Levy at Martini Corner
The Levy at Martini Corner is a proposed market rate multifamily development to be located at 506 E. 31st Street, Kansas City, MO. It will involve the razing of the existing buildings and the new construction of a single building on the site. The initial user of the property was the Levy Brothers Meat and Provision Company in 1925, hence the project name.
This project is already in a PIEA District and eligible for tax abatement as proposed. It is now zoned UR to allow the intended use. The perfunctory alley vacation from the singe structure is scheduled for a 3-1-2022 approval. The project is in the Downtown Area Plan which encourages mixed uses and higher density development. The project was approved at Planning Commission in October, 2021.
The site is in the middle of Martini Corner, a popular restaurant and bar destination. It is only a few blocks from Hallmark Cards Headquarters and Hall’s Crown Center Mall. A number of apartments have recently gone up in the immediate area and have been leasing very rapidly. It is only one mile to the Crossroads and 2 miles to the CBD and the Power & Light Entertainment District. The site is within an Opportunity Zone.
Upon completion, the project will offer a total of 163 multifamily living units in a 5-story building (4 stories of wood frame over a 1.5-story garage/restaurant/clubhouse), consisting of studios, 1BR and 2BR units. The U-shaped new construction building will consist of a 5862 square foot 2-level restaurant/bar/event space fronting Gillham. The new building will have a plaza facing west to capture the sun and the views in that direction. A pool, outdoor kitchen and glass-enclosed fitness room will be on the deck.
The units will have high-end appliances, 9 foot ceilings or higher, in-unit washer/dryers, ceiling fans, and central heat/air conditioning. The renovation will extend the economic viability of the building and will complement the surrounding neighborhood. Air-filtering systems, large outdoor area(s), stringent sanitation practices, testing, if necessary, and touchless technology will be in place to address any pathogen crisis.
The units will be offered at approximately the following rental rates:
These rents are at rents that are achievable based on the high incomes of the workers in the area and in keeping with the comparable luxury rents in the area. The latest reports have the overall vacancy in downtown and midtown at roughly 6% with rent growth in the 8% range.
Project costs will total approximately $35,600,000, to be made possible by owners equity and a permanent/construction loan. The project developer is Garrison L. Hassenflu. Mr. Hassenflu is Managing Member of MW Development Enterprises, LLC, the development entity. He is also President of Garrison Management Company, the property’s property manager. These companies along with other affiliated companies make up the umbrella entity, Garrison and MW Companies (www.garrisoncompanies.com). He has over twenty five years of experience in development, having developed over $140,000,000 in affordable and mixed income living units totaling over 1300 units. Currently, he has a portfolio of 400 units. His work has received national acclaim from the National Housing and Rehab Association.
The project will be designed by Clockwork Architects, KC, MO, and constructed by Ronco Construction, Omaha, NE.
We expect an April 2023 construction start, with a June 2023 completion. We expect absorption of 25 units per month, which is comparable to other sub-market lease-ups. The land was acquired January 28, 2021.