KBS Completes Strategic Sale of Park Place Village Mixed-Use Property to DFW Land

KBS Real Estate Investment Trust III has completed the sale of Park Place Village, a 484,980-square-foot Class A mixed-use property in Leawood, Kansas, to DFW Land, a real estate development company specializing in Dallas-Fort Worth area acquisitions. The transaction represents a strategic exit for KBS, which acquired the property in 2015 and successfully maintained 100% occupancy despite challenging market conditions.

According to Marc DeLuca, KBS CEO and regional president for the Eastern U.S., the sale demonstrates KBS's ability to identify improving submarkets early and reposition assets for long-term performance. By proactively managing the asset and curating a retail experience that enhanced the overall office offering, KBS strategically exited the property at 100% occupancy – even while navigating post-pandemic market challenges. The property's consistent cash flow during a period when many office assets have struggled highlights the success of KBS's management approach.

Park Place Village consists of 10 buildings developed between 2007 and 2013, featuring a mix of office and retail space in Kansas City's South Johnson County submarket. The property offers numerous amenities including boutique shops, upscale restaurants, a fitness center, EV charging stations, and a rooftop view terrace. Ryan Pires, asset manager for Park Place Village and senior vice president of asset management for KBS, emphasized how active management transformed the property into one of Leawood's most popular mixed-use destinations. By creating a vibrant retail experience that elevated the surrounding office product, we enhanced tenant engagement and long-term relevance.

Vijay Borra, CEO of DFW Land, described the acquisition as a natural addition to his company's portfolio, noting that the asset is well-positioned for long-term performance. Over the past 90 days, we have successfully acquired several million square-feet of office and retail space, reinforcing our commitment to pursuing high-quality properties that align with our long-term investment strategy. The transaction comes at a time when Newmark reports positive trends in the Kansas City office market, with 1.1 million square feet of net absorption over the past four quarters.

The sale was facilitated by Newmark Capital Markets teams from Chicago and Dallas, led by Derek Fohl and Gary Carr. Fohl, senior managing director at Newmark, anticipates continued investor interest in mixed-use assets like Park Place Village as both office and retail markets recover. Legal representation for KBS was provided by Greenberg Traurig attorneys Bruce Fischer and Howard Chu, with Fischer noting that the successful exit underscores the resilience of KBS's vision for the property and South Johnson County's growth. The property's location at 11500 Ash Street positions it within an affluent neighborhood featuring shopping, entertainment venues, and residential components including 201 apartments and 30 townhouses.