DOWNTOWN KANSAS CITY is seeing an explosion in several strategic areas, from the new Entertainment District to several key office developments. In just the past year, it was hard to miss the headlines announcing the flurry of blockbuster plans, from H&R Block's new headquarters to the recent arena. Combined with earlier projects such as the IRS and Federal Reserve offices, it's obvious downtown and the urban core have turned a corner.
The significance of even these critical trends does not eclipse growth in what many consider a more fundamental area: residential development. Lofts, apartments and condominiums continue a remarkably healthy growth here, from the solid pioneers on Quality Hill to the most recent upscale condos. These developments are seen as important—not only for their expansion of living alternatives, but as a critical foundation for everything else.
There are some necessary nods to realism. Downtown Kansas City's residential sector is not huge or explosive. By different accounts, it includes just over 10,000-15,000 people, depending on whether you examine the immediate downtown, or a "greater downtown" that stretches to the Plaza. According to the Downtown Council, the area has added more than 1,000 units of apartments and condominiums since the start of 2000. Even more significantly, more than 1,300 units are under construction and another 1,100 units are on the drawing board.
While this population is smaller than many area suburbs, it takes on a more dramatic tenor when viewed in perspective. Most of today's downtown residents are living in "neighborhoods" that didn't exist 20 years ago. Even five years ago, many of the buildings that have been converted into lofts or rebuilt as condominiums were empty shells or, at best, used for storage. While downtown's annual residential growth rarely approaches double digits, it's beginning to achieve significant levels.
The next level The current downtown residential picture may also be more than the sum of its parts. The expansion of downtown living choices combined with the significant growth of urban amenities are creating a pull for even some jaded suburbanites. People who only fantasized about eliminating the word "commute" from their lives are beginning to realize they may do so and have more access to the arts, fine dining and outdoor amenties such as parks.
The word most often used in this context is synthesis—the combination of elements that allows each to achieve more than they would individually. In the downtown housing world, that includes features such as the new Riverfront Trail near the River Market. It includes small businesses being developed by individual entrepreneurs in the Crossroads District. And it includes the huge additions promised by the upcoming Entertainment District and arena.
"We've felt for years that downtown living was the best-kept secret in the area," noted Roger Buford, a principal at Master Realty Properties, Inc. "I'd put our downtown restaurants up against any area of the city. And even today, you've got the Lyric Theater, the Folly, Municipal (Hall)—and now that's only the start. It's a real lifestyle advantage (that) nothing else can compete with."
Tom Trabon of Trabon Consultants agreed. Also chair of the Downtown Council's housing task force for the past five years, he noted the trend has gained added momentum with the most recent lean to condominiums rather than rental property.
"I don't know if the market has matured—or it's the maturation of the buyers," Trabon quipped, noting the increase in middle-aged baby boomers heading downtown. "It's a common trend in many urban environments. It starts with pioneers who produce rental properties, then you see the development of things. Now we've got a reason to buy something and that fits with people looking to invest. That's where we are now."
The investment angle could become even more important. Several noted that the relatively under-priced Kansas City market is likely to appreciate significantly, especially once projects such as the Entertainment District and arena begin construction. "Look across the country," Trabon noted. "When a city makes the turn, there is substantial appreciation. We have an entertainment district, arena and other amenities on the way…and we have room for even more development, which is something people sometimes forget."
George Birt of BBL Real Estate Services Group said the August arena vote has already brought a surprising boost to downtown residential interest. "Ever since then, a lot of people have been out to buy product," he said. "I think the arena was the tipping point. There were many other things before that, but that's been a really important development. People who had never thought of downtown suddenly realized this really is a viable place to live."
Putting it all together One of the biggest challenges KC faces with its downtown development is the same problem it faces in more outlying issues: it's just so darn spread out. Figuratively and literally, areas such as Downtown Loop, Crown Center and the Plaza are separated in ways that tend to lessen their impact—and their ease of use by would-be residents.
Several prospects are changing this. A "bus rapid transit" (BRT) system is scheduled to open next year to provide an efficient alternative within greater downtown. While it probably will not convert a majority of auto drivers or win over light-rail proponents, most see this easy connection from the Plaza to the River Market as a significant step.
"To me the greatest thing is to walk to a restaurant and see people," Trabon said. "I was in Corporate Woods one year and every day, if you wanted to go to lunch, you had to get in the car. People like to go to New York and San Francisco because you can walk. We've got a ways to go, but we're starting to get there in Kansas City."
Other developments impacting downtown lifestyle are even more fundamental. Several groups, including a newly formed Urban Society, are examining ways to improve basics such as on-street parking. The Downtown Council has several "livability" efforts under way, including a streetscape study to create a guide for improving the look and feel of the area. All of these projects have the potential of providing fundamental improvements for those who live, work and play here.
"The big projects are great," Trabon noted, citing the arena and entertainment projects. "But the city and Downtown Council need to make sure that when these are done, the rest of downtown really looks great, too. Right now, it's hard to find a sidewalk area that looks really nice. There are sections that are great, but when you go from area to area you've got problems that we need to address. There is a lot of work to do."
So where are all of the residential projects? Most are identified by historic districts that are tied to a state tax credit program making many of the historic renovations possible. Inside the downtown loop are Quality Hill and the Garment, Financial, Library and Convention Districts. The newer Entertainment District will also see some residential development. Outside of the loop, the greater downtown area includes the Crossroads, 18th and Vine, Columbus Park, West-side and Eastide Districts. Some of the most significant new developments in these areas includes:
