Overland Park's Booming Tech and Healthcare Sectors

Discover the Capital of Silicon Prairie

Tuesday, December 17th, 2024

Overland Park Lies Just Just Three Miles from Fountainhead Apartments

Less than three miles from Fountainhead Apartments lies Overland Park, Kansas. With a population of 206,000, Overland Park is the second-largest city in Kansas and was ranked 8th on the list of “Best Places to Live in the U.S.” by U.S. News & World Report in 2021.

Overland Park boasts a diverse economy with a strong presence in various sectors. The city is known for its high percentage of residents with baccalaureate or advanced degrees, making education a significant growth industry. Professional services, retail trade, and transportation services also contribute substantially to the local economy. The city’s economic diversity is further enhanced by its thriving healthcare, finance, and information technology sectors.

Overland Park’s College Boulevard Corridor: The Heart of Silicon Prairie’s Tech Boom

The city has become a tech mecca and economic engine, attracting several major employers to the area. Future job growth over the next ten years is predicted to be 35.5%, which is higher than the US average of 33.5%. Many tech companies are in an area known as the College Boulevard Corridor (CBC), considered by many to be the capital of the “Silicon Prairie”, a name fashioned after Silicon Valley in California which is known for its concentration of tech companies and innovation. The Silicon Prairie represents a burgeoning tech ecosystem that combines innovation, affordability, and a supportive community, making it an appealing alternative to traditional tech hubs. The area is a significant employment hub and is home to such tech companies as:

Black & Veatch: A global engineering, procurement, consulting, and construction company, home to over 2,000 professionals at its headquarters in Overland Park. Founded in 1915, the company specializes in infrastructure development across various sectors, including power, water, telecommunications, oil and gas, mining, government, data centers, and smart cities.

Shamrock Trading Corporation: Home to over 1,800 employees, this parent company is for a family of brands in transportation services, finance, and technology.

Seaboard Corporation: A diverse multinational agribusiness and transportation conglomerate with over 23,000 employees worldwide. The corporate office is located ten miles from Fountainhead Apartments and is home to over 1,400 employees.

T-Mobile: Following its merger with Sprint, T-Mobile has invested $37 million in expanding its Overland Park office to accommodate over 4,000 employees. As part of its expansion, T-Mobile has opened a Customer Experience Center that provides personalized support to customers through T-Mobile’s Team of Experts (TEX) service and is expected to create around 1,000 new jobs.

Netsmart: A leading provider of healthcare software and technology solutions, employing over 1,000 people at its Overland Park office. Founded in 1968, the company focuses on delivering comprehensive solutions for community-based healthcare, including electronic health records (EHRs), health information exchanges (HIEs), analytics, and telehealth services.

SelectQuote: A prominent insurance brokerage firm with its headquarters in Overland Park, home to over 1,200 employees. Founded in 1985, the company specializes in providing direct-to-consumer insurance solutions, including life, auto, home, and health insurance.

HNTB Corporation: A prominent infrastructure solutions firm with a significant presence in Overland Park, employing about 1,200 people.

Aspiria Campus: A Premier Business Hub Inspired by Princeton University

Located less than a 15-minute drive from the Fountainhead Apartments lies the Aspiria Campus, a premier business destination designed to foster innovation and collaboration. The complex is designed after the prestigious Princeton University campus and consists of 20 buildings, spanning over 200 acres and includes approximately 3.8 million square feet of Class-A office space. The campus complex is home to T-Mobile, HNTB, and several other companies.

Partial List of Companies Located at Aspiria Campus:

Cogent Communications: An Internet Service Provider.
Airshare: A private aviation company offering fractional aircraft ownership and charter services.
Hill’s Pet Nutrition: The new headquarters in Overland Park features a modern office design, including an on-site dog park.
TreviPay: A global B2B payments and invoicing network.
Noatum Logistics: Logistic services including global freight forwarding, customs brokerage, supply chain management, project logistics, and warehouse management.
in2itive Business Solutions: A healthcare consulting firm.
Healthcare IT Leaders: A national leader in healthcare consulting and digital transformation

Overland Park’s Healthcare Industry: A Catalyst for Regional Growth

The healthcare industry in Overland Park is a vital component of the region’s economy, contributing to job creation, revenue generation, and future growth. The presence of major healthcare providers like AdventHealth, HCA Midwest Health, and the University of Kansas Health System further enhances the region’s economic prospects for significant growth, driven by population increases, economic impact, and investments by key players. This growth will contribute to job creation, revenue generation, and the overall development of the region. AdventHealth and HCA Midwest Health together employ over 15,000 in the Overland Park area.

