that will solidify Kubota’s Midwest footprint

Kubota Tractor Corporation has completed a 200-acre land purchase within Phase II of Edgerton's Logistics Park Kansas City, making the company the first major tenant for the industrial park. Kansas Gov. Jeff Colyer and Kubota officials on Thursday toured the site where Kubota will construct two, one million square-foot, state-of-the-art logistics facilities for its new North American Distribution Center (NADC). 

The move signals Kubota's intention to plant solid roots in Kansas to expand distribution capacity and streamline logistics processes for the timely delivery of its branded service parts and equipment to the U.S. market.

“Kubota is ready to begin this exciting project along with our city, county and state partners to expand our infrastructure and create solid footing in the Midwest, the Heartland of America,” said Masato Yoshikawa, president and CEO of Kubota Tractor Corporation. “We are proud to make this significant investment here in Kansas, a state that shares our values and supports our ambitious goals for the future.”

Kubota first leased space in Logistics Park KC in 2015 with a 765,000 square foot facility, and offered increased access to its 1,100-strong dealer network. That building, which employs 150, will remain in operation and continue to be the source for Kubota parts and equipment for worldwide export until the new facilities are complete. 

“Kubota has been an ideal leasing tenant, and we are thrilled to welcome them as our newest neighbor as they fully integrate into the local community. The central proximity of Edgerton within the U.S., and its world-class inland port and intermodal facility, give companies like Kubota direct connections to the global supply chain and the ability to quickly and efficiently ship goods by rail and truck to their final destination," said Edgerton Mayor Donald Roberts. "Edgerton and our partners have a proven track record of thoughtful planning and significant investment in infrastructure attracting businesses to Edgerton and growing our local economy."

With 150 employees already in Edgerton, Kubota's expansion will add more jobs to the area as well as expand the company's 1,500-employee Great Plains operations in Salina. 

"Kubota’s continued investments in Edgerton makes it one of our state’s greatest business success stories,” Gov. Colyer said. “Today’s announcement is a testament to the company’s commitment to continue strengthening the state’s manufacturing and logistics base and creating future job growth. We thank Kubota for believing in the potential of our state and investing in the future of our residents."

Once complete, the new facility will allow Kubota to continue to receive and process shipments from Asia and Europe, in addition to goods from suppliers in North America, with more capacity and with accelerated shipping speed for the timely delivery of Kubota parts and equipment.

“Kubota will anchor the expansion of Logistics Park Kansas City, and NorthPoint is proud to continue our more than four-year partnership with the company to see their future plans come to fruition here in Edgerton,” said Patrick Robinson, NorthPoint Development.

“As Kubota’s construction partner, Clayco’s focus and commitment extends far beyond the structures we are building,” said Anthony Johnson, Clayco executive vice president. “Our team’s goal is to ensure we are providing an environment where Kubota’s employees can operate safely and efficiently, and can deliver high quality products to their customers every day.”

As the company continues on a high-growth trajectory, Kubota maintains its commitment to expanding its product offerings, with operational excellence as a priority. “Increasing the capacity of our parts and logistics operations in Kansas will enable us to achieve even greater operational efficiencies to make Kubota’s business stronger and more competitive to meet our growing customer demand,” Yoshikawa continued.

The new campus will also house Kubota’s newest Midwest Division office, which is an extension of the company’s existing divisional operation structure that provides regional support to Kubota dealers. Kubota’s division offices are located in Suwanee, Ga.; Fort Worth, Texas; Columbus, Ohio; and, Lodi, Calif.; and, soon to be in Edgerton, Kansas.

Check out photos below from Gov. Colyer's site tour and official announcement. Click to advance the slideshow.

With Midwest Gateway, Copaken Brooks is Edgerton's new kid in town

Brokers were offered a sneak peak of Midwest Gateway, a 487,000-square foot warehouse and distribution center adjacent to the entrance of BNSF Railway's intermodal facility at 191st and Homestead in Edgerton, Kan.

“Edgerton is the hottest industrial submarket in the world right now. Fortunately, we are able to offer two state-of-the-art buildings at 32-foot clear here,” said Bucky Brooks, principal with project developer Copaken Brooks.

Midwest Gateway is one of a handful of facilities located along the heavy haul, I-35 corridor and allows shippers to send heavier loads to and from the 443-acre BNSF intermodal yard with significant reduction in drayage expenses. 

“Supply chain experts all agree there are huge cost savings here,” said Aaron Schlagel of Copaken Brooks. “ARCO knocked it out of the park with this facility. We are ready to make deals.”

Midwest Gateway was completed three months ahead of schedule. Features of the 301,000- and 186,000-square foot buildings include upgraded LED motion-sensor lighting, future trailer parking, and the ability for users to lease or own.

"Midwest Gateway can accommodate tenants fromt 50,000 square feet and up, creating a rare opportunity for tenants seeking smaller format distribution facilities who want proximity to the BNSF Intermodal,” said Russell Pearson of NAI Heartland, which is co-marketing the project with Copaken Brooks.

A variety of city and state tax incentives are available for up to 10 years for potential users, as well as Foreign Trade Zone benefits.   

Project partners include ARCO National Construction, GMA Architects, Shafer, Kline & Warren, Krudwig & Associates and Metro Air.

