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Another firm wheels into Hunt Midwest’s Automotive Alley

Another firm wheels into Hunt Midwest’s Automotive Alley
Rob Roberts – Kansas City Business Journal

Hunt Midwest has landed its 14th auto industry-related tenant at Automotive Alley, a combination of above- and below-ground real estate near the junction of Missouri Highway 210 and Interstate 435 in Kansas City.

Dejana Truck & Utility Equipment, a New York-based subsidiary of Douglas Dynamics Inc. (NYSE: PLOW), has leased 90,000 square feet in SubTropolis for a new Ford Transit and Ford F-150 upfitting operation. The firm also will lease an additional 2 acres for vehicle staging, Hunt Midwest reported.

Hunt Midwest’s Automotive Alley includes space in SubTropolis, the world’s largest subterranean business complex, and the roughly 700-acre Hunt Midwest Business Center surface development above it.

“Dejana is the 14th auto company to choose Automotive Alley for upfitting, distribution or coordination operations in the past six years,” Mike BellHunt Midwest vice president of commercial development, said in a release. “This cluster effect of automotive companies located within SubTropolis and the Hunt Midwest Business Center allows companies like Dejana to be more productive and cost competitive, which is the essence of Automotive Alley.”

Dejana manufactures van partitions, racking systems and hauling systems for after-market installation on commercial vans and trucks. The company chose SubTropolis because of its location just south of Ford’s Kansas City Assembly Plant in Claycomo and the availability of space for staging vehicles before delivery, Andrew Dejana, president of Dejana Truck & Utility Equipment, said in a release.

“Being able to quickly move vehicles from Ford’s plant to our upfitting operation, combined with the ability to stage those vehicles nearby, is an unbeatable value proposition in our business,” Dejana said in the release. “SubTropolis was the logical choice for Dejana as we work to expand our reach and improve our ability to serve customers in the energy, utility and telecommunications industries. We look forward to continuing the great partnership we have with Ford, and a presence in the Kansas City market will strengthen our position with the fleet and ship-through business.”

Additional upfitters and suppliers with locations in Automotive Alley include AER Manufacturing, Adrian Steel, Auto Truck GroupClore Automotive, Ground Effects, Grupo Antolin, Knapheide Manufacturing Co., Masterack LLC, CVP Group LLC, Midway Ford, Reading Truck Body LLC, Spartan Motors and XPO Logistics. Those companies, combined with Ford’s North American Vehicle Logistics Outbound Shipping facility, have more than 10,000 spaces for vehicle staging in Automotive Alley.

Doing business 100 feet underground - CNNMoney.com

Doing business 100 feet underground

Here’s a novel way to slash your business expenses in half: Relocate 100 feet underground.
In the Midwest, many businesses have done just that.

In states like Missouri, Kentucky and Pennsylvania, there’s a growing number of firms doing business in subterranean spaces that were once mines. Starting in the 1960s, these spaces were rehabilitated for commercial use.

SubTropolis, in Kansas City, Mo., is a well-known example.

The underground business complex was an active limestone mine in the 1940s, owned by real estate firm Hunt Midwest. As mining started to taper off, it left a vast network of empty caves.

“In the 1960s came the ‘a-ha!’ moment,” said Ora Reynolds, president and CEO of Hunt Midwest. “These spaces could be reused.”

Since then, Hunt Midwest has gradually transformed the defunct spaces.

“Six million square feet of it is ready, and we have room to build out another 8 million square feet based on demand,” said Dick Ringer, SubTropolis’ general manager.

Today, 1,600 people to work at one of the 52 businesses that lease space in SubTropolis’ space, including tech and manufacturing firms, consumer products companies and auto firms.

“Ford at one time used to store its Mavericks here,” said Reynolds. And the U.S. Postal Service currently stores $2 billion worth of stamps in SubTropolis.

“The constant temperature and humidity [it’s 68 to 72 degrees year-round] are ideal for storing stamps and other products,” she said.

Other advantages: There’s underground parking. Construction costs are low since there’s already a natural roof in place — all they need to build are walls.

“We’re a ‘green’ workspace since we’re conserving natural resources,” Ringer said. “And by being deep underground, we’re a pretty secure location for businesses.”

Employees enter SubTropolis through one of 19 entrances that accommodate cars and trucks. This also facilitates cross-ventillation of natural air, although tenants can also add air conditioning and dehumidifiers. Go to CNNMoney.com for more…