10 Main Center is located in Kansas City, Jackson County, Missouri. The Property is located at the northwest corner of 10th and Main Streets in the heart of Kansas City’s central business district. Kansas City has evolved into a robust metropolis with an attractive business environment, low cost of living and one of the highest worker productivity rates in the nation. Kansas City’s central location and diverse mix of industries has enabled it to maintain a stable economy that is less disposed to economic cyclicality and downturns. Downtown Kansas City is currently experiencing a dynamic resurgence with a synergistic combination of business centers, entertainment attractions and retail attractions, led by the new H&R Block World Headquarters, the Kansas City Live entertainment complex and the new Sprint Arena – all currently under construction just a few blocks from the Property.
Kansas City MSA Overview
Fused by two adjacent cities of the same name, the Kansas City MSA lies on each side of the Kansas-Missouri border where the Kansas and Missouri rivers meet. The MSA is comprised of eleven counties and 114 cities and towns, including Kansas City, Kansas and Kansas City, Missouri. Kansas City, MO is situated at the heart of the metro and is the dominant business and cultural center in the area. The Kansas City MSA is a large commercial, industrial, and cultural center with a 2005 estimated population of 1,934,400. Kansas City is situated just 220 miles east of the geographic center of the Untied States, which results in a strategic location that enables swift access to a majority of United States consumers and corporations. This combined with Kansas City’s low costs of living and operating a business, makes Kansas City an attractive corporate location, as evidenced by the many multinational public and private firms with a presence in the region. The following are some key highlights of the region.
• One of the ten economically strongest MSAs in the nation according to Policom Corp in 2004
• $3 billion downtown renaissance, including construction of the Sprint Arena, the Kansas City Power & Light District, and more than 2,000 residential units planned or under construction
• 38% of the new apartments in the metro area completed in the next two years will be downtown
• Employment growth of more than 20% since 1990
• Ranked as the 2nd best city in the U.S. for doing business according to Inc. Magazine in 2005
• Ranked as the 3rd best city in the nation for business expansions and relocations by Expansion Management in 2005
• Ranked 8th in the nation for amount of European investment for 2004 due in part to a foreign trade zone that processes more volume than any other Midwestern city
• Leading customer service and data center site in the nation
• Low cost of living – 5.9% below the national U.S. city average, and EBI 11.2% above the national median
• 13th highest for net migration rate of young, single and college-educated residents
• 9th best large MSA for overall quality of public schools in 2005
• Three Kansas City suburbs rated in top ten of CNN Money’s list of Best Places to Live in the Midwest in 2005
Downtown Kansas City Renaissance
Kansas City is in the midst of a monumental downtown renaissance, as considerable private and public investment has spurred the development of downtown housing, retail centers, mixed-use and public facilities. The $3.3 billion worth of development projects that are completed or underway downtown are reshaping the essence of downtown and transforming it into a 24-hour destination with an array of businesses, residences and entertainment attractions. Some of the key developments completed or underway include:
• The Power & Light District: An $850 million, 425,000 square foot entertainment district encompassing nine square blocks in the heart of downtown. Kansas City Live, the first phase of the district, is currently under construction and is being developed The Cordish Company. It is estimated for 2007 completion and will include a mix of restaurants, clubs, lounges, live music venues, comedy, cafes and entertainment attractions. The Power & Light District will also contain 1,000 residential units.
• Downtown Housing Boom: Over $523 million has been invested in downtown housing since 2000, creating more than 1,842 new residential units downtown. Moreover, 1,250 additional units are currently under construction and another 817 are planned for development. The development has drawn more than 5,000 residents to move into the downtown area over the past four years and 15,000 people are now living downtown. Over the next two years, 38% of the new apartments completed in the metro area will be downtown.
Several office buildings are being converted into lofts and condominiums, including 1101 Walnut St., the current Federal Reserve Bank Building, 919 W. 47th St. and 909 Walnut St. Along with attracting more people to the downtown area, the conversion of office properties to residential complexes reduces the amount of office space needed to be absorbed in the area.
• H&R Block World Headquarters: H&R Block, the world’s largest tax services company, is currently building a $106 million, 500,000 square foot facility to serve as its world headquarters and house approximately 1,200 H&R Block employees. Ground broke on the development in October 2004 and is expected to be completed by late 2006. H&R Block is relocating from 4400 Main St., a 143,000 square foot office building located outside of downtown Kansas City. Its move downtown reflects the firm’s belief in the resurgence downtown and its desire to be a key component.
