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

2024 KCADC Annual Meeting highlights $1.8B of new investment across the region

The Kansas City Area Development Council (KCADC) hosted its 2024 Annual Meeting last week, drawing over 2,000 civic and business leaders to celebrate a year of robust regional growth and strategic industry advancements. Under the theme “FLEX,” the event underscored the region’s adaptability as a cornerstone of its success. It highlighted achievements in the Kansas City metro area, including 18 counties across Kansas and Missouri.

Record-Breaking Investments and Job Creation

This year, KCADC and its partners secured commitments from 16 companies, resulting in $1.8 billion in capital investments, nearly 1,500 new jobs, $104.7 million in wages, and 2.3 million SF of new development. These milestones reflect Kansas City’s growing prominence as a hub for innovation and opportunity.

Google’s $1 billion data center in Kansas City, Mo., was among the most notable investments in 2024. Alongside its infrastructure project, Google committed to advancing sustainability by adding 400 megawatts of carbon-free energy to the grid. The company also demonstrated a strong community focus, contributing $100,000 to the North Kansas City School District’s STEM initiatives and announcing an additional $120,000 investment to strengthen STEM programs in Kansas City Public Schools.

Strengthening Global Recognition

Increased media attention has bolstered Kansas City’s growing reputation. Over 630 stories spotlight its economic wins and quality-of-life benefits, reaching an estimated 1.25 billion people globally and enhancing the region’s visibility on the international stage.

KCADC President and CEO Tim Cowden emphasized the importance of leveraging this momentum for future growth, attributing the success to a unified regional vision.

Keynote and Awards

Lisa Bodell, CEO of FutureThink and a best-selling author, delivered the keynote address, offering actionable insights into how simplification can drive efficiency and amplify impact. Her message resonated with attendees, providing tools to help businesses streamline operations and focus on meaningful work.

KCADC has also received accolades for its efforts to promote the region. The organization earned two gold medals from the International Economic Development Council, recognizing its KC Options Magazine and the “KC Design Draft” campaign for excellence in economic development marketing.

Building for the Future

As Kansas City continues to grow, leaders across industries remain focused on fostering a resilient and inclusive economy. From groundbreaking investments in infrastructure and education to enhanced global recognition, the region is poised for sustained success.

The KCADC Annual Meeting reinforced the importance of flexibility and collaboration in shaping the future, ensuring Kansas City remains a leader in innovation and a magnet for talent and investment.

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Header image: Board of Directors incoming co-chair and Evergy President/CEO, David Campbell speaks at the 2024 KCADC Annual Meeting. Image courtesy of the Kansas City Area Development Council

Mixed-use demand fuels Drake Development’s project surge

“You’ve got to be willing to adapt and listen to the market and listen to your users as well,” said Ian Mussman, director of sales & leasing, at Drake Development LLC.

Mussman spoke at the September breakfast meeting hosted by CCIM Kansas City. He highlighted three of Drake’s current projects in the metro area.

Merriam Grand Station, located at the southeast corner of Shawnee Mission Parkway and I-35 in Merriam, Kansas, is nearing completion. The site once housed a Kmart, which sat vacant for more than a decade.

Drake completed its first site plan for the site in July 2020. It took Drake over 2 ½ years to work through the assemblage and entitlement processes. Drake acquired the five-parcel site from three different property owners.

The 50-foot grade change from the northeast corner to the southwest corner of the site presented the most significant challenge to redeveloping the site.

“One of the reasons that it sat available for so long is that it was in a hole. It sat almost 20 feet below Shawnee Mission Parkway grade, and none of the high-profile tenants of the city who would want to go into a project like this would ever accept a site like that. We came up with a creative solution and ended up raising the site just under 15 feet. So almost the roof of Kmart, more or less, became the finished floor of the new project,” Mussman said.

The original site plan featured a power center lineup. Mussman said there was little lending appetite for big box, and Drake’s attempt to add a hotel was not a winner in those early months of COVID.

After many site plan revisions and the expenditure of a hefty amount of architectural engineering dollars, the nearly completed project features 361 multifamily units with underground parking, retail space and a civic activity space. Mussman said all but one retail space has been leased.

