Fort Street Partners, in joint venture with Cumming Capital Management, has acquired Lehi Spectrum I and II, Utah Business reported. The Boyer Co. previously owned the 257,000-square-foot Class A office building duo, located in Lehi, Utah.

Woodley Real Estate and Newmark brokered the deal on behalf of the seller.

Lehi Spectrum I is at 1650 W. Digital Drive, while Lehi Spectrum II is at 1550 W. Digital Drive. Completed between 2018 and 2020, both properties were developed by The Boyer Co. as Podium’s headquarters, which currently occupies space at Lehi Spectrum I. The second building’s tenant roster includes Vivint, Waystar and DevMountain.

READ ALSO: Beyond Aesthetics: Prioritizing Well-Being in Workplace Design

Situated on a 14-acre lot across the Interstate 15 corridor, the properties allow easy access through the Silicon Slopes tech hub. Provo, Utah, is 19 miles away and Salt Lake City is 26 miles from Lehi Spectrum. Meanwhile, Salt Lake City International Airport is some 30 miles away.

Both office buildings rise five floors and include 25,000-square-foot floorplates, three passenger elevators each and a total of 1,159 vehicle parking spots, according to CommercialEdge. Amenities feature a fitness center, locker rooms with showers, a daycare, pickleball courts, an open space auditorium and food services.

Salt Lake City’s rise in office transactions

Office sales in Salt Lake City generated $472 million in 2024, according to fourth quarter Cushman & Wakefield report on the metro’s investment activity. There were 46 office assets totaling 2.4 million square feet that traded at an average sale price of $202 per square foot.

The investment activity increased since the $370 million recorded during the previous year, but the Salt Lake City metro is also expected to continue to see a rise in discount deals, reflecting current national office real estate trends.

The post Fort Street JV Picks Up Office Duo in Salt Lake City appeared first on Commercial Property Executive.

The significant financing deal comes as the AI data center demand grows. In January, J.P. Morgan provided a $2.3 billion loan to the joint venture of Blue Owl Capital, Crusoe Energy Systems and Primary Digital Infrastructure for the development of a build-to-suit data center project in Abilene, Texas. The campus will be designed, developed and operated by Crusoe.

Novva’s Salt Lake City campus, up close

Construction of the second phase at Novva’s Salt Lake City campus began in December 2023 and is slated for completion in 2026. Phase 3 construction began in January 2024 and is also expected to deliver by 2026. Both phases will feature 318,000-square-foot data centers and each will have the capacity to produce 72 megawatts of critical IT load.

The 175 megawatt campus, which will span about 1 million square feet when completed, was fully leased in 2023 to a leading global tech company. The first phase began operations in 2023 and has the ability to operate without water year-round and cool with ambient air. When fully operational, the complex is expected to consume approximately 84 percent less water than similar data centers in the region.

READ ALSO: From Data Center YIMBY to NIMBY?

The project is taking shape at 6477 Wells Park Road, roughly 18 miles from Salt Lake City International Airport and 22 miles from downtown Salt Lake City. The property has access to four long-haul fiber routes and includes a 200 megawatt substation with N+1 redundancy.

The location is attractive for data center operations because it offers low-cost power, low disaster risk, low latency, no sales tax on equipment purchases and a high-altitude cold desert climate, Novva CEO Wes Swenson said in prepared remarks.

J.P. Morgan acted as lead arranger and Starwood Property Trust acted as arranger for the financing. Simpson Thacher & Bartlett LLP served as legal counsel for CIM Group and Novva Data Centers.

Data center growth

The Salt Lake City property is Novva’s flagship. The firm also operates data centers in Colorado Springs, Colo., and Las Vegas. Other developments will come online in Reno, Nev., San Francisco and Mesa, Ariz.

Novva announced plans for the Mesa campus in August 2024. The company is expected to invest more than $3 billion over the next decade on the 160-acre property marking its first foray into Arizona. The first phase will have 96 megawatts of capacity and is slated for completion in late 2026.

The post CIM, Novva Land $2B for Data Center Development appeared first on Commercial Property Executive.

Fort Street Partners and Chestnut Healthcare Real Estate have formed a programmatic joint venture to acquire and develop up to $150 million in assets over the next four years. The duo will focus on core and value-add investments in outpatient medical and surgery centers in the Greater Salt Lake City area.

JLL Capital Markets arranged the venture between the two firms, which have previously collaborated on at least two other Utah deals last summer.

In June, Fort Street Partners secured the equity for a 20,399-square-foot medical project in Syracuse, Utah, through Chestnut Healthcare. Located at 3000 W. Antelope Drive, the development is scheduled to come online later this year and is fully preleased to three regional physician groups.

READ ALSO: Challenges Create Opportunities, Says MOB Investor

A month later, the two companies obtained equity placement for the Eagle Mountain Medical Center development, a 24,655-square-foot medical building at 4263 N. Pony Express Parkway in Eagle Mountain, Utah. The two-story facility is expected to come online toward the end of this year.

JLL Capital Markets Director CJ Kodani and Managing Director Mark Root led the team that arranged the joint venture.

MOB sector remains steady

The medical office real estate sector is on an upward trajectory, with a Savills report forecasting a 26 percent rise in outpatient demand over the next decade, primarily due to the aging population, and despite the current economic uncertainties affecting the commercial real estate sector.

Economic incentives, particularly decreasing interest rates, are anticipated to boost MOB investment going forward. However, the medical labor market is far from keeping pace, with the sector facing a significant shortage of specialists, especially physicians and nursing staff.

The post Chestnut Healthcare, Fort Street Form $150M JV appeared first on Commercial Property Executive.

ViaWest Group has sold 5 South Commerce Center, a 172,847-square-foot Class A industrial property in Salt Lake City. STAG Industrial acquired the single-tenant facility. Cushman & Wakefield worked on behalf of the seller.

ViaWest Group purchased the development site in early 2022, marking its debut in the Salt Lake City market. The property came online in late 2023 on an 11-acre site.

The company developed the property using an approximately $18 million construction loan originated by Western Alliance Bank, according to CommercialEdge. CHEP USA fully occupies the property, the same source shows.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

Located at 3175 W. 500 S., the facility has access to interstates 215 and 80 and is less than 5 miles west of downtown Salt Lake City. Additionally, 5 South Commerce Center is close to Salt Lake City International Airport, which is currently undergoing a $4.1 billion renovation and expansion with completion scheduled for 2026.

The building includes 32-foot clear heights, ample column spacing, an ESFR sprinkler system, four grade level doors, 35 dock-high doors, a 2,500-square-foot office component, a nearly 1.8-acre site storage area and 146 vehicle parking spots.

Executive Vice Chairmen Will Strong, Rick Ellison and Jeff Chiate, together with Directors Michael Matchett and Aubrie Monahan, Senior Associate Molly Hunt and Associate Matthew Leupold with Cushman & Wakefield’s National Industrial Advisory Group worked on behalf of the seller. The company’s Senior Director Phillip Eilers and Director Jon Schreck assisted in providing leasing advisory during negotiations.

Deals volume expected to pick up

Salt Lake City’s industrial market saw a significant slowdown during the third quarter of 2024, according to a recent CBRE report. There were just under 1 million square feet leased, marking the lowest amount of leasing activity in a single quarter since the first quarter of 2014.

The industrial investment volume was modest, with only 357,864 square feet changing hands during that period, the same report shows. Even so, a boost in sales is expected following the recent Federal Reserve interest rate cuts.

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A joint venture between Cypress West Partners and TPG Angelo Gordon has acquired Renaissance Medical Center, a 112,192-square-foot medical outpatient building in Bountiful, Utah, a Salt Lake City submarket. The duo took out a permanent loan from Capital One, according to CommercialEdge.

Healthcare Realty sold the asset, the same source shows. The company had purchased it in June 2008 from Broadhead & Co. for $30.2 million.

Newmark Healthcare Capital Markets represented Cypress West Partners and arranged the acquisition financing.

The five-story building came online in 2004 and includes almost 3,900 square feet of first-floor retail space. The facility features floorplates averaging 28,179 square feet, two passenger elevators and about 435 parking spaces.

READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025

MountainWest Surgical Center, an ambulatory surgical center owned by HCA Healthcare, anchors the Class A property. The roster also includes eight other medical tenants, with specialties and services including orthopedics, physical therapy, imaging, spine and urology.

Located at 1551 S. Renaissance Towne Drive, the facility is 12 miles from Salt Lake City International Airport, while downtown Salt Lake City is 9 miles away. Additionally, the building is less than 2 miles from Lakeview Hospital.

A $300 million joint venture

The partners purchased the property through their $300 million venture that was announced earlier this year. The companies are focusing on high-growth West Coast and Sunbelt markets, targeting core-plus and value-add returns through leasing, repositioning and redevelopment of medical office assets.

The duo’s first acquisition, which closed in March, involved an 86,000-square-foot medical building in Scottsdale, Ariz. Healthpeak Properties sold the asset.

A few months later, the joint venture purchased Chula Vista Medical Arts II, a nearly 37,000-square-foot medical outpatient building in Chula Vista, Calif. Turner Impact Capital sold the 1985-completed property.

The post Cypress West, TPG Buy Salt Lake City MOB appeared first on Commercial Property Executive.

CRC acquired The Crossroads of Taylorsville through its Continental Realty Opportunistic Retail Fund I LP, a close-ended fund for which roughly $323 million has been raised and that the company also used to enter the Virginia market this spring.

Over the past 12 months, new leases and renewals at the shopping center totaled more than 75,000 square feet.

Anchored by Target and shadow-anchored by Harmon’s Grocery, The Crossroads of Taylorsville has 60+ tenants, including Dollar Tree, T.J. Maxx, Ross Dress for Less, EOS Fitness, Guitar Center, PetSmart, King Buffet, Lifetime Products, Applebee’s , Subway, Regal Cinema and Sierra Trading Post, among others.

The shopping center was 94 percent leased at the time of the deal, but CRC plans to leverage the current tenant mix to achieve full occupancy, according to a prepared statement from CEO JM Schapiro.

READ ALSO: Bridging the Funding Gap for Retail

The Crossroads of Taylorsville came online in 1982, encompassing 10 buildings and 7 separate outparcels or multitenant strip buildings. The retail center’s parking lot has a capacity of almost 3,900 vehicles. Six years ago, The Crossroads of Taylorsville became subject to a $69 million loan originated by NexBank, CommercialEdge data shows.

Located at 5400 S. Redwood Road, The Crossroads of Taylorsville is within an Opportunity Zone in Salt Lake City’s Taylorsville submarket. The shopping center serves around 420,000 individuals and 53,000 households within a 5-mile radius, with the average household income of approximately $96,000, according to CRC.

Salt Lake City’s retail scene

The Salt Lake City retail market ended the second quarter with a 3.9 percent availability rate, marking a 0.2 percent increase from the previous quarter, according to a recent CBRE report. In the second quarter of the year, only 45,000 square feet of retail space was introduced to the market, compared to 136,000 square feet in the first three months of the year.  

Meanwhile, the average asking lease rate fell by $0.60, settling at $22.35 per square foot as of June. The total sales volume was only $41.3 million in the second quarter, the same source shows.

The post CRC Makes Utah Debut With 630 KSF Retail Buy appeared first on Commercial Property Executive.

Drawbridge Realty has secured a 62,737-square-foot lease expansion at Airport Technology Park in Salt Lake City. Testing laboratory company Myriad Genetics grew its life science R&D footprint by roughly 25 percent to a total of 296,881 square feet. CBRE represented the tenant.

The park’s Building D houses Myriad Genetics’ laboratory and support center is in Building D at the park. The company initially leased 234,144 square feet at the property in 2022.

Building D spans nearly 320,000 square feet and came online in 1959. In 2022 it became subject to a $49.4 million loan from Global Atlantic Financial Group, according to CommercialEdge data.

READ ALSO: Attracting Life Science Tenants in Core Markets

Airport Technology Park spans 1.4 million square feet across eight buildings. The anchor tenant at the 79-acre property is L3 Harris.

Located at 322 N. 2200 W., Building D is adjacent to Salt Lake City International Airport. It is next to Interstate 215, close to the intersection with Interstate 80 and roughly 5 miles west of downtown Salt Lake City.

CBRE Executive Vice President Scott Wilmarth and Senior Vice President Nadia Letey represented Myriad Genetics in the expansion.

Drawbridge Realty’s varied national portfolio

Drawbridge Realty operates a 48-building portfolio across 12 markets. The company has a total footprint of 6.1 million square feet, consisting of single-tenant office, R&D, life science and industrial assets.

Last year, the company secured a 69,154-square-foot lease in Greenwood Village, Colo., near Denver, with engineering and architecture firm Merrick & Co. The tenant committed to 12 years at one of the five buildings in the Greenwood Corporate Plaza suburban office park.

The post Drawbridge Lands 63 KSF Life Science Lease Expansion appeared first on Commercial Property Executive.

A joint venture of Gardner Batt, BCG Holdings and a fund advised by Crow Holdings Capital has sold an industrial property totaling 179,400 square feet in Salt Lake City, within the metro’s Northwest Quadrant industrial submarket.

LBA Logistics purchased the last available building at Mountain View Industrial Park, a recently developed campus encompassing nearly 1.3 million square feet. Cushman & Wakefield worked on behalf of the seller.

The one-story industrial property is at 6020 W. 150 S. and includes 32-foot clear heights, sky lights, two grade level doors and 88 dock high doors, according to CommercialEdge. The same source reveals that Comerica Bank issued a $19.5 million construction loan for the project. Building B is fully occupied by a molecular diagnostics company.

Nuveen and Deutsche Bank each acquired a building

Mountain View Industrial Park’s Building B is on 46 acres and allows access to Interstate 80, as well as to State Route 154. Additionally, the industrial facility is 5 miles from Salt Lake International Airport, 9 miles from downtown Salt Lake City, 14 miles from South Valley Regional Airport and within 20 miles of West Jordan, Utah.

Cushman & Wakefield’s team of Executive Vice Chairmen Jeff Chiate, Rick Ellison and Jeffrey Cole, together with Director Matthew Leupold negotiated on behalf of the seller. The same team represented the partnership in each of the three transactions, while the company’s Executive Director Tom Freeman, Travis Healey and Jeremy Terry led leasing efforts for the facilities.

The other buildings at Mountain View Industrial Park are the 833,280-square-foot Building A and the recently delivered 243,232-square-foot Building C. The campus’ Building A was completed in 2022, when Deutsche Bank’s subsidiary, DWS, purchased it, according to CommercialEdge. Building C was sold earlier this year to Nuveen Real Estate, the same source reveals.

Projects coming to Salt Lake City

Significant industrial projects currently underway in Salt Lake City include ViaWest Group’s Central Commerce Center, a two-building development that will total 340,000 square feet of space. The company broke ground on the Class A project earlier this month, together with Clarion Partners. Colliers is leading leasing efforts.

At the beginning of the year, Riverbend Management secured $112 million in credit tenant lease and equipment financing for Copper Crossing @ I-80, a 309,389-square-foot warehouse that will be converted into a manufacturing facility.

The post LBA Logistics Buys Last Building at Industrial Campus in SLC appeared first on Commercial Property Executive.

ViaWest Group, together with Clarion Partners, has commenced construction on Central Commerce Center, an approximately 340,000-square-foot, two-building industrial development in Salt Lake City. Colliers has been tapped as exclusive leasing agent for the project, while Big D Construction is the general contractor.

In late 2023, Principal Financial Group originated a $37 million construction loan with a maturity date set for December 2028, according to Salt Lake County public records.

Plans at Central Commerce Center call for two buildings, the first encompassing 96,788 square feet and the other at 243,057 square foot, located at 4105 and 4209 W. Central Ave. The first will include 26 dock-high doors and three grade-level doors while the second is slated to have 44 dock-high doors and four grade-level doors. Additionally, both facilities are designed to achieve LEED certification and have a total of 56 trailer parking spots.

The 25-acre industrial project will offer easy access to interstates 15, 80 and 215, as well as to Utah State Route 201. The site is 3 miles from Salt Lake City International Airport and 11 miles from South Valley Regional Airport, as well as within 20 miles of South Jordan, Utah.

Colliers Executive Vice President Rusty Bollow, Vice President Bobby Stevens and Senior Associate Andrew Bell will market the property for lease. ViaWest Group Market Leader Tom Glissmeyer stated in prepared remarks that the development is taking shape in the heart of the market’s Northeast Quadrant, and its completion is timed to address a considerable supply decrease in the area.

Salt Lake City’s industrial pipeline

According to a Salt Lake County industrial report by Colliers, 2.3 million square feet of industrial space was delivered in 2023, while the metro’s under-construction pipeline reached 4.9 million as of the fourth quarter. The North West submarket led in development by far, with a whopping 78 percent of construction starts occurring there.

Another significant industrial project coming to Salt Lake City is Riverbend Management’s 309,389-square-foot warehouse within Copper Crossing @ I-80. The developer secured $112 million in credit tenant lease and equipment financing, retiring a construction loan and converting the recently completed property to manufacturing.

The post ViaWest, Clarion Kick Off SLC Industrial Project appeared first on Commercial Property Executive.

Blackstone Credit & Insurance, an entity of private equity giant Blackstone, has provided an initial $600 million senior secured credit facility to Aligned Data Centers for the development of SLC-03, the technology infrastructure company’s newest and largest data center near Salt Lake City.

The credit facility is the first financing deal as part of a new strategic partnership between BXCI and Aligned. It is committed by insurance accounts managed by BXCI’s Infrastructure & Asset Based Credit Group.

READ ALSO: AI Is Changing the Game for Data Centers: JLL

Located at 3333 W 9000 S in West Jordan, Utah, SLC-03 is a two-story, 80 MW build-to-suit data center development, the fourth on Aligned’s hyperscale campus in the Salt Lake City metro area. The facility will include the firm’s patented Delta Cube cooling technology featuring a waterless heat rejection system.

Aligned announced plans to develop SLC-03 for an unidentified customer in June 2022. Nearly a year earlier in August, the firm had acquired the site and started work on SLC-04, another multi-megawatt build-to-suit facility at the West Jordan campus. Other on-site facilities include the 300,000-square-foot SLC-01 and the 240,000-square-foot SLC-02, that was completed in March 2021.

Aligned’s recent operations include its first foray into the Ohio market. In September 2023, the firm acquired a 129-acre land parcel in Sandusky, formerly occupied by General Motors, for development of a new data center campus.

Including Ohio and Utah, the company now operates or is developing facilities in eight states—Texas, Illinois, Oregon, Arizona, Maryland and Virginia. Aligned also has one location in Canada and four in Latin America.

Blackstone’s data center deals

Blackstone has increasingly targeted data center investments in recent years. Late last year, Digital Realty formed a joint venture with funds controlled by Blackstone for the development of four new data centers in Northern Virginia, Paris and Frankfurt. The partnership expects to invest at least $7 billion and develop up to 10 data centers.

In June 2021, Blackstone acquired QTS Realty Trust for $10 billion. Last July, the firm announced it sold off other assets to fund an $8 billion commitment to build new data centers through QTS.

The post Blackstone Provides $600M Credit Facility to Aligned Data Centers appeared first on Commercial Property Executive.