• Convention Center Expansion: $135 million Kansas City Convention Center expansion and renovation includes a 135,000 square feet expansion and more than 200,000 square feet of renovations to meeting rooms, lobbies and service areas. The expansion began in July 2004 and is anticipated for completion in 2007. The convention center currently has 389,000 square feet of exhibit space, 98,000 square feet of meeting space and 23,900 square feet of ballroom space.
• IRS Service Center: $370 million development (70-year-old) of the Old Main Post Office Building on Main & Pershing. The building will be converted into an IRS service center that employs 6,000 IRS workers. The center along with three adjacent office annexes covers over 27.5 acres and is expected to have a $4 billion impact on the local economy.
• Sprint Center Arena: $250 million sports arena currently under construction in the Power & Light District that will seat 18,000 – 20,000 fans. The arena will include a section for the National Collegiate Basketball Hall of Fame and could house a potential NHL or NBA franchise.
• Metropolitan Kansas City Performing Arts Center: The Performing Arts Center will accommodate seating for 1,400, making it comparable to Chicago’s Symphony Hall in size. The project will include a renovation and expansion of the city’s historic Lyric Opera Theatre next to an entirely new symphony hall built on the adjoining parking lot. The project will be designed by renowned architect Moshe Safdie and will be completed in 2008.
• Kansas City Central Library: A $50.2 million project that renovated the First National Bank building into a 190,000 square foot library complete with a coffee shop, art displays, meeting rooms, a community auditorium, technology training center and a research archive. The renovation has spurred the rise of a new community in downtown, which is deemed the “Library District” and contains 80,000 – 90,000 square feet of lofts and condominiums. Moreover, the Central Library is located adjacent to 10 Main Center at 14 W 10th Street.
• Federal Reserve Bank: The Federal Reserve Bank is developing a 600,000 square foot building designed by world renowned architectural firm I.M. Pei Cobb Freed & Partners. Kansas City is one of just twelve Federal Reserve Bank locations in the nation and is the headquarters for the 10rh District. The Bank’s current headquarters, 925 Grand Ave., has been sold to a private investor and will be redeveloped into condominiums upon completion of the new building in 2008.
• Nelson-Atkins Museum of Art Expansion: The Nelson-Atkins Museum of Art is undergoing a $200 million renovation, which includes a 160,000 square foot glass-crowned building. The museum, which showcases more than 5,000 years of art, is undergoing its first renovation since inception in 1933.
While the focus of Kansas City’s renaissance remains on downtown, the entire metro is also undergoing development and transformation. From retail and entertainment projects to the expansion of Kansas City International Airport, projects throughout the region are rejuvenating the entire Kansas City area. Below is a sampling of some key developments within the metro.
• Kansas City International Airport Renovation: Kansas City International Airport (KCI) recently completed a 3-year $258 million renovation. The project created new ticketing areas, wider concourse areas, new and bigger departure areas, business work areas with phones and fax machines and laptops ports, over 500 new concessions, and $800,00 in floor artwork. The renovation also included a 15,000-space parking garage. Kansas City International Airport currently offers 200 daily departures with nonstop service to 43 destinations.
• The Legends at Village West: A $248 million, 800,000 square foot shopping & entertainment center being developed in Kansas City, Kansas. This project has 44 tenants signed and is scheduled for completion in late 2005.
• Zona Rosa: A $200 million, 9-acre shopping complex in Kansas City’s northland. The 1.2 million square foot mixed-use complex was developed by Steiner & Associates and features retail, restaurant, office, residential, hotel and entertainment space.
Conclusion
Kansas City is built on a strong economic foundation that is well-distributed amongst a variety of industries and competencies, resulting in a stable economy conducive to sustainable long-term growth. The metro’s central U.S. location makes it a logical location to form and/or expand a venture, placing businesses in close proximity to its customers, suppliers, and the support necessary to most effectively reach them both. The excitement and enthusiasm brewing for Kansas City’s revitalization is highly warranted given its solid economic foundation and the transformational developments taking place. Downtown projects such as major business centers for H&R Block, the Federal Reserve, the Internal Revenue Service, entertainment centers such as the Power & Light District and the Sprint Arena, cultural centers such as the new Kansas City Library and the Performing Arts Center, as well as the ongoing residential boom, make 10 Main Center a very attractive opportunity as the downtown office market begins to benefit from this extraordinary renaissance.
