KANSAS CITY, MO-A former department store warehouse, located Downtown at 2311 JeffersonSt., is soon to become a telecommunications hotel. The building is owned by a California based company that purchased ittwo months ago. The company plans to spend about $4 million in upgrades,according to a broker who represents the firm.

There are two otherfloors available in the building. Together they contain about 150,000sf. When the entire building has been leased, the company plansto build a four-story building nearby that will contain about 200,000-sf.

XO CommunicationsInc. is the first telecommunications company to sign a lease in thebuilding. The company, which has made a long-term commitment, will house itsequipment in a 30,000-sf space. Terms were not released. Thereis room to expand, with the second floor containing about 50,000-sf total.

Telecom hotels, booming in other cities, have not hit theKansas City market with as much intensity. One property that has been coverted is Oak Towerat 324 E. 11th St. There is a proposal to create a telecom hotel in theformer Jones Store Co. at 12th and Main streets.

XO Communications is a Virginia-based telcom company, which was formerlyknown as Nextlink/Concentric. It provides broadband communicationsservices.

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