St. John Properties Inc. has signed a 29,260-square-foot office lease at Valley Grove, a mixed-use development that will encompass more than 1.5 million square feet of space in Pleasant Grove, Utah. The tenant, Win Brands, will be using the space as its new corporate headquarters that will house nearly 110 employees starting this summer.

Win Brands will relocate its corporate offices at Valley Grove III, located at 1333 S. Valley Grove Way, where it will occupy the entire top floor. The six-story office building totals 140,768 square feet of space.

The developer broke ground on Valley Grove III in 2022. Completed last year on a 6-acre site, the building is 12 miles from Provo, Utah, 20 miles from South Jordan, Utah, 34 miles from downtown Salt Lake City and within 38 miles of Salt Lake City International Airport.

Designed to achieve LEED certification, office buildings at Valley Grove will range from 23,454 square feet to 189,595 square feet and will include ceiling heights between 10 and 13 feet, built-to-suit office suites and ample parking. Current tenants include Alianza Inc., Real Team Realty, Coldwell Banker, Colliers, Presidio Property Management and First Colony Mortgage, among others, CommercialEdge shows.

The upcoming Valley Grove campus

Valley Grove is a 130-acre mixed-use business campus that currently includes 750,000 square feet of Class A office space and 100,000 square feet of flex or R&D space. The project includes four single-story, one six-story and three mid-rise office buildings, together with two R&D buildings, multiple retail spaces and nine pad sites. Additionally, the business community will feature a 34,000-square-foot Tesla dealership and a full-service hotel.

Last year, the developer revealed that a 47-acre addition will be used for Valley Grove Phase VI, that will include office, retail and luxury residential space. St. John Properties’ total investment is expected to surpass $1.2 billion. St. John Properties Director Scott Gifford and Regional Partner Daniel Thomas are leading the leasing efforts.

Silicon Slopes’ popularity

Other companies that recently committed to the Salt Lake City area include Mōdere, which signed a 12,919-square-foot lease at Zions Tower in downtown Provo, Utah. The tenant will relocate its headquarters at the 127,093-square-foot Class A office building, owned by PEG Development, from Springville, Utah.

In January, Sentry Financial and Newport National Corp. acquired The Cliff Building, a 106,000-square-foot office property in Salt Lake City. Sentry Financial announced it will relocate its offices at the property’s eight floor.

In early 2023, Clearlink signed a 135,000-square-foot commitment at 42 Future Way, a Class A office campus in Draper, Utah. The property is owned by Gardner Co.

The post St. John Inks HQ Lease for $1.2B Salt Lake Project appeared first on Commercial Property Executive.

PEG Development has signed a 12,919-square-foot lease with Mōdere at Zions Tower, a 127,093-square-foot Class A office building in downtown Provo, Utah. The health and wellness brand of household and beauty items will relocate its headquarters from Springville, Utah, using the new space as a central hub for 100 employees.

JLL negotiated on behalf of the tenant, while Mountain West Commercial worked on behalf of the landlord.

With this deal, Mōdere is strengthening its presence in Utah, where it has 200 employees in three locations. Other tenants at the property include Zions Bank, Utah County Public Defender, Ascent Wear, Regus and Blue Diamond Capital, CommercialEdge shows.

Built in 2010, Zions Tower is an eight-story office property at 180 N. University Ave. that features two passenger elevators, 2,000 square feet of retail space, a meeting room, a conference center and 385 covered parking spots. The property is situated within Salt Lake City’s submarket of Orem Provo, close to Interstate 15 and to multiple bus stations, 5 miles from Provo Municipal Airport, 6 miles from Springville and 45 miles from Salt Lake City.

Companies that chose Silicon Slopes

JLL’s Managing Director David Nixon worked on behalf of the tenant. PEG Development was represented by Mountain West Commercial’s Commercial Real Estate Specialist Cody Black.

Earlier this month, Sentry Financial and Newport National Corp. purchased The Cliff Building, a 106,000-square-foot creative office property in Salt Lake City. Sentry Financial will relocate its offices to the property’s eight floor. Other companies that committed to the area are Chicago-based flex office provider Workbox, that opened a coworking space in downtown Salt Lake City in June, and Claerlink, that signed a 135,000-square-foot lease in February at 42 Future Way, a Class A office campus in Draper, Utah.

The post PEG Development Inks Utah Office Lease appeared first on Commercial Property Executive.

Riverbend Management has obtained a $112 million credit tenant lease and equipment financing for a 309,389-square-foot warehouse within Copper Crossing @ I-80 in Salt Lake City. JLLS, part of JLL Capital Markets, structured and placed the loan.

Proceeds will refinance an existing construction loan and provide more than $80 million in equipment upgrades that will transform Building 5 into a manufacturing facility. Completion is anticipated in early 2025.

READ ALSO: Top 5 Western Markets for Industrial Construction

The 2022-built, cross-dock warehouse currently features 36-foot clear heights, 74 dock-high loading doors, eight drive-in doors and 60-foot bay spacing, as well as 145-foot truck courts. The property also has 95 trailer stalls and 424 vehicle parking spaces.

Building 5 is at 6320 W. 300 S., within 6 miles from Salt Lake City International Airport and 9 miles from downtown Salt Lake City. The location is also some 5 miles from Raceway Commerce Center, a 397,894-square-foot industrial campus that changed hands last year.

Copper Crossing @ I-80, up close

Developed in phases alongside Interstate 80, the nearly 500-acre industrial campus is expected to comprise 13 buildings at full buildout, ranging from 30,000 to 1 million square feet. Home to UPS’ prototypical regional sorting facility, it’s also the only development in the metro to offer rail-served services.

Partners on the project include BIG-D, which served as general contractor for multiple facilities within the campus. Tenants at the industrial park include Sephora, Costco Wholesale and Amazon, among others.

JLL representation

The JLLS team representing the borrower included Senior Managing Directors Bill Cavagnaro and Austin Johnson. Last year, the duo helped Parkway Corp. obtain $409 million in credit tenant lease financing for the development of a 438,000-square-foot office building.

A JLL’s Work Dynamics team assisted Riverbend in the manufacturing site selection, while JLL’s Product and Development Services serves as construction monitor.

The post Riverbend Secures $112M for Salt Lake City Facility appeared first on Commercial Property Executive.

A joint venture between Sentry Financial and Newport National Corp. has acquired The Clift Building, a 106,000-square-foot creative office asset in Salt Lake City. The seller was Fortress Investment Group and the deal closed at $14.3 million, according to CommercialEdge data. The sale involved a $15 million loan from First Utah Bank, part of which allocated to capital improvements.

Constructed in 1919 and most recently renovated in 2022, the building rises eight stories and features 15,000-square-foot floor plates. It also includes 12,000 square feet of retail space, as well as a rooftop amenity deck and a fitness center. At the time of the sale, the property was 77 percent occupied, with tenants including DevPoint Labs, Hom Exp Realty and coworking firm Spaces, CommercialEdge information shows.

Sentry Financial CEO Jonathan Ruga stated in prepared remarks that the company will also relocate its offices to the building’s eighth floor. The transaction closed in December, 2023.

Located at 10 W. Broadway in an Opportunity Zone, the downtown Salt Lake City building is close to Highway 89 and roughly 7 miles from the Salt Lake City International Airport, as well as less than 3 miles from the University of Utah.

Throughout 2023, 13 office properties or 1.2 million square feet traded in Salt Lake City, according to CommercialEdge information. The investment volume totaled $161 million at an average price per square foot of $174.3, the same source shows.

The post Historic Salt Lake City Building Trades appeared first on Commercial Property Executive.

Sandy Commerce Park came online in 2017. Image courtesy of JLL

Nuveen Real Estate has sold Sandy Commerce Park, a 121,197-square-foot Class A creative office building in Sandy, Utah, a Salt Lake City suburb. The buyer, Alturas Capital Partners LLC, took out a $13 million, five-year acquisition loan from life insurance company Symetra, public records show. JLL represented the seller in the transaction and arranged the financing on behalf of the borrower.

Completed in 2017, the property is fully leased to eight tenants, with the average weighted lease term reaching 3.7 years. Some of the tenants include Momentum Loans, Colonial Life and SeniorCare Benefits.

The Class A office building rises five stories with an average floorplate of 25,000 square feet. The property features three passenger elevators, floor-to-ceiling glass, bike storage and some 600 parking spaces.

Located on 6.5 acres at 9490 S. 300 W. in the Silicon Slopes submarket, the property is close to several retail and dining options, such as The Shops at South Town and a Walmart Supercenter. Downtown Salt Lake City is some 14 miles northeast, while Salt Lake City International Airport is 18.6 miles away.

The JLL Investment Sales and Advisory team that represented the seller included Senior Director Phil Brierley and Director Cole Macadaeg. The JLL Debt Advisory team that arranged the financing for Alturas Capital Partners comprised Managing Director Mark Root and Director Will Haass.

The post Nuveen Sells Salt Lake City Office Asset appeared first on Commercial Property Executive.

LFAB2 is Texas Instruments’ second facility in Lehi, Utah. Image courtesy of Texas Instruments

Texas Instruments has broken ground on its second 300-mm semiconductor fabrication plant in Lehi, Utah. The new facility, LFAB2, will manufacture analog and embedded processing chips.

The $11 billion investment, announced in February, is the largest in the history of the state. Upon its anticipated opening in 2026, LFAB2 will function alongside the existing LFAB1 facility to manufacture tens of millions of chips per day. The new factory will employ approximately 800 workers.

READ ALSO: Semiconductor Boom Continues to Boost CRE

Located at 4000 N. Flash Drive, the Utah fabs are on a 283-acre lot in the Silicon Slopes, CommercialEdge data shows. Downtown Salt Lake City is approximately 29 miles north of the site, while downtown Lehi is 4 mile south.

LFAB1 features more than 275,000 square feet of clean room space, 7 miles of overhead delivery systems and sustainable designs to reduce waste, energy usage and water consumption. It began production in December 2022 after being acquired from Micron Technology in 2021 for $90 million.

Designed to achieve a LEED Gold-certification, LFAB2 will be powered entirely by renewable energy. Sustainable features of the facility are anticipated to reduce waste and energy consumption and recycle water at twice the rate of LFAB1.

The world of U.S. fabs

TI is also in the process of building four 300-mm wafer fabs in Sherman, Texas. Chip production at the Lone Star State facilities, marking a $30 billion investment, is anticipated to begin in 2025.

Receiving support from the CHIPS and Science Act and its $280 billion budget, semiconductor fabrication plants and manufacturing facilities continue to be some of the largest contributors to industrial real estate development and related investment activity nationwide.

One of the most sizable projects is Micron Technology‘s $100 billion memory ‘megafab’ coming to Syracuse, New York, representing the largest private investment ever made in the state. Groundbreaking is expected next year.

The post Texas Instruments Launches $11B Chip Plant appeared first on Commercial Property Executive.

Mountain Point Medical Center, a medical office building in Lehi, Utah. Image courtesy of JLL Capital Markets

Heitman has purchased Mountain Point Medical Center, a 60,000-square-foot medical office building in Lehi, Utah. Inland Real Estate Group sold the property after eight years of ownership, according to CommercialEdge data. JLL Capital Markets procured the buyer and represented the seller.

Completed in 2015, the three-story building is connected to the 40-bed Holy Cross Hospital – Mountain Point. The medical facility was fully leased by Centura Health at the time of sale; orthopedics, general surgery, radiology, women’s health and ENT are among the services provided at the location.

The Class A asset is at 3000 N. Triumph Blvd., in an area with several dining options, retail centers and entertainment venues. The medical office building is right off Interstate 15, which provides direct access to downtown Salt Lake City.

JLL Senior Managing Director Mindy Berman, Director Matt DiCesare and Director Vasili Davos led the team arranging the transaction. Senior Director Phil Brierley and Director Cole Macadaeg provided local expertise.

In January, a partnership between Heitman and Woodside Health recapitalized a 423,000-square-foot medical office building portfolio. The $140 million transaction involved 10 properties in Texas, Arizona, Georgia and Florida.

The post Heitman Buys Salt Lake City MOB appeared first on Commercial Property Executive.

Workbox Salt Lake City main entryway. Image courtesy of Workbox

Chicago-based flexible office provider Workbox will open a coworking space in downtown Salt Lake City. The firm will occupy the space at the historic Orpheum Theatre, taking over the location formerly managed by CommonGrounds Workplace. The expansion marks the company’s sixth venue and its first outside the Midwest.

The three-story location spans 19,972 square feet and encompasses 50 office spaces, with private offices featuring between one and nine desks. Amenities include private conference rooms, a shared kitchen with coffee bar, phone booths, a wellness room and color printing. Additional building facilities comprise showers, ski lockers and a complimentary shuttle to the mountain area nearby.

Built in 1905, the Orpheum Theatre is located at 132 S. State St., in the heart of downtown Salt Lake City. The building is close to Highway 89 and Interstate 15 and is within walking distance of multiple light rail stations.

Workbox CEO & Co-Founder John Wallace stated in prepared remarks that Salt Lake City’s booming startup industry and culture has attracted the flex office provider towards the area and out of its home region.

Over the next year, demand for coworking space is expected to rise significantly, as occupancy rates inch up to reach pre-pandemic figures, JLL Head of Flex and Experience Management Jacob Bates told Commercial Property Executive in a recent interview.

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Raceway Commerce Center. Image by Eckman Construction, courtesy of Westcore Properties

Westcore Properties has purchased Raceway Commerce Center, a 397,894-square-foot industrial campus in West Valley City, Utah, one of Salt Lake City’s submarkets. Brennan Investment Group sold the Class A asset for $52.2 million, in an off-market transaction.

The deal marks Westcore’s third industrial acquisition from Brennan. Cushman & Wakefield’s Phillip Eilers and Jon Schreck negotiated on behalf of the seller, while Westcore was self-represented.

READ ALSO: Industrial Real Estate Outlook: An Economic Perspective

Built in 2022, Raceway Commerce Center comprises a 211,294-square-foot building located at 6075 W. State Route 201 Frontage Road and a 186,600-square-foot facility at 2234 S. 5900 West. The property features 32- and 28-foot clear heights, ESFR sprinkler systems and rear-door loading, as well as a total of 64 high-dock doors and 434 vehicle parking spots.

The campus was 33 percent preleased by three companies at the time of sale. The new ownership plans to add tenant improvements at the property, including an office component for each building. Eckman Construction, the general contractor for the recently completed project, will assist Westcore in this endeavor as well.

Situated on a nearly 26-acre lot, Raceway Commerce Center is 6 miles from Salt Lake City International Airport and 10 miles from downtown Salt Lake City.

Growing in the West

Since its founding in 2000, Westcore has acquired, managed and sold more than $10 billion in assets. The firm has expanded its western footprint during the past 3 years; in one of the more recent transactions, the company purchased a 1.1 million-square-foot industrial park in Phoenix from ViaWest Group.

The company started 2022 with a series of investments that included the acquisition of Halsey Business Park, a 405,000-square-foot industrial asset in suburban Portland. The deal followed closely the purchase of a seven-property portfolio in Phoenix and Devnver.

And, in early 2021, Westcore bought a 17-property industrial portfolio, totaling 4.1 million square feet, the largest property being a 1.1 million-square-foot industrial campus in Salt Lake City.

The post Westcore Pays $52M for Salt Lake City Industrial Asset appeared first on Commercial Property Executive.

42 Future Way. Image courtesy of Colliers

Clearlink has signed a 135,000-square-foot lease at a 348,251-square-foot, Class A office campus in Draper, Utah. Colliers brokered the deal on behalf of the tenant. The office asset, owned and developed by Gardner Co., CommercialEdge data shows, will serve as Clearlink’s new headquarters.

Built in 2020 and initially designed for Pluralsight, the office property is located at 42 Future Way and features a fitness center, conference rooms, bike lockers, controlled access and 1,750 parking spots, according to CommercialEdge.

Situated on a 31.7-acre lot, the property is close to Interstate 15, 8 miles from Lehi, Utah, 20 miles from downtown Salt Lake City and within 24 miles of Salt Lake City International Airport.

Colliers Chairman Brandon Fugal negotiated on behalf of Clearlink. The property’s benefits, together with the new tenant’s focus on expanding its presence in the Silicon Slopes growing hub, strengthened the decision to secure this central location as its new headquarters. The five-story office building also serves as Pluralsight’s corporate headquarters, the same data provider shows.

Earlier in 2022, Zions Bancorporation opened its new technology campus in Midvale, Utah. With Gardner Co. managing the development, the 400,000-square-foot office campus can accommodate more than 2,000 employees.

The post Gardner Co. Inks 135 KSF Silicon Slopes Office Lease appeared first on Commercial Property Executive.

Desert Peak Logistics Center. Image courtesy of Dalfen

Dalfen Industrial has acquired the Desert Peak Logistics Center, an industrial property in West Jordan, Utah, from the Boyer Co., a Salt Lake City-based commercial developer.

The new-build industrial park comprises three buildings and is situated on 183,792 square-feet in suburban Salt Lake City. Two buildings at the property, Building 2 and Building 3, which account for 60 percent of the space, are pre-leased to DHL and another tenant. The identity of the second lease holder could not immediately be learned, though Dalfen identified it as a Fortune 50 company in a statement. Building 1, a 77,887-square-foot property, is available to potential lessees.

Newmark represented Boyer in the sale, which closed in December. Executive managing directors Jeff Heaton and Kyle Roberts and senior managing director Ben Richardson led the Newmark team.

New York Life provided financing for the buyer, said Richard Weiss, market officer for Dalfen Industrial’s West Region, who declined to disclose the purchase price. An official at Boyer did not immediately respond to a request for comment.

Dallas-based Dalfen cited the Salt Lake City metropolitan area’s rapid growth in the company’s statement, noting that its population growth is projected to swell at 2.5 times the national average. The firm plans to continue targeted acquisitions in the area.

This deal represents Dalfen’s first Utah acquisition. The company also owns properties in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas and Washington state.

The industrial park is located 1.3 miles from Highway 154 and is 2.3 miles from the under-construction State Route 85, known as the Mountainview Corridor.

Population trends have made Utah’s capital city and its surrounding towns a hotbed of commercial real estate activity in recent years, with a JLL report released at the end of 2022 noting the surge in residents as a key driver of investment.

“Salt Lake City’s growing population, diverse economy, which is reflected in its industrial tenant base, combined with its skilled labor will help the market remain resilient,” JLL noted in a 2022 end-of-year report, though it also mentioned that leasing and absorption volumes were below 2021 levels.

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Pacific Summit Logistics Center. Image courtesy of Cushman & Wakefield

Pacific Industrial has sold Pacific Summit Logistics Center, its recently completed 824,320-square-foot industrial facility at 885 N. John Cannon Drive in Salt Lake City to Principal Global Investors.

A Cushman & Wakefield team represented the seller, and will continue to provide leasing brokerage services for the new landlords.

Completed earlier this year, Pacific Summit Logistics Center was built under the ownership of Pacific Industrial. Construction was subject to a $60 million loan provided by Citizens Financial Group, CommercialEdge information shows.

Neil Mishurda, co-founder of Pacific Industrial, said in prepared remarks that the facility was designed to appeal to the increasingly large distribution users in the Salt Lake market, and that this long-term approach has resulted in quality projects that attract high-caliber tenants.

