Across the United States, rents are on the rise as demand for apartments continues to outpace the construction of new developments, and home prices stay out of reach for many Americans. A direct result of the Great Recession, which saw large numbers of homeowners pushed out of their homes by foreclosures and caused multi-family residential developments to stagnate as sources of credit dried up for builders, the high demand for apartments and its consequences have left many hoping for some sort of relief.
Fortunately for Kansas City residents, however, the pace of new apartment developments seems to be picking up to meet the growing demand. In 2011, Cordish Company announced a 25-story, 311-unit downtown apartment tower that would officially break ground on the third week of April 2014. The project is scheduled for completion by 2015 and will be the tallest residential building built from the ground up in the City of Fountains.
Just recently, Cityscape Residential announced a $125 million apartment development plan for the Quality Hill and West Crossroads areas that will add 661 new Kansas City apartments by 2016. At West Crossroads, the Indianapolis developer has proposed a six-story building with 275 luxury apartments wrapped around a 400-space garage. Over on Quality hill, two buildings, Apex and Summit, will add 130 units and 256 units respectively.
Most excitingly, however, NorthPoint Development, a local firm, has recently revealed that it has arranged to buy the Power & Light Co. Building from its New York owner. An iconic Kansas City landmark, the building is renowned for its art deco design. Formerly the headquarters of its namesake tenant, Kansas City Power & Light, the building has become somewhat of a ghost tower, with just one tenant occupying its first three floors.
The new development plan for the skyscraper will convert the commercial building for residential use, turning the 36-story building into a 220-unit mixed-use, luxury apartment tower. A further 50 apartments will also be added as part of the five-story, 465-space garage that will be built next door to hold tenants’ vehicles. Completion for the project is expected by late 2015 or early 2016 if the historic tax credits and tax-increment financing is approved.
In total, 1,242 units will be added to the city’s inventory of apartments by the planned developments within the next two years, which is exciting news for both property owners and apartment finders alike. For the former, it will mean that prices can be kept at a reasonable level that will keep a wider market of renters interested. For the latter, it will provide a richer selection of affordable apartments in Kansas City when searching for the perfect home through online listing sites like Leasing KC.
(Source: Historic Power & Light Building slated for $60 million redevelopment, Kansas City Star – Kansas City Business, April 2, 2014)