KBS Sells Kansas City Mixed-Use Property to DFW Land, Highlighting Office Market Resilience
KBS's strategic sale of Park Place Village to DFW Land demonstrates the enduring appeal of well-managed mixed-use properties in recovering commercial real estate markets.
KBS has completed the sale of Park Place Village, a 484,980 square-foot Class A mixed-use property in Leawood, Kansas, to real estate development company DFW Land. The transaction involves a 10-building complex featuring office and retail space that achieved 100% occupancy despite post-pandemic market challenges, signaling resilience in the commercial real estate sector.
According to Marc DeLuca, KBS's CEO and regional president for the Eastern U.S., the sale exemplifies KBS's ability to identify improving submarkets early and reposition assets for long-term performance. When KBS acquired the property in 2015, the company recognized the sub-market's potential and worked to elevate the mixed-use destination through proactive management. DeLuca noted that by curating a retail experience that enhanced the office offering, KBS strategically exited the property while many office assets have struggled to maintain consistent cash flow.
Park Place Village, developed between 2007 and 2013, occupies a prime location in Kansas City's South Johnson County submarket. The property offers amenities including boutique shops, upscale restaurants, a fitness center, EV charging stations, and a rooftop terrace. Ryan Pires, asset manager for Park Place Village and senior vice president of asset management at KBS, emphasized that active management and strategic placemaking transformed the property into one of Leawood's most popular mixed-use destinations. The surrounding neighborhood features shopping, entertainment, the Aloft Hotel, and residential units, creating a dynamic live/work/play environment.
Vijay Borra, CEO of DFW Land, described Park Place Village as a natural addition to their portfolio, well-positioned for long-term performance. DFW Land has acquired several million square feet of office and retail space in recent months, reinforcing their commitment to high-quality properties aligned with their investment strategy. Market data from Newmark supports the transaction's timing, showing that the Kansas City office market recorded 116,174 square feet of net absorption in the latest quarter, marking the fourth consecutive quarter of positive absorption. South Johnson County demonstrated the second-highest net absorption in the market over the past year, while retail leasing activity remained strong, particularly for experiential retail in well-located areas.
The sale was facilitated by Newmark Capital Markets teams from Chicago and Dallas, led by Derek Fohl and Gary Carr. Fohl, senior managing director at Newmark, anticipates continued investor interest in mixed-use assets like Park Place Village as office and retail markets recover. Legal representation for KBS was provided by Greenberg Traurig, LLP's Orange County office, with Bruce Fischer, chair of the West Coast Real Estate Practice, noting that the successful exit reflects KBS's disciplined long-term positioning and the growth of South Johnson County. The property's full occupancy and strategic enhancements underscore the importance of active asset management in navigating market fluctuations and capitalizing on submarket growth.