Acquisitions by Arch Street and Artemis strengthens Logistics Park KC's Position as a key distribution hub

Arch Street Capital Advisors, headquartered in New York, and Artemis Real Estate Partners, based in Washington, D.C., have made a significant move to expand their industrial real estate portfolios by acquiring four prime properties in Edgerton, Kan. This new acquisition adds 2.4 million SF of Class A industrial space to their holdings, strengthening their presence in key logistics markets.

The properties, developed by NorthPoint Development between 2014 and 2017, are located within the Logistics Park Kansas City (LPKC), a 2,352-acre industrial park that is considered a key hub for distribution and warehouse operations. This master-planned development offers businesses a strategic advantage due to its close proximity to major transportation routes, including Interstates 29 and 435, as well as its accessibility to Kansas City International Airport. These factors make the park an ideal location for logistics and distribution companies looking to optimize their operations and reach broader markets.

The newly acquired portfolio includes four high-quality facilities that are fully leased to well-established tenants, including Amazon, Walmart, and Demdaco. These buildings are strategically situated within the park and vary in size, catering to different operational needs. The properties reflect the increasing demand for modern, high-specification industrial spaces in the Kansas City area, a region that continues to attract top-tier tenants due to its central location and robust infrastructure.

These facilities, located across several prime spots within LPKC, include properties such as a large warehouse space, which serves as a critical hub for distribution, as well as additional spaces that support a variety of logistics functions. The buildings’ size and functionality make them highly desirable, supporting a range of industries from e-commerce to consumer goods, and further cementing the area’s reputation as a logistics powerhouse.

This acquisition is aligned with Arch Street and Artemis’s ongoing strategy to target institutional-quality industrial assets in prime logistics markets. It also underscores the rapid growth and investment in the Kansas City area’s industrial sector, which has seen a surge in development and interest from major corporations in recent years. Logistics Park Kansas City, with its comprehensive infrastructure and advantageous location, continues to draw large-scale companies looking for efficient, high-performance distribution solutions. With this latest investment, Arch Street and Artemis help to further solidify the park’s status as a leading destination for industrial real estate investment, signaling continued growth and opportunity in the region.

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Header image An aerial view of Logistics Park Kansas City, a 2,300-acre+ industrial park, located near Interstates 29 and 435. Image courtesy of Hunt Midwest

Platform Ventures hopes to maximize I-49 multimodal opportunities

At the monthly virtual presentation hosted by the CCIM Kansas City chapter last Friday, Corey Walker, senior vice president with Platform Ventures, offered insight about the I-49 Industrial Center.

Platform Ventures purchased approximately 180 acres of the development, located on the site of the former Richards-Gebaur Air Force Base, from CenterPoint Properties in July 2019. The air force base was decommissioned and closed in 1999.

After the decommission, Kansas City Southern, Port KC and CenterPoint each acquired a portion of the property. CenterPoint commenced developing a business park in 2007 named CenterPoint Intermodal Center. CenterPoint, headquartered in Illinois, left the Kansas City market in 2019.

Walker said that at the time Platform Ventures acquired the development, CenterPoint had developed approximately one-third of the property and had leases with Walmart, Honeywell, U.S. Department of Agriculture (USDA), Sioux Chief Manufacturing and Niagara Bottling LLC.

Walker said Platform Ventures is in the process of adding approximately 60 acres of adjacent land to the industrial park.

Platform Ventures recently completed a rebranding of the site, renaming it I-49 Industrial Center. CBRE is assisting with marketing strategy.

“We thought it needed a fresh makeover,” Walker said.

“The remaining land has a potential for another 2 million SF of Class-A industrial warehouse space and that number could go north with a lot of the tenants that we’re seeing. They have a footprint that they’re now wanting mezzanine structures and potentially multi-floors within the facility which will add to the square footage,” said Walker.

Walker said Platform Ventures was attracted to the site because of the extensive infrastructure already in place, including roads, utilities and adjacent rail, as well as a great labor market.

“As part of our strategy with the multimodal concept, we really wanted to work with our neighbors, especially Kansas City Southern, so we’ve been working with them in concert now for really over a year to figure out ways to really maximize the opportunities for multimodal,” Walker said.

Platform Ventures currently is working on a 366,000-SF, spec building designed for up to four tenants.

“It’s tilt-up concrete, 36 foot clear height ceilings. We’re in the design and entitlement process on that. We’re pretty excited about some of the interest we’re starting to receive on just some of the initial discussions we’ve had,” Walker said.

Platform Ventures also is working with Kansas City Southern on a 300,000 SF bulk freight multimodal distribution facility on the site, with approximately 200,000 SF of outdoor space. The rail line actually goes into the building and into the storage yard.

“Semis and trucks come in the other side and take the product out to the region,” Walker said.

Walker said that Platform Ventures is working with a Fortune 500 company, and the facility is in the final entitlement stages and in design development.

“Both of these projects are moving forward but have a lot of wood to chop, but hopefully if things go well, maybe we’ll start moving dirt in Q1 of 2021,” said Walker.

Walker said activity has been very strong at the park. Platform Ventures has been proactive in pursuing large build-to-suit tenants, but they also want to have square footage available for smaller tenants and tenants requiring shorter build out time frames.

Walker said that Platform Ventures is “fairly bullish” going into 2021, particularly in light of the heavy demand for industrial space in the Kansas City area and the low vacancy rates for industrial space.

“There’s just not a lot of sites in town that can support 500 to 1 million SF industrial facilities so that bodes well for our project,” he said.