KANSAS CITY HOTEL INVESTMENT
The purpose of this Confidential Investment Offering Overview is to provide a summary of a possible future private investment opportunity that may be made available to a certain limited number of accredited investors. This is not an offer to sell real estate and/or any type of security, partnership interest, public or otherwise.
The contemplated offering would provide Investors with the opportunity to acquire an interest in two historic, turn of the century warehouses to be converted into a new 132 room luxury boutique hotel in downtown Kansas City, to be named The Crossroads Hotel. This special opportunity involves the adaptive re-use and re-imagination of two historic and landmarked buildings, the Pendergast Building and the Pabst Building, located in the heart of the burgeoning Crossroads Arts District in Kansas City, Missouri. The Pendergast and Pabst Buildings, both built in the early 1900’s, have ties to some of the most notorious characters in Kansas City’s history. Their days of being used by infamous mobster bosses for beer and liquor distribution during prohibition times have long past, but the aura of a storied history is strongly present. The developers acquired the historic buildings with the intent to redevelop them into a one-of-a-kind, experiential and locally important culinary and social destination for many years to come.
The transformation of these unique spaces into a truly original hotel with a “Kansas City State of Mind” will undoubtedly raise the bar and deliver a hotel that captures the true character and hospitality of Kansas City. The hotel will showcase a design concept deeply rooted in the heart of this great city. The development team will draw from the history and passion of Kansas City through innovative and strategic relationships with local thought leaders, innovators, storytellers, designers, artists, manufacturers and vendors to deliver an experience that is a source of pride for the community. Through its design, sense of civic pride and keen focus on unscripted thoughtful and high quality service, this hotel will be an inspiring and transcendent place--a true outcropping of what is happening in Kansas City and more particularly the Crossroads District--a city and neighborhood rich in history, art, architecture, and culture.
The Crossroads Hotel will be located in the heart of the Crossroads Arts District. The Crossroads Arts District is located directly south of downtown and north of Crowne Center, an 85 acre major Kansas City commercial complex filled with shops, hotels, restaurants, and residential properties. The Crossroads will also be within walking distance of Kansas City’s Central Business District (CBD). In 2015, The Crossroads was listed as one of the “15 Great Places in America” by the American Planning Association. The neighborhood originally consisted of warehouses and distribution facilities that served nearby Union Station, and is home to one of the last remaining examples of a Film Row District. In recent years it has emerged as one of the nation’s most concentrated art gallery districts and home to more than 400 local artists and 100 independent studios. Kansas City’s creative community, both professional and recreational, have centralized in the Crossroads. The storefronts and office spaces have filled with independent restaurants, marketing & advertising firms, and design studios.
The Kansas City area’s economy is large, influential, and important in its region. It is the third largest beef-producing city in the US (behind Chicago and Cincinnati), and is home to the second largest rail network. As the 29th largest region in the nation, the Kansas City metropolitan area is home to nearly 2.1 million residents, and has recently outgrown the previously largest city in the state, St. Louis. Kansas City’s unemployment is measured just at 4.4% and the number of people living in the central business district has increased 50% since 2000. Residential rental properties in the downtown area have reached an impressive 97% occupancy, and over $6 billion in public and private funds have been invested in the downtown area over the past 10 years. Kansas City has long been regarded as a central business hub of the Midwest with companies such as H&R Block, Hallmark Cards, Sprint/Nextel, and Euronet maintaining their corporate headquarters in this important city.
The project sponsorship is led by Aparium Hotel Group, LLC, with SMB Bradley acting as an investment partner. Aparium represents the development, ownership, and management of the highly acclaimed Iron Horse Hotel, a similar hotel to The Crossroads, in Milwaukee, WI, as well as the newly opened Charmant Hotel in LaCrosse, WI, and the historic Pontchartrain Hotel in New Orleans, LA. The Iron Horse has won numerous national awards including AAA Four Diamond Award, Boutique Lodging & Lifestyle Association Boutique Hotel of the Year, Conde Nast Traveler Magazine’s “Gold List”, and Trip Advisor’s #19 Hotel in America. In addition to these operating hotels, Aparium is under development on multiple new hotels in areas such as Minneapolis, Omaha, and Detroit. In 2015, SMB Bradley teamed with Aparium to develop The Hewing Hotel, a luxury boutique hotel property, in downtown Minneapolis, that is currently under construction and anticipated to open in the fall of 2016. Earlier this year, SMB Bradley completed its most recent partnership with Aparium, the purchase and renovation of the popular Madison Hotel in Memphis, TN.
Prior to launching Aparium Hotel Group in 2012, its principals led the ownership, development, and management of the award-winning Elysian Hotel in Chicago (now Waldorf Astoria), which upon opening was named the #1 Hotel in the US by Conde Nast, Trip Advisor, Robb Report, and Travel and Leisure and included a Michelin two star restaurant. Aparium Hotel Group is now focused on delivering its award-winning service to truly unique one of a kind hotels in exciting, unsaturated markets.