Advalurem Group is pleased to announce the closing of its equity investment in Nall Corporate Center II, a soon-to-be completed, 150,000-square-foot, Class A+ office building, located within the Kansas City MSA in Overland Park, Kansas.
The $34 million project recently broke ground with an approximate 12-month period until initial occupancy. The development partner, Block Development Company, originally acquired the property in 2012 and in recent months finished pre-development, including lining-up a lead tenant and securing construction financing. “We give full credit to our partner for successfully executing the business plan to this point and are excited to see the project’s realization,” said Fred Scott, Principal at Advalurem Group.
In keeping with its disciplined focus on middle-market equity investments, Advalurem Group responded to this project’s need for fresh equity to fully capitalize the project and close the financing. “What makes this investment opportunity compelling is that much of the risk associated with the project has been mitigated, yet the expected return remains high – offering an arbitrage between risk and return,” stated Gabriel Pozo, Founding Principal of Advalurem Group. This investment comes on the heels of a recent apartment recapitalization in the Dallas metro area, in which Advalurem Group bought out a preferred equity investor.
Nall Corporate Center II is located in Overland Park, adjacent to College Boulevard, “the corporate headquarter boulevard,” home to the headquarters of Sprint, AMC Theatres and Black & Veatch, among others. Mariner Holdings Inc., a global financial services firm, has signed a long-term lease and is moving its headquarters to the new building, adding to College Boulevard’s corporate district. The office building is LEED-designed and includes lavish, state-of-the-art amenities and excellent visibility. The Kansas City metro displays stable fundamentals with steady job growth, an educated work force, and low cost of doing business, presenting expansion and relocation opportunities for large corporations in growing neighborhoods such as Overland Park. Learn more here.
About Advalurem Group
Advalurem Group is a nationally focused, privately held investment and asset management firm that specializes in middle-market commercial real estate. The firm targets moderate-size real estate investments through joint venture structures and aims to become the leading capital partner of this market segment. The group invests across all major property sectors and along the risk/return spectrum with an emphasis on core-plus and value-added strategies. Since its formation in 2011, Advalurem Group has invested in more than $250 million of commercial properties in Dallas, Chicago, Philadelphia and other cities across the country. The firm is based in New York.