2016 multifamily development

c o l l i e r s i n t e r n at i o n a l | k a n s a s c i t y
2016 MULTIFAMILY DEVELOPMENT
The multifamily sector continues to remain the most active property
type within the Kansas City metro.
In 2015, there was a surge of multifamily deliveries across all portions of the metro, which led
to the first true test of demand levels surrounding new apartment construction activity. Based
on job growth and a growing appetite for new apartment product, demand outpaced the new
supply that was brought to the market in 2015. With strong leasing activity in new product over
the past two years, the metro’s occupancy reached a nine-year high by the end of the year. The
occupancy rate currently stands at 95.3% metro-wide.
THE CURRENT DEPTH of demand
levels will continue to be tested throughout
the New Year, as the pipeline of apartment
completions is set to expand overall inventory
levels by another 2.1%. From a development
standpoint, apartment construction continues
to remain red hot. Nearly 4,600 multifamily
units are currently in active construction
across all submarkets and project types
within the metro. Based on strong market
fundamentals, the apartment phenomenon
does not appear to be slowing down either, as
nearly 11,800 additional units are currently in
various stages of the proposed and planning
process. Traditionally, the majority of new
apartment construction has been focused on
the suburban markets; however, currently
45% of the all new units are centered around
the urban core.
Dalmark Group’s West Hill redevelopment and addition to
the E.F Swinney Elementary School
DOWNTOWN REDEVELOPMENT
projects continue to forge ahead, which has
been accelerated by the streetcar and the
Downtown Council of Kansas City’s vision
to double the area’s population within the
next decade. Since the announcement of the
streetcar, there’s been more than $1.5 billion
of investment within 4 blocks on either side of
the line. The timing coincides with a growing
demand by a younger generation seeking
space within the urban core. As more
millennials enter the workforce and choose
to reside in locations with a live/work/play
component, the future remains very bright for
downtown development.
ONE LIGHT, the first new high-rise
multifamily resulted in
56%
of all KC investment
transactional volume in 2015
area since 1976, embodies the current
demand for quality apartment product. The
25-story, 315 unit building held their grand
opening in December. The project was met
with so much success throughout pre-leasing
that the timeline for a second tower, Two
Light, was moved ahead of the initial timeline
projections. Two Light will begin construction
in early 2016, adding another 300 units of
new product. Several existing downtown
buildings are currently being converted into
high-end apartment projects, which will
help to bolster the population and aid in the
resurgence of the downtown market.
Given the success of the apartment sector
over the previous years and an expanding
economy, the outlook for multifamily
investment activity remains very strong
throughout the upcoming year.
development to be delivered to the downtown
Cordish Companies’ One Light is the newest addition to the
downtown skyline since 2006
Linden Street Partners’ 1914 Main in the Crossroads
DEVELOPMENT PIPELINE
#
Development
Submarket
Developer
1
1914 Main
Units
44
Central Kansas City
Linden Street Partners
Est Delivery
1Q16
2
Argyle on 12th
117
Central Kansas City
Arghom LLC
1Q16
3
Centropolis on Grand
56
Central Kansas City
KC Commercial Realty Group
1Q16
4
Founders Phase II
181
Central Kansas City
Frye & Company
1Q16
5
Roasters Block
146
Central Kansas City
O'Reilly Development
1Q16
6
West Hill
71
Central Kansas City
Dalmark Group
1Q16
7
East 9 at Pickwick Plaza
260
Central Kansas City
Gold Crown Properties, Inc.
2Q16
8
Power & Light Building
268
Central Kansas City
NorthPoint
2Q16
9
Switzer Lofts
114
Central Kansas City
Foutch Brothers
3Q16
10
51Oak
170
Central Kansas City
VanTrust
3Q16
11
Columbus Park Lofts
108
Central Kansas City
Columbus Park Developers
3Q16
12
The Union - Berkley Riverfront Park
410
Central Kansas City
Flaherty & Collins
3Q16
13
Apex on Quality Hill
130
Central Kansas City
CityScape Residential
4Q16
14
Summit on Quality Hill
256
Central Kansas City
CityScape Residential
4Q16
15
Commerce Tower
342
Central Kansas City
Commerce Tower Group, Inc.