READ ALSO: When CRE Sellers Are No Longer King

Half of the property is preleased to Quality Distribution, which intends to use the building as a warehousing and distribution facility. The asset features a host of industry-leading features such as 40-foot clear heights, 200 trailer parking stalls, mechanical loading doors and a vehicle-accessible perimeter road. The facility is located 2 miles north of the Lincoln Highway, with access to numerous interstate shipping routes. Salt Lake City International Airport is 3 miles east of the building and downtown Salt Lake City is within 6 miles.

The Cushman & Wakefield team representing Pacific Industrial was led by Executive Vice Chairman Jeffrey Chiate, Vice Chairman Richard Ellison, Director Michael Adey, Associates Bradley Brandenburg, and Matthew Leupold of the firm’s National Industrial Advisory Group, in addition Executive Director Thomas Freeman and Executive Managing Director Travis Healey out of the firm’s Salt Lake City office. Freeman and Healey will continue to serve as leasing agents for the property.

Salt Lake City’s Industrial Strength

The sale of Pacific Summit Logistics Center, the largest of a single building in the city’s history, is emblematic of the area’s strong industrial construction, leasing and occupancy numbers. The property is strategically located at the intersection of numerous interstate trucking corridors.

According to data from a third quarter 2022 report from JLL, the city has 11.6 million square feet of space in its pipeline, with a net absorption of 6.9 million square feet year-to-date and a vacancy rate of 3.4 percent.

Other recent Salt Lake City deals include ViaWest Group and Clarion Partners’ acquisition of 25 acres for the construction of 340,000 square feet of industrial space, as well as Medline’s relocation to a 710,000-square-foot distribution center.

The post Principal Global Investors Buys 824 KSF Logistics Asset appeared first on Commercial Property Executive.

Rendering of ViaWest building. Image courtesy of Colliers

A partnership between ViaWest Group and Clarion Partners has acquired 25 acres for the development of 340,000 square feet of industrial space in Salt Lake City. Gannett Enterprises sold the parcel.

Executive Vice President Rusty Bollow and Vice President Bobby Stevens of Colliers represented the seller. Director Phillip Eilers with Cushman & Wakefield represented the buyer. Colliers was chosen as exclusive leasing brokerage for the property.

ViaWest will develop a Class A industrial facility at the new Central Commerce Center, which will comprise two buildings of 100,000 and 240,000 square feet. The facilities will feature 107 shared trailer spaces, 67 dock doors and nearly 380 parking spaces.

READ ALSO: Clarion Sees Pent-Up Demand Driving Warehouse Occupancy

The development site is located in the Northwest Quadrant, close to Bangerter Highway. The facilities will also have access to interstates 15 and 215, as well as State Route 201. Industrial users in the surrounding area include Amazon, Costco and FedEx, among others.

The land purchase marks ViaWest’s second industrial endeavor in the area this year. In March, the company bought an 18-acre site that already had a 37,000-square-foot industrial building completed in 2016.

Elsewhere, ViaWest, in a joint venture with Nicola Wealth Real Estate, broke ground on Advanced Industrial Park, a 335,066-square-foot project in Mesa, Ariz.

The post ViaWest, Clarion Bringing Industrial Project to Salt Lake City appeared first on Commercial Property Executive.

Rendering of 264 S. 5750 West. Image courtesy of Cushman & Wakefield

Medline has leased roughly 710,000 square feet at 264 S. 5750 West, an industrial development in Salt Lake City. The property is expected to be delivered by the end of the year. Cushman & Wakefield worked on behalf of both the tenant and the landlord. Property Reserve is the owner and developer of the project, according to CommercialEdge.

The distribution space will feature 113 dock doors, 40-foot clear heights, 251 trailer parking spots, as well as 383 parking spots for employees. Situated on a 41-acre lot, the new industrial property will be close to interstates 80 and 215, 4.9 miles from Salt Lake City International Airport and 8.4 miles from downtown Salt Lake City.

The health-care company outgrew its 250,000-square foot distribution center in the metro and is set to occupy the new property in the first quarter of next year.

Cushman & Wakefield Executive Managing Director J. Frank Franzese, Managing Director Steven Bauer, Brokerage Specialist Noelle Cuningham, together with Director Gina Moore, worked on behalf of the tenant, while the company’s Vice Chairman Tom Freeman and Executive Managing Director Travis Healey represented the owner of the asset.

Earlier this year, Cushman & Wakefield assisted ViaWest on an acquisition in the same metro. The company entered the Salt Lake City industrial sector with the purchase of an 18-acre development site where it plans to build a 171,600-square-foot Class A speculative facility.

The post Medline to Relocate to 710 KSF Industrial Space in Salt Lake City appeared first on Commercial Property Executive.

Scott Gifford and Daniel Thomas, Regional Partners for St. John Properties Utah, attend Valley Grove III groundbreaking. Image courtesy of St. John Properties Inc.

St. John Properties Inc. continues to build out Valley Grove, the commercial real estate firm’s $1 billion mixed-use business community in Pleasant Grove, Utah, with the recent groundbreaking on the Valley Grove III office building. The project will add approximately 140,000 square feet of Class A space to the Greater Salt Lake City area.

During the late-September groundbreaking ceremony for Valley Grove III, St. John revealed that the construction of the property will transpire on an accelerated timeline. “Even though we’ve been building constantly in Utah since 2017, we are at over 90 percent occupancy with companies lining up for space,” Daniel Thomas, regional partner with St. John Properties Inc. in Utah, told Commercial Property Executive.

Baltimore-based St. John made its entrée into the Utah commercial real estate market in 2014 and commenced development of the 130-acre Valley Grove community three years later. Sited in Utah County’s tech hub roughly 35 miles south of Salt Lake City’s central business district, Valley Grove has become a prominent destination for tenants seeking premier suburban office space in a centralized location.

READ ALSO: Industrial Outdoor Storage Is the New Hot CRE Type

Valley Grove III, the 22nd building at Valley Grove, will take shape along Interstate 15 at 1333 S. Valley Grove Way. The five-story property is designed to achieve LEED certification and will feature such coveted design elements as floor-to-ceiling glass. The project is a welcome endeavor in Pleasant Grove; the Pleasant Grove City Planning Commission and the Pleasant Grove City Council approved the site plan with unanimous votes in November 2021 and March 2022, respectively. Valley Grove III will be ready for occupancy in the third quarter of 2023.

Office sector is alive and well here

While the national office market has yet to regain its pre-pandemic health, there are pockets sprinkled across the country that are experiencing notable demand for Class A workplace accommodations, and Utah County is one such pocket. The total vacancy rate for Class A assets in North Utah County, home to Valley Grove, was just under 8 percent in the third quarter of 2022, according to a report by JLL. The submarket is benefiting from the substantial addition of new jobs in Utah over the last year and a few other statewide factors.

“Utah is experiencing the most rapid growth in the nation, that includes business and population growth,” Thomas noted. “The state has been on that upward trajectory for some time, and we forecast that it will continue well into the future. Low business tax rates, low regulation and an educated multi-lingual workforce are among contributing factors. The environmental beauty of the region is also a huge contributor to quality of life.”

Utah County’s office market is also experiencing a boost from the country’s growing return-to-office trend, according to a second quarter 2022 report by Colliers. And with many employers requiring employees to work multiple days in the office, some Utah County tenants are upgrading their locations in an effort to provide a more desirable environment. “Also, over the past few quarters, there has been a trend of larger tenants leaving larger markets—such as Los Angeles—and coming to Utah to enjoy lower rental costs and the outstanding economy, further contributing to the decreasing vacancy in the Utah County market.

With Valley Grove III underway, St. John is looking ahead to how it may continue to respond to the growing demand for premier office space in North Utah County and beyond. “We still have significant acreage to develop in Valley Grove and we are in active discussion with future tenants. Stay tuned,” Thomas said. “We are in Utah for the long term and are pleased to be so welcomed by community leaders.” Once Valley Grove III reaches completion, St. John’s Utah portfolio will exceed 1 million square feet.

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Lakeview Business Park. Image courtesy of Cushman & Wakefield

The Romney Group, owners of Lakeview Business Park, a $1 billion new warehouse, manufacturing, office and commercial project master-planned for 25 million square feet in Grantsville, Utah, sold 40 acres of improved land to Lineage Logistics LLC to build a 200,000-square-foot cold storage facility.

The $125 million Lineage Logistics project is expected to create 96 jobs. Upon buildout, the Lakeview Business Park is expected to create more than 5,000 jobs.

Situated on more than 1,700 acres in Tooele County in the Greater Salt Lake area, Lakeview will be among the largest industrial business parks to launch in the U.S.

In addition to Lineage, Lakeview signed two tenants to fill the first speculative building in the project that totals 506,930 square feet. Jabil Inc., a global leader in manufacturing, recently leased 357,000 square feet and is expected to occupy its space by December. Late last year, Revman International Inc., a leading distributor of bedding, bath and home décor products, leased 146,000 square feet of space in the building.

READ ALSO: Why Industrial Outdoor Storage Is the New Hot CRE Type

The developer broke ground on the first building in late December 2020. The cross-dock building has 40-foot clear height, up to 90 dock-high doors and four grade-level doors. There are 122 stalls for trailer parking.

Tom Freeman, a vice chairman with Cushman & Wakefield’s Salt Lake City office, negotiated the land sale to Lineage and the two leases on behalf of the landlord. Freeman is leading brokerage efforts for the project along with Anthon Stauffer, principal at The Romney Group.

Freeman said in a prepared statement they are pleased with the level and quality of leasing and sales activity they have signed at Lakeview along with the interest they continue to see from other prospects. He said the project offers a wide variety of options for tenants and is capable of serving any sized user. Freeman added that Grantsville is a fast-emerging area and growing commercial submarket that offers opportunities for occupiers and other developers looking for a location in the greater Intermountain West.

The location has close access to I-80 and a new interchange. It’s within a 10-hour drive of half of the U.S., including all major Western ports, Freeman noted. Situated near The Great Salt Lake, Lakeview Business Park is within 20 minutes of the Salt Lake City International Airport, which is undergoing a $4.1 billion phased expansion due for completion by 2025, and the Union Pacific Intermodal Hub. The owners are also working with Union Pacific and the Utah Inland Port to make more than 800 acres of the project site rail served.

Tax Incentives Awarded

Earlier this month, the Utah Governor’s Office of Economic Opportunity awarded Lineage Logistics marginal tax reduction over the next five years for its expansion in the state. Under the Economic Development Tax Increment Financing program, Lineage Logistics may receive up to 25 percent of the additional state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing tax credit.

Each year Lineage meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit. Jabil and Revman also received tax incentives under the EDTIF tax credit program. Jabil, which is expected to create 150 jobs over seven years, may receive up to 30 percent of the additional state taxes it will pay over the seven-year life of the agreement in the form of a REDTIF tax credit. Revman, expected to bring up to 70 jobs over 10 years, may receive up to 15 percent of the additional state taxes it will pay over 10 years in the form of a REDTIF tax credit.

Lineage Growth

Based in Novi, Mich., Lineage Logistics is a provider of temperature-controlled and supply chain logistics solutions and the world’s largest temperature-controlled industrial REIT. The company owns more than 400 facilities in 198 countries.

In March, Lineage Logistics acquired MTC Logistics of Baltimore and its four cold storage distribution facilities totaling nearly 38 million of cubic feet of capacity and serving major East Coast and Gulf Coast ports. The assets were located in Jessup, Md., and Baltimore, both near the port of Baltimore; as well as in New Castle, Del., near the ports of Wilmington and Baltimore; and in Mobile, Ala., near the port of Mobile.

In other U.S. expansion moves, Lineage Logistics acquired Hanson Logistics and its seven distribution facilities in Michigan and Indiana in August 2021.

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Zions Bancorporation Technology Campus. Image courtesy of Zions Bancorporation

Zions Bancorporation N.A. has just celebrated the opening of its new technology campus in Midvale, Utah, roughly 15 miles south of the multibillion-dollar financial services company’s Salt Lake City headquarters.

Zions consolidated operations from 11 other smaller locations at the 400,000-square-foot, eco-friendly building on what had once been the location of a contaminated former steel mill.

Carrying an address along Bingham Junction Blvd., Zions’ new 19-acre tech campus can accommodate more than 2,000 workers, but it is currently home to 1,500 employees working in technology, operations and other departments of the bank. The facility, while 20 percent smaller than the total square footage of the consolidated offices, offers a more efficient layout designed for greater collaboration and creativity.

READ ALSO: Making the Post-Pandemic Office Even Better Than Home

“How does a company create a culture in which creative ideas are easily shared and innovation can flourish if team members are working hybrid schedules or connect only via a digital display?” Harris Simmons, chairman & CEO of Zions Bancorporation N.A., pondered in a message to shareholders in February 2022. “We’re hopeful that by creating appealing spaces designed for teamwork and providing amenities that make coming into the office preferable to working from the dining room table, we’ll find that, as we make our way back to the office, it will be a big improvement over the experience so many of us have had for too many months.”

The new normal office

Zions broke ground on its tech campus in August 2020, during the height of the COVID-19 pandemic, with a health and wellness-centric design by architectural firms WRNS Studio and Method Studios, and Gardner Co. managing the development. With general contractors Okland Construction and Layton Construction having completed the project in a timely fashion, Zions employees can now avail themselves of workspaces featuring views and natural light as core elements, and a spacious café with a menu of healthy offerings. The new campus also provides 179 electric vehicle charging stations and access to a neighboring community park and light rail station.

The LEED Platinum-certified property is also a model of sustainability, relying on a 2,000-panel photovoltaic installation to power 75 percent of the building’s electricity. The campus also has a parking facility on site, for which the city contributed a $5.5 million construction loan.

Employees of Zions will have even more diversions available to them in the future, as the tech campus is, for all intents and purposes, an anchor of View 78, Gardner Co.’s office-centric mixed-use development. Zions’ headquarters is practically enveloped by the 200-acre View 78 project, which will, ultimately, also include restaurants, retail and residences.

The post Zions Bancorporation Opens Metro Salt Lake City Tech Campus appeared first on Commercial Property Executive.

650 Main. Photo courtesy of Patrinely Group

Longtime development partners Patrinely Group and USAA Real Estate have completed 650 Main, a 10-story, 332,000-square-foot Class A office and retail project in downtown Salt Lake City built with the latest technology and amenities to promote health and wellness.

EnerBank, a division of Regions Bank, was the first tenant to lease space at 650 Main St. in March 2020 and has moved into the top three floors of the building at the corner of Main Street and 600 South. The building topped out in April 2021, when it was 30 percent leased.

The project currently has 238,000 square feet of space available to lease with floor plate sizes ranging from 22,000 square feet on Level 1, 41,000 square feet on Levels 2 to 4, and 30,840 square feet on Levels 5 to 7.

CBRE was recently chosen to handle the office leasing with Senior Vice President Nadia Letey and Senior Associate Roman Bernardo as the lead leasing agents. They are working under the direction of Dennis Tarro, executive vice president/principal of Patrinely Group, and Philip Moore, also of the Patrinely Group.

Building Details

Designed by HOK, the property is certified LEED Gold and has received Platinum certification from Wired Score for the high quality of its wired infrastructure, resilience and wireless network. It features floor-to-ceiling glass and 10- and 11-foot finished ceiling heights to maximize sunlight and panoramic mountain views. The building has best-in-class HVAC with air ventilation 30 percent above the minimum required by local codes. All indoor amenity areas are connected to outdoor space. Amenities include an indoor/outdoor fitness center with locker rooms, bike storage room, and outdoor courtyards with a bocce court, ping pong tables, a fire pit for social gathering and other outdoor meeting space. The building also has flexible conference facilities for small or large groups.

The developers recently announced Sol Agave, a full-service restaurant, will be occupying the free-standing retail building on the site beginning in the fourth quarter.

The 6.6-acre site is situated in the heart of downtown Salt Lake City with access to nearby retail, dining and hotels. The TRAX light rail station adjacent to the building’s entrance is slated to open this summer. The location also provides easy access to Interstate 15 and is about 7 miles west of the Salt Lake City International Airport.

Patrinely and USAA Real Estate also plan to build an office building with up to 325,000 square feet of space at an adjacent site as part of a second phase of the development’s masterplan.

More Projects

Patrinely and USAA Real Estate completed Block 162, a 30-story, 596,295-square-foot Class A speculative office building constructed in downtown Denver at 675 15^th St., last year. Brownstein Hyatt Farber Schreck LLC, a national law and lobbying firm, recently said it had leased 100,000 square feet at Block 162 and plans to move in by spring 2023. In March 2021, the law firm of Sherman & Howard LLC became the first tenant to sign a long-term lease at the building. The firm moved in late last year and has nearly 60,000 square feet of space.

In June 2021, the partners sold Aspen Lake Three, a recently completed office property with 128,990 square feet in Austin, Texas, to an unidentified buyer. Also in Texas, Patrinely Group and USAA Real Estate are teaming with CDC Houston to develop City Place, a mixed-use project in Houston featuring 4 million square feet of Class A office buildings and 400,000 square feet of retail.

The post Patrinely, USAA Deliver Salt Lake City Office Tower appeared first on Commercial Property Executive.

201 Mountain View Park. Image courtesy of Cushman & Wakefield

Working on behalf of a joint venture of Hines and a global investment firm, Cushman & Wakefield has arranged the sale of 201 Mountain View Park, an approximately 628,600-square-foot industrial development in West Valley City, Utah. The three-building, Salt Lake City-area asset is now under the ownership of Walton Street Capital.

201 MVP proved highly attractive to the lending community. “Interest during the marketing period was extremely strong, resulting in a deep buyer pool that spanned a myriad of investor types,” Mike Adey, an associate with Cushman & Wakefield, told Commercial Property Executive. Cushman & Wakefield’s Kip Paul, Michael King and Jeff Chiate joined Adey in the representation of Hines and partner.

READ ALSO: Top 5 Industrial Properties Under Construction in Dallas-Fort Worth

201 MVP is a brand-new addition to metropolitan Salt Lake City’s highly coveted Northwest Quadrant, having delivered in January 2021 as a speculative project of Hines. Located on 41.5 acres of a 49.5-acre site that Hines acquired in 2019, the state-of-the-art industrial distribution warehouses carry the addresses of 6252, 6312 and 6368 W. Beagley Road.

201 Mountain View Park. Image courtesy of Cushman & Wakefield

The industrial park is presently 87 percent occupied, with one 126,800-square-foot building leased in its entirety to credit tenant Stuart Irby, a 375,000-square-foot building partially leased to credit tenant Duluth Trading Co., and another building of approximately 126,800 square feet fully leased to the likes of Brewers Supply Group, Industri-Tech and Associated Packaging.

Investors took note of more than 201 MVP’s premier quality and desirable tenant roster; they also homed in on the park’s location in the Northwest Quadrant, which has emerged as a hub for industries ranging from high-tech and medical device manufacturing to aerospace manufacturing to e-commerce. Additionally, the Northwest Quadrant is within 3 miles of all transportation modalities, including Union Pacific’s Intermodal Facility, the Interstate 15 and 80 transportation corridors and Salt Lake City International Airport, which recently debuted the first phase of a multibillion-dollar renovation.

There’s something about Salt Lake

The parties involved in the 210 MVP sale are not disclosing the financial details of the trade; however, when asked what the transaction value indicates about the current state of industrial investment sales in the area, Cushman & Wakefield offered a hint about the AE Urbia-designed property’s price tag.

