Molzer Development Newsletter #6

Ahoy and welcome to the next edition of the Molzer Development Newsletter!

I am super excited for this one as we will take a deep dive into adaptive reuse! I will highlight its pros, why it is so important today, and why the Aladdin Redevelopment checks those boxes.

But first, as always, here is a meme reflecting my life over the last month. It has been hectic as a few of our projects are gaining traction and gearing up for ground-breaking!

What is Adaptive Reuse?

Adaptive reuse is defined as transforming an underutilized or insufficient building or site into a revitalized environment for a more effective purpose. While accomplishing this transformation brings new life to old buildings, it also allows for compelling architectural features to be preserved and celebrated.

There are tons of ways adaptive reuse can be done. Adaptive reuse projects can transform old factories, warehouses, schools, churches, or other buildings into functional spaces that serve the surrounding area. Some examples here in Kansas City include the following:

Park 39: Former Westport High School that was converted into apartments that turned out unbelievable.

Pickwick Plaza: Once a hotel, this building was converted into over 200 apartments back in 2017.

The Grand: Originally the Kansas City headquarters for Traders National Bank, this office building was also converted into luxury apartments with a top-floor pool.

Pros of Adaptive Reuse

Promoting Sustainability: In 2018 alone, U.S. construction demolitions added 600 million tons of debris to the national waste stream according to The Environmental Protection Agency. This was largely contributed to by the clearing of existing buildings and sites for new construction. Annual construction waste is expected to reach a staggering 2.2 billion tons globally by 2025 according to Transparency Market Research.

By utilizing adaptive reuse, we can cut back on massive amounts of waste and promote sustainability. Through adaptive reuse, developers can help play a part in decreasing the overall carbon footprint instead of increasing embodied carbon. Additionally, adaptive reuse helps mitigate urban sprawl by revitalizing existing spaces and promoting infill development.

Historic Preservation: Many of these buildings that are ripe for redevelopment are historic or are on the National Registry of Historic Places. By revitalizing these buildings instead of tearing them down, it allows for preserving the building’s history & legacy. On top of that, these types of projects are eligible for Historic Tax Credits, which is a tool that encourages private sector investment in the rehabilitation and re-use of historic buildings. It creates jobs and is one of the nation's most successful and cost-effective community revitalization programs. It has leveraged $131.73 billion in private investment to preserve more than 49,000 historic properties since 1976.

Aladdin Redevelopment → Adaptive Reuse

The Aladdin Redevelopment my partners and I are working on is a prime example of adaptive reuse. So what makes this project so important for both investors, the city & future residents?

Preservation of Historical and Architectural Heritage: The Aladdin Hotel stands as a landmark of historical and architectural significance in downtown Kansas City. Constructed in the 1920s, its distinctive Art Deco style and rich history contribute to the city's cultural identity. Converting it into apartments will preserve its architectural heritage while breathing new life into its storied past.

Revitalization of Downtown Area: Downtown Kansas City has been undergoing revitalization efforts aimed at enhancing its appeal as a vibrant urban center. Redeveloping the Aladdin Hotel into apartments is going to play a role in this revitalization by transforming an underutilized property into a dynamic residential space. The presence of residents would create a sense of community, attract businesses, and stimulate economic activity in the area.

Meeting Housing Demand: Kansas City, like many urban areas, faces a growing demand for housing, particularly downtown. Converting the Aladdin Hotel into apartments is going to help address this demand by providing ~ 120 much-needed residential units in a prime location. Couple this project with the Barney Allis Plaza redevelopment, bringing this property back to life will be key for this area of downtown.

Promotion of Adaptive Reuse and Sustainable Practices: Redeveloping historic buildings like the Aladdin Hotel into apartments promotes adaptive reuse, which is an environmentally sustainable practice. Instead of demolishing the structure, adaptive reuse respects the embodied energy and materials invested in the building's construction. By repurposing this building, we can reduce waste, conserve resources, and contribute to the city's sustainability goals.

The Future of Development:

As the office sector continues to see struggle across the US, more of these large buildings will enter foreclosure and could be the perfect candidate for adaptive reuse. Unfortunately, not every building is ripe for redevelopment. Some of the main issues with these buildings are the large floorplates, making it hard to have functional floorplans, the lack of parking, the price of the building, and more often than not you need to run all new mechanical systems which can be very expensive.

While not every vacant building across the US should be converted to apartments, over the next 5-10 years we are going to continue to see an uptick in adaptive reuse, which can be a huge win for all parties involved.

That’s it for this edition of the Molzer Development Newsletter!

Like always, if you have any questions regarding Kansas City, development, or have any interest in working together on a future project either as an investor or partner, don’t hesitate to reach out!

Godspeed,

Zach Molzer