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OP Trade Center Owners Plan to Retenant

OVERLAND PARK, KS- Rubicon has selected New York-based Sonnenblick Godman to arrange a $64 million loan that will be used to refinance and retenant the property.

By Danielle Anderson | Updated on December 07, 2006

OVERLAND PARK, KS-Rubicon Investments has tapped New York-based Sonnenblick Godman to arrange a $64 million non-recourse, fixed or floating-rate senior loan for the 660,000-sf Overland Park International Trade Center in Overland Park, KS. Atlanta-based Rubicon purchased the 100% leased, Class B building earlier this year from a group of local investors for $46.5 million.

Dave Karson, vice president of Sonnenblick Goldman, says the loan will comprise approximately $54 million of refinance proceeds and a $10 million “good news” facility, which will be used to help relocate Kansas City Gift Mart and retenant the 230,000 sf it will leave behind. KC Gift Mart, one of three tenants in Overland Park International Trade Center, pays about half of the current market rate for its space in the building. According to Colliers Turley Martin Tucker, asking rates for Class B space in the area are typically less than $20 per sf.

Karson says KC Gift Mart’s departure would “pave the way” for a market rate tenant. United HealthCare Group, which currently occupies about 50% of the building, has been growing rapidly in Overland Park International Trade Center and may absorb some of the vacated space. The healthcare organization, which has a lease that runs through 2016, recently expanded by 130,000 sf and has built a 15,000-sf building on the property at its own cost. United HealthCare’s $60 million investment at Overland Park International Trade Center also includes a state-of-the-art prescription fulfillment center the size of a football field.

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