Raleigh real-estate developer Highwoods Properties has scrapped plans to build a $58 million office headquarters in Kansas City for the law firm Poisinelli Shughart.
The law firm notified Highwoods that it has terminated the deal and is considering other locations in Kansas and Missouri.
The development would have required tearing down an existing apartment building and ran into unexpected opposition from city officials and residents. Opponents argued that the proposed seven-story building was too big for the location on Kansas City's Country Club Plaza.
When it was announced last year, the project was a major coup for Highwoods as it came at a time when relatively few companies are constructing new buildings.
"We are disappointed that Poisinelli Shughart has decided to pursue alternative options for their offices," Highwoods CEO Ed Fritsch said in a prepared statement.
Highwoods shares closed Monday at $35.27, up 22 cents. The stock is up 10 percent so far this year and is trading at the highest level in more than two years.