“Salt Lake City is one of, if not, the most desired non-gateway industrial markets in the Western U.S.,” Adey said.

The rising price of industrial assets is a common theme across the U.S., and Utah’s leading market is no exception. The average industrial sales price in Salt Lake County increased to $120.56 per square foot in the third quarter of 2021, according to a report by Colliers International, and the average achieved sale price rose to $133.77 per square foot. “High demand from industrial owner-users and investors means there are very few buildings for sale, especially large ones,” according to the Colliers report.

The post Hines JV Sells Salt Lake City-Area Industrial Asset appeared first on Commercial Property Executive.

Pacific Summit Logistics Center. Rendering courtesy of Pacific Industrial

Work has commenced on Pacific Summit Logistics Center, a 824,000-square-foot industrial property in Salt Lake City. Pacific Industrial is behind the Class A cross-dock project rising on a 48-acre site near Salt lake City International Airport. Completion is anticipated for the second quarter of next year.

Pacific picked up the lot at 885 N. John Cannon Drive in an off-market deal and started construction right after the closing of the transaction. The facility is set to offer 131 dock high doors and a minimum clear height of 40 feet. The truck courts will be up to 213 feet deep. 

Situated roughly 9 miles northwest of central Salt Lake City, the property offers access to interstates 15, 80 and 215, as well as to a multi-lane logistics highway. The developer is aiming to attract top-tier businesses, betting on the submarket’s low availability, coupled with the location’s strong transit connections, Neil Mishurda, co-founder of Pacific, said in a prepared statement.

Pacific also recently acquired an 11-acre site in Los Angeles County for $42 million. Boasting a direct rail connection, the property includes several buildings totaling roughly 180,000 square feet, with the largest structure comprising 115,932 square feet. At the time of the purchase, a chemical and ingredient distributor was the sole occupant of the property.

The post Pacific Industrial Kicks Off 824 KSF Project appeared first on Commercial Property Executive.

650 Main. Image courtesy of Patrinely Group and USAA Real Estate

650 Main, a 10-story, 332,000-square-foot Class A office building in downtown Salt Lake City has topped out and is on track for delivery in the first quarter of 2022, the development venture of Patrinely Group and USAA Real Estate announced.

READ ALSO: Lending Across CRE Sectors: Q&A

Sited at Main Street and 600 South, the building was designed by HOK and is targeting LEED v4 Gold. It recently received Platinum certification from Wired Score for its wired infrastructure, resilience and wireless network.

The location provides easy access to I-15 and is adjacent to a future TRAX light rail station.

Features and amenities include 10- and 11-foot ceiling heights and floor- to-ceiling glass to maximize sunlight and panoramic mountain views; an indoor/outdoor fitness center with locker rooms; outdoor courtyards with a bocce court, ping pong tables and an area for social gathering with a fire pit. Other amenities will include secure bike storage, conference facilities, and an onsite retail space with indoor and outdoor dining options.

650 Main nailed down its first office lease in March 2020, when EnerBank USA, a national consumer lending company focusing on home improvement loans, agreed to take 88,900 square feet on the building’s top three floors.

Leasing is being handled by Aaron Jones, Todd McLachlan and Roman Bernardo of Newmark.

Up to a further 325,000 square feet of office space should eventually be available in 645 W. Temple, an adjacent office building representing a future second phase of the development masterplan.

Strong headwinds

Based on the state of the Salt Lake City office market, Patrinely and USAA have done quite well to get nearly 30 percent of 650 Main preleased.

In addition to pandemic fallout, the SLC office sector is beset by negative net absorption, rising overall and sublease vacancy, and an active development pipeline, all of which are contributing to soft rents and rising concessions, according to a first-quarter report by JLL.

More than 365,000 square feet of office space that delivered in the first quarter is completely vacant, and in downtown specifically, more than a million square feet of office product is underway, including a 425,000-square-foot building, Sundial Tower, announced by Hines.

JLL adds, however, that the local economy does have some resilient sectors, including aerospace, defense and financial services.

The post Patrinely Group, USAA Real Estate Top Out Salt Lake City Tower appeared first on Commercial Property Executive.

Rendering of Zions Bancorporation’s Tech Campus in Midvale, Utah. Image courtesy of Zions Bancorporation N.A.

Zions Bancorporation N.A. has broken ground on its 400,000-square-foot technology campus planned for Midvale, Utah, which will serve Zions’ seven affiliate brands in 11 western states. The sustainably built campus will be the $76 billion bank’s primary technology and operations center and is slated for completion in mid-2022.

READ ALSO: Construction Starts Decline in July, Dodge Finds

Utah Governor Gary Herbert, who was among the speakers at Wednesday’s groundbreaking ceremony, said in a prepared statement the development will have a significant economic impact on the city of Midvale as well as the surrounding region. He noted Utah has gained a reputation for being a leader in the intersection of the technology and financial services industries and this project is critical to that ongoing growth.

The project, which is anticipated to achieve LEED Platinum certification, is being built on the site of the former Sharon Steel Mill, an Environmental Protection Agency Superfund site. About 1,500 workers will be employed during the construction project and about 2,000 Zions employees will work there upon completion. The bank, which is headquartered in nearby Salt Lake City, plans to eliminate 11 smaller facilities totaling 520,000 square feet when the Midvale center is opened.

Project details

Officials said the site is being built to respond to changing work patterns in the years ahead and will provide employees with a highly flexible and engaging work environment. The campus will offer outdoor recreation opportunities, locker and shower facilities, shareable bikes and large modern café with healthy and diverse menu options. The building will be constructed with low VOC-emitting materials, triple-pane exterior glass and ultra-efficient heating and cooling systems. More than 75 percent of the building’s electricity will be produced by on-site solar energy. The campus will also feature electric vehicle charging stations and offer proximity to the Historic Gardner Village light rail station. Situated on a bluff overlooking the Jordan River Parkway, the property will support a regional habitat system through ecologically focused design and landscaping.

The project is designed by award-winning architectural firms WRNS Studios and Method Studios. It will be built by Okland Construction and Layton Construction and managed by Gardner Co. Colliers International negotiated the transaction for Zions Bancorporation.

The post Zions Bancorporation Begins Construction of Utah Campus appeared first on Commercial Property Executive.

Legacy Logistics Center Building II. Image courtesy of Black Creek Group

Continuing its strategy of buying industrial properties in key markets, Black Creek Group has acquired a logistics asset in Salt Lake City. According to a Black Creek representative, Kelez sold the fully leased Legacy Logistics Center Building II for an undisclosed price.  

READ ALSO: Value-Add Investors Should Heed These Trends

Located at 620 S. 5700 W., the 383,000-square-foot industrial property includes 76 dock high doors, eight ground-level doors, 36-foot minimum clear heights, cross dock load configuration, 132 trailer parking spaces and 281 car parking spaces. Legacy Logistics has nearby access to Interstates 15 and 215 and is roughly 7 miles away from Salt Lake City International Airport.

Mace McClatchy, senior vice president of Black Creek’s South Central region, said in prepared remarks that the company was attracted to the property as it was fully leased to a leading e-commerce company. McClatchy also said that the Legacy Logistics acquisition is part of Black Creek’s strategy of buying core assets in premier industrial markets. Black Creek also acquired a 690,702-square-foot industrial facility in Brownsburg, Ind., in May.

Stable outlook for Salt Lake City industrial

As industrial markets across the U.S. weather the COVID-19 pandemic, Salt Lake City is also expected to bounce back relatively healthy, according to CBRE’s first quarter report on the area’s industrial market. Salt Lake City is continuing to see high levels of development activity, with 7.1 million square feet of industrial properties under construction in the first quarter of the year, 6 million of which are expected to come online by the end of 2020.

Demand for industrial space also remained high, with nearly 560,000 square feet of positive net absorption for the quarter, which extended the 33-quarter streak of positive net absorption since 2012. According to the report, CBRE expects the Salt Lake City industrial market to come out of the current economic situation relatively unscathed due to the rapid growth in e-commerce and the need for manufacturing and cold storage once the market fully reopens.

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Beltway West. Image courtesy of St. John Properties

St. John Properties has announced plans to deliver 525,000 square feet of high-utility office and flex/R&D space to the Utah market. The real estate investment company expects to invest a total of $120 million in the development of Beltway West in Taylorsville and Spring Pointe Exchange in Springville.

READ ALSO: Some US Megaprojects Power Through in the New Normal

St. John is undaunted by COVID-19’s impact on the national commercial real estate industry; the company cites location as one of the factors behind its confidence in commencing Beltway West and Spring Pointe amid the pandemic. “Taylorsville and Spring Pointe are in business-friendly Utah and these cities are in areas ranked as best metro areas for rapid recovery as compared to other metro areas across the U.S.”, Daniel Thomas, regional partner with St. John Properties, told Commercial Property Executive.

Beltway West will occupy 20 acres roughly 10 miles south of downtown Salt Lake City. The property will offer 300,000 square feet of office space spanning four single-story structures and a six-story building. Spring Pointe, sited on 18 acres approximately 50 miles outside of Salt Lake City in Utah County, will ultimately feature six buildings encompassing 225,000 square feet of flex/R&D space. Together, Beltway West and Spring Pointe will be able to accommodate a total of nearly 2,800 employees within their aggregate half million square feet of space. On a May 21 video call announcing the Utah projects, Thomas noted that the company plans to start construction on Spring Pointe within two weeks.

Demand drivers

Taylorsville and Springville may not have the national recognition of Salt Lake City, but they do have a certain appeal for commercial real estate users. “They are secondary markets to the primary Salt Lake City and Provo markets with the opportunity for class A options without the same cost structure as the primary markets,” Thomas told CPE.

Overall, Utah’s commercial real estate market, buoyed by strong economic fundamentals and a diversified workforce, commenced 2020 on solid ground and it’s that foundation that observers anticipate will help support a rebound as coronavirus-related restrictions ease. According to a report by Newmark Knight Frank on the implications of the pandemic on Utah’s commercial real estate industry, the industrial sector will likely not be as impacted by COVID-19 as other product types. And while the office sector won’t go unscathed, it is poised to acclimate to the “new normal.” 

“Public awareness that 6 feet of distance is an overall good health practice will likely push the densification and open office trend of recent years into a further decline. With the potential demand for more square feet per employee, coworking space, as well as traditional leasing space, will need to adapt,” according to the NKF report. “Overall, leased square feet may not decline as much as has been the case in other times of recession and contraction due to companies changing their views on office space.”

The post St. John Properties to Invest $120M in Utah Business Parks appeared first on Commercial Property Executive.

Vibe Thanksgiving Point. Image courtesy of Colliers International

Utah Valley University has purchased Vibe Thanksgiving Point, a 103,000-square-foot office building in Lehi, Utah, from Hayman Properties. The Class A property traded for $22.1 million, according to The Daily Herald. 

Located at 2912 Executive Parkway, the four-story asset was developed in 2006 within the Thanksgiving Point mixed-use campus. The property features 15,000-square-foot floorplates and a parking ratio of 3.5 spaces per 1,000 square feet. UVU had been the building’s tenant since 2017, when the university leased 13,700 square feet of space for five classrooms, 10 offices and study areas.

The 5.6-acre property is some 25 miles south of downtown Salt Lake City near Interstate 15 and less than 2 miles west of the city’s tallest building. The building is situated across the street from a FrontRunner train station and several bus stations.

Colliers International’s Brandon Fugal and Brent Haight represented both parties in the deal.

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Aerial view of 669 S. Prosperity Road. Image via Google Street View

KPFN Properties has sold a 364,000-square-foot, single-tenant industrial asset in West Jordan, Utah, for $30.1 million.

Newmark Knight Frank represented both the seller and the buyer, ARKA Properties Group. The building is occupied by Visible SCM Logistics.

Located at 9669 S. Prosperity Road, the property is just off Mountain View Corridor, a highway project that will be 35 miles long once completed. South Valley Regional Airport is 4 miles from the property. The asset is within a growing industrial submarket that spreads between South Salt Lake and North Utah counties. According to NKF, this area consists of 32.5 million square feet of properties, with 3.8 million under construction.

NKF’s team included Executive Managing Directors Bryce Blanchard, Kyle Roberts and Lucas Burbank. Recently, another team from the company arranged a $163 million loan package, on behalf of The Arden Group, for a two-million-square-foot, multiple-state industrial portfolio. The financing included $134.3 million from CIT Bank and approximately $29.2 million from BlackRock.

The post KPFN Properties Sells Salt Lake City Industrial Asset for $30M appeared first on Commercial Property Executive.

650 Main. Image courtesy of Patrinely Group

EnerBank USA will be the first tenant of 650 Main, a 326,000-square-foot Class A office development to rise in downtown Salt Lake City. The national consumer lender company will occupy 88,900 square feet on the top three floors of the building, starting early 2022. Newmark Knight Frank assisted the landlord, a joint venture between Patrinely Group and USAA Real Estate, in the negotiations. Recently, the two partners also broke ground on a 440,000-square-foot Hewlett Packard campus in Houston.

The developers intend to start construction on the project this spring, on a former parking lot south of Little America Hotel, at 650 Main St. Designed by HOK to achieve LEED Gold certification, the future 10-story building is set to feature floorplates ranging from 29,500 to 40,000 square feet, floor-to-ceiling glass and above standard ceiling heights. Amenities are slated to include a fitness center, bike storage, a private courtyard and an on-site restaurant, as well as flexible conference facilities.

The 6.6-acre development site is one block west of State Street, providing easy access to Interstate 15. Surrounded by shops, restaurants and hotels, the property is also adjacent to a future TRAX light rail station. Salt Lake City International Airport is some 7 miles west. Patrinely and USAA Real Estate also plan to build an additional office building at 645 W. Temple, as part of the second phase of the development.

Dennis Tarro of Patrinely Group, together with Aaron Jones, Todd McLachlan and Roman Bernardo of Newmark Knight Frank, represented the landlords in the lease negotiation.

The post Downtown Salt Lake City Office Development Lands 1st Tenant appeared first on Commercial Property Executive.

Valley Grove I. Image courtesy of St. John Properties

Alianza Inc. has relocated its corporate headquarters to the newly constructed Valley Grove I office building in Pleasant Grove, Utah. The cloud communications platform has signed a lease with St. John Properties Inc. for 29,000 square feet at the Class A development.

Located at 1064 S. North County Blvd., Valley Grove I is part of the Valley Grove business park, spans across six stories and has 165,000 square feet of office space. The property provides access to Interstate 15 and is just under 40 miles from Salt Lake City and Salt Lake City International Airport. The building was designed to earn LEED Silver certification. 

According to St. John Properties’ website, Valley Grove is a 60-acre, mixed-use business community currently underway. Upon completion, the $250 million development is set to include more than 1 million square feet of office and retail space, as well as restaurants and a hotel. In 2018, Four Foods acquired 5 acres at St. John Properties‘ development for its corporate headquarters and a restaurant cluster of its top brands.

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Kearns Building. Image courtesy of Hines

Hines has joined forces with Industrious for its second coworking location, a 25,000-square-foot workplace at the Kearns Building in Salt Lake City. The Square will open in June, with Industrious acting as the operating partner. Hines launched Hines Squared, its own coworking platform, in the summer of 2019.

Hines purchased the Kearns Building in 1988 and selected the property as its second coworking location shortly after opening the first Square workplace at 717 Texas in Houston. Additionally, this is the second Industrious location in Salt Lake City—the shared space provider already operates one at the Clift Building.  

The Kearns Building is located at 136 S. Main St. in the city’s downtown area. According to Yardi Matrix, the 166,939-square-foot property spreads across 10 stories and includes 15,000 square feet of retail space. 

Completed in 1911, the historic building recently underwent a $25 million redevelopment program, which resulted in new building support systems, modernized elevators as well as a new outdoor patio, an additional lobby, a tenant lounge, a wellness center, a gym and an open-air deck.

The property is easily accessible due to its central positioning, with multiple nearby bus stations providing mass transportation options. Salt Lake City International Airport is 6 miles away.

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Image via Pixabay.com

A joint venture between Yang Capital Group, Alex Brown Realty and Huntington Hotel Group has broken ground on Cottonwood Courtyard, a 149-key, select-service hotel in Cottonwood Heights, Utah. JLL arranged a three-year construction loan through the National Bank of Arizona, on behalf of the developer. The project is slated for completion by 2021.

The hotel will be built on the top of an existing 417-space parking garage at 7365 S. Canyon Centre Parkway near Freeway 190, at the entrance to Little and Big Cottonwood Canyon. The development will be situated close to Interstate 215, which provides access to downtown Salt Lake City and the Salt Lake City International Airport.

Cottonwood Courtyard will be in the center of a 10.9-acre mixed-use development, which will incorporate more than 79,000 square feet of office space, three restaurants, a distillery, a park for events, 150 residential units, 17 townhomes and additional retail space. The hotel will feature amenities such as a fitness center, a bar, a bistro, a lounge, a 1,038-square-foot meeting space, a business library and an outdoor pool with a pool deck and a courtyard.

JLL’s Capital Markets team included Senior Managing Director Paul Brindley, Director Matt Stewart and Senior Associate Blake Malecha. In November, the firm secured $160 million in financing for the acquisition of a three-property office portfolio in Pasadena, Calif.

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Riverwoods I

Dakota Pacific has purchased Riverwoods I, II and III, a three-property office portfolio totaling 179,466 square feet in Provo, Utah, from EsNet Group, according to public records. NorthMarq Capital’s John Bradshaw arranged a $19.4 million in acquisition financing on behalf of the buyer. America First Federal Credit Union provided the permanent, fixed-rate loan, public records show.

Situated at 5152, 5252 and 5255 North Edgewood Drive alongside Freeway 189, within 5 miles from downtown Provo and around 41 miles from downtown Salt Lake City. The office buildings are conveniently located near eateries and shopping options, including The Shops at Riverwoods.

Constructed in 1994 and 2001, the three buildings occupy a total of 14.6 acres and feature floor plates ranging from approximately 16,700 to 24,000 square feet. Characteristics of the buildings include above and standard ceiling heights and a parking ratio of 4.5 spaces per 1,000 square feet.

Earlier this year, NorthMarq has arranged $3 million in financing for the acquisition of Wildwood Plaza, a 17,490-square-foot property in St. Louis.

The post NorthMarq Arranges Financing for Utah Office Portfolio Acquisition appeared first on Commercial Property Executive.

Rendering of the expanded Aligned SLC campus. Image courtesy of Aligned Energy

Data center provider Aligned Energy has begun a major expansion of its data center campus in West Jordan, Utah, in metro Salt Lake City. The new facility will add 240,000 square feet and 48 MW of capacity to the current 34 MW, 300,000-square-foot West Jordan data center. The news follows last week’s announcement that the company obtained a $495 million secured credit facility from an investor group that included Goldman Sachs Bank USA and CPPIB Credit Investments Inc. One of the purposes of the funding was in fact the expansion at the SLC facility.

READ ALSO: Data Center Market Poised for Serious Expansion

On full completion, the master-planned Aligned SLC campus will offer 780,000 square feet of space and 130 MW of capacity in Silicon Slopes, a region that describes the growing high-tech region along the Wasatch Front, centered on Salt Lake City and its airport. Silicon Slopes also includes the site of the National Security Agency’s Utah Data Center, a massive $1.5 billion-plus facility in Bluffdale that was completed earlier this year.

