Blue Cross and Blue Shield of Kansas City agreed to sublease the entire 1400KC, a newly completed 18-story office tower, to salvage what could have been a devastating blow to downtown Kansas City, Missouri.
The 260,000-square-foot-plus building became available after Waddell & Reed Financial, acquired by Macquarie Asset Management, announced it would no longer take occupancy of the building.
Blue KC will relocate its headquarters to the 1400KC building at 1400 Baltimore Ave. The division of health insurance giant Blue Cross Blue Shield will be relocating from an owned property and will also be vacating leased space in the city. Blue KC plans to occupy the building in the first quarter of 2025.
Blue KC employs 1,400 people locally. The impact of keeping those jobs in the market helped the deal win a 2023 CoStar Impact Award, as judged by real estate professionals familiar with the market.
About the project: Originally intended for Waddell & Reed Financial, 1400KC now will be home to Blue Cross and Blue Shield of Kansas City. The building will allow Blue KC to consolidate all on-site employees into one location, with 10 levels of parking for workers and guests. 1400KC was constructed to be one of the most environmentally advanced buildings in the Kansas City market. Its other amenities include a fitness center, access to on-site dining and numerous restaurants within walking distance.
What the judges said: “Backfilling a 260,000-square-foot-plus building in the central business district and retaining an important company like Blue Cross Blue Shield in the heart of Kansas City will have an enduring impact for our city and future developments,” said Chuck Connealy, a principal of Waterford Property Co.
They made it happen: Sven Sykes, Tom Volini and Bryan Johnson of Colliers represented Blue KC. Bob Fagan and Matt Eckert of CBRE represented the landlord, Macquarie Asset Management.
