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Design Mechanical
Design Mechanical Inc., a KC-based company that opened shop in 2003, provides heating, air conditioning, and refrigeration services for the commercial and industrial markets in the metro area. Though the company is still relatively young, it has solidified partnerships with many of KC’s major companies, among them Sprint, Shawnee Mission Medical Center, Black and Veatch, and Iron Mountain. DMI is rooted in the belief that good business is built upon solid relationships, common sense, fairness, and fun. This formula appears to be working in catapulting the company to success!
As a company that strives to rise above the expected levels of service in its industry, DMI has collected several awards and distinctions in the last few years, among them the Mechanical Service Contractors Association’s Star Certification (2005) and the Kansas City Kansas Chamber ‘New Small Business of the Year’ Award (2005). When asked what to expect from DMI in 2010, MetroWireKC was told that DMI ‘will continue to concentrate on energy efficient solutions to save our customers money. In these tough times, building owners and managers are needing to be more creative with their budgets. And with the current economic stimulus programs available, upgrading building HVAC makes sense now to help with equipment efficiency and building sustainability ultimately saving dollars both now and in the future.’ It is no wonder that DMI, with its unsurpassed focus on its clients’ best interest and needs, has had continued growth and great success despite the economic slowdown.
The Design Mechanical Team (L-R):
Front Row: Claudia Shoults, Mike Chieppo (VP), Bill Iler (President), Valerie Mussett
Back Row: Steve Ricketts, Stephanie Casteel, Crystal White, Daryl Cox, Ray Arnone, Lacy Faherty, Gina Moseley, Miles Adcock, Gena Evans, Mike Hiebert, Bill Pointer, Steve Buck
The Shops on Blue Parkway
In an area of town often overlooked by those that roam outside its parameters, William H. Jones with Swope Community Builders and Greg Patterson of Patterson and Associates are busy cultivating business opportunities in an underserved market. At a press conference announcing new tenants last Friday, October 30th, Mr. Jones spoke about the opportunity that exists for retailers that are coming in to The Shops on Blue Parkway, citing that he and the merchants are excited about the ability, in this location, to generate revenues and build businesses despite the tough economic climate. Retailers that have had success in The Shops thus far include the anchor operation, Sun Fresh, as well as Subway, Family Dollar, Foot Locker, H&R Block, and Simply Fashion. New to The Shops, as of October 30th, are Burger King, Boost Mobile, and Blue Parkway Cleaners, which are expected to open operations up by the end of January 2009.
Kessinger Hunter, Dan Jensen's BIG Project
Dan Jensen has long been known as one with big ideas, but the 600,000 sq foot Kessinger Hunter development at 167th and Lone Elm was by far his most audacious. Earlier this year, FedEx leased a large chunk of the space and earlier this week Bushnell finalized the second large lease with Jensen to total 346,196 sf of occupied space. Despite the large amount of space absorbed by FedEx and Bushnell, 253,804 square feet remain available for one or two large users.
Dan Jensen stands proudly in front of his latest project that is quickly filling up….
The attractive 600,000 square foot building was completed in 2008.
MetroWireKC's First Annual Pumpkin Carving Contest
Kessinger Hunter & Company's Michael Watson, Vicki O'Malley, Jeyne Hoover, and Brooke Schwob stand proudly with their pumpkin.
Colliers' Dan Storey, Matt Eckert, Phil Staley, Kelsey Moore, Kristin Brotherton, Jennifer Gordey, Shannen Taylor, Cameron Duff, and Mark Feitz put collegiate rivalries aside to submit the Colliers pumpkin carving entry for this year's contest.
Lane4's Justin Kauffman, Marta Chasteen, Kristin Cable, and Trip Ross take time to pose with the pumpkin that they hope will get them the #1 spot (and a free breakfast)!
The Stewart Title 'Spooky Cat' pumpkin wasn’t scaring away any business this past Wednesday.
And the winners are....
5th Place- Kessinger Hunter: We’re not sure what this is, but we're pretty sure there is a 'for sale' sign in there somewhere.
4th Place- CBRE: Wow. This is wrong on so many levels. Thank you.
3rd Place- Lane4: Clever use of toothpicks.
Runner Up- Stewart Title: Excellent caving technique, but not quite good enough to win.
And, going home with the blue ribbon in the inaugural year of MetroWireKC's Annual Pumpkin Carving Contest, Colliers Turley Martin Tucker's 'An Office Divided' Pumpkin! (Whomever Colliers hired to carve the pumpkin was clearly very talented) Congratulations and well done!