Aligned Energy’s expansion reportedly is being driven by a new anchor customer and more broadly by demand for adaptable, scalable data center infrastructure in the West. Andrew Schaap, CEO of Aligned Energy said in a prepared statement that the greenfield development is scheduled for completion in the first quarter of 2020. Aligned declined to disclose a dollar figure for the project.

In addition to the region’s status as a growing tech center, Aligned touts its low risk natural and man-made disasters and notes that Salt Lake City is classified as a cold desert (its elevation is about 4,200 feet), which eases ambient cooling.

Keeping pace with a growing sector

Aligned has been on the move. Prior to obtaining the $495 million credit facility last week, Aligned announced plans to expand capacity at its 19-acre campus in Plano, Texas, in the Dallas metroplex. The U.S. data center market continues to grow, with the total capacity of primary geographic markets rising by 200 MW, or 8 percent, in the first six months, according to a first-half 2019 North American data center report from CBRE. Further, an additional 411 MW of capacity is under construction. Fortunately, one-third of that is already preleased. Absorption remains strong, according to the report, as the U.S. primary data center markets recorded 171 MW of wholesale turnkey colocation absorption in the first half of 2019, representing 57 percent of the full-year record level in 2018.

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Regence Building

Stantec has signed a lease at Regence Building, a 212,840-square-foot Class A office building in Salt Lake City. The company is consolidating three offices, its Water, Mining and Environmental Services and Community business lines will occupy roughly 20,000 square feet in Suite 300. The office space was repurposed to fit the firm’s needs.

Situated at 2890 E. Cottonwood Parkway, the office building is at the corner of Interstate 215 and Big Cottonwood Road in the Cottonwood Heights area, near the entrance of several ski resorts. Additionally, the office is located around 16 miles from downtown Salt Lake City and 13 miles from the South Valley Regional Airport.

Built in 1997, the suburban office asset occupies roughly 13 acres and features controlled access and more than 1000 parking spaces, according to Yardi Matrix. Additionally, the building offers amenities such as a cafeteria, fitness center, meeting rooms and business park. The office building is also seeking to obtain LEED certification and to minimize its carbon footprint.

The post Salt Lake City Office Welcomes New Tenant appeared first on Commercial Property Executive.

District Heights. Image courtesy of Colliers International

Colliers International has arranged two leases at District Height, a 64,579-square-foot Class A office building in South Jordan, Utah. The new tenants, Security National Mortgage Co. and Larson & Co. will occupy a total of 25,400 square feet.

Colliers worked on behalf of the landlord, Sequoia Development. The leasing team included Chairman Brandon Fugal, Senior Executive Vice President Jordan Wall and Executive Vice President Josh Smith. The three also serve as leasing brokers for a 540,000-square-foot office development in Draper, south of Salt Lake City.

District Height is a newly completed three-story office building and occupies 2.4 acres. Characteristics of the building include controlled access, above-standard ceiling height and approximately 300 grade-level parking spaces, according to Yardi Matrix. Security National Mortgage Co. will occupy 3,400 square feet on the first floor, and Larson & Co. signed a lease for 22,000 square feet on the third floor.

Located at 11240 South River Heights Drive, the office building is close to the intersection of freeways 154 and 175, and near Interstate 15, roughly 20 miles from downtown Salt Lake City. In addition, District Heights provides easy access to the South Valley Regional Airport, located within 6 miles of the property.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.

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Irvine Office Park. Rendering courtesy of Colliers International

Utah-based developer Irvine Investment Co. has broken ground on Irvine Office Park, a 540,000-square-foot, Class A office project in the Salt Lake City suburb of Draper, Utah. The green-friendly office park will feature 60 electric car charging stations, the greatest number of any development in the state.

Intended to create a premier home for a corporate headquarters, the development at the junction of Interstate 15 and Bangerter Highway will comprise three buildings upon full build-out. Building 1 is slated for completion in early 2020, providing 180,000 square feet over six floors. Brandon Fugal, chairman of Colliers International in Utah, along with executives Jordan Wall and Josh Smith, will serve as leasing brokers for the property.

The site’s location at approximately 440 W. 13800 S., gives it immediate access to a cluster of retailers, with prominent visibility along I-15, the state’s major transportation corridor. Downtown Salt Lake City is roughly 17 miles to the north.

Just five miles to the south in Lehi, Utah, Perry Commercial is building Traverse Ridge Center III, a 220,000-square-foot, Class A office building scheduled for completion this year. Flexible office firm Spaces will occupy the first and second floors of the nine-story property, which will be the city’s tallest building.

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2019 BOMA International Conference & Expo, Salt Palace Convention Center, Salt Lake City

BOMA International’s Conference & Expo brought together an array of attendees from across the U.S. Panelists discussed the latest topics in commercial real estate including tenant engagement, cybersecurity, net-zero energy, how to keep your buildings competitive, climate risk, and how to attract and retain talent. The expo floor was home to hundreds of companies providing the latest in services solutions and technology.  

The opening keynote was a presentation by Amy Webb, founder of the Future Today Institute. She discussed the latest emerging technology research in commercial real estate and explained how technology such as artificial intelligence, machine learning and the Internet of Things will impact businesses and workplaces, as well as individuals over the next 10 years. 

See below for our conference coverage:

The Changing Dynamics of Tenant Engagement

Connecting with building tenants is essential to promoting a healthy work environment, as well as to attracting and retaining new tenants, explained Michael Giese of GlenStar Properties.

Achieving Net-Zero Energy in Office Properties

Panelists from Rocky Mountain Institute, Morgan Creek Ventures and Sharp Development Co., share six steps to implementing net-zero practices at office properties.

The Rise of the Multi-Generational Workforce

Five generations are changing the dynamics of the workplace, said Erik Lucken of RSP Architects. 

The post BOMA International Conference & Expo 2019 Coverage appeared first on Commercial Property Executive.

Erik Lucken, Director of Workplace Strategy, RSP Architects

Millennials seem to be the main focus of office owners and managers today, but that doesn’t mean there aren’t leaders in the workforce from other generations.

At this year’s BOMA International Conference & Expo, which took place from June 22 to June 25 in Salt Lake City, RSP Architect’s Director of Workplace Strategy Erik Lucken discussed the changing dynamics of the workplace when it comes to the different generations: Silent, Baby Boomers, Gen X, Millennials and Gen Z.

By 2026, workers over the age of 55 will be the fastest growing segment of the U.S. workforce. Back in 1996, workers within that demographic made up the smallest share of the workforce, where in 2026 it will be the largest, with a 92 percent increase for those 75 and over.

READ ALSO: Achieving Net-Zero Energy in Office Properties

“People are living longer and being healthier, which allows them to work longer,” said Lucken. “Three-quarters of U.S. adults say they plan to work past retirement age, not because they necessarily have to, but because they want to.” Eighteen percent said it would be to stay mentally alert, 15 percent said to remain physically active and 14 percent said it would give them a sense of purpose. 

Continuing to work into older age has been shown to have positive impacts on physical, cognitive and emotional health. However, nearly one-third of Baby Boomers had no money saved in their retirement plans in 2014, creating a need to work. Challenges in planning for retirement include healthcare costs, spending and the cost of living, and the average life span. According to the National Bureau of Economic Research, delaying retirement for just three to six months does to the standard of living after retiring what an entire percentage point of 30 years of earning would do. 

“Whatever economic challenges the over 65s are facing these days, they pale by comparison with the money troubles of the young,” noted Lucken. Over half of Americans have less than $10,000 in savings and investments. 

People across all generations are looking for work that matters to them, makes a difference, and in which they can grow. This includes making a positive impact on their organization, helping solve social and/or environmental challenges, working with a diverse group of people, and more. 

5 factors for career longevity:

• keep skills relevant
• remain engaged and enthusiastic
• stay healthy, mind and body
• maintain work-life balance
• be productive 

When designing an office space for all generations, there’s several ways in which to promote a healthy work environment fit for the entire workforce. Examples of this include age-focused surveys, focus groups, camera journaling, interviews and the use of virtual reality. 

The post The Rise of the Multi-Generational Workforce appeared first on Commercial Property Executive.

Matt Jungclaus, Manager, Rocky Mountain Institute; Andrew Bush, Principal, Morgan Creek Ventures; Kevin Bates, President, Sharp Development Co.

Zero Over Time (ZOT) is a concept that sets existing commercial building portfolios on a financially viable path to achieve net-zero energy. At a panel at this year’s BOMA International Conference & Expo, Rocky Mountain Institute’s Manager Matt Jungclaus, Sharp Development Co.’s President Kevin Bates and Morgan Creek Ventures’ Principal Andrew Bush discussed six steps to achieving net-zero energy within commercial buildings, and how to implement this investment on a budget.

READ ALSO: The Changing Dynamics of Tenant Engagement

More and more, building owners are beginning to increase their investment in energy efficiency. According to Johnson Controls 2018 Energy Efficiency Indicator Survey, investment in energy efficiency is driven globally by a 77 percent cost reduction, 67 percent greenhouse gas reduction, 65 percent increasing energy security and 59 percent customer attraction and retention. Many are seeking low-carbon and net-zero energy buildings, which consume only as much energy as they produce or procure from clean, renewable resources on an annual basis. 

Achieving net-zero energy on a budget is possible in six steps: set goals, baseline, plan efficiency projects, analyze renewable storage, procurement and track progress. 

Despite this, there is still a need for implementing net-zero energy into existing buildings, not just developments. “Tenants are looking for this and investors are valuing it more,” said Jungclaus. “There is a 30 to 50 percent savings opportunity for investing in building efficiency.” 

Top concerns for getting into net-zero energy:

• too expensive 
• wouldn’t know where to start
• too risky, what if it doesn’t work?
• too complicated to manage
• you can’t improve an occupied building to ZNE cost effectively 

Existing buildings put in basic regulations years ago and now building owners are trying to fix energy use problems along the way, but are paying for the issues, explained Jungclaus. According to a recent survey by the U.S. Energy Information Agency, 72 percent of gross square footage in the U.S. belongs to buildings more than 20 years old. However, panelists shared that office assets existing globally are receiving energy retrofits at a rate of around 1 percent annually, while a rate of 3.2 percent is required in order to avoid a 2 degree rise in global temperatures. 

Zero Over Time carries value through multiple ownership transitions, including short-term holding periods. Each owner will benefit from the increased value of high-performing buildings that retain value better than conventional buildings. Benefits to property owners include increased value, better overall economics for the owner and tenants, market differentiation, faster lease-up and better retention. 

The new workplace experience:

• great day-lighting/open work environment
• employee thermal comfort
• indoor/outdoor spaces
• integrated common areas
• places to “get away” and still be at the office 

“Now we have to be focused on building with off the shell parts, looking at energy efficiency in a different way,” said Bush. “We’re creating exciting spaces, moving beyond just focusing purely on energy, but what the new workplace experience will be.” 

The post Achieving Net-Zero Energy in Office Properties appeared first on Commercial Property Executive.

Michael Giese, Senior Vice President, GlenStar Properties

At this year’s BOMA Conference in Salt Lake City, taking place from June 22 to June 25, thousands of attendants gather to learn about the latest trends in commercial real estate. Michael Giese, senior vice president at GlenStar Properties, led a focused discussion on the importance of tenant engagement and how to connect with commercial office tenants. 

Giese explained a Modern Engagement system, comprised of six different elements: space, experiencial, social, convenience, wellness and giving. Back in the 70s and 80s, the most important amenities were security and supplying air conditioning into an office space. Heading into the 80s and 90s, the concept of fitness centers, conference rooms and group events gained traction, with tenants becoming more vocal on the amenities they want. After making it through the amenities race in the 90s and early 2000s, we’ve come to the next phase, in which rental space is being taken away in order to create a higher focus on amenities and tenant engagement spaces.

“Back in the day, amenity offerings existed, but in a haphazard way. Not for tenant engagement,” noted Giese. “Now we’re focused on more experiential spaces.” 

Building a community in an office environment is on the heels of hospitality and residential. There’s no longer just one big event for everyone, but tailored events instead to promote collaboration among tenants. When discussing how to further tenant engagement across a property, some ideas include holding tenant content meetings, which brings them all together in one space to discuss what types of amenities and services they would be interested in having in the building, and creating a volunteer tenant tradeshow. Here, they can share expertise voluntarily and market to one another, creating a cross-pollination of services in the building. 

Tops needs for experiencial spaces:

• Live, work, play
• hospitality feel
• unique and personalized
• customizable
• something for everyone
• technology

Amenity space. Rendering courtesy of GlenStar Properties

“These offerings not only lower the probability of tenants moving out, but also are the differentiator against competitors for potential tenants looking for a space,” said Giese. “It’s vital to package these services into unique spots that stand out within a property, not just known as an add-on.” 

Wellness and philanthropy are another important portion of tenant engagement. Not only focusing on fitness amenities, additional wellness features include lounges, coffee shops, game rooms, and fireplaces. Giving back to the community is an additional way to bring tenants together, offering them a chance to not only participate in something of value to their team but find common interests with other tenants in the building in which they can collaborate for a greater purpose.  

The post The Changing Dynamics of Tenant Engagement appeared first on Commercial Property Executive.

The Gateway. Image courtesy of HFF

A partnership of Oaktree Capital Management and Vestar has secured a $96.9 million refinancing for a 651,778-square-foot, mixed-use property in downtown Salt Lake City. The Gateway is an open-air shopping mall with a variety of shopping, entertainment and office space.

Located on 21 acres at 41 South Rio Grande St. in the heart of the central business district, the property was built in 2000 and 2001 and also features an original Union Pacific Railway building constructed in 1910. The Salt Lake City Intermodal Hub, which provides light rail services, is less than half a mile east of the property and the shopping center is within walking distance of Temple Square, the Salt Palace Convention Center and Vivant Arena.

The property underwent a multi-million-dollar transformation in 2016, after Oaktree and Vestar acquired the retail portion. The joint venture repositioned the property from a traditional shopping mall into a modern, experiential shopping center with creative office space. The two-level complex consists of seven buildings with more than 38 restaurant and retail tenants, including Recursion, Kiln, Punch Bowl Social, Dave & Buster’s, Megaplex Theatres and Victoria’s Secret.

An HFF debt placement team of Aldon Cole, Paul Brindley, Todd Sugimoto and Spencer Richley represented the borrower in the deal.

Back in October, Dallas-based TriGate Capital secured a $69 million refinancing loan for its 726,306-square-foot retail center in Taylorsville, Utah, less than 10 miles from downtown Salt Lake City. A strong economy and job growth has led to a strong real estate market in the state’s capital city over the past two years.

The post Salt Lake City Retail Center Gets $97M Refi appeared first on Commercial Property Executive.

The Family Center at Riverdale

With the assistance of Newmark Knight Frank, CIM has sold The Family Center at Riverdale in suburban Salt Lake City to CCA Acquisition Co. The 427,800-square-foot property, which was 97 percent occupied upon closing, traded in a transaction valued at $48.2 million.

The Family Center carries the address of 1083 West Riverdale Road in Riverdale, Utah, roughly 35 miles north of Salt Lake City. The 42-acre property, developed in phases between 1995 and 2008, counts a 165,600-square-foot Target store as its anchor. The tenant roster also includes a host of other national retailers, including Best Buy, Pier 1 Imports, PetSmart and Dollar Tree.

“Capital was attracted to this asset as it is a best-in-class center with a strong credit profile and opportunities for growth,” Pete Bethea, vice chairman with Newmark Knight Frank, said in a prepared statement.

In addition to Bethea, the NKF team representing CIM included Rob Ippolito and Glenn Rudy. Local partners Ben Brown and Brandon Goodman of Mountain West were part of the group as well. CCA relied on internal representation in the transaction.

Salt Lake City sales

Investors have been quite keen on the metropolitan Salt Lake City retail market due in part to the fact that the area’s retail sales velocity is bucking the national trend, according to a 2019 investment forecast by Institutional Property Advisors. Major transactions in 2018 included CCA’s $142 million purchase of the approximately 688,500-square-foot The Shops at Fort Union in a deal orchestrated by NKF on behalf of the seller.

“Both single- and multi-tenant properties changed hands in greater numbers last year,” per the report. “Higher interest rates and prices will create headwinds to repeating those gains in 2019.”

The post CIM Sells Salt Lake City Retail Asset for $48M appeared first on Commercial Property Executive.

Rendering of Traverse Ridge Center III

CBRE has arranged a 47,000-square-foot lease with Spaces at Traverse Ridge Center III, an office building currently under construction in Lehi, Utah. The tenant will occupy the first and second floors of the 220,000-square-foot property upon completion, in August 2019.

Located at 3300 N. Triumph Blvd., Traverse Ridge Center III is the third office building to be constructed in Traverse Ridge Center, a master-planned business park spanning across 22 acres. Developed by Perry Commercial, the nine-story addition to the complex broke ground in April and will be the tallest building in the city.

Silicon Slopes on the rise

CBRE Senior Vice President Eric Smith worked on behalf of the landlord, while Associate Peter Black, also with CBRE, represented the tenant. Spaces is an IWG-owned creative and flexible workspace company.

“With the high volume of new companies and startups coming to Silicon Slopes, there is an increased need for coworking and temporary space options that Spaces can provide,” Smith said in prepared remarks.

“Lehi is a dynamic market with a rapidly growing high-tech and commercial center. As a result, we are seeing an increase in demand from businesses of all sizes looking for flexible working solutions which can be easily scaled up or down,” added Michael Berretta, vice president of Network Development for IWG.

The property provides access to Interstate 15, an adjacent Staybridge Suites hotel and public transit, including a future UTA TRAX stop. Once complete, Traverse Ridge Center will comprise 410,000 square feet of office space. The park will also feature a hotel, scheduled for completion in December.

Image courtesy of CBRE

The post Spaces Leases 47 KSF at UT Office Development appeared first on Commercial Property Executive.

Crossroads of Taylorsville

TriGate Capital LLC has refinanced Crossroads of Taylorsville, a 726,306-square-foot retail center in Taylorsville, Utah, thanks to a $69 million loan from NexBank. HFF’s Managing Director Jim Curtin facilitated the deal on behalf of the buyer.

The three-year, floating-rate loan will allow TriGate to pay off its current loan amount, plus provide capital for tenant improvements and leasing commissions to fully stabilize the asset.

Located at the intersection of 5400 South and Redwood Road, and situated on 68.4 acres, Crossroads of Taylorsville is shadow-anchored by Harmons and a Starbucks and has a retail tenant roster that includes Ross Dress for Less, Jo-Ann, FYE, Shopko, PetSmart, Guitar Center, T.J.Maxx and 24-Hour Fitness. There’s also a brand-new Regal Cinemas.

The center, completed in 1979, is less than 10 miles from the Salt Lake City CBD and is on one of the busiest intersections in Utah, with nearly 104,000 vehicles driving by each day. Crossroads of Taylorsville is also adjacent to Interstate 215, adding about another 92,000 vehicles a day. The property is also less than 30 minutes from the Salt Lake International Airport.

TriGate purchased Crossroads of Taylorsville in 2014 and has done extensive renovations since then. Not only has the Regal theater come aboard, but many of its current tenants signed leases in the past four years.

