NorthPoint Buys 285 KSF Office Tower in Downtown Kansas City
- Oct 09, 2014
By Keith Loria, Contributing Editor
NorthPoint Development has acquired The Power & Light Building, an iconic 285,000-square-foot foot, 30-story office tower in downtown Kansas City, from Gailoyd Enterprises Group, with plans to convert the property into a mixed-use development with 200 apartments.
The transaction also included an acre of vacant land on the north side that will be utilized for parking and 70 new apartment units, bringing the total to 270 planned units.
Cassidy Turley brokered the deal on behalf of the seller. The purchase price was not disclosed, but it had a reported asking price of $17.5 million.
“The Power & Light Building is one of the finest examples of Art Deco architecture in the country, and it is situated in perhaps the best possible location in Kansas City—adjacent to the entertainment district and the convention center, just one block from the new streetcar line and downtown’s gourmet grocery store,” Gib Kerr, Cassidy Turley’s vice president, told Commercial Property Executive. “Plus, because of the building’s ‘wedding cake’ design, many upper floors will have outdoor patios, which are highly coveted in our market.”
Located at 106 W. 14th St., the well-known, historic office tower has stood in Kansas City since 1931. The Art Deco building has been mostly vacant the past two decades.
NorthPoint Development’s $63 million renovation plan includes restoring the lighting in the building’s leaded glass dome, as well as replacing the exterior lighting. Plans call for the addition of LED lights that can turn different colors to support the local sports teams and other occasions, in the tradition of the Empire State Building.
Other renovations planned include the replacement of the mechanical, plumbing, electrical, and HVAC systems as well as switching out some windows.
According to Kerr, nearly all of the historic buildings in Kansas City have been redeveloped, so this was one of the last opportunities for developers seeking to use state and federal historic tax credits.
“Additionally, downtown’s residential occupancy rates are 95-98 percent with increasing rental rates, so the demand for quality housing units is stronger than ever,” he said. “NorthPoint’s redevelopment plan means that the building will have a new lease on life. It’s an 80-year old building, so hopefully this will keep it going for at least another 80 years.”