Frazier Bell Managing Principal CTMT - Q&A
Frazier serves as the Managing Principal of Colliers Turley Martin Tucker in Kansas City. He is responsible for strategic direction of the office's business divisions which include brokerage services, investment sales, property and facilities management, devel0pment services and corporate solutions. Frazier is a member of Colliers Turley Martin Tucker's board of directors and sits on its' executive committee.
Frazier began his commercial real estate career in 1986 in Dallas, Texas with Lomas & Nettleton, where he worked in the Land Development Division. In 1989, Frazier joined the Zimmer-Steinbach Brokerage Company in Kansas City, where he specialized in industrial sales and leasing. In 1994, Frazier became a principal and remained an owner when Zimmer-Steinbach merged with Colliers Turley Martin Tucker in 1995.
Questions & Answers
What's new at Colliers Turley Martin Tucker?
Like everyone in our sector, brokerage transaction volume is way off. We are fortunate in that our business model has always placed great emphasis on maintaining our fee income service lines, property management and corporate services as a significant source of our overall revenues. We have actually grown in both of these service lines in 2009 and expect to be more profitable on '09 than we were in '08.
In which sectors of commercial real estate do you anticipate to see recovery in 2010?
I am sure that the slight improvements in the economy will continue and this will translate into some improvement on the user side in office and industrial, but nothing of any major significance. The sector that dropped off the most, investment sales, will most likely be the one that returns the quickest and most in 2010 as foreclosed properties start to re-enter the market. Retail still has a long way to go before it can use the word 'recovery'.
In which sectors are you seeing the healthiest transaction volume in your office?
All sectors are off significantly. Our healthiest business is in corporate services where we are assisting our corporate clients with rent reductions and right-sizing of their real estate portfolios.
In what ways do you expect commercial real estate brokerage and propery management to change in the coming years to adapt to the market changes?
During this dedcade, the service expectation from our corporate clients has risen significantly. This is attributable to increased outsourcing of real estate departments by corporate America and a general trend of greater sophistication in our industry. Historically, downturns in the market, such as the one we are currently in, typically accelerate these trends.
In your opinion, how does the Kansas City market differ from other markets in our region? Nationally?
The biggest difference is that Kansas City is more locally owned than most markets. Most markets have more out-of-town, institutional owners than Kansas City. As a result, those markets have a higher percentage of their properties that trade hands with each market cycle. With this cycle, on a national basis, this has translated into a lot of properties being purchased at prices that are too high. In these cases, these properties have two market pressures with which to contend, financing and declining occupancy. To some degree, Kansas City has been spared a bit in this regard.
After a 1-6 start, what will the Chiefs record be at the end of the season?
I don't know what our record will be, but I do think that we will be a much better team at the end of the season. I like what Todd Haley and Scott Pioli are doing, they just have a big mountain to climb and it will take some time. The Dallas game and the game at Washington were encouraging.
KCRAR's 'The Deeper the Downtrun, the Stronger the Recovery'
This past Wednesday the Kansas City Regional Association of Realtors hosted an event at the Sheraton Overland Park Hotel with the theme being ‘2009 Has been a challenging year---Will 2010 be a year of Recovery?’. Keynote speaker Ross Moore, an Executive V.P. and Director of Market & Economic Research with Colliers International in Boston, MA., spoke, along with Chris Lester, Senior V.P. of Business Growth from the Greater Kansas City Chamber of Commerce, and Dan Sight, National RCA Vice-Chairman, V.P./Broker of Reece Commercial. The panel of industry veterans discussed the challenges in today’s depressed market as well as the opportunities available as recovery inevitably arrives in the coming months and years.
Ross Moore's presentation focused on these 3 main areas: the macro economic landscape of the financial markets, office and industrial leasing markets, and investment capital markets nationwide.
Ray Sonnenberg, LaSala Sonnenberg, and Michael Mills, KC Office Realty, take the time to chat prior to the panel discussion while Elden Geist, Curtin Property, bemoans the fact that cocktails and hors’ devours were not being served until after Wednesday’s presentation.
Craig White of Glad Heart Realty, looking rather dapper in his navy suit, enjoyed the networking opportunity prior to the start of Wednesday’s presentation.
Waiting for Wednesday’s event to start, Richard Lanning with NT Realty, Zach Hubbard with Block Real Estate Services LLC, and Tom Demesko, also of NT Realty, compare notes on who wears a gray blazer better, Zach or Tom. No conclusion was ever reached.
Dana Gibson and Christina Boveri, both active in downtown real estate development and brokerage, attended Wednesday’s presentation.
