Quarter 1 Recap

Welcome back to another Molzer Development Newsletter. 

We have been in the thick of over $47,000,000 of projects, and we are close to the finish line & opening. It is absolutely surreal to think back to when Molzer Development started, to where we are now, getting ready to open what was once a silly idea. 

Two projects, different scales, but same mission; challenge the status quo. 

It hasn't been easy. Not every day has been fun. But I think that’s why it means that much more.

The Aladdin: 

Sometimes I have to remind myself what this building truly was when my partners and I bought it. It was vacant, slightly smelly, hundreds of beds, desks, lamps & enough trash to fill, well, a hotel! Fast forward to where we are now, and it is actually incredible. 

Every stage of a construction project is slightly chaotic for different reasons. 

We’ve officially moved past the phase where everything looks like demolition and chaos.

There’s a moment in every adaptive reuse project where it flips, from “this used to be something” to “this is about to be something again.”

We’re there. What do I mean? We have cabinets. Countertops. Bathrooms are done. You can walk through the building and actually see units in which memories will be made for another 100 years. 

Pre-leasing is officially in full swing with AMC leading the way on hard hat tours, applications & gearing up for the first move-in this summer. 

A lot of what we’ve been doing lately isn’t sexy, but it’s what makes the building actually work.

• Chilled water tie-ins from the street

• Full mechanical distribution throughout the tower

• Electrical infrastructure upgrades (permanent power next week!)

• Plumbing risers and distribution

This is the stuff that turns a historic building into a functional one.

Because at the end of the day, no one cares how cool the building is if the AC doesn’t work.

I think what I am most proud of is the intent behind every decision within this building. We’re building something that feels historic, but performs like new construction.

We are about 12 weeks from the Aladdin opening its doors to the public for the first time in over 6 years; A New History is almost here. 

Stay up to date on all things Aladdin via our website & social media (https://www.instagram.com/aladdinkcmo) , & if you know anyone interested in living in the most anticipated redevelopment project in KC, share our info! 

Soca: The Crown Jewel

At the top of the building sits what will be one of the most unique spaces in Kansas City:

Soca. Our 16th-floor cocktail bar. And this is where things start to get really interesting.

This space used to be a conference room with no identity & will soon host guests all around the world.

We’ve been working through:

• Layout for bar + seating

• Preserving historic elements while introducing new energy

• Designing a space that feels both elevated and alive

The goal isn’t to recreate the past.

It’s to build something that earns its place in the building’s next chapter. I cannot wait to enjoy a cocktail up there with all of our supporters (& haters) in a few short months. 

Holtman Building: Redefining Mixed-Use

I am not exaggerating when I say the Holtman building will change the game & definition of what mixed-use is. 

10,000 sqft of office leased (GPS-KC & LaborTech Studio)

1,800 sqft retail (180 Bathhouse) 

Private Members-Only club (https://thegaragekc.com/)

8 state-of-the-art lofts

KC’s largest & best rooftop bar 

The Second Floor Is Coming Together

The 2nd floor, where all 8 loft units live, is almost completely done. Once the cabinets get here, we are ready to welcome residents. 

We’re targeting full completion of the units soon, and for the first time, you can walk the space and understand exactly what it will be.

These aren’t cookie-cutter apartments. They’re curated lofts. How do you know these aren’t normal? We have done 0 marketing and only have 1 unit left to rent. 

The project has been surreal as it pertains to perception and timing. It has only been possible with great investors, partners & lenders. 

It’s easy to underestimate how much time and effort go into just making a building look right again.

Bar Phoebe

If there’s one piece of Holtman that has the potential to define the entire project, it’s the rooftop.

We’ve been very open about this internally and with investors: The rooftop isn’t just a vibe play. It’s a revenue driver.

Between:

• Bar income

• Event potential

• Profit-sharing structures

This component has the ability to significantly increase NOI beyond base rent.

Which is exactly how you make smaller projects punch above their weight.

On February 15th, we started setting structural steel on the roof of the Holtman Building.

At that point, the rooftop was still an idea more than anything else. The old water tower structure had just been removed, the new elevator shaft was underway, and we were beginning the transition from demolition into vertical construction. 

We are planning to open on June 4th.

That puts the timeline at 109 days from the first piece of steel to a fully operational 8,000 sqft rooftop bar.

For most projects, that timeline wouldn’t even cover preconstruction or procurement. Steel fabrication, delivery, and installation alone can stretch weeks or months depending on complexity. Layer on permitting, inspections, coordination across trades, and inevitable on-site issues, and timelines tend to expand quickly.

This one hasn’t.

That’s not because it’s been easy. It’s because the entire project has had to operate with a different level of urgency and alignment. Every trade on site understands the schedule. Decisions that would typically take days or weeks are being made in real time. When problems arise, and they always do, they’re addressed immediately instead of getting pushed down the line. 

