Jon Copaken Principal
About Copaken Brooks Entrepreneurial Developer and Full Service Real Estate Firm
About Copaken Brooks Solid Entrepreneurial Foundation 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
About Copaken Brooks Proven Record 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 Full Service Firm Landlord and Tenant Representation Corporate Real Estate Services Property Management Construction Management Development Consulting Investment and Acquisitions
Development Legacy Portfolio of Signature Properties
Town Pavilion 1201 Walnut
Plaza Colonnade Oak Park Mall
Del Sarto Van Eyck First National Bank Zurich
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 Broadway Arts District Block 112 Kansas City, Missouri
Acquisition / Investment
Class A Grocery Anchored Shopping Centers
Addison Tech Center Addison, Texas
INVESTMENT TRENDS Value Proposition in 2 nd Tier Cities
Cap Rates What are they paying? 2010-2013 by Property Type
Cap Rates Cap Rates 2010-2013 9.50% Office CBD 9.25% 9.00% 8.75% 8.50% 8.25% 8.00% 7.75% 7.50% U.S. Kansas City St. Louis Chicago Indianapolis Minneapolis 7.25% 7.00% 2010 2011 2012 2013 Source: Integra Realty Resources Kansas City
Cap Rates Cap Rates 2010-2013 9.50% Suburban Office 9.25% 9.00% 8.75% 8.50% 8.25% 8.00% 7.75% 7.50% U.S. Kansas City St. Louis Chicago Indianapolis Minneapolis 7.25% 7.00% 2010 2011 2012 2013 Source: Integra Realty Resources Kansas City
Cap Rates Cap Rates 2010-2013 9.50% Retail 9.25% 9.00% 8.75% 8.50% 8.25% 8.00% 7.75% 7.50% U.S. Kansas City St. Louis Chicago Indianapolis Minneapolis 7.25% 7.00% 2010 2011 2012 2013 Source: Integra Realty Resources Kansas City
Cap Rates 11.50% 11.25% 11.00% 10.75% 10.50% 10.25% 10.00% 9.75% 9.50% 9.25% 9.00% 8.75% 8.50% 8.25% 8.00% 7.75% 7.50% 7.25% 7.00% 6.75% Cap Rates 2010-2013 Industrial 2010 2011 2012 2013 U.S. Kansas City St. Louis Chicago Indianapolis Minneapolis Source: Integra Realty Resources Kansas City
Cap Rates Cap Rates 2010-2013 8.50% Apartments 8.25% 8.00% 7.75% 7.50% 7.25% 7.00% 6.75% 6.50% U.S. Kansas City St. Louis Chicago Indianapolis Minneapolis 6.25% 6.00% 2010 2011 2012 2013 Source: Integra Realty Resources Kansas City
Cap Rates 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/1 st Tier Markets for the same level of risk and income 2 nd Tier markets are all relative bargains, but cap rates are currently unsustainably low
Investment Activity Who are the buyers? 2010-2013 by Property Type
Kansas City Investment Activity - Office St Louis Chicago 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 2012 2013 (YTD) 2013 2010(YTD) 2011 2012 2013 (YTD) Indianapolis Minneapolis Institutional United States Cross-Border Public Listed/REITs Private User/Other 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 20102012 2011 2013 (YTD) 2012 2013 (YTD) 2013 (YTD) 2013 (YTD) Source: Real Capital Analytics, Inc.
Kansas City Investment Activity - Retail St Louis Chicago 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 2012 2013 (YTD) 2013 2010(YTD) 2011 2012 2013 (YTD) Indianapolis Minneapolis Institutional United States Cross-Border Public Listed/REITs Private User/Other 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 20112010 20122011 2013 (YTD) 2012 2013 (YTD) 2013 (YTD) 2013 (YTD) Source: Real Capital Analytics, Inc.
Kansas City Investment Activity - Industrial St Louis Chicago 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 2012 2013 (YTD) Indianapolis Minneapolis Institutional United States Cross-Border Public Listed/REITs Private User/Other 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 2010 2012 2011 2013 (YTD) 2012 2013 (YTD) 2013 (YTD) 2013 (YTD) Source: Real Capital Analytics, Inc.
Kansas City Investment Activity - Apartments St Louis Chicago 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 2012 2013 (YTD) 2013 2010(YTD) 2011 2012 2013 (YTD) % Indianapolis 0% 0% 0% Minneapolis Institutional Cross-Border United States 27% Public Listed/REITs Private User/Other 2010 2011 2012 2013 (YTD) 2010 2013 (YTD) 2011 2010 2012 2011 2013 (YTD) 2012 2013 (YTD) 2013 (YTD) 2013 (YTD) Source: Real Capital Analytics, Inc.
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