Principals with St. Louis-based retail real estate development firm Koman Properties in early July announced details of a new business venture, one that will result in the firm providing build-to-suit work for office, industrial, retail and specialty projects. The new entity, which will operate as KP Development, will serve Midwestern markets and beyond.
As part of the transition, Koman Properties’ founder and president, Jim Koman, will move into an advisory role, serving as Chairman of KP Development. Terry Barnes, who has served as senior vice-president of development for Koman Properties since 2001, will take over duties as president of KP Development handling the entity’s day-to-day operations. Rounding out the KP Development leadership team will be Scott Haley. Haley, who was director of development for Koman Properties since 2003, has been named senior vice president of the new entity.
“As the real estate environment continues to evolve, we as developers are looking to find ways to add value as a company and take advantage of the opportunities that are out there,” said Jim Koman. “This new venture allows us to reinvent our business and use our existing expertise to tap into the growing office and industrial development sector. The resulting transition in day-to-day management duties will provide me the time to explore additional business interests in the real estate investment arena, and we will also be announcing an exciting and significant opportunity in the coming weeks.”
KP Development will focus its efforts on meeting the build-to-suit needs of high-credit quality, single tenants with 10 or more years on an existing lease. Targeted deal sizes are expected to range from $5 million to $40 million on properties of 50,000 square feet or larger. In addition, through a subsidiary business known as Building Consultants, LLC, KP Development will provide third-party real estate services for clients seeking to expand single-tenant facilities.
“In today’s real estate environment, we believe the real opportunities lie in the office, industrial and specialty project development arena, which makes now the perfect time for us to add this strategic business opportunity,” said Barnes. “The KP Development team has a unique, team-based approach to third-party development and project management for build-to-suits that will allow us to provide clients with customized, efficient, build-to-suit solutions designed to exceed all expectations. The best interests of our clients are our highest priority, and we look forward to putting our 35 years of real estate development experience to work for them.”
