KBS Sells Park Place Village Mixed-Use Property to DFW Land in Strategic Kansas City Transaction

KBS has completed the sale of Park Place Village, a 484,980 square-foot Class A mixed-use property in Leawood, Kansas, to DFW Land. The transaction involves a 10-building complex consisting of office and retail space that was owned by KBS Real Estate Investment Trust III. The property's sale at 100% occupancy demonstrates the successful execution of KBS' strategic management approach despite post-pandemic market conditions.

According to Marc DeLuca, KBS' CEO and regional president for the Eastern U.S., the transaction highlights KBS' ability to identify improving submarkets early and reposition assets for enduring relevance. When KBS acquired the property in 2015, the company recognized the long-term potential of the South Johnson County submarket and the opportunity to elevate the mixed-use destination. DeLuca noted that through proactive management and curated retail experiences that enhanced the office offering, KBS strategically exited the property while navigating market challenges.

Park Place Village, developed in phases between 2007 and 2013, features a dynamic tenant mix and comprehensive amenities including boutique shops, upscale restaurants, fitness center, bike storage, EV charging stations, and a rooftop view terrace. The property serves as a live/work/play anchor in an affluent neighborhood that includes shopping and entertainment venues, the Aloft Hotel, apartments, townhouses, and lofts. Ryan Pires, asset manager for the property and senior vice president of asset management for KBS, emphasized that active management and strategic placemaking transformed the property into one of Leawood's most popular mixed-use destinations.

DFW Land's acquisition represents a strategic addition to their real estate portfolio. Vijay Borra, Chief Executive Officer of DFW Land, stated that the asset is well positioned for long-term performance and value. The company has acquired several million square feet of office and retail space over the past 90 days, reinforcing their commitment to high-quality properties that align with their long-term investment strategy. More information about KBS can be found at https://www.kbs.com.

The transaction occurs during a period of recovery in both office and retail markets. According to Newmark, the Kansas City office market recorded 116,174 square feet of net absorption during the quarter, marking the fourth consecutive quarter of positive absorption. South Johnson County demonstrated particularly strong performance with the second highest amount of net absorption in the market during the past four quarters. Derek Fohl, senior managing director at Newmark, who led the Chicago and Dallas-based Capital Markets teams representing KBS, expects mixed-use assets like Park Place Village to remain highly desirable to investors as markets continue recovering.

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, leading the team. Fischer noted that the successful execution underscores the resilience and growth of KBS' vision for the property and South Johnson County's development. The transaction demonstrates how disciplined management and long-term positioning can deliver optimal outcomes even during challenging market conditions, setting a benchmark for mixed-use property performance in suburban commercial real estate markets.