A burgeoning location

According to Marcus & Millichap’s most recent Salt Lake City retail market report, the area has seen an influx of more than 20,000 new households in the past three years, which has stimulated development with nearly 3 million square feet of retail space being built over that time.

The report predicts that the remainder of 2018 will see vacancy rates remain on an upward trend and rent gains come in fairly strong as new developments help boost the metro’s average asking rent.

TriGate has acquired more than $11 billion in real estate assets through multiple types of transaction structures. In August, a joint venture between TriGate and RSP Partners sold Elliot Plaza, a 147,469-square-foot retail center in Phoenix, to The Niki Group for $26.1 million.

Image courtesy of HFF

The post Salt Lake City-Area Retail Center Lands $69M Refi appeared first on Commercial Property Executive.

Grove Tower

Four Foods Group has acquired five acres of land in Valley Grove, part of a 62-acre master-planned development by St. John Properties in Pleasant Grove City, Utah. The restaurant company will use the parcel to build a new corporate headquarters, as well as a restaurant cluster housing some of Four Foods Group’s fast-growing brands, including R&R BBQ. The new dining facility is scheduled to open this July.

“Four Foods Group has been recognized as one of the fastest growing restaurant ownership groups in the country,” Daniel Thomas, St. John Properties’ regional partner, told Commercial Property Executive. “Having them select Valley Grove for their national headquarters continues to define Valley Grove as the heart of not only Utah County but a great location to conduct national and international business.”

A $300 million development

Valley Grove represents a large investment of St. John Properties in Pleasant Grove City and is expected to generate more than $800 million in tax revenue to the state, county and city, while hosting more than 7,000 employees.

“Valley Grove is a $300 million legacy development in the heart of Utah County,” Thomas said. “Utah County has one of the fastest growing GDP/Capita of any area in the county. Transpiration access to Valley Grove, along with a growing base of diversified amenities, will allow Four Foods Group to recruit and retain the best employees.”

According to Thomas, space in existing Valley Grove buildings is quickly being leased by businesses recognizing the development’s prized location and value. Jersey Mike’s, R&R BBQ and Starbucks have already signed on. “With Valley Grove being central to all of Utah County and directly off Interstate 15, the location is ideal,” Thomas said.

Rendering courtesy of St. John Properties

The post Four Foods to Expand UT Operations appeared first on Commercial Property Executive.

Canyon Park Technology Center in Orem, Utah.

A joint venture between the Muller Co., and an affiliate of Cerberus Capital Management LP has acquired Canyon Park Technology Center, a 924,634-square-foot office campus in Orem, Utah.

The sellers and price of the transaction were not disclosed.

“We purchased the property through a foreclosure sale,” Jon Muller, Muller’s principal, told Commercial Property Executive. “The previous owners had not invested in improving the buildings and as a result the property was only 60 percent occupied. The opportunity to lease up the property along with the demographics of the area fit well with our business philosophy.”

This marks the second time the two firms have teamed up, following last year’s recapitalization of an 841,036 square-foot, three-building office portfolio in Orange County, Calif.

Originally constructed between 1988 and 1992 to serve as headquarters for WordPerfect Corp., the campus is made up of 14 single-, two- and three-story buildings, with spaces ranging in size from 100 square feet to 60,000 square feet. This allows for configurations of everything from single-office incubator space to whole-building headquarter opportunities.

Amenities in the office campus, which is located at 1501 Technology Way, include a conference center with theater-style seating that seats up to 400 people; UVU’s Culinary Arts Institute’s internship kitchen; and outdoor amenities such as sand volleyball courts, basketball courts, West End Park and BBQ facilities. It also includes 7,840 parking spaces.

“The Muller Co. specializes in value-add opportunities where we can capitalize on repositioning assets with a quality of management and operations consistent with other ‘best in class’ properties in the market,” Muller said. “This property presents the opportunity for us to extend the Muller ‘brand’ to a new market for us.”

Picturesque location

Situated on 85 acres, Canyon Park Technology Center offers scenic views of the Wasatch Mountains. The sprawling campus is less than an hour from Salt Lake City and offers convenient access to the city via the I-15 and State Route 189.

According to Muller, the economics of the marketplace are very strong.

“A combination of positive quality of life, low cost of living and a well-educated workforce has made the area attractive to both start-up and more mature tech-oriented companies,” he said. “In fact, the area has acquired the nickname ‘Silicon Slopes’ as a result of the rapid growth in the tech sector.”

Three universities within close proximity also provide a steady source to increase the area’s workforce.

Changes ahead

The joint venture plans to invest significant capital to upgrade the common areas and grounds, and enhance the branding of the property with updated signage, color schemes and better wayfinding through the campus.  

“We plan on investing $8.6 million over the next two years to significantly upgrade the property,” Muller said. “An indoor amenity center will feature an upscale gym, snack center, gaming rooms and gathering areas. An outdoor area will be developed with sports-minded activities, picnic alcoves, fire pits and bike parking.”

There will also be a food truck alley, as well as outdoor dining areas to take advantage of the adjacent café operated by the UVU culinary school. 

In April, Cerberus Capital Management partnered with Harvest Properties on the acquisition of DC Station, an office building in San Francisco’s suburb of Daly City, Calif. 

Image courtesy of The Muller Co.

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Data Center Cages at Aligned Energy’s Facility

Aligned Energy has started redevelopment work at its Salt Lake City-area data center, aiming to transform it into a colocation facility for cloud providers and enterprise clients alike. The 300,000-square-foot facility is slated to open in the third quarter of 2018.

The data center sits on a 60-acre campus in West Jordan. It delivers 50 megawatts of critical capacity from a dedicated on-site substation. The Tier III facility will initially provide a 75,000-square-foot data hall, of the total 150,000 square feet planned. In addition, 15,000 square feet of rentable office space will be provided, as well as 9,700 square feet of storage space.

“Our new data center in West Jordan addresses the needs of cloud providers, enterprise companies and our existing customers that require an adaptive, future-proof data center solution in and around the greater Salt Lake area,” said Andrew Schaap, CEO of Aligned Energy, in a prepared statement.

Commercial Property Executive recently interviewed Schaap about the Phoenix data center market, where Aligned Energy is expanding its operations with an additional 200,000 square feet to their 120-megawatt facility.

Image courtesy of Aligned Energy

The post Aligned Energy Redevelops 300 KSF Facility in SLC appeared first on Commercial Property Executive.

Rendering of Traverse Ridge Center III

Perry Commercial has unveiled its plan to break ground on Traverse Ridge Center III, a Class A office building in Lehi, Utah, in April 2018. The property is scheduled for completion in summer 2019 and will be the city’s tallest building.

The asset will comprise 220,000 square feet across nine stories. Traverse Ridge Center III will offer 25,000-square-foot floorplates and is part of the larger 22-acre Traverse Ridge Center development. The third property constructed within the park, the project also include an on-site Staybridge Suites hotel and UTA stop with direct shuttle service to FrontRunner Station. A total of 50,000 square feet of the building has been reserved for an anchor tenant. Traverse Ridge Center III is located at the intersection of Triumph Boulevard and SR 92, close to Interstate 15.

Eric Smith, Kreg Peterson, James Mecham and Laurie Adair of CBRE will work as exclusive leasing agents for the building. 
 
“Traverse Ridge Center is in a prime location in one of the fastest-growing areas in the state. It provides a dynamic opportunity unlike any other within the Lehi submarket,” Smith said in prepared remarks. “It is unrivaled in its ease of access and will be a monument at the point of the mountain.”

Rendering courtesy of CBRE

The post Perry Commercial to Break Ground on SLC-Area Office Project appeared first on Commercial Property Executive.

Rocky Mountain Power has announced significant expansion plans to its wind energy facilities. The electric company is set to work on four new projects that are expected to bolster its owned and contracted wind power by more than 60 percent. This equates to powering about 450,000 average homes.

More than 1.3 gigawatts of wind power

Following a request for proposal process, issued in September 2017, four wind projects were selected, estimated to cost approximately $1.5 billion. The list includes a 400-megawatt wind farm in Converse County, Wyo., that will be built by NextEra Energy Resources, with ownership equally divided between PacifiCorp. and NextEra; a 161-megawatt wind facility in Uinta County, Wyo., to be built by Invenergy and owned and operated by PacifiCorp; as well as another two wind facilities slated to be built, owned and operated by PacifiCorp.—a 500-megawatt farm in Carbon and Albany counties and a 250-megawatt project in Carbon County, Wyo. 

“The new wind projects are part of the company’s Energy Vision 2020 initiative, which will significantly expand the company’s Wyoming wind fleet and benefit the state and local economies,” Cindy Crane, Rocky Mountain Power president & CEO, said in prepared remarks. “The project also includes a 140-mile segment of the Gateway West high-voltage transmission line in Wyoming to connect the new wind energy to Rocky Mountain Power’s grid.”

The wind generation capacity expansion and the associated transmission line are part of the company’s 2017 Integrated Resource Plan, which tackles the issue of meeting the costumer’s energy needs in a cost-effective manner. In addition, the projects are expected to bring several benefits to Wyoming: they should create between 1,100 and 1,600 construction jobs in the state and more than 200 full-time positions; they should add about $120 million in tax revenue from construction; and are set to bring significant post-construction annual tax revenues starting at approximately $11 million in 2021 and growing to $14 million annually by 2024. Construction of the new wind and transmission line projects is expected to begin in 2019.

The post Rocky Mountain Power to Invest $1.5B in Wind appeared first on Commercial Property Executive.

SLC Port Global Logistics Center

NWQ LLC—a joint venture between Colmena Group, Wadsworth Development Group and Stokes Partners—has launched Phase 1 of the SLC Port Global Logistics Center development. The 3,000-acre Salt Lake City logistics project is located in the city’s northwest region and will have the capacity to accommodate some 50 million square feet of Class A speculative and build-to-suit buildings.

Phase 1 consists of 10 buildings totaling nearly 7.5 million square feet of bulk distribution and manufacturing industrial space. Phase 2 will consist of 532,000 square feet, while Phase 3 will comprise 170,000 square feet. Both are slated for completion in the spring of 2019.

Historical Development

“The development of the Northwest Quadrant of Salt Lake City is one of the most noteworthy events to take place in the local industrial market in the area’s history,” said Jeff Richards, senior vice president at CBRE, in prepared remarks. “Given the market’s current size of approximately 130 million square feet, the addition of SLC Port Global Logistics Center has the potential to increase the total market size by nearly 39 percent. This land was not historically available for development, so this project will dramatically alter the landscape of the local industrial market.”

CBRE industrial and logistic specialists Tom Dischmann, Jeff Richards, Matt McAfee and Chris Liddell will oversee the listing on behalf of NWQ.

Image courtesy of CBRE

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The Shops at Fort Union

CCA Acquisition Co. LLC has bought The Shops at Fort Union, a 688,549-square-foot segment of an 830,000-square-foot retail center in Salt Lake City, for $142 million.

NKF Capital Markets Vice Chairman Pete Bethea and Senior Managing Directors Rob Ippolito, Glenn Rudy and Ben Brown represented the seller. The buyer, CCA Acquisition Company LLC, was self-represented. According to NKF, the asset is 86 percent occupied. Smith’s Food & Drug, Walmart Supercenter, Dick’s Sporting Goods, Ulta, Ross Dress for Less, Michaels and DSW are some of its tenants.

“Fort Union is arguably one of Salt Lake City’s premier retail destinations featuring an industry-leading tenant roster, exceptional location and market-leading tenant performance,” said Bethea in prepared remarks. “Over 75 percent of Fort Union’s income comes from national credit tenants and more than 50 percent of the tenant roster has called the center home for over a decade. Ultimately, the buyer was drawn to the reliable income stream and the opportunity to add value through lease-up as well as the possibility to introduce a mixed-use component via redevelopment of strategic parcels.”

Built in 1974, The Shops at Fort Union is located at 900 Fort Union Blvd. Interstate 15 and Interstate 215 are both easily accessible from the property.

Image courtesy of NKF

The post NKF Arranges $142M Sale of UT Retail Center appeared first on Commercial Property Executive.

Valley Grove Project

Jersey Mike’s, R&R BBQ and Starbucks will join Valley Grove, a 60-acre mixed-use project located in Pleasant Grove City, Utah. Valley Grove will comprise not only Class A office and retail space, but also a full-service hotel. The park will include retail stores and restaurants. St. John Properties invested $250 million in the development.

Coldwell Banker Commercial Advisors (CBC Advisors) Executive Vice President Cameron Simonsen and retail specialist Brittany Ferris represented the landlord, while Vice President Heather Bogden represented Jersey Mike’s. Finally, Vice President Tyson Moore represented Four Foods Group on behalf of R&R BBQ.

“The market has taken note of Valley Grove,” said Simonsen in prepared remarks. “It is in the center of Utah County, one of the fastest growing areas in the entire country. Progressive companies share the development’s vision.”

Back in August 2017, St. John Properties broke ground on Valley Grove.

Image courtesy of Coldwell Banker Commercial Advisors

The post UT Mixed-Use Project Adds 3 Retail Tenants appeared first on Commercial Property Executive.

Creek Road Place

Creek Road Place LLC, an entity of Ridgewood Management, has sold a four-story, 44,825-square-foot office building for more than $8 million. Chairman Brandon Fugal and Senior Executive Vice President Jordan Wall of Coldwell Banker Commercial Advisors (CBC Advisors) arranged the transaction on behalf of the seller, while Dell Nichols of Vectra Management Group represented the buyer.

Located at 7440 South Creek Road in Sandy, Utah, between Hillcrest Heights and Akron, Creek Road Place is a Class A property with high-grade finishes, including stone floors, recessed lighting fixtures and floor-to-ceiling glass walls with panoramic views. Spread across a 2.1-acre site, the building features basement storing space and four parking places for every 1,000 square feet. According to CBC Advisors, the asset was 100 percent occupied at the time of the sale.

Although the area’s vacancy rate lingers at 7 percent, a recent Forbes report showed that Salt Lake City comes second with regards to overall U.S. technological advancements. The University of Utah and Salt Lake City International Airport are located a 20-minute drive away. The Shops at Ft. Union, Union Heights Center and Family Center are also nearby, while major thoroughfares like Union Park Avenue, Interstate 215 and South 1300 East are easily accessible from the property.

In another recent deal, CBC Advisors closed the sale of three office properties in Arlington, Texas. 

Photo via Google Street View

The post SLC Office Building Changes Hands appeared first on Commercial Property Executive.

The Eye Institute of Utah

Inland Real Estate Acquisitions LLC has acquired a 29,702-square-foot medical office building in Salt Lake City.

Constructed in 2015, the two-story property located at 755 East 3900 South includes The Eye Institute of Utah—which features more than 20 consultation rooms, administrative office spaces and a LASIK and Vision Specialty Center—and The SurgiCare Center of Utah which performs a variety of advanced procedures. The center includes four surgical rooms, a large waiting room, a patient surgical viewing area and several recovery rooms.

Inland Real Estate Acquisitions LLC Senior Vice President Matthew Tice and Assistant Vice President David Neboyskey arranged the deal on behalf of an Inland affiliate.

“Located in the heart of the Salt Lake Valley, the property’s ideal location off Interstate 80 and Interstate 15 near St. Marks Hospital provides nearly 358,000 people within a five-mile radius with convenient access to meet their health-care and medical needs,” said Tice in prepared remarks. “The newly constructed facility, along with its cutting edge medical technology and professionals, made the Eye Care Institute of Utah the type of attractive acquisition we continue to seek out in this asset class.”

In a recent deal, Inland Real Estate Acquisitions LLC arranged the purchase of the Edward-Elmhurst Health Center, a 13,000-square-foot medical office building located approximately 20 miles west of Chicago. 

Photo via Google Street View

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St. Regis Deer Valley in Park City, Utah

Sonnenblick-Eichner Co. has arranged $60 million in financing for St. Regis Deer Valley, a AAA Five Diamond year-round destination resort in the Deer Valley ski area in Park City, Utah.

The non-recourse financing was funded by a domestic life insurance company in what S-E described as “a highly structured transaction.” Proceeds were used to refinance existing debt with a new long-term, fixed-rate loan and to provide for the development of the resort’s next phase, which will include additional condo and hotel units, a destination restaurant, and other resort amenities. Construction on that next phase is expected to begin later this year or in early 2019.

The property’s owner reportedly is a joint venture of a privately held East Coast real estate company and a Hong Kong investor.

“Deer Valley is recognized as one of the finest destination ski resorts in the world. With its year-round amenities and the successful history of condominium and private resident sales, the transaction was ultimately structured with a life insurance company who fully appreciated the intrinsic value of the asset in underwriting the collateral for the loan,” S-E Principal David Sonnenblick said in a prepared statement.

The ski-in, ski-out facility offers 67 hotel condominium suites divisible into 177 hotel keys and 25 private whole-ownership residences. Amenities at St. Regis Deer Valley include:

• spa and fitness facilities
• J&G Grill
• a signature restaurant
• a private club

A long and busy history

Deer Valley was purchased last August, before it was a St. Regis, by affiliates of KSL Capital Partners and Henry Crown & Co.

Those two entities had just weeks prior finished combining Intrawest Resorts Holdings Inc., Mammoth Resorts and Squaw Valley Ski Holdings into one company, which owns 12 four-season mountain resorts with 6 millions skier visits and 20,000 skiable acres, along with “significant land available” for future development.

“This is the third financing that we have arranged for the ownership, including a $212.5 million construction loan and a subsequent permanent loan,” added S-E Principal Elliot Eichner. The $212.5 million loan was arranged way back in July 2007.

Image courtesy of Sonnenblick-Eichner Co. 

The post Luxury Ski Resort in Utah Scores $60M Refi appeared first on Commercial Property Executive.

Ningret – Metro Logics

NKF Capital Markets has arranged the sale of a two-building, 426,866-square-foot industrial facility in Salt Lake City, for $37.2 million. NKF Capital Markets worked on behalf of the seller, AEW, and Newmark Grubb ACRES represented the buyer, Price Real Estate, in the off-market transaction.

At 3845-3907 W. Ninigret Drive, the facility is situated near the Belt Route, Interstate 80 and 2100 S. Freeway. Built in 2008 and 2010, the property occupies 19.8 acres and is fully occupied by Metro Logics, a third-party medical logistics firm. According to Newmark Grubb ACRES research, vacancy has remained low in the Salt Lake County industrial market, while average lease rates and sale prices per square foot have increased in the past several quarters.

“The quality of the real estate, combined with the long-term lease and the tenant’s capital commitment to the property, makes this a great long-term investment for Price. Moreover, the timing of the sale was perfect for AEW and the final execution exceeded expectations,” said Bret Hardy, executive managing director at NKF Capital Markets.

Bret, together with President Kevin Shannon, represented the seller, and Executive Vice President Kyle Roberts of Newmark Grubb ACRES worked on behalf of the buyer.

In December, AEW acquired a 1 million-square-foot facility, Southwest Commerce Center in Reno, Nev., for $93.2 million.

Image courtesy of NKF Capital Markets 

The post AEW Sells Salt Lake City Industrial Asset for $37M appeared first on Commercial Property Executive.

680 W. Shields Lane, Salt Lake City

Gladstone Commercial Corp. has added two new buildings to its office portfolio, totaling 204,587 square feet. The assets are located in Columbus, Ohio, and Salt Lake City and were previously owned by Morgan Stanley. The entire acquisition cost the buyer $37.6 million. 

