The Future of Crown Center
Posted: Mon Mar 03, 2008 6:23 pm
This article appeared in our Noon News today. This thread should discuss the future of CC area and how it will play into our changing downtown. Let's stay away from arguing whether or not it is an ideal architectural wonder. What is the future in store? Don Hall alludes there is a plan in the near-ish future for developing 15 acres. This can only mean developing the surface lots. With Hallmark Corporation going through the colorful term of "business transformation" and becoming more efficient gradually, what would make the most sense to put on these surface lots behind the complex? More offices? Residential towers? Greenspace?
Crown Center sells office tower
( Monday, March 3, 2008 12:09 PM )
Crown Center is selling the 2555 Grand office tower to Hines, a privately owned international real estate firm noted for quality and service. The sale is the result of an initiative launched last fall to explore market interest in selected Crown Center office properties.
“Our goal was to assess the potential of what we saw as a strong market for this segment of the commercial real estate market,” says Bill Lucas, president – Crown Center. “It’s always good business to be alert to marketplace conditions and respond to the opportunities they present.
“In this case, the opportunity for 2555 Grand was indeed significant, and we are very pleased with the result.”
The 24-story office tower was completed in 2003 and is occupied by the Shook, Hardy and Bacon law firm. The quality of the building itself, the Crown Center complex environment and a marquee tenant with a long-term lease were key to the desirability of the property, Bill adds.
Proceeds from the nearly $156 million transaction, one of the highest on a square-foot basis for standard office buildings in Kansas City, will be reinvested to support priority spending needs for transformation across the company’s businesses and to retire debt.
Crown Center also explored the market potential of a second office property, the multi-tenant 2600 Grand building, but that building has been taken off the market with no sale currently being contemplated, Bill says.
Hines is familiar with Crown Center, having once owned and still managing the 2345 Grand building located on the northern edge of the redevelopment area. The Texas-based company also is familiar with downtown Kansas City, having served as development manager and current property manager for H&R Block’s new headquarters.
“The fact that a quality-minded organization like Hines saw such value in the 2555 Grand property validates efforts over the course of four decades to achieve our original vision for Crown Center of returning vibrancy to Kansas City’s urban core,” says Don Hall, president and CEO. “It is a vision we remain committed to as we complete development of Crown Center’s remaining 15 acres in the years ahead.”
Hallmark employee parking will not be affected by the sale. Crown Center retains ownership of the adjacent parking garage, which will continue to be used by Hallmark employees as well as those of the law firm.
CB Richard Ellis, the nation’s largest commercial real estate brokerage firm, handled the transaction.