F&C Announces $46.8M Refinance Closing of The Yards in Kansas City

KANSAS CITY – Flaherty & Collins Properties announced this week that the firm has closed on a $46.8 million HUD 223(f) refinance of The Yards, a mixed-use, luxury residential apartment development in the Stockyards District of Kansas City, Missouri, that first opened to residents in May 2020.

“The Yards refinancing represents not only the conclusion of opening and lease-up in the middle of the pandemic, but also shows our continued commitment to downtown Kansas City,” said Derek Hammond, Chief Financial Officer for Flaherty & Collins Properties. “We can’t thank our wonderful partners at HUD, as well as Kevin Muesenfechter and Ali Rode at Gershman Investment Corp enough for their help through this process. We could not have closed on this loan without their expertise.”

Located at 1660 Genessee Street. The Yards is the biggest mixed-use residential project in the Stockyards District. The project consists of 232 luxury market rate apartment homes and 3,150 square feet of street front commercial space and over 9,500 square feet of amenities. The commercial space is home to Willoughby Design, the longest, continuously running woman owned (WBE) brand design firm in the US. The amenities include a vineyard that is maintained by Amigoni Winery.

The project obtained an ENERGY STAR design score of 95 out of 100 and is eligible for ENERGY STAR designation once occupancy requirements are met. “This is another Flaherty & Collins Properties development committed to green sustainability,” added Hammond.

Comprised of studios, one and two-bedroom apartment homes, The Yards development – designed by Kansas City architecture firm KEM Studio – is authentic to the district’s rich heritage by stitching together the iconic, modern Kemper Arena and the historic Livestock Exchange building. It first broke ground in March 2018 and was completed by early summer 2020.

The HUD financing replaces the construction debt by Citizen’s Bank, and participants Equity Bank and First National Bank of Omaha. A second phase is under development. “We’re really excited to begin a second phase of apartments and commercial space very soon,” says Hammond.