Brent Peterson, Jason Kraft and Patrick Meraz, all of Harbinger Property Group, revel in the glory of having obtained extra drink tickets from attendees who could not stay for the happy hour that followed the presentation.
IREM October Happy Hour
On Thursday October 8th, members and friends of IREM were welcomed to attend the organization’s Fall Happy Hour that benefited our local Harvesters. Admission to the happy hour was 3 cans or boxes of non-perishable food, which were exchanged for drink and appetizer tickets. A huge draw to the event was the oh so delicious! Sheridan’s Frozen Custard, which no matter the season is always a hit!
Jerry Sheridan expertly serves up a tasty treat to an attendee.
Vicki O'Malley of Kessinger Hunter and Craig Cooper of NAI Capital enjoy the refreshments offered at the Happy Hour. How Vicki was able to forego a Sheridan’s for a diet coke, no one knows…
Maincor Luncheon
Maincor, a non-for-profit community development corporation founded in 1981, addresses issues affecting the economic and aesthetic vitality of the Main Street Corridor. The group provides support and technical assistance to its members that include both large and small businesses, neighborhood associations, institutions, and members of the community that believe that Main Street is truly one of the city’s best places to live and work. Last Thursday, Maincor hosted its monthly luncheon at the Unicorn Theater, where attendees saw the recent renovations to the theatre and learned about upcoming shows.
Celine Armstrong of BNIM and Liz Barnes of St. Paul’s Episcopal School grab a bite before the Maincor event kicks off last Thursday, October 15th.
Jing Hu and John Pajor, both with KC BizCare (a new department with the city of KCMO that serves as a comprehensive resource to companies or individuals inquiring about the processes and regulations of starting or maintaining a business), were anxious to hear about all that MainCor has done thus far to improve and maintain positive conditions along Main Street.
Wayne Cauthen-City Manager Q&A
Wayne A. Cauthen was appointed city manager of the City of Kansas City, Mo., in April 2003. Cauthen is currently focusing his efforts on downtown infrastructure and development issues, expanding international economic development, implementing a Citywide recycling program, and improving basic services to citizens. As chief of staff in Denver, Cauthen managed nine cabinet-level departments, including Aviation, Public Works, and Parks and Recreation; and 11 agencies such as the Clerk and Recorder, the Budget and Management Office, and Planning and Community Development. Cauthen received his bachelor's degree in political science from Central State University in Ohio, and completed graduate studies in political science at the University of Colorado.
How would you describe the momentum of downtown redevelopment?
Downtown is moving in the right direction but I don't believe it’s near finished. We do have to increase the number of people living downtown and have a different range of housing types. We can't continue to convert office space into lofts all the time. We have to have some properties that are built from scratch. I think East Village has promise for that as it relates to the type of density in tenants. We also would like to see more employment opportunities downtown as well.
What is the largest necessity for further success with downtown redevelopment?
Again, I think the residential piece is probably the most important thing we need to deal with. Also, making downtown more walkable is important. For example, making the walk from downtown to Crown Center is really not that far, however, if it's not a pleasant walk then people aren't going to want to make that walk. If there is some nice streetscaping going back and forth, I think people would really like to make that walk. I'm also excited about the new Performing Arts Center being built and how that will make the area more eclectic; not only with the center itself, but with all the galleries built around it.
In which development/real estate projects are you most intimately involved?
I would say East Village and the Performing Arts Center in a sense that the city is building a 47 million dollar garage that has a 1,000 car capacity adjacent the Arts Center that is going to have a green roof and look very dynamic. I'm also dealing with the nuts and bolts of the city such as traffic lights and basic infrastructure. Things like these are very important to me.
With recent reports of the Wizards nearing a deal to build a stadium in Wyandotte County, what will come of the Bannister Mall site?
The Bannister Mall site is a very good location, based on all the infrastructure that has been done with the triangle. Its approachable from south Johnson County, all the way to Lee's Summit, 71 highway and 435. Our situation is to make sure we do something that is compatible with the neighborhood. What we really need to do is clean it up, and once that happens we can look at several types of activities. We are continuing to pursue development, but at this time I don't have enough details to continue talking about it.
As a former Chief of Staff in Denver, Colorado, how would you compare the two cities in terms of development and city services? What can Kansas City learn from Denver?
Denver is a more compact city, it doesn't have the area that Kansas City has, it's all located in one county whereas here, it's located in four counties. Were a far more linear city which makes it more difficult based on the fact that we have more of a geographic area. If you were to exclude the Denver airport, Kansas City would be three times the size in area compared to Denver. We do have a lot of distinction and substance for not being as dense as Denver. We have the River Market, Crown Center, Crossroads, Midtown and the Plaza, and the thing we need to do is connect those venues together and that will give us more of a critical mass than we realize. I think with the light rail system in Denver, they have already reached that level.