“This transaction is an excellent acquisition in target markets providing strong near-term returns for our investors and excellent credit quality through the investment grade tenancy of Morgan Stanley,” said Bob Cutlip, president of Gladstone Commercial, in a prepared statement. The average capitalization rate is approximately nine percent, higher than that of another recent office acquisition that the company completed in Orlando, Fla. 

Live-work-play locations

4343 Easton Commons, Columbus

Both properties are fully leased, the weighted average lease term being 8.6 years, and feature live-work-play locations. Morgan Stanley Smith Barney Financing (MSSBF) is the anchor tenant, the company occupying 92 percent of the space available across the buildings.

The Columbus asset, completed in 2007, is located at 4343 Easton Commons, close to Interstate 270’s beltway loop. It has three stories and 102,559 square feet. MSSBF occupies 84 percent of the building while the rest is occupied by Congressional Bank. The weighted average lease term is seven years.

The other property, Jordan Valley Tech Center, was also completed in 2007 and is fully leased to MSSBF for the next 10 years. Located at 680 W. Shields Lane in Salt Lake City’s South Jordan submarket, the building is only two blocks from Interstate 15 and within walking distance of several retail stores and communities. 

Images courtesy of Yardi Matrix & Google Street View 

The post Gladstone Expands Office Portfolio With $38M Buy appeared first on Commercial Property Executive.

The Gateway in Salt Lake City

Recursion Pharmaceuticals will relocate its headquarters to The Gateway, a mixed-use downtown lifestyle and entertainment district located in the heart of Salt Lake City. Located along 400 West, between 200 South and South Temple, The Gateway is currently managed by Vestar, a privately held real estate company specializing in the development and administration of shopping and entertainment destinations. Since its founding in 2013, Recursion Pharmaceuticals has been based in Research Park near the University of Utah.

The firm will occupy 100,000 square feet to create lab and office spaces, increasing its current footprint and workforce. The labs will contain advanced robotics facilities.

“Beyond our bold vision of industrializing the slow and inefficient process of discovering and developing new therapies for patients in need, we want to contribute locally to our community,” said Chris Gibson, CEO of Recursion Pharmaceuticals, in prepared remarks. “In addition to creating hundreds of jobs in Salt Lake City, we are also thrilled to be able to attract competitive, world-class talent from across the U.S., which is helping the tech and biotech industries here grow and flourish.”

Future employees will be able to enjoy shopping, dining, entertainment and residential opportunities. The 623,205-square-foot project is expected to be completed in the second quarter of 2018.

Earlier this year, Dave & Buster’s announced that it would open its first Utah location at The Gateway, anchoring the asset. 

Image courtesy of Vestar

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Residence Inn Salt Lake City – West Jordan, 7558 South Plaza Center Drive in West Jordan, Utah

Marriott has opened the all-suite Residence Inn Salt Lake City – West Jordan, located at 7558 South Plaza Center Drive in West Jordan, Utah. The asset is owned and managed by Utah Hospitality of Aberdeen, S.D.

The 99-key hotel features studio and one-bedroom suites. Amenities include plush mattresses, work desks, ergonomic chairs and free Wi-Fi. Every suite also features a fully equipped kitchen with a coffeemaker, microwave and residential-sized appliances. The hotel maintains a business library and an indoor swimming pool with a whirlpool spa, an outdoor patio with a fire pit and barbecue grill, a large fitness center and a 1,700-square-foot meeting space. The hotel also offers grocery delivery service, 24-hour onsite food and beverage market, dry cleaning services and onsite guest laundry room.

The Salt Lake City International Airport is 12 miles away. The Utah Olympic Oval, the Gardner Village and the shops and restaurants at Jordan Landing are also nearby. Moreover, the hotel is just a short drive from Snowbird, Alta, Brighton and Solitude ski resorts.

“When on the road for an extended period, our guests need space to spread out, maintain their life’s pace and restore their energy to help them maintain a healthy balance and routine while traveling,” said Diane Mayer, vice president & global brand manager at Residence Inn, in a prepared statement. “This new hotel offers them a seamless blend of modern style and functionality that allows them to settle in and thrive.”

Image courtesy of Residence Inn

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Residence Inn by Marriott Salt Lake City Murray

Apple Hospitality REIT Inc. has acquired two Residence Inn by Marriott Hotels for $81 million. The REIT bought the 179-key Residence Inn by Marriott Portland Downtown/Waterfront for $55.8 million, $311,500 per key and the 136-key Residence Inn by Marriott Salt Lake City Murray for $25.5 million, or $187,500 per key.

Located at 145 Fore St., in Portland, Maine, Residence Inn by Marriott Portland Downtown/Waterfront offers convenient access to Portland’s Historic Old Port District and to various restaurants, shopping and entertainment venues such as Lincoln Park, Big Apple Store, Portland Science Center, Trader Joe’s and Whole Foods Market. Additionally, the property is only a 13-minute walking distance from the beach. The pet-friendly hotel offers common area amenities such as laundry on-site, grocery shopping service, barbecue/picnic area, indoor pool, whirl pool and fitness center.

Residence Inn by Marriott Salt Lake City Murray is located at 171 E. 5300 S., Murray, Utah, in close proximity to the Salt Lake City International Airport. Common area amenities include limousine service, laundry on-site, barbecue and/or picnic area, fitness center and indoor pool. The property offers convenient access to various local attractions such as Murray Park, Murray Aquatic Center, Alta Ski Resort, Rio Tinto Stadium and Murray Parkway Gold Course.

This transaction brings Apple Hospitality REIT Inc.’s portfolio to 238 hotels, including more than 30,000 keys. Back in February, the company purchased $18 million Courtyard Fort Worth Historic Stockyards, a 124-key hotel in Fort Worth, 

Image via Google Street View

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Federal Bureau of Investigation Field Office, Salt Lake City

Arch Street Capital Advisors closed the sale of the Federal Bureau of Investigation Field Office in Salt Lake City. 

Located adjacent to the Salt Lake City International Airport, the 169,542-square-foot mission critical facility is 100 percent leased to the United States General Services Administration on behalf of the FBI. The built-to-suite property was completed in 2012 and specifically designed and built for the FBI under a 20-year original lease. The Class A facility is backed by the credit of the U.S. Government and has 15 years of remaining lease term with no cancellation options through 2032. 

“We plan to redeploy this capital on behalf of our client and are actively acquiring similar high quality mission-critical facilities,” said Petra Conte, senior vice president of Arch Street Capital Advisors, in prepared remarks.

Steven Buss, Brian Saal, Bill Prutting, Marc Rampulla, and Eric Gustafson of JLL acted as the exclusive agents and advisors on the disposition of the property.

Image courtesy of Arch Street Capital Advisors 

The post Arch Street Closes Salt Lake City FBI Office Sale appeared first on Commercial Property Executive.

Courtyard by Marriott Lehi

MCR has acquired two Marriott hotels, the 97-key Marriott Courtyard Lehi and the 94-key Marriott SpringHill Suites Lehi, both located in the Salt Lake City suburb of Lehi, Utah, for $27.5 million.

“We specialize in purchasing limited-service Hilton and Marriott properties so these two hotels were right down the pipe for us,” Russ Shattan, MCR’s senior vice president of acquisitions and development, told Commercial Property Executive. “A 3-year-old Marriott Courtyard and a 6-year-old Marriott SpringHill Suites, both in a great location. They are beautiful assets, well built and one of the best brands in the business.”

Both hotels are located at the entrance to Thanksgiving Point, known as Salt Lake City’s Silicon Slopes technology corridor, which also includes museums and numerous entertainment facilities.

“It has some of the biggest names in tech as part of it,” Shattan said. “Adobe has a giant office park and are currently in the process of spending $200 million in expanding.”

Other companies such as Microsoft, Oracle and Ancestry.com all call the area home.

Booming tech sector drives growth

Recent data by MCR shows that the city of Lehi has more than doubled in size since the turn of the new century, boosted by the large cluster of technology companies, with year-over year growth reaching 4.6 percent in 2016.

“The area is benefitting from the high cost of living in California and we’ve seen a migration from East from California into areas like Reno, Nev., Phoenix, Ariz., and quite a bit into Salt Lake,” Shattan said. “It has a very steady political environment, a highly educated workforce and a pro-business economic outlook.”

Situated between Provo and Salt Lake City, Lehi is also home to major government facilities, including the NSA’s 1.5 million-square-foot Utah Data Center.

Renovation plans far ahead

The Marriott SpringHill Suites recently went through a renovation and MCR is planning to make upgrades to the Marriott Courtyard Lehi in four years, on its seventh birthday.

Earlier this month, MCR opened the $21 million Residence Inn by Marriott Fort Lauderdale Pompano Beach Central, a 112-key hotel in Pompano Beach, Fla. 

There’s been a lot of activity in the Salt Lake City hotel market in 2017. In August, Marcus & Millichap arranged the sale of a four-story, 86-key SpringHill Suites hotel in downtown Salt Lake City, and earlier this summer,  ASAP International Holdings arranged the acquisition of the DoubleTree by Hilton Salt Lake City Airport hotel in Salt Lake City. 

Image courtesy of MCR

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Rendering of 60 Park in Sugar House, Utah

Westport Capital Partners selected CBRE to lead the leasing efforts at 60 Park, a 150,000-square-foot office building in Sugar House, Utah. The property is scheduled for completion in the summer of 2019.

Previously occupied by home goods retailer Shopko, 60 Park will be part of the Park Avenue mixed-use development project. The six-story building will be located near Interstate 80, multiple bus stations, restaurants and hotels, including Tsunami, Olive Garden and Extended Stay America. The asset will also feature street-level retail space. When completed, the Park Avenue development will include: 40 Park, a 208-unit community; 60 Park; and 80 Park, a 170,000-square-foot medical office building recently pre-leased by The University of Utah; and 1,200 parking spaces.

Senior Vice Presidents Tab Cornelison and Eric Smith, Vice President Nadia Letey and Executive Vice President Scott Wilmarth with CBRE’s Salt Lake City office will oversee the listing. 

“Westport understands the importance of office tenants utilizing their real estate facilities to attract talent, and this office building has been designed with that concept in mind,” Cornelison said in a prepared statement.

Image courtesy of CBRE

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Salt Lake City FBI field office

Easterly Government Properties, a REIT focused on commercial properties leased to U.S. government agencies, recently acquired the Salt Lake City field office, making it the single largest private owner of FBI field offices in the U.S.

Easterly, a Washington, D.C.-based company which acquires, develops and manages Class A commercial properties leased to government entities, now owns seven of the 56 FBI field offices.

The Salt Lake City field office is a 169,542-square-foot, state-of-the-art, mission-critical facility, built to FBI specifications. The LEED Gold-certified, four-story building is fully leased to the FBI and is located on a 7.5-acre campus near the Salt Lake City International Airport. The property was completed in 2012 and is leased to the FBI through 2032. The field office oversees federal operations in Utah, Montana and Idaho, and acts as a regional headquarters for the FBI and directs 18 satellite offices, known as resident agencies, in those three states.

“Remaining true to our stated goal of building a portfolio of Class A real estate leased to the U.S. government, we feel FBI-Salt Lake City fits squarely within our stated acquisition universe, or ‘bullseye’ as we like to call it. This acquisition brings us even closer to achieving a portfolio that is 100 percent leased to the U.S. government, all backed by the full faith and credit of the United States,” William Trimble, III, Easterly’s CEO, said in a prepared statement.

The campus features both public and secure spaces, modernized technology, a sophisticated security system, restricted visitor screening facility, metal blockades to restrict automobile traffic and perimeter fencing.

“We feel this accretive acquisition, specifically built for a highly important U.S. government security organization, serves as a hallmark of the Easterly portfolio. Stable cash flow, a young, mission-critical building, and U.S. government tenancy serve as the foundation for a great Easterly acquisition. FBI-Salt Lake City categorically meets these investment criteria,” Darrell Crate, Easterly’s chairman, stated in prepared remarks.

Previous acquisitions

In November, 2016, Easterly purchased a 98,184-square-foot FBI office building in Albany, N.Y., which at that time was the REIT’s sixth FBI field office acquisition. It was part of a four-property portfolio, which included FBI and DEA office buildings in Birmingham, Ala., and an EPA laboratory in Kansas City. Those deals had closed in July 2016.

As of June 30, 2017, Easterly wholly owned 45 properties in the U.S. comprising about 3.5 million square feet, including 42 that were leased primarily to federal government agencies. At that time, the portfolio had a weighted average of 12.1 years and was 100 percent occupied, with a weighted average remaining lease term of 6.8 years.

At the beginning of June, Easterly completed the acquisition of a 327,614 square-foot Department of Veterans Affairs Ambulatory Care Center in Loma Linda, Calif. The building, which ranks as VA’s second largest outpatient facility in the U.S., is newly constructed, LEED Silver certified, and leased to the U.S. government through May 2036. Easterly announced in late June it had closed on a $127.5 million mortgage secured by the Loma Linda facility, which it had acquired for $212.5 million. The 10-year, non-amortizing loan carried a fixed interest rate of 3.59 percent per year. 

Image courtesy of Easterly Government Properties

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The Exchange

KTGY Architecture + Planning have unveiled the preliminary design for The Exchange, a new mixed-use development by The Domain Cos. and the GIV Group that hopes to revitalize downtown Salt Lake City. The $110 million development represents The Domain’s first foray into the Salt Lake City multifamily market and is expected to break ground in fall 2018. The design envisions a pedestrian- and transit-oriented district that features affordable and market-rate apartments, business incubator space, creative office space and ground-level retail and restaurant space.

Out with the old

Located at 320 E. 400 S. and 338 E. 400 S., on two city-owned, 2.2-acre sites, the project is intended to replace three under-used retail and commercial buildings with nine stories of residential, retail and co-working spaces. The parcels include the old five-story Barnes Bank building and the two-story Salt Lake Roasting Co., directly north and east of the city’s public safety building, and a 25,000-square-foot surface parking lot. The development is directly along the TRAX light rail system line and serves as a cornerstone of the ongoing development along 400 S. and the city’s civic campus.

In with the new

The current design features two buildings, divided by Blair Street, and includes:

• 412 mixed-income units
• 20,240 square feet of retail and restaurant space
• 30,741 square feet of office space
• 361 on-site parking spaces

The Exchange

Unit sizes range from 325 square feet for the micro-units to 1,294 square feet for a three-bedroom apartment home. Around half of the apartments will be affordable to households earning 40 to 80 percent of the area median income. An international food hall and marketplace, in partnership with the International Rescue Committee’s Spice Kitchen business incubator program, will anchor the retail space. The smaller L-shaped, five-story building will feature ground-floor business incubator space with three floors of co-working and creative office space above, as well as 124 micro-units.

“The base material for both buildings is a clean precast panel that relates directly to the color and texture of the library, tying the new development with the established neighborhood,” said Keith McCloskey, executive director in KTGY’s Los Angeles office, in prepared remarks. “The project looks to transform this district through the infusion of a diverse set of programs that will provide activated street frontages and a variety of housing typologies at all levels of affordability.”

KTGY also recently completed the design for a new Orange County infill mixed-use project, which will evoke the spirit of pre-1970s Vietnam.

Developers anticipate to complete The Exchange by 2020. Wadman Construction will serve as general contractor. The development will be built to achieve LEED Gold and Energy Star certifications.

Images courtesy of KTGY Architecture + Planning

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Phase Three of doTerra Campus in Utah

doTerra, a rapidly growing direct sales Utah-based company that produces essential oils and other wellness products, is breaking ground on new office, medical and fulfillment space and expanding its manufacturing facility.

It’s the third phase in the company’s expansion within the Pleasant Grove and Lindon, Utah, area and will add about 950 jobs over the next three years. When the construction is completed, doTerra will have more than 2,950 employees in Utah and nearly 970,000 square feet of office, medical, manufacturing and fulfillment space spanning 100 acres. Founded in 2008, doTerra ships products to customers in over 120 countries.

“Expanding our campus provides additional opportunities for research and growth so we can continue to lead the way to sourcing, testing, manufacturing and distributing essential oils and other healthy living products for customers around the world,” David Stirling, founding executive, chairman & CEO, said in a prepared statement.

Rendering of New doTerra Medical Clinic

The company is constructing a 67,055-square-foot office building for an additional 400 employees. It will also have a childcare center that will serve up to 84 children, including infants and toddlers, and is due to be completed in fall 2018.

A 39,500-square-foot medical clinic is slated for completion in spring 2019. It will initially serve doTerra employees and Wellness Advocates, its independent direct-sales distributors, but will eventually be opened to the community. The building, which will focus on integrative care and accommodate 100 employees and five medical doctors, will be designed to expand as need demands with the potential of adding two more buildings.

“Health and wellness are the core of our business and we’re pleased to create a clinic where we can validate the medical benefits of oils with modern medicine,” Stirling added.

The company is adding nearly 200,000 square feet its manufacturing facility, which will have almost 324,000 square feet when it’s finished in fall 2018. It will have space for 200 more employees.

A 270,000-square-foot fulfillment center will be built on 32 acres along the 1-15 corridor in Lindon, Utah, near the Pleasant Grove exit. Although it is expected to house nearly 250 new employees, it will be designed to use advanced automation to fulfill orders from around the world.

Corporate expansions

It’s not the only news announced this month in Pleasant Grove. St. John Properties broke ground on Valley Grove, a 62-acre master-planned development that will have more than one million square feet of Class A office space, restaurant, retail and hospitality space.

Elsewhere in Utah, Biomerics and the Govenor’s Office of Economic Development (GOED) announced in March it was building its corporate headquarters in Salt Lake City, after an estimated $39 million in capital investment.  The medical device company intends to add up to 380 jobs to the community by 2025. The exact location of the new 200,000-square-foot property will be announced at a future date.

Images courtesy of doTerra 

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Black Diamond Lodge at Deer Valley Resort

A new entity controlled by affiliates of KSL Capital Partners and Henry Crown and Co. acquired Deer Valley Resort, a ski resort in Park City, Utah. 

In July, the newly formed partnership joined Intrawest Resorts Holdings Inc., Mammoth Resorts, and Squaw Valley Ski Holdings, entering into an agreement for the acquisition. The transaction is anticipated to close prior to the upcoming 2017 to 2018 ski season.

Premium Location

Located at 2250 Deer Valley Drive S., Deer Valley Resort offers more than nine properties in addition to its signature collection of private homes and condos, 21 chairlifts, 101 ski runs, six bowls, 12 restaurants, 2,026 acres of alpine skiing, a ski school, children’s center, meeting and event space and an average of 300 inches of snow yearly. Typical lodge amenities include continent breakfast, resort lift ticket sales, in-resort and town shuttle services, on-site parking, concierge services, ski storage, a fitness center, Wi-Fi, game room and steam room. 

“Deer Valley Resort is one of the preeminent mountain resorts in the world and is a tremendous addition to our existing portfolio. Prior to this acquisition, we were able to offer our guests exceptional experiences throughout most of North America’s major ski regions, but we did not have a resort in Utah, a state that is renowned for great skiing and mountain town life. Park City and Salt Lake skiers have always known that powder, blue skies, a huge variety of terrain, and exemplary guest service set Deer Valley Resort apart,” said David Perry, president & chief operating officer of the new joint venture, in prepared remarks.

