Hines Takes Kansas City Office Tower for $156M
- Mar 07, 2008
The 595,600-square-foot office tower at 2555 Grand Blvd. in Kansas City, Mo., has come under new ownership, courtesy of a transaction valued at $155.8 million. Hines REIT snapped up the fully occupied Class A property from Crown Center Redevelopment Corp.Located on a nearly two-acre parcel in the city’s thriving Crown Center submarket, the 24-story structure at 2555 Grand sits near interstates 35, 70 and 670. Since its completion in 2003, the building has been occupied in its entirety by law firm Shook, Hardy & Bacon L.L.P. for use as its world headquarters under a lease agreement that is effective through February 2024. In addition to the office building, which provides pedestrian access to the area’s retail and entertainment amenities via a glass-enclosed bridge, the prime asset comes with a separate nine-level, 2,716-space parking facility located a block east of the office tower.Real estate services firm CB Richard Ellis Inc. marketed 2555 Grand on behalf of the seller in what was a competitive bidding process that left Hines on top. “It is a great building with great tenancy in a really strong location, so we thought it was a good investment opportunity,” Hines vice president John Wood told CPN today. “Kansas City is not a first tier investment market, but we see it as a solid, steady Midwestern market.” Hines’ new purchase is currently the company’s only owned property in Kansas City, although it has had a presence there for quite some time. To name a couple of endeavors, Hines developed the 531,000-square-foot H&R Block World Headquarters building in 2006 where it now serves as manager, and in 2004 it acquired the 515,000-square-foot office property at 2345 Grand Blvd., which it sold in the fall of 2007. As for future activity in Kansas City, Hines is open. “As opportunities present themselves, we will take a close look at them,” Wood said.