Kansas City’s Premier Commercial Real Estate Company · Jon Copaken Principal Town Pavilion |...

Jon Copaken

Principal

Town Pavilion | 1100 Walnut, Suite 2000 | Kansas City, Missouri 64106 | 816.701.5000

@CopakenBrooks #ULIFall13 www.copaken-brooks.com

@CopakenBrooks #ULIFall13


www.copaken-brooks.com

About Copaken Brooks

Entrepreneurial Developer and

Full Service Real Estate Firm

About Copaken Brooks

• Founded in Kansas City in 1922

• 11 million square feet developed

• 5 million square feet leased/managed

• 2 million square feet in predevelopment

• National developer, investor, and provider

of Corporate Real Estate Services




Solid Entrepreneurial Foundation

• Enhance and preserve asset values

• Wealth creation for investors

• Owner’s mentality

• Long-term perspective

• Trusted counsel and strategic partner

• Community investor




About Copaken Brooks Proven Record

• Landlord and Tenant Representation

• Corporate Real Estate Services

• Property Management

• Construction Management

• Development

• Consulting

• Investment and Acquisitions




About Copaken Brooks Full Service Firm




Development Legacy

Portfolio of Signature Properties




Town Pavilion 1201 Walnut




Plaza Colonnade Oak Park Mall




Del Sarto Van Eyck

Zurich First National Bank




SMG Headquarters

Kansas City’s first LEED Gold renovation project




Current Developments

Planned and Under Construction




City Center Lenexa

69 acre mixed-use development | New “downtown” for the City of Lenexa, Kansas




Arterra 21

Block 112

Broadway Arts District

Kansas City, Missouri




Acquisition / Investment




Class A Grocery Anchored Shopping Centers




Addison Tech Center

Addison, Texas




INVESTMENT TRENDS

Value Proposition in 2nd Tier Cities




Cap Rates

“What are they paying?”

2010-2013 by Property Type




7.00%

7.25%

7.50%

7.75%

8.00%

8.25%

8.50%

8.75%

9.00%

9.25%

9.50%

2010 2011 2012 2013

Cap

Rat

es

Office CBD

U.S.

Kansas City

St. Louis

Chicago

Indianapolis

Minneapolis

Cap Rates 2010-2013

Source: Integra Realty Resources – Kansas City

7.00%

7.25%

7.50%

7.75%

8.00%

8.25%

8.50%

8.75%

9.00%

9.25%

9.50%

2010 2011 2012 2013

Cap

Rat

es

Suburban Office

U.S.

Kansas City

St. Louis

Chicago

Indianapolis

Minneapolis




Cap Rates 2010-2013





7.00%

7.25%

7.50%

7.75%

8.00%

8.25%

8.50%

8.75%

9.00%

9.25%

9.50%

2010 2011 2012 2013

Cap

Rat

es

Retail

U.S.

Kansas City

St. Louis

Chicago

Indianapolis

Minneapolis

Cap Rates 2010-2013





6.75%

7.00%

7.25%

7.50%

7.75%

8.00%

8.25%

8.50%

8.75%

9.00%

9.25%

9.50%

9.75%

10.00%

10.25%

10.50%

10.75%

11.00%

11.25%

11.50%

2010 2011 2012 2013

Cap

Rat

es

Industrial

U.S.

Kansas City

St. Louis

Chicago

Indianapolis

Minneapolis

Cap Rates 2010-2013





Cap Rates 2010-2013

6.00%

6.25%

6.50%

6.75%

7.00%

7.25%

7.50%

7.75%

8.00%

8.25%

8.50%

2010 2011 2012 2013

Cap

Rat

es

Apartments

U.S.

Kansas City

St. Louis

Chicago

Indianapolis

Minneapolis


• Cap rates declining in all of the markets

• Lone exception:

Minneapolis multi-family on the steep rise – overheated?

• Cap rates are still higher than coastal cities/1st Tier

Markets for the same level of risk and income

• 2nd Tier markets are all relative bargains, but cap rates

are currently unsustainably low

Cap Rates







Investment Activity

“Who are the buyers?”

2010-2013 by Property Type

2010 2011 2012 2013 (YTD) 2013 (YTD)




Source: Real Capital Analytics, Inc.

Investment Activity - Office

2010 2011 2012 2013 (YTD) 2013 (YTD)

2010 2011 2012 2013 (YTD) 2013 (YTD)2010 2011 2012 2013 (YTD) 2013 (YTD)2010 2011 2012 2013 (YTD) 2013 (YTD)

2010 2011 2012 2013 (YTD) 2013 (YTD)

St Louis Kansas City

Minneapolis Indianapolis

Chicago

Institutional

Cross-Border

Public Listed/REITs

Private

User/Other

United States


Institutional

Cross-Border

Public Listed/REITs

Private

User/Other

2010 2011 2012 2013 (YTD) 2013 (YTD)2010 2011 2012 2013 (YTD) 2013 (YTD)






Investment Activity - Retail


2010 2011 2012 2013 (YTD) 2013 (YTD)

Chicago

United States


2010 2011 2012 2013 (YTD) 2013 (YTD)2010 2011 2012 2013 (YTD) 2013 (YTD)






Investment Activity - Industrial


2010 2011 2012 2013 (YTD) 2013 (YTD)

Chicago

Institutional

Cross-Border

Public Listed/REITs

Private

User/Other

United States

2010 2011 2012 2013 (YTD) 2013 (YTD)

0%

0%

0% 0%

27%

2010 2011 2012 2013 (YTD) 2013 (YTD)2010 2011 2012 2013 (YTD) 2013 (YTD)

2010 2011 2012 2013 (YTD) 2013 (YTD)2010 2011 2012 2013 (YTD) 2013 (YTD)






Investment Activity - Apartments


2010 2011 2012 2013 (YTD) 2013 (YTD)

Chicago

Institutional

Cross-Border

Public Listed/REITs

Private

User/Other

United States

Investment Activity

• The 2nd Tier markets have very different investor types

• Institutional investors and publically held companies are

finally investing in the 2nd Tier markets

• Positive – More liquidity

• Negative – More competition

• Value Proposition depends on whether you are a buyer,

seller, or developer




Kansas City

• Changing as we speak

• Institutions and new investors coming in – pricing out friends and

family

• Investors becoming more aggressive on price

• Urban and suburban interest

• All property types

• Short and long run positive for investment




Jon Copaken

Principal


@CopakenBrooks #ULIFall13 www.copaken-brooks.com

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