Block Funds



For More Information

Brian Beggs

Brian Beggs, CFA
Director of Acquisitions

CONTACT
Phone: 816.932.5568
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Case StudyCase Studies: Kiewit Build-to-Suit

In June of 2009, Block Development Company, Inc. completed the build-to-suit for Kiewit Power Constructors which occupies 100% of Renner Corporate Centre I. Kiewit Power offers clients a "onestop shop" for all integrated engineering, procurement, construction and startup service needs. Kiewit is one of the largest construction and engineering firms in the country and specializes in building power plants throughout North America.

The Renner Corporate Centre I & II complex is located at 9351 and 9401 Renner Boulevard in Lenexa, Kansas. The two-building, 315,800 square foot office complex is the newest corporate address in South Johnson County. The total site area is 22.11 acres with each building consisting of five stories. Construction will consist of four shades of precast concrete, blue reflective glass, lush landscaping, walking trails, and ample parking. The property will feature a large two-tiered pond with two fountains and a cascading waterfall between them. The buildings will also be LEED certified making them one of the few buildings in the metropolitan area with this certification. Renner Corporate Centre II is currently planned for multi-tenant occupancy and Kiewit has discussed the possibility of expanding into the building.

The ownership group of Renner Corporate Centre I & II has enjoyed cash-on-cash returns of approximately 35% over the past two years due to our excellent terms negotiated on the construction loan. The loan will start to amortize in June of this year and even with a 25-year amortization schedule the cash-on-cash will exceed 10.5% and increase throughout the lease term. Both Renner Corporate Centre I & II have partial property tax abatement for 15 years making the renewal of Kiewit a strong possibility in RCC I and making RCC II an attractive option for an expansion or new corporate build-to-suit.