In Development: A $2 Billion Urban Oasis Project Creates 16,000 Jobs

Located just over 5 miles from Fountainhead Apartments, the Meridian Redevelopment is one of the largest mixed-use projects in Kansas. This $2 billion project is estimated to create about 16,000 jobs and is transforming the former Brookridge Golf and Fitness Club into a vibrant urban oasis. The development will feature 1.8 million square feet of office space, 2,076 residential units, 251,757 square feet of retail space, and a state-of-the-art cultural performance venue. Approximately 50% of the development is devoted to green space, including a 45-acre publicly accessible park with promenades, forested areas, open lawns, fountains, and walking paths.

Overland Park: A Thriving Epicenter of Innovation and Growth

Just a few minutes away from Fountainhead Apartments, Overland Park, Kansas, is rapidly emerging as a dynamic hub for technology, healthcare, and economic growth. With a thriving business environment, significant investments in infrastructure, and a strong commitment to innovation, the city is well-positioned for continued success. Major employers, such as Black & Veatch, T-Mobile, and AdventHealth, along with transformative projects like the Meridian Redevelopment, are driving job creation and enhancing the quality of life for residents. As Overland Park continues to attract top talent and forward-thinking companies, it remains a prime destination for those seeking a vibrant and prosperous community.

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About the Author

Karen E. Kennedy's expertise spans various areas, including 1031 Exchanges, Delaware Statutory Trust (DST) structured investments, fractional interest ownership, tenancy-in-Common (TIC) owned properties, property acquisitions, portfolio management, and investor relations.

More about Karen E. Kennedy »

1031 exchange guide — **1031 Exchange Guide** A Guide Through the Tax Deferred Real Estate Investment Process

dst front cover — **The ABCs of DSTs** Your guide to understanding fractional interest investing in commercial real estate structured as a Delaware Statutory Trust

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Frequently Asked Questions

What is a 1031 Exchange?

A 1031 exchange is a swap of one real estate investment property for another in a specific way that allows for capital gains taxes to be deferred.
What are the advantages of a DST-Structured investment in commercial property?
There are numerous advantages to investing in a DST structured property offering.
- The purchase of DST interests is simpler, faster and does not require as many documents as buying sole ownership of a property.
- Capital Gains are deferred, if investment is for a 1031 Exchange
- No daily property management obligations that come with sole ownership
- Ability to create a diversified real estate investment portfolio
- Cash flow distributions
- Annual depreciation/tax deductions
- Appreciation upon sale of the property
- Upon the sale of a DST property, the investor may engage in a 1031 exchange, even if the DST interest was purchased without 1031 exchange proceeds.
- A DST is a pass-through tax entity, which is not subject to federal income tax, nor to the Delaware franchise or income tax.
- Because the DST is the mortgage borrower, the lender does not require individual DST investor guarantees, nor does the lender require investors to submit personal financial information to qualify for the mortgage loan.
- Investors with interest in a DST property are protected from property liabilities held by the DST. As a result, the maximum pre-tax loss (excluding income tax considerations) is equal to the amount invested in the DST.
Are there a minimum and maximum investment amounts to participate in a DST property offering?
- Yes; $50,000 to $100,000 are typical minimum investment amounts but this may vary from sponsor to sponsor.
- The maximum amount is contingent on the overall size of the DST offering and the discretion of the DST Sponsor.
Are DST-Structured properties commonly used for a 1031 Exchange?

