KCI Intermodal BusinessCentre Launches Distribution Center
KCI Intermodal BusinessCentre Launches Distribution Center
Kansas City, MO
| October 25, 2013
Clarion Partners and Trammell Crow Company are pleased to announce the start of construction of a second building at the KCI Intermodal BusinessCentre. Phase 1 of LogisticsCentre II® will consist of 351,520 SF Class A distribution space situated on 23.686 acres at Kansas City International Airport. The building will be developed on a “speculative” basis, meaning no tenants have committed to lease any of the space within the building prior to the commencement of construction. LogisticsCentre II will be ready to host tenants by April 15, 2014. Phase 2 will consist of a 351,520 SF expansion that will result in a total of 703,040 SF when fully developed. LogisticsCentre II is designed to accommodate up to four tenants, each with their own distinctive entrance. Market activity for warehouse/distribution space remains strong for companies requiring large blocks of space 200,000 SF and larger. Much of the demand is spurred by the recently completion of the BNSF intermodal facility in Edgerton, KS. Even though that facility is miles away from KCI Intermodal BusinessCentre, more and more companies are focused on the entire Kansas City area as a location to distribute products throughout the Midwest.
KCI Intermodal BusinessCentre is a 687-acre master-planned business park located on the KCI Airport campus adjacent to the airfield. Phase I of this new business park comprises approximately 182 acres that will support up to 1.8 million square feet of warehouse/distribution centers, traditional office/warehouses and light manufacturing facilities. Total construction of all phases will be approximately 5.4 million square feet and will include air cargo and air freight facilities adjoining two runways at KCI Airport. The total value of the development at KCI Intermodal BusinessCentre is projected to exceed $216 million when completed. To encourage job creation, KCI Intermodal BusinessCentre offers economic incentives such as Foreign Trade Zone and Missouri Enhanced Enterprise Zone designations. With today’s high fuel costs, KCI Intermodal’s location at the crossroads of I-29 and I-435 offers superior access to the interstate highway system via a fully-directional interchange at NW112th Street to the north and a “Diverging Diamond Interchange” currently under construction at Tiffany Springs Parkway to the south.
“Several years ago the Aviation Department embarked on an ambitious plan to spur aviation- and non aviation-related development at KCI Airport to attract greater numbers of well-paying jobs to the area,” said Mark VanLoh, director of the Aviation Department. “Securing Blount as the first tenant at KCI Intermodal BusinessCentre was a huge step forward in implementing that plan. This new spec development project validates the KCI submarket as a key component to overall industrial market that is bringing diverse jobs to the entire metropolitan area.”
Blount is a global manufacturer and marketer of replacement parts, equipment, and accessories for the forestry, lawn, and garden; farm, ranch, and agriculture; and construction markets, and is the market leader in manufacturing saw chain and guide bars for chain saws. Blount sells its products in more than 100 countries around the world, and plans to expand its leased area within LogisticsCentre I.
Clarion Partners and Trammell Crow Company have formed a joint venture to develop the KCI Intermodal Business Centre, continuing a relationship that has developed a number of successful projects over the years. Clarion Partners has been a leading U.S. real estate investment manager for almost 30 years. With more than $22 billion in total assets under management for more than 200 institutional investors both domestic and international, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum – from core to core-plus and value-added to opportunistic. The firm, which is headquartered in New York, has a presence in major markets across the United States, Mexico and Sao Paulo, Brazil. Clarion Partners invests in some of the highest quality properties, typically from the five key property types – office, retail, industrial, multifamily residential and hotel. “The launch of LogisticsCentre II is needed to meet the demand for new distribution from tenants that don’t have the time to wait for a build-to-suit facility. You have to have product (space) available for tenants that may need to move in within a few months after selecting a location.” commented Andy Lowe, Senior Vice President of Clarion Partners. “We look forward to continuing our long-standing partnership with the Trammell Crow Company.”
Trammell Crow Company was founded over 60 years ago in Dallas, TX and has developed more than 525 million square feet; 11 million square feet of which has been industrial and air cargo space on airport properties throughout North America. Trammell Crow Company opened its Kansas City office in the early 1970’s and has developed more than 30 industrial and office buildings in the Kansas City area including Lighton Plaza. Jim Didion, city leader for the firm said, “When Blount International committed to lease 349,440 SF almost two years ago we were ecstatic. The first tenant in a new development project is very important because it sets the tone for the overall park.
LogisticsCentre II is designed to accommodate other sophisticated distribution operations like Blount. We are offered Class A spec distribution space in order to attract warehousing and manufacturing operations, and the jobs they bring, to theNorthland.”
CB Richard Ellis, Trammell Crow Company’s parent Company, is providing marketing and property management services for the KCI Intermodal BusinessCentre.