The City of Merriam wanted an environmentally and green friendly civic space which, Mussman said, was never part of the original plan. However, through a public-private partnership with the city, Drake is constructing a canopied space that will have solar panels to help power the project’s common area parking lots.

A second project, on which construction is just starting, is Cocina 47, located at 604 W. 47th Street in Kansas City, Missouri. The project on the north side of the

Country Club Plaza is adjacent to another of Drake’s redevelopment projects, the Jack Henry building.

Cocina 47 on the Country Club Plaza , where the Seventh Church of Christ, Scientist used to be, is set to open in 2026. Image Credit: TR i Architects

Mussman said when Drake acquired the Jack Henry building, it learned that the neighboring Seventh Church of Christ, Scientist building had become too large for its shrinking congregation and too expensive to operate.

“So quickly we realized there was an opportunity to modernize their space in a way that better fits their needs. This is a super complex deal that we had to come up with a way to let them ‘condo-out’ their space,” said Mussman.

The church is reducing its footprint by approximately one-half and is acquiring the condo space at no cost to them. Until construction of Cocina 47 is complete, the church is housed in the Jack Henry building.

Mussman said it took 54 months between the time it acquired the property until it began construction on Cocina 47.

“We’ve completed demolition and now we’re working on everything that goes below grade before we go vertical,” he said.

According to Mussman, the tenants, who he was unable to disclose yet, will be high end restaurant groups on the second and third floors of the three-story building, with first floor space still available.

Mussman said Drake anticipates completing the building shell by late 2025 or early 2026 and having tenants open in 2026.

The third project Mussman discussed is located at the southwest corner of Highways 50 and 291 in Lee’s Summit, Missouri, the municipality where Drake has made its most investment. The project is in its planning stages.

Oldham Village, in Lees Summit, Mo., would include 15 retail pad sites, 300+ apartments and, potentially, a field house and fitness center. Image courtesy of Drake Development

Mussman said this project started in 2020. Drake initially purchased one parcel with the intent of developing it as industrial. Then Drake considered big box, which the city did not want. Drake settled on apartments with retail pads. According to Mussman, tenant recruitment is not an issue because currently 92,000 cars a day pass in front of the site.

“As the plan evolved, we ended up growing the scope and growing the property assemblage,” he said.

The project, which Mussman called a “monumental undertaking”, now involves 15 parcels from 12 different property owners and more than 46 acres.

“This one is especially hard because these businesses you see here, these are owner-occupied businesses. They don’t care what your appraisal says. They don’t care what your pro forma says. This is their livelihood. This is where they fed their family for decades. It’s a very emotional decision, and it requires a lot of creativity,” said Mussman.

Mussman said Drake purchased nearly half of the parcels on a sale-leaseback which allowed the sellers to raise capital to relocate, find a new home and continue to operate their businesses.

Besides tackling the assemblage issues, Mussman said the biggest challenge on this project is the sanitary sewer. He said there are approximately $3.5 million of offsite sanitary sewer upgrades needed to allow new businesses to open and operate at the site. This has discouraged other developers, but Drake will make the improvements which will benefit an 835-acre area. In addition, Drake must relocate a perimeter ring road.

Mussman said Lee’s Summit has been looking for a site for a fieldhouse for several years. In place of one of the three apartment phases Drake had planned, the city will construct a 120,000 SF fieldhouse facility.

“When we bought this site, if you would have told me we were doing a 120,000 SF fieldhouse with the city, I would have laughed. And here we are. It just went to council last week, and they approved the contract,” he said.

Mussman said he anticipates construction of the project will begin before the end of the year. The city’s planning commission approved Drake’s plan last week, and it is headed to the city council shortly.

Mussman noted that all three projects are located in core areas.

“We’re not trying to shift the center of gravity and go out in a cornfield and make everyone go somewhere. These already have an insane amount of traffic. They’re highly desirable areas for tenants and residents. And then we just figure out how do we solve the puzzle and make something economically feasible that also meets the city’s and residents’ demands,” said Musssman.

Header Image: The long-vacant Kmart site at the intersection of Antioch Rd. and Shawnee Mission Pkwy. is set to come back to life. Drake Development has submitted plans for a $136 million project, named Merriam Grand Station. Rendering courtesy of Drake Development