COVER STORY, JANUARY 2010

CROWNING ACHIEVEMENTS
Public-private partnerships drive a wave of commercial real estate in the King City.
Richard Dube

In the wake of a large-scale economic recession that has brought most commercial development to a virtual standstill, many retail and mixed-use developers have been left scrambling to adapt. Those developers that have remained proactive and successful despite the slowdown have focused on specific redevelopment opportunities; these are carefully selected projects that leverage public-private partnerships to overcome financing hurdles and create vibrant new destinations with the potential to reinvigorate communities.

While every market has its own unique characteristics, the commercial real estate redevelopment market in Kansas City mirrors broader national trends. The social, commercial and legislative factors that influence the direction of commercial development around the country are present in Kansas City as well, and negotiating the obstacles to development in a recessionary cycle demands a strategic and collaborative approach that combines vision with community support. Part of that support comes in the form of financial incentives and public-private partnerships—an economic boost that is often the difference between breaking ground and breaking the bank.

Brywood Centre in Kansas City, Missouri, is currently undergoing a $3 million interior renovation.

Tri-Land Properties’ redevelopment strategy for the Kansas City market is focused on identifying opportunities for need-based redevelopments, especially where longstanding retailers have been performing relatively well despite outdated infrastructure or lack of investment. All five of the company’s Kansas City-area projects—Brywood Centre, Cherokee South Plaza, 10 Quivira Shopping Center, Blue Springs Market and Devonshire Village—represented opportunities where existing high-volume stores had a competitive advantage from a locational standpoint, but were burdened with obsolete infrastructure. Everything from buildings and site layouts to parking and accessibility was in need of an upgrade. Fortunately, city officials in places like Overland Park, Kansas, and Kansas City, Missouri, recognized the potential for worthwhile redevelopment of these distressed projects.

Cherokee South Plaza in Overland Park, Kansas, is scheduled to re-open this summer.

Cherokee South Plaza, a 118,000-square-foot redevelopment scheduled to open this summer, includes the complete demolition of the former Cherokee South Sun Fresh, the construction of three new buildings and the addition of many new retail tenants. Tri-Land has worked closely with the city of Overland Park to secure the city’s first Tax Increment Financing award and to meet a progressive new building code—moving Walgreens out to the street, creating a new street-side out-lot and cooperating on specific design details and materials to satisfy architectural vision. Most critical, however, was the new four-way interchange at Interstate 435 and Antioch Road, a roadway upgrade that has nearly doubled the number of vehicles that pass by the site.

Brywood Centre in Kansas City, Missouri, is another 50-year-old supermarket-anchored center in need of more than just a facelift. The Kansas City government and T-L Brywood LLC, the center’s owner, have entered into a redevelopment agreement that involves a community investment district. A $3 million interior grocery renovation, including new floors, lighting and 5,000 additional square feet—with all new facades, high-intensity lighting, sidewalks, landscaping, drainage and the addition of six new out-parcels—will transform Brywood Centre into a vibrant new commercial space. Along with a new 90,000-square-foot anchor tenant, the finished project will expand from roughly 180,000 square feet to approximately 250,000 square feet. Construction is scheduled to begin in April with a projected grand opening in September.

The bottom line is that developers who can identify niche opportunities like Brywood Centre and Cherokee South Plaza are those that will finance and build successful projects in even the most challenging economic circumstances. The key for those developers is the willingness and ability to work with forward-thinking local governments that have the foresight to help finance these major redevelopments. These are the deep value-added projects that can enhance the tax base and revitalize communities, and these projects are being built not only in Kansas City, but all over the country.

Richard Dube is the founder, owner and president of Westchester, Ill.-based Tri-Land Properties Inc.

©2010 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.