Want to live at the mall? Kansas City developer sees potential as retail woes continue
It might be a shopaholic’s dream come true.
A local developer has revived plans to build an apartment complex on the grounds of the Legends Outlets, allowing tenants to literally live at the Kansas City, Kansas mall.
Called Legends 267, the eight-story project would be built atop a new parking garage attached to the existing garage north of the mall along Parallel Parkway.
Others have pitched the concept in the past, but officials with the Unified Government of Wyandotte County/Kansas City, Kansas say the most recent proposal is the most promising yet.
The new apartments would add to the growing development portfolio of western Wyandotte County. That area expects to add some 2,500 jobs with a new Urban Outfitters distribution center and Amazon fulfillment center.
Nearby, the American Royal hopes to build a sprawling agricultural complex. And work should start soon on redeveloping the shuttered Schlitterbahn water park into a $400 million “youth sports mecca.”
But the apartment project may also portend a potential change in the retail landscape. The pandemic has shuttered dozens of brick-and-mortar stores across the Kansas City area. And developers across the country have long sought to transform empty mall space into apartments and offices as the retail apocalypse threatens traditional malls.
Zona Rosa hopes to add more apartments as it demolishes some empty storefronts and reimagines the Northland outdoor mall, where more than 50 storefronts sit vacant. And other mixed-use developments like Leawood’s Park Place have long sought to blend residential and retail.
Plans for the new apartment complex were approved by the Unified Government’s economic development committee earlier this week. They must still receive approval from the full Board of Commissioners later this month.
Developers declined to be interviewed about the project ahead of the final vote. But they did share their vision with commissioners earlier in the week.
The 510,000-square-foot complex would have 267 apartments, all of them one or two bedrooms. Rents are expected to range from $1,000 to $1,600 per month. At eight stories, the complex would be the second tallest building in the area, behind only the offices of Cerner Corp. off of Interstate 435.
“We sincerely feel the stunning appearance will draw attention from miles away,” said Bob Becker, founder and president of Riverside-based Luke Draily Construction, who has been involved in planning the project. “I think honestly this is going to add a lot of value to the overall Legends area.”
The apartments will be owned by the newly created Legends 267 LLC. That firm is working with Kansas City-based Beck Cal Development to build the project.
At the UG meeting, Becker touted his team’s previous experience with multi-use developments. He said developers have financing in place and plan to break ground as early as March if plans are approved by the UG.
He said the apartments would feature amenities such as a fitness center, a zero-entry pool with cabanas and indoor and outdoor entertainment areas and work stations. He said the project is aimed at bringing an urban living experience to the suburbs.
“Kind of picture maybe a Two Light downtown except a little bit of a smaller version of that,” he said.
Plans call for the new apartments to sit atop a 620-space parking garage. It would include 350 public parking spaces and connect to the existing mall parking garage with a vehicular bridge, officials said.
This is not a new concept at the Legends.
In 2015, the UG entered into a similar agreement with a firm affiliated with Legends owner Legacy Development. But that project never materialized.
When contacted by The Star, Legacy Development did not address what happened with the previous plans. But officials said the firm expects to close on the sale of the property to developers toward the end of January.
“Legends Outlets looks forward to working closely with them as the residents will become an intricate part of the lifestyle and experiential feel of the shopping center — with shopping, dining, activities, major and minor league sports, grocery, theater and personal services all steps away,” Stacy Taylor Scheel, Legacy’s senior director of operations and new business development, said in a statement.
Katherine Carttar, economic development director for the Unified Government, said previous developers struggled with the site. It’s relatively small with little prep space and building apartments above a parking garage is complex. Most apartment developers in the area build surface parking lots or parking structures next to apartment buildings, she said.
But she said there was “significant confidence that this project will hit the finish line.”
The developers have recent experience in building more dense, mixed-use apartments, like the Promontory in Overland Park, which includes a parking garage. Additionally, she said the county was assured by a guaranty on the project. In planning documents the UG referenced individuals who have “substantial net worth” as backing the development.
The nearly $54 million project would be aided by $13.3 million in special taxes collected by a community improvement district formed in that area two years ago.
“Being a developer and construction company, they know exactly what they can do and are moving quickly to ensure this project can break ground in March 2021 with an aggressive completion schedule,” Carttar said.
While there is sufficient parking on most days at the Legends, Carttar said there were “frequent occasions” before the pandemic when parking was at a premium because of increased holiday shopping or nearby events at the Children’s Mercy Park and the Kansas Speedway.
“We anticipate that the need will only continue to grow over the coming years as the T-Bones stadium is upgraded and utilized year round for events and entertainment,” she said.