Click here to download a Midwest Gateway project brochure. 

Building 1 at Midwest Gateway includes a balcony that overlooks BNSF's intermodal operations.

Lanter lifts Hunt Midwest’s 3PL footprint to more than 1 million square feet

Lanter Distributing LLC has expanded and consolidated its regional warehouse and distribution operations into a 126,000-square feet facility in Hunt Midwest SubTropolis. The Madison, Ill.-based refrigerated LTL and trucking company provides freight consolidation, distribution and deliveries to retail and wholesale customers throughout the Midwest and southern half of the U.S.

“Time and again, companies from a wide range of industries - including third party logistics, animal health and automotive upfitters - perform their due diligence and ultimately choose SubTropolis for its location, efficiency, and value proposition,” said Hunt Midwest President and CEO Ora Reynolds.

Lanter’s expansion brings Hunt Midwest’s total logistics footprint to well over one million square feet, with a total of eight 3PL companies operating in either SubTropolis or Hunt Midwest Business Center, according to Mike Bell, Hunt Midwest vice president of commercial development.

“We are seeing a ‘cluster effect’ of 3PL companies in SubTropolis and our surface business park, Hunt Midwest Business Center,” Bell said. “These companies are looking for access to labor and logistics to fuel their growth.”

Additional 3PL tenants include Advanced Logistics Fulfillment (ALF), American Central Transport (ACT), FW Warehousing, Ground Freight Expeditors, Hallmark Cards, Paris Brothers, and Rossi Motor Freight.

“The ability to quickly and easily scale operations is often top-of-mind for growing companies, and we are able to deliver space in SubTropolis in a timely manner because there are no weather delays or lengthy permitting processes,” Bell added.

Lanter initially leased 21,000 square feet in SubTropolis for dry and refrigerated warehouse and distribution space in 2012. According to Lanter Distributing Vice President Ryan Behrmann, SubTropolis is ideally suited to the company’s requirement for dry and refrigerated storage facilities.

“The customized space, combined with the central location, enables Lanter to continue to provide customers with an industry-leading, cost-efficient, multi-temperature logistics solution while offering on-time deliveries and exceptional service,” Behrmann said. “We look forward to continuing our relationship with Hunt Midwest and growing our business within SubTropolis.”

SubTropolis emerges as leading logistics location for animal health industry

Hunt Midwest SubTropolis is carving out a niche in the animal health logistics space, growing its veterinary industry footprint to 250,000 square feet. Over the past 12 months, three animal health companies - French veterinary pharmaceutical company Virbac, Ceva Animal Health, and IodiTech - have announced new or expanded warehouse and distribution operations in SubTropolis, which offers commissioned facilities in a naturally cool underground environment.

“SubTropolis is the total package for animal health companies and their unique requirements for product safety and climate control, providing significant operational cost efficiencies,” said Hunt Midwest President and CEO Ora Reynolds.

Virbac is currently consolidating its North American product warehousing and distribution operations in the underground business complex. According to Virbac President and CEO Paul R. Hays, the SubTropolis location will help the 8th largest veterinary pharmaceutical company better align itself within the Kansas City Animal Health Corridor, which churns out more than half of the sales generated by the global animal health industry.

“By bringing processes and people together at this Kansas City facility, we are boosting collaboration and efficiency within our manufacturing operations," Hays said. 

In addition, Ceva Animal Health and IodiTech Inc. both announced expansions in the Energy Star rated facility over the past year. Hunt Midwest Vice President Mike Bell attributes SubTropolis' success in the animal health space to a "compelling value proposition" for companies that must adhere to industry product standards by maintaining strict temperature and humidity levels.

“The underground’s protective layer of limestone essentially offers ‘natural’ cooling that saves companies between 70 and 80 percent on utilities and equipment compared to a building on the surface,” Bell said. “There’s an ‘Aha Moment’ when companies fully realize how a SubTropolis location can substantially improve their bottom line.”

Ceva Animal Health is a case in point. CEO Craig Wallace says that consistent conditions and the ability to easily expand underground were two key reasons Ceva chose SubTropolis for a new North American warehouse and distribution center in 2015. Within a year, Ceva had outgrown its space and was able to quickly scale up to meet ongoing demand. 

“The underground location is a great solution for Ceva’s current and future warehousing needs,” Wallace said. “As we add products and expand into new categories, we require scalable space and partners like Hunt Midwest who can accommodate our growth and evolve with us.”

Kansas City-based IodiTech Inc. opened a distribution operation in SubTropolis in 2016. The company manufactures and ships a variety of iodine derivatives – including animal feed minerals – throughout North America and the world.

“The ability to ship to up to 85 percent of the U.S. within two days was of critical importance,” IodiTech President Curtis Thomas said. “Our location in SubTropolis is the perfect complement to our nearby manufacturing facility.”

The growing collection of animal health assets within SubTropolis is creating an “industry cluster within a cluster” for Kansas City’s Animal Health Corridor, which will hold its annual Animal Health Investor Forum and Animal Health Homecoming Dinner August 28-29.

“Hunt Midwest SubTropolis is a valued strategic partner as we work on behalf of the Kansas City Area Development Council to attract global animal health companies to the Greater Kansas City region,” said Kimberly Young, president of the KC Animal Health Corridor.