Between our contractor, GPS-KC & architect Pluribus, this build-out still boggles my mind if I am being honest. 

You can see the scale of the rooftop now. You can understand how people will move through it, where the bar will sit, and how the space will open up to the city.

The rooftop has always been a critical piece of Holtman. It’s not an add-on or an afterthought. It’s the element that turns the building from a collection of well-designed lofts into a destination. It creates energy, draws people in, and ultimately drives both the experience and the economics of the project.

Moving from steel to opening in just over three months is aggressive by any standard. But it reflects how we’ve approached Holtman from the beginning: focused, intentional, and willing to push timelines when the opportunity is there.

KC’s Most Irrelevant Attraction: The Bus Bus Stop

Last summer, during conversations with the Kansas City Area Transportation Authority, we had an idea that started off sounding a little ridiculous.

What if we took a decommissioned city bus and turned it into a functioning bus stop?

Not a sculpture. Not a one-off install. An actual, usable piece of infrastructure.

The more we thought about it, the more it made sense. Cities are full of underutilized assets; this was just another one. Instead of scrapping the bus, we could put it back into the city in a way that actually serves people.

So we did.

It’s a small project, but it represents something bigger.

Most development focuses on large, multi-year projects like the Aladdin Hotel or the Holtman Building. This was the opposite. No complicated capital stack, no drawn-out timeline (literally not a single permit was required…), just an idea and a team willing to execute it. Mason absolutely crushed this project & is a metal magician (https://www.facebook.com/mammoth.metals/).

The Bus Bus Stop is a little insane, but it works. People use it. It adds something to the street that wasn’t there before. And more than anything, it’s a reminder that sometimes you can just do things. 

Development Is a Long Game

I pride our team on being open, honest & to build in public. Here was a tweet I sent out last week that 99% of other developers would never share:

“Running a development company is not easy and requires constant cash. 

I have a team of 5. VP of development, Marketing Manager, and 2 VA's. 

Payroll, subscriptions, investor relations, F&B expenses, travel & pursuit costs add up quickly. 

We are spending about $20k/ month just to keep things afloat. 

We will complete our first 2 projects over the next 12 weeks, and then yes, some development fees come in, and eventually we will hit our promote. 

Sure, we had small acquisition fees when buying these buildings/ projects, but those are nominal (<$100k TOTAL over 2 years)

So how the heck are we able to stay even somewhat alive right now? 

Our social media. Brand deals, ad revenue etc. 

Want to get into development? Great. My advice as someone who is in the thick of it is simple;

Start or find a cash-flowing business first, then use those funds to backstop your development company etc. 

Without cash, you can't do anything. Blessed to have the social media dollars coming in to keep us afloat until July. 

Godspeed”

While it may seem like everything is always perfect, it is not. The last 5 months of my life have been some of the hardest in my entire life. There have been days, weeks, even months of pain, problems & change. The kind of change that forces you to adjust quickly, rethink things, and get comfortable being uncomfortable. It’s not something you can really prepare for; you just find yourself in it, figuring it out as you go.

At the same time, everything else keeps moving. Projects, timelines, responsibilities. There’s no pause button while you sort things out.

You show up, stay consistent, and keep moving forward even when things feel uncertain. 

And that is a powerful lesson to learn at a young age. 

Closing

If you step back and look at all of what we are doing, the Aladdin Hotel nearing opening, the Holtman Building pushing an impossible timeline, a bus turned into a bus stop; it can look like things are clicking.

Like it’s all working to perfection. And in some ways, it is!

But what doesn’t get shown enough is what it takes to get here.

The uncertainty. The pressure. The constant decisions with incomplete information. The other life stuff happening at the same time that no one sees, but still has to be carried.

The last few months have forced a lot of change. 

And as a business owner who has millions of dollars of other people's money, technically employs hundreds of construction jobs, you don’t really get to pause and process it. You just keep moving. Because people are counting on you. Because timelines don’t care. Because if you don’t push things forward, they don’t move at all.

That’s been the reality behind this silly thing called life. Progress on the outside. A lot of weight behind it.

I think that’s something I’m starting to understand more clearly. The projects, the growth, the “momentum”… it all sits on top of a lot of things that don’t get talked about.

And maybe that’s the point? Not everything feels good while you’re in it. 

Sometimes you’re just in the middle of it; figuring it out, adjusting, and continuing forward, whether you feel ready or not.

One thing is for certain: there is no right time to do something. 

If you’ve been following along, I appreciate you.

We will be here & not going anywhere anytime soon. 

Still building. Still moving. Still figuring it out.

Godspeed.

—
Zach Molzer
Founder, Molzer Development