4Q17
16
1721 Walnut
38
Central Kansas City
Linden Street Partners
1Q17
17
Second and Delaware
276
Central Kansas City
Arnold Development Group
1Q17
18
Two Light
300
Central Kansas City
Cordish Companies
1Q18
1Q16
19
Ridgeway Villas at the Legends
56
Lee's Summit/Blue Springs/Raytown
LRG Consulting & Development
20
Mission 106
139
North Overland Park
Doug Weltner
1Q16
21
Avenue 80
230
North Overland Park
EPC Real Estate Group
3Q16
22
InterUrban Lofts
41
North Overland Park
Real Property Group, LLC
3Q16
23
The Vue
219
North Overland Park
Hunt Midwest
1Q18
24
Retreat at Tiffany Woods
254
Platte County
NorthPoint
2Q16
25
Seven301 Apartments
310
Platte County
Meecorp
2Q17
26
Domain at City Center
203
Shawnee/Lenexa/Mission
EPC Real Estate Group
1Q16
27
Woodside Village
91
Shawnee/Lenexa/Mission
Tanner & White Properties
1Q16
28
Mansions at Canyon Creek
70
Shawnee/Lenexa/Mission
Hickok Dible
2Q16
29
Edgewater at CityCenter
276
Shawnee/Lenexa/Mission
Block Real Estate Services
3Q16
30
Prairie Pines Townhomes
222
Shawnee/Lenexa/Mission
Shawnee Associates, LLC
4Q16
31
Fairways at Grand Summit Phase II
456
South Kansas City/Grandview
Lindsey Management Company
3Q17
32
Greenwood Reserve
228
South Overland Park
CityScape Residential
1Q16
33
Residences at CityPlace
344
South Overland Park
Block Real Estate Services
1Q17
34
Prairie View at Village West
306
Wyandotte County
NorthPoint
1Q16
Colliers International | Kansas City
KANSAS CITY EMPLOYMENT GROWTH
KEARNEY
Sherman
Army Airfield
PLATTE CITY
Clay
County
Regional
Airfield
PLATTE
COUNTY
Kansas City
International
Airport
CBD
FREIGHT
HOUSE
CROWN
EXCELSIOR
CENTER
SPRINGS
MIDTOWN
KANSAS CITY
6 7
COUNTRY
CLUB
PLAZA
CLAY
COUNTY
GLADSTONE
#
Submarket
Company
Jobs
1
Central Kansas City
Littler Mendelson PC
250
2
Central Kansas City
Logoplaste
110
3
Olathe/Gardner
Jet.com
140
4
Olathe/Gardner
Excel Industries
200
5
Olathe/Gardner
S&S Activewear
200
6
Platte County
Challenge Manufacturing
375
7
Platte County
TriWest Healthcare Alliance
500
8
Platte County
US Farathane
267
9
South Kansas City/
Grandview
Really Good Stuff
44
LIBERTY
CLAYCOMO
8
NORTH
KANSAS CITY
KANSAS CITY, KANSAS
WYANDOTTE
COUNTY
Downtown
Airport
INDEPENDENCE
1 2
KANSAS
CITY
(MO)
BLUE SPRINGS
NORTHWEST
KANSAS CITY
JOHNSON
BROOKSIDE
COUNTY NORTHEAST
SHAWNEE
JOHNSON
COUNTY WARD
PKWY
OVERLAND
SOUTH
LENEXA
PARK
KANSAS
CITY
(MO)
OLATHE
EAST
KANSAS
CITY
(MO)
RAYTOWN
GRANDVIEW
3 4
5
SOUTH
JOHNSON
COUNTY
STANLEY
LEE’S SUMMIT
9
LEE’S SUMMIT /
BLUE SPRINGS
Sourced from the Kansas City Business Journal in 2015
Richards
Gebaur
Airport
BELTON
GREENWOOD
RAYMORE
CASS
COUNTY
SOUTHEAST MULTIFAMILY ADVISORY GROUP
PECULIAR
Colliers International
4520 Main Street, Suite 1000
Kansas City, Missouri 64111
www.colliers.com
Kansas City Metro
c o llier sm u lt i fam i lys e . c o m
14
transacting in
states
(highlighted on map)
27,500
units transacted through 2015
Colliers International Offices
SMAG Representatives
$1.75B
vgroup
gross transaction value since 2011
KANSAS CITY CONTACTS:
Bob Galamba sior, ccim
Senior Vice President
+1 816 556 1152
[email protected]
Gabe Tovar
Associate
+1 816 556 1161
[email protected]
Colliers International | Kansas City | 4520 Main Street, Suite 1000, Kansas City, Missouri 64111 | +1 816 531 5303 | colliers.com