On a sunny October afternoon, the sound of hammers and saws echoes through the air. Homes, condos and apartments are being built in almost every direction.

But this residential growth is not only taking place in Kansas City's suburbs. It's under way in a wide swatch of Downtown and KC's Urban Core.

Although Kansas City's urban enthusiasts may await arena announcements or transportation issues, one key ingredient to the region's resurgence is clearly in place: robust residential development. Over the last three years, a total of nearly $200 million in residential development has occurred within a large segment of the areaand that didn't include some of the larger single-family areas on the Urban Core's periphery.

The phenomenon is significant for several reasons. Developers, bankers and planners have all pointed to the need for residential resurgence to help fuel everything from retail growth to entertainment progress. The theory is simple: with an abundance of warm bodies, business will come.

While the second half of this equation is still being tested, the residential component is in place and still growing. Although it may have missed the radar screen of suburban residents, Kansas City's Urban Core now has among the hottest residential markets in the region.

"I defy anyone to go down to the River Market and buy a building, noted Roger Buford, a principal at Master Realty Properties, Inc. "There are none. The West Side is the same way. There are some pretty spectacular projects going on."

Diverse and Dispersed

Two reasons for this growth picture is somewhat stealthy are the variety of the area's residential development and its wide distribution. Although redevelopment of commercial buildings into lofts is a large and visible category, everything from ultra-luxury condominiums to affordable single family homes are also in progress. What's more, these are not isolated, individual ventures. Most are medium- or even large-scale rental, condo or single-family projects.

As with commercial development, this growth is spread from the River Market to south of the Country Club Plaza and Brush Creek Corridor. If all of this new construction, reconstruction and conversion were compressed into a few dozen blocks rather than many hundred, the scope would equal nearly any upsurge recorded in the nation.

A recent report by the Downtown Council provided a good indication of the evolving picture. Focusing primarily on the area north of 31st Street, the council last month found more than $170 million in residential development was completed or begun since 2002. These projects included more than 800 lofts, condos, apartments or homes under construction and more than 1,200 in planning.

Lofty Goals

Lofts are the biggest story. From the River Market to the Country Club Plaza, more than 2,200 of these unique urban homes have been completed, are under construction or are being planned. Some of these projects are among the largest reconstruction efforts in the Urban Core.

With it's eclectic urban mix and picturesque architecture, the River Market is an excellent example of the trend. Several projects have reached completion since 2002 and three more totaling nearly 200 units were planned for construction begining early in 2004.

George Birt of BBL Real Estate Services Group said the trend is especially visible in the market area because of the region's compact size and more advanced amenities. "Now that you're seeing the heritage trail, it really brings things together for River Market residents," he said.

Conover Place illustrates the area's success. This loft project was completed in 2002 and already is essentially sold out. A neighboring project, Lighthouse Lofts, will add 94 units to that area along 5th Street. Other area projects are Market Lofts and Lofts at River Market West.

A similar new construction project
is also seeing success. The 5 Delaware project is a 13-unit, upscale contemporary condominium project being built among older, historic buildings thatfits well into the tree-lined streets and pedestrian friendly neighborhood. One of the principals, Chris Sally of Devel-opment Initiatives, said the River Market has achieved a level of urban living that the rest of the city is starting to envy.

"The River Market is an intense area," he said. "It has boundaries and a sense of place, which is an advantage over many other more dispersed areas. And there are so many unique structures here. It really has a life of its own."

Big Brother

While the River Market has achieved maturity in its residential development, the Downtown Loop is beginning a trend that seems almost unbounded. This area includes some of the largest urban residential projects in Kansas City, and some of the most dramatic in the region.

Due for completion next year, the former Fidelity Bank and Trust building at 909 Walnut is a good example. With a price tag of $57 million, this project is creating 180 rental units, including two of the most unique living spaces in the region: penthouse condominiums on the 31st and 32nd floors that will become the highest living space in Missouri or Kansas. The uniqueness does have a price: The 31st floor condominium has an asking price of $800,000, while the larger, 32nd floor condominium is going for $1.5 million.

A project of similar scope involves the Library District Lofts at 10th and Baltimore. Costing an estimated $54.5 million, this project will bring 329 lofts online in 2004.

Overall, the Downtown Loop is seeing a major surge in this type of development. According to the Downtown Council, the area has nine projects completed or under construction since last year, representing nearly 700 residential units: Chambers Lofts, Library Lofts East and West, the Hanover Building, 909 Walnut, Club house Lofts, the Grand Exchange Building, 21 Ten and the Finance Building Lofts.

Planned projects could nearly equal that. Some eight different projects were listed with nearly 450 units: Argyle Building, the Waltower building, the Lofts at 917, the 1330 Grand building, the Power and Light Building, the View, the Courthouse Lofts and the 908 Broadway Lofts.

Outside Agitators

As with commercial development, a recent trend has been increased investment by companies from outside of the metropolitan area.