We just did a Chamber trip to Denver to basically see what they were doing, and the thing we learned on that trip was Denver is defining itself and is not going to let other people define it. What I mean by that is one of their goals, now, is to have an international event every year. They are going after the 2018 winter Olympics.
After a 1-5 start, what will the Chiefs record be at the end of the season?
I predict the Chiefs will be 4-12. They have some National rivalries with teams that might be playing better than they are but will get up for those games and win a few. It also comes down to who stays healthy enough to play.
CCIM Breakfast,
Light at the End of the Tunnel
Last Friday, October 9th, the Kansas City Chapter of CCIM hosted a breakfast meeting at Mission Hills Country Club where speakers spoke to the theme of "Obstacles in Financing & Selling Real Estate Projects in Today's Economic Times...is there light at the end of the tunnel?". Among the speakers were Stan Johnson, founder and CEO of the Stan Johnson Company, Tulsa, OK & Houston, TX, Michael J. Caffrey, President and CEO, Caffrey & Company, Dave Harrison, Vice President and General Manager, KC Opus Northwest, and Bill Schultz, Vice President Development, RED Development.
Aaron Mesmer, Block Real Estate Services LLC, Nicholas C. Jones, Jones Development Company, Eric Gonsher, R.H. Johnson Company, and Cas Patykiewicz, R.H. Johnson Company, swap stories while waiting for the breakfast meeting to begin.
Kory Hochler with the U.S. General Services Administration and Brandon Prestia with Bank of Blue Valley discuss the economic state of affairs while having a cup of coffee.
Bill Fair of Bill Fair and Company and Pat Murfey with Grindstone Industrial Properties took a moment to pose for a photo despite being very busy talking to all of their peers in attendance before the breakfast began.
Point Commercial Fall Happy Hour
Point Commercial hosted a Fall Happy Hour at Boulevard Brewery’s Brewhouse Bar on Tuesday, October 13th. Jared Frost, Point Commerical, Chad Meyer, Arco Construction, and Chris Tierney, Point Commercial take a break from listening to Erik Murray’s latest “How I Shot the Elephant” story to pose for a picture while enjoying Boulevard Beer.
Signature Landscape
Last Friday, October 9th, Signature Landscaping, a premier commercial property landscaping company in Kansas City, celebrated its 20th anniversary with a party on their corporate grounds. Signature has been manicuring the lawns and gardens of KC Metro properties since the late 1980s, and in 2006 expanded its operations to include a Northland office. Signature is actively involved in the MidAmerica Green Industry Council (Magic Council), Professional Landcare Network (PLANET), Irrigation Association, Building Owners & Managers Association (BOMA), Institute of Real Estate Management (IREM), International Facility Managers Association (IFMA) and Apartment Association of Kansas City.
With extremely high quality standards and strict adherence to best practices in its operations, it is no surprise that in its 20 years Signature has come to receive numerous awards and recognition within the KC business community. Here is to another 20!
Tom Cohen of Johnson Capital Q&A.
(Tom Cohen on the left with business partner John Schorgl)
Thomas M. Cohen is currently Principal of Johnson Capital Group, Kansas City, (see www.johnsoncapital.com), a national mortgage banking company specializing in the placement of debt for commercial real estate projects. Johnson Capital is one of the largest and most prominent real estate investment banking and commercial mortgage brokerage firms in the nation. The firm now has 18 offices nationwide: Irvine (corporate headquarters), Newport Beach, Los Angeles, San Diego, San Jose, San Francisco, Phoenix, Denver, Salt Lake City, Dallas, Kansas City, Little Rock, Boca Raton, Washington, D.C., New York City, and Norwalk, Connecticut. Johnson Capital is a direct Freddie Mac and FHA MAP lender. It also serves as a correspondent for a number of life insurance companies.
Questions & Answers
What is the current state of Commercial Real Estate lending?
Kansas City has historically been blessed by relative stability in real estate values and by excellent access to the capital markets. However, our market place is not immune from influences affecting market conditions nationally. At Johnson Capital, our role in assisting clients with accessing the capital they need to finance commercial real estate has never been greater. Yet, our sources of capital are shrinking.
The loan to values have decreased dramatically in a very short period of time from 75%-80% to 60%-70%. Do you anticipate leverage remaining at its current levels?
