Donald E. Maxwell, attorney & developer

As one of next week's MWM’s KC Market Forecast Summit panelists, attorney and developer Donald (Don) E. Maxwell will weigh in on what's in store for the Kansas City commercial real estate industry in 2022 and beyond.

Besides being a lifetime Kansas Citian (Grandview High School graduate) and successful attorney, Maxwell is also co-owner of the development company Linwood Investors, LLC with his father, Donald Maxwell. The pair created the vision behind the Bluford Library revitalization project on 31st and Prospect in Kansas City, Mo.

The mixed-use concept, currently pending final financial approval, will consist of the demolition and reconstruction of the Bluford Library to a two-story, 22,000-SF facility with rooftop access.

The layout, designed by Helix Architecture + Design, will include approximately 5,000 SF of dedicated restaurant space; approximately 100,000 SF of office space; three multifamily buildings, totaling 199 units of studio, one- and two-bedroom apartment units; approximately 30,000 SF of retail space; a dedicated clubhouse for the multifamily residents; and three, six-unit townhomes.

"The Bluford Project, upon completion, will serve as a catalyst for continued development on Kansas City’s east side. We hope to attract working families who want to live, work and play in Kansas City’s urban core and provide the essential goods and services they need to maintain a healthy standard of living. By doing so, we hope to create a positive impact on the quality of life of all the residents in the neighborhoods surrounding this project," Maxwell said.

Other recent revitalization projects behind the Linwood Investors duo include the $11 million redevelopment of the Linwood Square Shopping Center (completed in 2020) and a $17 million redevelopment of the Linwood Shopping Center (completed in 2018), both blighted retail strip centers in the Linwood-Prospect corridor located on Kansas City’s east side.

As the owner of the law firm, Donald E. Maxwell, LLC, which he began in 2003, Maxwell's areas of expertise include general corporate matters, estate planning and real estate - including residential and commercial real estate development; contract negotiation; public financing, including tax increment financing; low-income tax credits, historic tax credits, new markets tax credits; HUD financing; Central City sales tax financing; commercial lease negotiations; restrictive covenants; foreclosures and 1031 Exchanges.

Maxwell received a B.S. in Business Administration from the University of Missouri – Columbia and a Juris Doctorate from the University of Kansas School of Law.

Maxwell will join moderator, Chris Vaeth with McCownGordon Construction; along with panelists Leonard Popplewell with Cushman & Wakefield; Tim McKee with Olathe Chamber of Commerce; and Rob Bratcher with KC Commerce Bank on the KC Market Forecast panel next Wednesday morning at 8 am at JCCC.

To learn more about the event or to register, please visit http://www.metrowiremedia.com/2022-kc-market-forecast.

MWM's 2020 Forecast Panel consensus: KC market is booming

MWM panelists Tim Cowden, president and CEO of KCADC; Nick Suarez, SIOR, CCIM, senior managing director and principal at Newmark Grubb Zimmer; Tim Homburg, co-president of NSPJ Architects; David Caffrey, chief lending officer at Country Club Bank; Todd LaSala, partner at Stinson, LLP; and moderator, Chris Vaeth, vice president, business unit leader at McCownGordon all agree — the Kansas City commercial real estate market is booming.

A summary of the panelists’ remarks from last week’s MWM 2020 Market Forecast event follows:

ON BOOMING KANSAS CITY MARKET:

Tim Cowden, KCADC: “I’m really excited about 2020 because we are coming off a really great 2019. There is a lot of momentum in the market. Our pipeline is full. Kansas City is ascending.”

Tim Homburg, NSPJ: “We see Kansas City maturing into a nice, large-sized metro area. We don’t need to rely on any single one thing to keep the wheels churning for Kansas City because there are multiple different locations around the whole metro area that make it exciting.”

Chris Vaeth, McCownGordon: “The reality is that it’s great right now. The market is doing well; the economy is doing well; and Kansas City has been a robust place to work and live the last several years. There’s a lot of growth, a lot of opportunity. However, 2020 can be a pivotal year. You can’t help but follow the news to see what’s going on. You’ve got to ride it while you have it.”

ON MULTIFAMILY MARKET:

Tim Homburg, NSPJ: “People are coming into the metro area so there is going to be a housing need. Housing will drive a lot of the growth in Kansas City, and we’re seeing very positive signs on the multi-family side coming into this next year. A single family home 15 years ago that was $175,000 is now $350,000 and so people are staying in multifamily “for rent” product longer until they build up the wealth to get to that breaking moment in their life when they can afford the down payment on that $350,000 starter home.

We’ve never seen an oversupply [of multifamily product in Kansas City]. We’re pacing with what the demand is.”

ON OFFICE MARKET:

Nick Suarez, Newmark Grubb Zimmer: “Right now the office market is strong. The vacancy rate is right around eight and one-half percent. We do see rental rates increase slightly across the market. The big issue we have is just the lack of big blocks of quality space, but that’s all going to change [with projects like Strata and the Platform Ventures Building downtown].

Not only will our skyline be changing, we’re also going to have property that is going to be able to compete with all of our peer cities. But, it’s not just downtown. All over the city we’re seeing a lot of new projects [like the Edison District in downtown Overland Park and CityPlace at U.S. 69 Highway and College Boulevard]. It’s an exciting tine to be in the business.”

ON TRUCE BETWEEN KANSAS AND MISSOURI:

Todd LaSala, Stinson: “The two states have finally agreed that you will not treat jobs for border counties that are leaving one side [of the state line] and moving to the other as net new jobs. [The truce] really does level the playing field for us and it’s sort of a new day for us in this market.”

Tim Cowden, KCADC: “It’s good for the region because we can focus now on net new from outside the market here. And we need both Kansas and Missouri to be at the top of their game. That’s really important for Kansas City to reach its potential.”

ON GROWTH OPPORTUNITY MARKETS:

Nick Suarez, Newmark Grubb Zimmer: “Kansas City is a very desirable place for investors to park their money. Investors are getting pushed out from markets like Denver, Nashville and Minneapolis because they are too expensive to do business. They look at Kansas City as another alternative. I think we’re going to see that evolve in the next several years.”

Tim Cowden, KCADC: “Kansas City is so well positioned for e-commerce. We’ve been building these spec industrial buildings. Ten or 15 years ago, we didn’t see that in Kansas City.

One area that we really need more activity in is cold storage. Food is a big deal right now. We’re seeing a lot of food production operations.”

David Caffrey, COUNTRY CLUB BANK: “Network operating centers where companies store their towers or the towers are provided to them. It’s a very specialized facility that we’ve been seeing. We’re in the center of the United States, and we have every internet line coming through Kansas City.”

ON KANSAS CITY COMPETING WITH PEER CITIES:

Tim Cowden, KCADC: “I think our opportunities in Kansas City are limitless. I think we are just now getting to the point where we can compete in a legitimate way with these markets we hear all about—Nashville, Austin, Raleigh-Durham. Look at the USDA deal. That came down to Indianapolis, Raleigh-Durham and Kansas City, and they are going to be right down the street here—600 really highly paid jobs. 

There are more opportunities out there, but we have to have the product on the shelf, whether it’s Class A office, office and industrial, and then go get it.”

Tim Homburg, NSPJ: “Another thing I’d like to see for Kansas City as a whole that you see in that next tier level city is a plan on mass transportation.”

Todd LaSala, STINSON: “I think you have to be strategic and thoughtful and not panic.”