Kansas City Industrial Site Slated for Demolition

A Princeton-based trust filed plans to clear four aging buildings at a former development site in Kansas City.

Updated on Sept. 30, 2026 in Commercial

Bold vector editorial illustration of an aging brick building and chain-link fence, representing urban site redevelopment in Kansas City. — Essential Properties Realty Trust has filed demolition plans for four aging industrial structures in Kansas City to prepare the property for future redevelopment. AI Illustration. Upload story photo >

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Should your city prioritize preserving historic industrial buildings over clearing land for new commercial development?

Essential Properties Realty Trust filed a demolition and grading plan in August 2026 for four industrial buildings located at 2425 Jefferson Street. The site previously held the stalled Pennway Point project, though the KC Wheel attraction will remain due to a long-term lease.

Why it matters

The property owner is preparing the parcel for future redevelopment after acquiring the land from Safranda Mo, LLC in June 2026. Because the structures are older than 50 years, the demolition plan currently under city review must undergo a historic preservation commission evaluation.

The site includes the 6,000-square-foot Pennway Oil Co. building and the 30,000-square-foot Funkhouser Machinery Co. building. A 150-foot Ferris wheel remains on the property.

The players

Essential Properties Realty Trust

This Princeton-based company acts as the current property owner of the 2425 Jefferson Street parcel.

Safranda Mo, LLC

This entity served as the former owner of the parcel before the June 2026 sale.

The details

The structures slated for removal date back to the early 20th century, including buildings constructed in 1908 and 1930. The demolition plan follows the failure of the prior Pennway Point project, which had previously sought millions in funding.

The Funkhouser Machinery Co. building was constructed in 1908.
The Carter-Waters Corp. building was built in 1930.
Essential Properties Realty Trust purchased the property on June 8, 2026.
A demolition plan for four buildings was filed in August 2026.
The city is currently reviewing the demolition plans as of September 2026.

Roadmap

The site remains defined by the legacy of the Pennway Point project, which stalled despite attempts to secure millions in development funding. Clearing the land now positions the property for a new phase of commercial use following the failure of the initial site vision.

Residents and visitors should note that the KC Wheel remains operational despite the surrounding demolition activity. The site's transformation may eventually lead to new commercial or recreational amenities in the area.

The takeaway

Property owners must balance historic preservation requirements when redeveloping sites with century-old industrial architecture. Future site plans will likely require significant municipal approval before construction can begin.