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Jackson's Waterfront project signs two new tenants as construction continues

November 16, 2007

Wichita Business Journal
by Chris Moon

Two more companies have signed leases at Paul Jackson's Lakeside at the Waterfront development, pushing the upscale office project toward 80 percent occupancy a year after its first building opened.

Wichita-based Dimensions Financial Group has announced it will lease 6,100 square feet of the Stinson Morrison Hecker Building. Meanwhile, ITOCHU Aviation Inc., a Hawker Beechcraft dealer in Japan, will lease 2,900 square feet in the Adams Jones building.

The first of those buildings opened a year ago this month.

"Historically, looking at things, we've done an awful lot of leasing in a short period of time," Jackson says.

The leases further solidify Waterfront's standing atop the Wichita office market.

The development has attracted many major Wichita firms looking to move or expand. It also has mined the downtown business district for new tenants, significantly altering the office scene there.

"It has attracted tenants. It's created a lot of turnover and has been a very successful project," says competing broker Patrick Ahern, who is leasing agent for numerous office buildings in downtown and east Wichita.

Jackson's Lakeside development features 100,000 square feet spread across three buildings, one of which is under construction.

Major tenants include law firms Stinson Morrison Hecker LLP and Adams Jones Law Firm PA, along with Keller Williams Realty. The third building, which is expected to be complete next summer, will be home to accounting company Kennedy and Coe LLC.

Ahern, of Grubb & Ellis | Martens Commercial Group, says he has noticed direct competition with Waterfront at Wilson Estates, where Ahern is the leasing agent.

"Paul Jackson has a wonderful product and has tremendous tenant service," Ahern says. "He's locally owned. People know who he is. They've seen him around. That's a help."

Top of the Market

But Jackson, owner of Vantage Point Properties Inc., says he has been pressured by additional competition for eastside office users.

Slawson Real Estate is developing office space at Oak Creek at 21st and Greenwich, and Occidental Management just kicked off a new office project in the former Northrock 6 movie theater.

Typical rents at Lakeside at the Waterfront run $22 to $23 per square foot. It can be more for space overlooking the water, Jackson says.

"I believe that's top of the market. That's where Vantage Point wants to be," he says.

But shell construction costs have increased about $10 per square foot since the start of the Adams and Jones building, which was the first to open at Lakeside, Jackson says. He says his rates haven't kept up with those increases.

He wouldn't disclose the building costs for the Kennedy and Coe structure.

Dimensions Financial Group, a financial services firm formed in 1998, is moving to the Waterfront from Wilson Estates Office Park.

"If it's not the best, it's one of the best buildings in town," says partner Eric Burns.

The firm has seven people working out of its office in Wilson Estates and may add a couple more in the next few years. The firm considered building an office building at Oak Creek -- taking advantage of the upscale housing there -- but decided to lease instead to avoid the difficulties that come with ownership.

"We just figured for us this was the best way to go," Burns says.

ITOCHU Aviation, a dealer of Hawker Beechcraft airplanes in Japan, had been leasing space at 545 N. Woodlawn until that building was sold and the company was forced to move, says general manager Dana Cox.

The company has three employees in Wichita and wanted to remain near Hawker Beechcraft's plant on Webb Road.

"The hotels and restaurants make that a very nice location," Cox says.

Lakeside at the Waterfront

Location: 13th Street North and Webb Road, northeast corner.
Developer: Paul Jackson, Vantage Point Properties.
Phone: (316) 634-6600.

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