Interests in Delaware Statutory Trusts are the primary investment method for fractional 1031 exchange investments at this time.
Are there any restrictions on a DST-Structured Investment?
- The IRS places several prohibitions on the power of DST trustees if the Delaware Statutory Trust is to be used with a 1031 tax deferred exchange. There are seven restrictions, sometimes referred to as the ‘Seven deadly sins of a DST’:
  - Once a DST offering is closed there can be no further contributions by current owners, new owners, or beneficiaries.
  - Existing loan terms cannot be renegotiated, nor can new funds be borrowed, by the DST trustee.
  - Sales proceeds from the investment real estate cannot be reinvested by the DST trustee.
  - Capital expenditures can only be made by the DST trustee for normal repair and maintenance, minor non-structural capital improvements, or those required by law (such as items related to zoning codes).
  - Liquid cash held by the DST between distribution dates can only be invested in short-term debt obligations.
  - All cash in excess of necessary reserves must be distributed to investors.
  - New leases or re-negotiations of current leases may not be entered into by the DST trustee.
How does an investment in a DST-Structured property differ from an investment in a TIC-Structured property?
- Like TICs, DSTs have multiple investors that purchase fractional interests and the investors share in the total financial performance of the underlying investment property. However, the primary differences between the two investment structures are:
  - A DST is not limited to a maximum of 35 investors required by Revenue Procedure 2002-22.
  - DST investors (Beneficiaries) are purchasing a beneficial interest in a trust and do not receive deeded property.
  - Beneficiaries in a DST are not necessarily required to form single-member Limited Liability Companies (LLCs).
  - Beneficiaries do not have voting rights or operational control of the property.
  - In a DST structure, there can be no cash calls or additional money invested into the property beyond typical maintenance and certain capital expenditure needs, unlike in TICs.
How a 1031 Exchange is Accomplished?
There are seven recommended steps common to most Section 1031 tax deferred exchange:

BEFORE YOU CLOSE ON THE SALE OF THE RELINQUISHED PROPERTY:

Step 1: Consider retaining the services of a certified public accountant or an attorney with tax deferred exchange experience to assist in planning for an exchange.

Step 2: Engage a Qualified Intermediary, or “QI,” (also called an Accommodator), being sure to name the QI as the principal in the sale of the relinquished property and in the purchase of the replacement property.

Step 3: Sell the relinquished property, making sure to include a cooperation clause requiring the buyer to cooperate with the seller’s 1031 exchange, and instruct the escrow officer or closing agent to order exchange documents from the QI.

AFTER CLOSING THE SALE OF THE RELINQUISHED PROPERTY

Step 4: Escrow closes on the relinquished property, with the closing statement showing the QI as the seller, and sales proceeds from the relinquished property are sent to the QI and placed in a separate segregated trust account.

FAILURE TO SEND SALES PROCEEDS DIRECTLY TO QUALIFIED INTERMEDIARY FROM ESCROW WILL RESULT IN INABILITY TO EXCHANGE.

Step 5: Within 45 calendar days of the close of escrow of the relinquished property the exchanger identifies one or more replacement properties and sends written notice of this to the QI.

Step 6: The exchanger executes a purchase contract with the seller of the replacement property, making sure the cooperation clause is included in the purchase contract, and naming the QI as the buyer of the replacement property.

Step 7: Within 180 calendar days of the close of escrow of the relinquished property, the exchanger instructs the QI to transfer funds to close escrow and sends 1031 exchange-related documents to the escrow company, and the sale closes with the closing statement showing the QI as the buyer on behalf of the exchanger.
- After the replacement property has closed escrow, the QI will send a final accounting statement to the exchanger. The statement will show that funds have come from one escrow directly into another, all without the taxpayer having constructive receipt of the funds.
- Real estate investors should note that although the qualified intermediary is indicated as the seller and buyer on the purchase contracts, the deed and title are always from the taxpayer to the buyer, and from the seller to the taxpayer.
What qualifies as a “like-kind” replacement property?
- The definition of a qualifying like-kind property is very broad, for both the sold property and the replacement property: real estate used for investment or business purposes. Personal use property is not eligible.
- Investment real estate (held for either appreciation or for rental) can be exchanged for real property used in a trade or business. Partial interests such as TICs or DSTs, are exchangeable with other types of real property.
How is a replacement property identified?

A like-kind replacement property is identified if it is designated as replacement property in a written document signed by the exchanging party and received by the QI before the end of the 45-day identification period. Every QI uses their own form of documentation. Please consult with your QI to determine the exact procedure they require.

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Authored By: Karen E. Kennedy

President & Founder • NAS Investment Solutions

Karen E. Kennedy's over-40 years experience spans various areas, including 1031 Exchanges, Delaware Statutory Trust (DST) structured investments, fractional interest ownership, Tenancy-in-Common (TIC) owned properties, property acquisitions, portfolio management, and investor relations. See Full Bio