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Friday, December 21, 2018
Top Real Estate Deals 2018: Galleria 115 mixed-use project

  

By: Miranda Davis

Source: https://www.bizjournals.com/kansascity/news/2018/12/21/top-real-estate-deals-2018-galleria-115-mixed-use.html

Before Block Real Estate Services LLC could begin clearing ground for a new mixed-use development on a corner of the Sprint Corp. campus, it had to clear a legal issue with Sprint and allay concerns of city officials.

The Galleria 115 project, at 115th Street and Nall Avenue in Overland Park, is to include 276,000 square feet of retail, entertainment, office and commercial space fronting Nall. It also would include 548 apartments.

Block had filed suit against Sprint, the owner of the property, challenging restrictions it set on the kinds of businesses that could be located in the retail portion. The matter was resolved, and Block closed on its purchase of the land in October.

The price for the project increased from $182 million to $252 million in August, something Block associates attributed to construction costs and changes made to accommodate tenant demands.

To help offset the increased costs, the developer sought an increase in incentives, including a bump to the community improvement district sales tax from 1 percent to 1.5 percent. That would increase the maximum costs covered by the tax from $22.15 million to $35.65 million.

Some members of the City Council contested plan changes regarding restaurant drive-thru windows, but Block officials countered that the changes are necessary to attract tenants.


DEAL DETAILS

Location: Overland Park

Value: $252 million

Players: Block Real Estate Services LLC, Sprint Corp. 

Status: Construction will start in the spring.

Tags:    Kenneth G. Block   Aaron Mesmer   Retail Space   Block Development Company   Block Construction Services   Block Multifamily Group   Block Real Estate Services   Commercial Real Estate   Commercial Real Estate Kansas City   commercial real estate development   Multifamily   BRES