SomeraRoad will ‘immediately’ renovate Overland Park campus after acquisition from Lexington Realty

Colliers International will start overseeing a 26.2-acre office campus in Overland Park that recently changed hands and underwent a rebranding.

SomeraRoad Inc. hired Colliers to manage 5200 Metcalf Ave., a five-story building just south of Interstate 35 with nearly 300,000 square feet of leasable office space.

SomeraRoad, a New York-based commercial real estate debt and equity investment firm, bought the property in late July from Lexington Realty Trust, a New York-based REIT focused on single-tenant commercial properties, for an undisclosed sum.

5200 Metcalf was left vacant in December 2018, after then-Missouri Gov. Eric Greitens lured Swiss Re to One Kansas City Place in Downtown with $20 million in incentives. Cargill also moved out in late 2018 when it consolidated its area offices in Olathe.

In 2019, Lexington Realty Trust’s lender foreclosed on 5200 Metcalf, after the New York-based REIT reportedly had not made payments on the building’s loan since Swiss Re’s departure.

As of June 30, 2020, Lexington had an outstanding aggregate principal balance of $50,525 for nonrecourse mortgage loans secured by 5200 Metcalf and a second office property in Boca Raton, Fla., its latest quarterly report shows.

5200 Metcalf — now rebranded as Summit52 — no longer is in default, foreclosure or receivership and is “ripe for repositioning,” SomeraRoad Vice President Basel Bataineh said in a Monday release from Colliers.

Summit52 offers flexible floor plates with as much as 78,000 contiguous square feet on a single story. The building could accommodate users as small as 4,000 square feet or serve as corporate headquarters for a single tenant occupying its full 300,000 square feet.

SomeraRoad also immediately is slated to begin renovations of the lobby, café, conference facilities, fitness space and multiple outdoor patios, according to Colliers’ release. The current 679 parking spots could be expanded to as much as 1,622, leasing materials show.

“Our new ownership team is well-capitalized and ready to do deals,” Bataineh said in the release. “We know the greater Kansas City market well, and we are excited to transform Summit52 into a modern workplace destination just like we have done with the 3Y and Lightwell buildings” — the firm’s previous two office acquisitions in the metro area.

Ross Simpson and RC Jensen will lead Colliers’ leasing team for Summit52.

Colliers’ Kansas City office’s Management Services Group oversees a portfolio of more than 8 million square feet of third-party commercial real estate investments.

Original: https://www.bizjournals.com/kansascity/news/2020/10/06/somera-road-5200-metcalf-summit52-lexington-realty.html

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