KANSAS CITY—Hines, the international real estate firm, and a subsidiary of a real estate fund managed by Oaktree Capital Management, L.P., have acquired the Southlake Technology Park and Lenexa Industrial Park in the Kansas City metro area, according to Hines officials. The terms of the deal were not disclosed.
Formerly owned by Boston-based CommonWealth REIT, the two commercial real estate parks have 1.67-million-square-feet of leasable space in 40 buildings located near the intersection of Interstate 35, Interstate 435 and Kansas 10.
“These properties represent the largest blocks of vacancy in office product in southern Johnson County,” says Tom Danilek, Hines' senior managing director. “Hines and Oaktree were attracted to the industrial buildings due to the parks' superior location at the epicenter of the flex industrial market, as well as the more than 69 acres of fully entitled land for future office and industrial development.”
Phil Hofmann, managing director of Oaktree, says, “The Lenexa joint venture represents a terrific investment opportunity. We are committed and focused on working with Hines to maximize the value of these key Johnson County business locations.”
Southlake Technology Park has 15 office buildings with a total of 933,000-square-feet of space. The park also has 10 sites of vacant land totaling 53 acres available for future development along College Boulevard from Lackman Road to Renner Boulevard. Developers began building the park in 1987 and completed it in 2002.
Lenexa Industrial Park has 25 industrial and flex buildings with a total of 736,000-square-feet of space. This park has a total of 16 acres available for future development near 99th Street and Pflumm Road. Developers began building this park in the 1970s and finished in 1999.
Earlier this year, the portfolio lost a big tenant when Freightquote moved out and into a new Kansas City headquarters. Tenants now occupy 67% of the portfolio. Ned O'Connor of Waterford Property Company handles leasing for Southlake Technology Park, the office portion of the portfolio, while Mark Feitz of LaSala-Sonnenberg Commercial Realty is the broker for Lenexa Industrial Park, the industrial component. Hines will manage both properties.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
