City+Ventures Acquiring $88M, 11-Property KC Area Office Portfolio

KANSAS CITY, MO—Omaha, NE-based City+Ventures has acquired the Southlake Portfolio, consisting of 11 class A and B office buildings near Kansas City, for $88 million from funds managed by Oaktree Capital Management, Hines and Waterford Property Company. The portfolio encompasses 784,557 square feet of office space.

“We’ve had our eye on the Kansas City Metro for a while and felt like the Southlake portfolio was a great fit for us,” says Chris Erickson, City+Ventures co-founder. “It had the perfect balance of long-term stability and value add opportunity. We look forward to bringing some new energy to the property.”

Jones Lang LaSalle Capital Markets International director Bruce Miller, managing directors Jim Postweiler, Peter Harwood and senior vice president Derek Fohl led the sales and marketing efforts for the portfolio on behalf of the seller. JLL managing director Keith Largay arranged acquisition financing on behalf of the buyer, City+Ventures, a first-time buyer in the market. Morgan Stanley provided the financing.

The Southlake Portfolio provides long-term stability with the recent lease commitment from University of Kansas Health System, which was announced early last year. The properties also offer substantial upside through additional leasing, given the properties’ current occupancy level in the low 80% range.

“The Southlake Portfolio is an excellent example of new out-of-town capital entering a market with a fresh perspective and new vision for the office park,” says Fohl. “City+Ventures is a dynamic company and they have exciting plans for their new acquisition.  This portfolio will be one portfolio to watch in the KC market!”