Historically, we have served as a correspondent lender to a number of life insurance companies. Today, those life insurance companies are either out of the market or have cut back funding to 60%-65% LTV levels. However, there are life insurance companies still quoting deals and we encourage you to show your deals to us.
So the question is, WHERE'S THE MONEY? Capital is available for select deals. For deals involving credit componet, the Credit Tenant Lease(CTL) market remains active. Pricing for these loans is based upon the credit quality and the amortization is typically coterminous with the lease term. Loan proceeds on CTL deals start to make sense on leases with a 15 year term or longer, and they typically don't work on projects with lease terms of 10 years or less. We can underwrite loans down to a 1.01 DSCR and up to 95% LTV.
Who is loaning on Commercial Real Estate?
We have been busy quoting and funding multifamily transactions. We haven't seen many sales occuring in the Kansas City region, however, we a seeing a number of refinances. Agency lenders, Fannie Mae, Freddie Mac and FHA, remain firmly in the market and Johnson Capital is actively funding deals through these programs. Terms are typically 10 years with amorizations out to 30 years. Rates on all programs remain attractive.
What is the look on loaning during this economic stand-still?
The more problematic asset types remain office, retail and hospitality. Fewer and fewer lenders are interested in making loans on these property types, especially as vacancy rates continue to increase. Bottom line is yes, capital is available and YES, we are closing deals, but volume has significantly decreased from where it was in prior years. The velocity of transactions has slowed considerably; however, therer has never been a time when mortgage bankers have been more valuable. We encourage you to contact us for any commercial real estate financing need you may have.
Does Zack Greinke win the Cy Young?
Yes, we belive he does. With his league leading ERA and strikeout to walk ratio so superb, we think he will get it.
Polsinelli Hosts Green Building Event
This past Wednesday, October 7th, Polsinelli Shughart, PC, The UMKC Lewis White Real Estate Center, and BNIM Architects hosted a breakfast and encore presentation of "Green By Design: Sustainable Real Estate in a Changing Economic Landscape," at the Polsinelli Shughart plaza offices. The presentation focused on the legal issues, financial implications, and architectural benefits driving sustainable real estate today.
Hans Nettleblad, AIA LEED AP with BNIM Architects, Curtis J. Petersen, J.D. LEED® AP with Polsinelli Shughart, and Walt Clements, CCIM, Director, Lewis White Real Estate Center in the Bloch School at UMKC, were presenters at the breakfast event.
Heather Trower, Megan Samples, and Kelli Fitzpatrick, all of Red Development, attended Wednesday’s Green By Design.
Patti Feurer of M&I Bank and Heber Gonzalez of Polsinelli Shughart, took advantage of the networking opportunity prior to the presentation.
On October 2, The Trenton Baier Believe Trust hosted a golf tournament to raise money for Trenton Baier, son of Rick Baier, Principal and Senior Vice President of Lane4 Property Group, in his Quest to Walk. Trenton, who has steadfastly fought to regain strength and mobility since a 2005 diving accident left him paralyzed, has excelled in his rehabilitation efforts with the guidance and support of Quest To Walk, a non-profit firm based in Overland Park, Kansas. Quest to Walk is dedicated to providing a state of the art spinal cord recovery center using exercise based recovery methods. The windy October day was fantastic for golfing and the tournament was a great success, keeping in the upbeat spirit of Trenton himself! The above photo is Trenton training at the Quest to Walk rehabilitation center in Overland Park.
Rick Baier, Father of Trenton and Principal and Senior Vice President of Lane4 Property Group, anxiously awaits an opportunity to display his pin-seeking accuracy around the course. While Rick did not play on a specific team, he attempted to play at least one shot for each team on the course. Unfortunately for the other golfers, Rick met his goal.
Volunteers Lisa French, Ashley Barnes, Jamie Baier, Susan Baier, and Karen Parker organized the event and were wonderful hostesses for all the participants.
Brothers Tyson and Trent Barnes enjoyed a liquid breakfast prior to teeing off for their buddy Trenton’s tournament.
Casey Booth and Derek Hill refined their games at the driving range before the tournament.
Kevin Wilkerson NAI Capital Realty Q & A
Kevin Wilkerson is the President of NAI Capital Realty. NAI Capital is a full service commercial real estate firm, established in Kansas City in March of 2007. As an affiliate of the NAI Global network, NAI Capital Realty is connected to more than 5,000 professionals and 325 offices in 55 countries. Wilkerson has brought his expertise from his years with Cohen-Esrey and Trammell Crow to develop a company that currently leases and/or manages |