Time Equities Inc. of New York purchased the 30-year-old Pinnacle Building earlier this fall. It plans to spend from $10 to $15 million converting the 236-unit apartment building into "luxury, urban condos at affordable prices." Prices are expected to range from $69,000 for studios to more than $99,000 for two-bedroom apartments.

Next door to the Pinnacle and University Tower buildings is the old Vista Del Rio building, which is also planned for renovation into condominiums. Time Equities is working with the neighboring developer to create a new residential district on downtown's northeast edge.

Time Equities is not the only large national firm investing in downtown Kansas City. Two Chicago firms, MCZ Development Corp. and Centrum Properties, are converting the Cross-road District's Western Auto building into condominiums. Kimberly-Clark Corp. of Dallas is a partner in renovation of the former Fidelity Bank & Trust building.

"When you get people from California and Chicago who see this as a great opportunity, that tells us something," Birt noted. "They see opportunity. Sometimes people here don't see the forest for the trees."

Sally noted that both area developers and out-of-town interests are viewing several properties.

"When you have people beginning to assemble properties or consider those options, it's significant," he said. "That's happening down here." While developments inside the loop tend to focus on large-scale projects, a nearby area has cornered a different market. The old West Side along Summit Street is seeing extensive residential construction and redevelop-ment, often on a home-by-home basis. One of the most historic areas in Kansas City, this neighborhood is also seeing arguably the most eclectic mix of residential work: historically compatible condos in the Summit at 16th project, renovation of several Victorian homes and a handful of the most unique houses in Kansas City. The latter includes ultra contemporary structures combining cinder blocks, corrugated metal and natural wood.

Crossroads and Crown Center

To the south of the Downtown Loop, Kansas City's Crossroads District has been one of the slowest to see retail and commercial redevelopment. For lofts and other housing, the area was among the first to exploit its older buildings and create unique housing stock. The area has evolved into a second generation of redevelopment, with early loft owners finding that rents have increased because of the region's popularity.

This success has brought an extensive level of new construction and plans for even more. Since 2002, the Crossroads area has seen completion of three projects, the Lofts at Freighthouse, the Reiger Building and the Walnut Lofts.

This year five Crossroads projects began with nearly 300 units: Western Auto, the 1819 (Baltimore) Lofts, Monroe Hotel, the Film Row Arts Building and the Lofts at 1524 Walnut.

Seven more projects are in the planning stages and could bring another 200 units: 2004 Grand Lofts, The Dakota, Oak Street Lofts, SoHo Lofts, 1800 Baltimore Lofts, the TWA Building and the Freighthouse Lofts.

On the other side of Crown Center, another residential explosion is taking place on Gillham Road. Reflecting the area's historic character, a new wave of residential development is occurring in the area around the Union Hill cemetery.

These upper-bracket developments include Gillham Row, which began construction this year, and two planned developments, Union Hill East and the Cadillac Lofts. When completed, these three projects would bring another 450 lofts and townhomes.

Still a Leader

The drama in and around Down-town has tended to draw attention from the Plaza and Westport areas where a high number of quality projects continue to develop. This year alone, four ventures with more than 300 units were under construction while another seven with 610 units were being planned.

The Plaza and Brush Creek Corridor also reflect a growing trend in the single family, detached housing. Matt Levi, office and industrial specialist with Block & Company, noted residential redevelopment is occurring in virtually every Urban Core neighborhood.

"I'm in commercial real estate, but a large portion of the action right now is clearly focusing on residential," Levi noted. "The mayor recently set a goal of bringing in 10,000 new residents. I think we'll exceed that."

Driving around the area, Levi shows off block after block of recently refurbished homes, new townhomes, condos and even new houses. Although problems exist in several areas, the overall impression is of a residential boom that is slowly rebuilding much of the city's inner core.

Some of these efforts use imagina-tive solutions. Several projects utilize programs such as the new Parkway Redevelopment Plan. Designed to assist an estimated $38 million in single-and multi-family housing over the next 10 years, the program promotes both new construction and redevelopment by the private sector. Ernie Straub of Straub Construction has frequently worked with such programs, including the award-win- ning Ridgeview Heights rehabilitation project. He sees these efforts as ensuring that everyone benefits from the housing boom.

"The key is that you're seeing quality homes for all income levels," he said. "It's good work. At the end of the day you've taken what was a deplorable project and turned it into good clean housing. That benefits the whole city."

Seeing is Believing

The success of these efforts may be best reflected in low vacancy rates. Basically, there isn't any.

"The vacancy rates for loft housing downtown is the best in the whole metropolitan area," Buford noted. "With the recent economy, it's been higher in year's past, but it's still excellent. Plus, you have more people building, so that means the absorption rate has remained steady."

Like many who conduct business in the Urban Core, Buford sees the residential health as significant, though not a cure-all. "People ask what's most important, housing, retail or office?" he noted. "They are all equal. It's vital to office that we have places for employees to live, it's vital for residential projects that we have offices. And for both, it's important they have places to eat and be entertained. The thing is, we are achieving that. You can see it."