Hunt Midwest's SubTropolis expands to meet today’s need for speed

Hunt Midwest has announced plans to build out an additional 700,000 SF of Class-A space in SubTropolis, the world’s largest underground business complex.

This expansion, built on speculation, provides an excellent solution for warehousing and distribution operations struggling to meet the current supply chain and speed-to-market demands created by today’s online shoppers.

With more than 7,000,000 SF of industrial space, SubTropolis offers benefits beyond traditional above-ground industrial buildings. Lower operations and leasing costs top the list, along with a naturally temperature-controlled climate, ideal for storing inventory with a limited lifespan or specific temperature needs.

“The naturally climate-controlled environment in SubTropolis provides a low-cost solution for distribution space in the heart of the logistics corridor,” said Mike Bell, senior vice president with Hunt Midwest.

SubTropolis delivers warm-shell warehousing with demisable space from 50,000 – 300,000 SF and occupancy in 90 – 120 days. The short build-out period ensures that businesses experiencing rapid growth can scale operations to continue to meet consumer demand in a timely manner.

“Building a business complex into limestone cliffs isn’t something that’s done every day. But Hunt Midwest has been able to successfully leverage one of Kansas City’s natural resources to create a unique environment that benefits many business models,” Bell said.

A substantial portion of SubTropolis’ footprint is currently occupied by e-commerce, archival and document storage, pharmaceutical and animal health facilities and food distributors.

The complex’s location also adds value, as Kansas City is the most centrally-located of major U.S. markets. KC is at the heart of a railway corridor reaching from coast to coast and Canada to Mexico and the Kansas City International Airport moves more air cargo each year than any airport within a six-state region.

Tenants residing in SubTropolis reach 90 percent of the country with their products within two days via ground or air, resulting in reduced delivery costs.

Combined with other features such as an on-site, low-latency fiber network and 24/7/365 armed security, the expanding footprint of SubTropolis is poised to support the future growth and business needs of industries focused on keeping up with today’s fast-paced economy.

About Hunt Midwest: Hunt Midwest is a dynamic real estate development company privately held by the Lamar Hunt family. Based in Kansas City with over 50 years of development, construction and management experience, Hunt Midwest’s wide range of projects include industrial, commercial, mission critical, self-storage, residential, multifamily, senior living, mixed use and SubTropolis, the world’s largest underground business complex. Hunt Midwest is part of the Lamar Hunt family’s diverse portfolio of entities involved in real estate, sports/media, energy/resources and private equity investments. In addition to Hunt Midwest, marquee entities include the Kansas City Chiefs, Hunt Southwest, FC Dallas Soccer Club, Toyota Stadium, Chicago Bulls and United Center.

About SubTropolis: As the world’s largest underground business complex, SubTropolis sets the standard for subsurface business developments. SubTropolis was created through the mining of a 270-million-year-old limestone deposit creating a 1,200-acre real estate development. In the mining process, limestone is removed by the room and pillar method, leaving 25-foot square pillars that are on 65-foot centers and 40 feet apart. SubTropolis is home to more than 55 local, regional, national and international companies that employ in excess of 2,000 people.

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.

LightEdge at SubTropolis lands new tenant, KU Hospital

The University of Kansas Hospital has officially moved into its new private suite at the LightEdge data center facility at Hunt Midwest’s SubTropolis Technology Center.

The new location allows the healthcare provider to commit to the most stringent patient information protection.

LightEdge easily met the hospital’s demand for a partner with the financial backing to ensure long term stability and the option for capacity expansion. The hospital began moving into LightEdge’s Phase I 60,000 square foot underground facility during the first half of 2015 and is now fully operational in the facility.

“The stability and flexibility that we have achieved by moving to LightEdge has freed capital and resources allowing us to stay ahead of technology changes, patient needs and our competition,” said Sean Roberts, systems director for The University of Kansas Hospital.