Lingerfelt CommonWealth Buys Kansas City Office Tower
- Jul 24, 2018
Lingerfelt CommonWealth Partners has made its entrée into the Kansas City, Mo., market. In a joint venture with CrossHarbor Capital Partners, the commercial real estate investment firm recently acquired the approximately 538,700-square-foot office building at 2345 Grand Blvd. from Franklin Street Properties Corp.
The purchase marks a departure from Lingerfelt CommonWealth’s core regions: the Mid-Atlantic and Southeast. Additional details on the transaction are not being released due to certain restrictions, a company spokesperson told Commercial Property Executive.
“We are enthusiastic about entering the Kansas City market at this time and we are particularly excited to own such an iconic building in this prime location,” Brian Witthoefft, managing director of leasing and marketing with Lingerfelt CommonWealth Partners, said in a prepared statement. “The market fundamentals continue to strengthen, showing steady leasing demand, positive space absorption in quality properties, and upward pressure on rental rates metro-wide.”
Developed in 1977 by the Shorenstein Co., the Mies van der Rohe-designed 2345 Grand sits in Kansas City’s Crown Center submarket downtown. The 28-story building is currently 73 percent occupied by multiple tenants, including law firm Lathrop & Gage, which inked an approximately 111,000-square foot lease renewal in 2016. The transaction also included the four-story annex building at 2380 McGee St., designed by Mies van der Rohe as well.
Lingerfelt CommonWealth, which will serve as operator of 2345 Grand, plans to submit the Class A property to a substantial renovation program that will include the reconfiguration and upgrading of the ground-level retail space at 2380 McGee. Joint venture partner Commonwealth Commercial will take on the role of property manager. Commercial real estate services firm Cushman & Wakefield has been tapped to spearhead leasing and marketing activity.
Lingerfelt CommonWealth has been active in both the office and hospitality sectors over the last several months. In a joint venture with JDI Realty, the company recently purchased Virginia Beach Resort Hotel & Conference Center in Virginia Beach, Va.
Also on the list of acquisitions are the 78,500-square-foot Buschwood III office building at 3350 Buschwood Park Drive in Tampa, Fla., and the 405-key Norfolk Waterside Marriott in Norfolk, Va.
Image courtesy of Lingerfelt CommonWealth