Image courtesy of Deer Valley Resort

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6350 S. 3000 East St., in Cottonwood Heights, Utah

MasterControl, a provider of quality and compliance software solutions and services, relocated its corporate headquarters to the third building of the Old Mill Corporate Center in Cottonwood Heights, Utah. Some 300 employees will work in the new office initially, but the company plans to double its workforce in Utah in the coming years.

LEED-certified office building

Located at 6350 S. 3000 East St., the six-story, 154,000-square-foot asset sits less than a mile from Interstate 215 (the Belt Route). The LEED Gold property features more than 600 parking spaces and offers easy access to multiple bus stations, restaurants and hotels, including Market Street Grill, Hyatt Place Salt Lake City and Hampton Inn Salt Lake City Cottonwood. Owned and managed by Beckstrand & Associates, the Class A office building was completed in 2005.

“The Old Mill Corporate Center is a premier business facility close to downtown Salt Lake, but just minutes away from some of the finest ski resorts and outdoor recreation activities in the nation,” Jon Beckstrand, MasterControl CEO, said in a prepared statement. “This location and building will provide an environment that is conducive to innovation, but has the nearby amenities to also enable a happy work-life balance, which is an important part of our company culture.”

In another recent Salt Lake City deal, ASAP International Holdings arranged the acquisition of the DoubleTree by Hilton Salt Lake City Airport hotel.

Image courtesy of MasterControl

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Shawn Mobley, president of Cushman & Wakefield’s East Region

Cushman & Wakefield have entered into an agreement with NorthMarq Cos. to acquire Cushman & Wakefield NorthMarq in Minnesota and Cushman & Wakefield Commerce operations in Nevada, Utah and Washington. 

“This is far more than an acquisition — this is the formal merging of a trusted partner in our company,” said Tod Lickerman, chief executive, Americas at Cushman & Wakefield, in prepared remarks. 

Partnership Growth 

The leadership teams in all four markets will remain as they are. In total, Cushman & Wakefield NorthMarq and Cushman & Wakefield Commerce have 750 employees and manage 50 million square feet of real estate across 10 offices. 

This merger will also have Jeff Eaton, president of NorthMarq Real Estate Services, expanding his role to lead the North Central Region, overseeing Chicago, Minneapolis and Detroit. He led the acquisition of the property management division of Opus Corp., which added 25 million square feet of management to the company, as well as the creation of a joint venture with Cushman & Wakefield in 2011, and the acquisition of Cushman & Wakefield Commerce in 2013. 

“We’re always looking to strengthen our platform in growth markets, and this was the perfect opportunity given our long-term partnership with Cushman & Wakefield NorthMarq/Cushman & Wakefield Commerce,” Shawn Mobley, president of Cushman & Wakefield’s East Region, told Commercial Property Executive. “Along with the acquisition of 20VIC in Canada, acquiring NorthMarq and Commerce just accelerates our already considerable momentum and aligns with our goal of providing industry-leading services to our clients anywhere in the world.”

Image courtesy of Cushman & Wakefield

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Rendering of Grove Tower

St. John Properties broke ground on Valley Grove, a 62-acre master-planned development in Pleasant Grove City, Utah, as part of a $250 million investment the company is making in the area.

“We are thrilled with the pro-business climate and warm reception we’ve received in Utah,” Edward St. John, St. John Properties’ chairman & founder, told Commercial Property Executive. “We strive every day to provide places for great companies to grow their businesses, increase employment, generate profits and pay taxes.”

The Valley Grove development will consist of more than one million square feet of Class A office, restaurant, retail and hospitality space, and will include more than 2,000 trees, which will accompany a selection of LEED designed buildings for maximum energy and water savings and minimize negative environmental impact.

Project impact

Valley Grove is anticipated to generate more than $800 million in tax revenue to the state, county and Pleasant Grove, while hosting more than 7,000 employees.

“The appeal of this location was centrality in Utah County, incredible traffic infrastructure and a hole in the market that wasn’t being serviced,” Daniel Thomas, regional partner for St. John Properties Utah, told CPE. “We saw a hole in the heart of Utah County, almost half way between Lehi and Provo where there was a lack of amenities and Class A office.”

St. John Properties is already developing Grove Tower, a new 190,000-square-foot office building as part of the community, which is expected to be completed by the end of the year. Coldwell Banker Commercial Advisors will expand and relocate to Valley Grove’s Grove Tower, taking nearly 16,000 square feet.

“With the congestion and traffic challenges of Lehi, we knew there was an untapped demand in other portions of North Utah County where alternatives to office and retail would be well received,” Thomas said. “Pleasant Grove was the perfect destination for Valley Grove.”

According to Thomas, the company looks 40-50 years into the future for developments and investments with a potential impact well beyond the typical 5-to 10-year cycle. 

“Valley Grove will be a central destination for people and businesses well into the future,” he said. “With proximity to I-15 and North County Blvd, we saw an opportunity to avoid many of the infrastructure challenges that are plaguing the Wasatch Front. We saw a location where people from all over Utah County could have easy access to and from so they spend less time in traffic and more time with family in these great outdoors.”

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Salt Lake City rent evolution, click to enlarge

Driven by robust population growth and low unemployment, Utah’s largest city is rapidly expanding, generating healthy housing demand. Salt Lake City continues to appeal to major employers such as Amazon, UPS and big-brand companies based along the Wasatch Front, due to the region’s good connectivity, infrastructure and solid demographics.

Employment gains have been consistent, with the addition of more than 43,600 jobs year-over-year through March, most of them in the trade, transportation and utilities sector. Furthermore, prominent projects such as Austin Okland Aviation’s $740 million expansion of Salt Lake City International Airport and Amazon’s new 800,000-square-foot fulfillment facility are expected to boost the metro’s business infrastructure and add construction jobs. Also in the works is Biomerics’ 230,000-square-foot headquarters in the International Center, west of Salt Lake City International Airport. Proximity to major employers and education hubs explains investors’ interest in Salt Lake City–Downtown and Orem, two of the fastest-growing submarkets.

Salt Lake City’s residential market is in the midst of a boom, as strong demand and economic prosperity drive rents and transaction volume higher. Developers have aggressively increased the construction pipeline and expect new supply to be absorbed quickly, as population and household growth continue.

Read the full Yardi Matrix report.

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Adobe has unveiled expansion plans in California and Utah to keep up with the company’s growth, following its transformation to a cloud-based business, increased focus on digital marketing and several acquisitions, including advertising technology company TubeMogul last year. The investments will add capacity for around 5,000 employees.

Doubling San Jose Presence

345 Park Ave., San Jose

The San Jose tech pioneer first entered the market more than 20 years ago. The company plans to buy additional land at 333 W. San Fernando St., to develop a fourth tower with capacity for 3,000 employees, more than doubling Adobe’s San Jose headcount. The company will reveal project specifics in early 2018.

Headquartered at 345 Park Ave., Adobe has grown to more than 900,000 square feet in San Jose. Cushman & Wakefield manages the 18-story, LEED Platinum certified asset built in 1996, according to Yardi Matrix. The property is just opposite of the new headquarters for Cohesity, a computer data storage company that is relocating from Santa Clara, Calif., to the San Jose tech hub.  

$90 million Utah investment

3900 Adobe Way, Lehi

Adobe will add up to 1,260 new high-paying jobs in Lehi, doubling its size in Utah over the next 20 years. The tech company plans to expand working space in its current building and develop an additional facility. The company intends to spend an initial estimated $90 million in capital investment and will receive a $25.8 million post-performance tax incentive to support its expansion efforts.

The company first moved into Utah when it acquired Orem-based Omniture in 2009. WRNS Studio designed the 275,000-square-foot building, a $74 million investment, in 2012. Located at 3900 Adobe Way, just off Interstate 15 and close to retail amenities and Hampton Inn Lehi, the four-floor asset is LEED Gold certified.

On a mission 

100 Hooper St., San Francisco

Adobe will lease the entire office space under development at 100 Hooper St., in San Francisco’s Mission Bay, with expected capacity for 1,200 employees. The project is slated for completion in fall 2018. Colliers International manages both four-story buildings totaling 400,000 square feet. Owned by Kilroy Realty, the buildings were designed for LEED Platinum certification.

Adobe will maintain its East Bay facility in Emeryville, which it acquired through TubeMogul. The company plans to increase space capacity to more than 400 seats at 1250 53rd St., a property owned and managed by Habitat for Humanity.

Images courtesy of WRNS, Kilroy Realty and Yardi Matrix

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SpringHill Suites, Salt Lake City

Marcus & Millichap has arranged the sale of a four-story, 86-key SpringHill Suites hotel in downtown Salt Lake City. This is the second Salt Lake City hotel that changed hands recently. The SpringHill Suites brand opened another property 17 miles south, an 111-key hotel in South Sudan, Utah, owned by District Hotel Partners LLC and managed by Sequoia Hospitality LLC.

Prime location

The hotel at 625 S. 300 W. is one mile from the crossroads of interstates 15 and 80 and seven miles from the Salt Lake City International Airport. The asset was built in 2006 and renovated in 2013. Property amenities include an indoor pool, fitness room and a 700-square-foot meeting space.

“Located near downtown’s many national and international businesses and well-positioned to receive incoming traffic from two interstate highways and the airport, the business mix for this hotel is a healthy balance of corporate and leisure travelers,” said Michael Francis, first vice president of investments in the firm’s Salt Lake City office.

Image courtesy of Marriott

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The University of Utah Health has signed a 170,000-square-foot lease for a build-to-suit ambulatory care center in the heart of downtown Sugar House in Salt Lake City. Westport Capital Partners LLC is redeveloping the Sugar House site, which was formerly occupied by Shopko, on behalf of certain funds it manages. Cushman & Wakefield Commerce and CBRE represented the tenant. The five-story building is slated for completion in mid-2019.

Located at 2290 S. 1300 E., at the intersection with Interstate 80, the consolidated specialty clinic will provide a range of outpatient health services, including primary, urgent and preventative care, radiology, oncology care and weight loss. Dixon Architects designed the facility, as well as the wider project. The site is a 10-minute drive from a $275 million mixed-use community under development by SALT.

“Early on in the planning process we sought feedback from the community on what they wanted to see in the area,” said Greg Geiger, principal & portfolio manager for Westport Capital Partners, in a prepared statement. “One of the key themes we heard was that Sugar House really needs more daytime users for existing retail and dining establishments. The new University facility will not only provide easy access to top-notch medical services, but more than 200 employees and hundreds of visitors will come into the area each day who will shop, dine and support local businesses—infusing the economy and strengthening this growing community.”

“Three years in the making, this deal is the largest medical lease transaction in Utah in recent years,” said Alison Beddard, senior director of office and investment at Cushman & Wakefield Commerce, in prepared remarks. Beddard and Peter Hanlon, in cooperation with CBRE’s Barb Johnson and Vic Galanis, worked on behalf of the tenant.  

Project in the making

The developers initiated a wider consultation process with residents and community stakeholders in 2016 on what the project should look like and made changes accordingly. Approval from the Salt Lake City Corp. is still pending.

The finalized project design consists of four structures, according to Building Salt Lake:

• a seven-story, 180-unit residential building with retail space at the north end of the building fronting Stringham Avenue. The five wood-framed floors will sit atop a two-story parking podium;
• a six-story, 150,000-square-foot office building;
• a 170,000-square-foot medical clinic; and
• a parking structure.

The project will also include a new public street to reconnect Highland Drive and 1300 East, the reopening of Stringham Avenue, as well as pedestrian and biking enhancements to Ashton Avenue.

Images courtesy of Sugar House

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Jeff Weidell, president, NorthMarq Capital

NorthMarq Capital has acquired Western Capital Realty Advisors, a leading commercial mortgage banking firm in Salt Lake City. The acquisition includes a $400 million loan servicing portfolio.

“We liked the market and we liked the people. Western Capital Realty Advisors has forged a high-quality reputation in the real estate finance business in Utah, with established relationships of lenders and borrower clients,” Jeff Weidell, NorthMarq Capital’s president, told Commercial Property Executive. “Utah is an expanding economy with fine prospects for future growth. This marriage of a team of experienced professionals who share our value of client service, in conjunction with NorthMarq’s added capital capabilities like Freddie Mac, Fannie Mae, and HUD, looked like a great opportunity for both sides, so we made a deal.”

The acquisition marks NorthMarq’s 37th office.

“NorthMarq Capital’s goal is to be ‘the premier provider of real estate capital solutions’ and this acquisition supports that vision,” Weidell said. “Adding John Bradshaw and his team is consistent with our acquisitions over the last 20 years of acquiring mortgage-banking firms that fit our operating philosophy and culture. While we definitely have growth plans, we approach it carefully, focused on finding the right fit for our company and our clients. Salt Lake City and Utah were a target market for us, and WCRA was the right cultural fit. We will continue to grow in markets where we do not have a presence or we are currently under-represented.”

“New” Leadership Tapped

John Bradshaw, Western Realty Capital’s founder, will join the company as managing director. Additionally, principals Nate Barnson, Larry Pinnock, and Dale Christiansen will come aboard NorthMarq as well as key employees Tara Jewkes and Tom Bradshaw. The firm’s principals have completed more than $4 billion in commercial real estate debt and equity transactions and have deep relationships with many Utah-based developers.

Previous Deals

Prior acquisitions for NorthMarq have included Dallas-based Askew/Reese Investment Co. and San Francisco-based Trowbridge, Kieselhorst & Co. in 2000; Legg Mason Real Estate Services, which included 17 offices on the East Coast, in 2003; James R. Poole & Co. in New Jersey in 2004; First Monroe of Rochester, N.Y., in 2006; Baird & Warner Real Estate Finance in Chicago in 2007; Crouse & Associates in Raleigh, N.C., in 2008; New England Realty Resources in Boston in 2012; Quest Commercial Capital Corporation in Cincinnati in 2014; and AmeriSphere Multifamily Finance in 2015.

According to Weidell, given the uncertainty surrounding different property types (ie..retail having industry issues, multi-family maybe at a peak), the firm thinks it is valuable for mortgage bankers to have varied resources on the capital side, in order to adapt to any changes in the market.

“This makes this an opportune time for us to acquire those who may be doing well now, but may have limited options if conditions change,” he said. “Given the additional capital resources WCRA will have, in the near term we really want to make sure the producers have adequate support to aid in their production and will hire to do so. Longer term we envision growth. As with all our acquisitions, we did not acquire WCRA to change them, just to add to their business and grow.”

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The Gateway, Salt Lake City

Dave & Buster’s will anchor The Gateway, a 623,205-square-foot, open-air retail and entertainment center in downtown Salt Lake City that is currently undergoing a $100 million rebranding. The entertainment and dining chain will open its first Utah location in March 2018, adding to its international and national portfolio spanning 34 states. Mountain West Commercial Real Estate is spearheading leasing efforts.

Located at 18 North Rio Grande St., with easy access to interstates 15 and 80, the property sits directly across from the 20,000-seat stadium Vivint Smart Home Arena, home of the Utah Jazz professional basketball team. The asset is situated in an area with a population of 84,787 within a 5-mile radius and a $59,770 average household income. With more than 80 shops, restaurants and amenities, the center is anchored by Clark Planetarium, Barnes & Noble, Victoria’s Secret and Discovery Gateway Children’s Museum.

The Boyer Co. developed the asset. A joint venture between Vestar and Oaktree Capital Management acquired the lifestyle center in 2016 from Retail Properties of America Inc. Vestar’s current portfolio of retail properties totals 26 million square feet throughout the western states.

“Vestar has a long, fortunate history of working with Dave & Buster’s throughout our portfolio,” said Jenny Cushing, Vestar vice president of leasing, in prepared remarks.

Major urban redevelopment

The Gateway, Salt Lake City

The property is part of a wider urban redevelopment project. The Gateway mixed-use project includes more than 1.4 million square feet of office, retail, dining, and entertainment, 2,396 parking spaces and more than 1,200 on-site multifamily units and condos. 

Images courtesy of Vestar

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Thanksgiving Station 5, Lehi, Utah

Newmark Grubb ACRES has arranged a 61,329-square-foot lease at Thanksgiving Station 5 in Lehi, Utah, for Sorenson Media. NGA Executive Vice President Chris Falk represented the tenant, which will relocate its headquarters from Draper, Utah, next year. The building is currently under construction.

Located at 2300 N. Ashton Blvd., just off Interstate 15, the property is part of a 1-million-square-foot project of Class A office space with onsite restaurants, fitness centers and parks designed by BWA and developed by Stack Real Estate. The project features multiple five-story, 150,000-square-foot Class A office buildings. The property provides door-to-door pick-up and drop-off to FrontRunner Station. Commercial real estate firm CBC Advisors is leading marketing efforts for the project.

“The fact that they have chosen to not only stay in Utah but commit to significant future growth here speaks volume for the state and reflects a compelling commitment and confident belief from the principals of the company. If their unparalleled technology wasn’t already enough, this new HQ presence will serve as an innovative platform to win new talent and grow their remarkable culture,” said Falk in prepared remarks.

Image courtesy of NGA

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2064 and 2100 W. Alexander St., Salt Lake City

Newmark Grubb ACRES arranged the sale of two industrial buildings in Decker Lake Industrial Park in West Valley City, Utah. NGA Vice President Greg Ratliff represented the buyer, a nationwide investor with multiple multifamily properties in Salt Lake City. NGA’s Executive Vice President Bryce Blanchard and Senior Vice President Lucas Burbank represented the seller, First Industrial.

Located at 2064 and 2100 W. Alexander St., just off Interstate 215 and Highway 201, with easy access to interstates 80 and 15, these multi-tenant buildings total 98,000 square feet and are fully occupied. The buildings were built in 1995 and 1991, respectively. The two properties are the buyer’s first local flex acquisitions.

“It was a pleasure to work with this distinguished group to diversify their commercial real estate portfolio in the greater Salt Lake area,” said Ratliff in prepared remarks. “They performed admirably through the entire transaction process.”

First Industrial’s Salt Lake City portfolio is now limited to just one property—a 122,900-square-foot building from 1972, located at 2323 S. 900 W.

Image courtesy of NGA

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DoubleTree by Hilton Hotel Salt Lake City Airport

ASAP International Holdings has arranged the acquisition of the DoubleTree by Hilton Salt Lake City Airport hotel in Salt Lake City. The Plasencia Group represented the seller of the 288-key property, SLC Hotel Partners LLC, an affiliate of Laurus Corp.

Located at 5151 Wiley Post Way, just off Interstate 80, the lakefront property is 2 miles from Salt Lake City International Airport and only 10 minutes from the city’s downtown area. Property amenities include a restaurant, a 13,000-square-foot meeting and event space, a fitness center, an indoor swimming pool, a basketball court and putting green.

The Plasencia Group has collaborated with owners of over 100 Hilton-branded hotel and resort assets nationally since 1999, including more than 30 DoubleTree properties. Hilton has opened DoubleTree by Hilton Whittier Los Angeles earlier this year.

Image courtesy of DoubleTree by Hilton Hotel Salt Lake City Airport

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Rendering of Biomerics facility, Salt Lake City

Wasatch Commercial Management is managing the location selection process, building design and construction of a 230,000-square-foot headquarters for Biomerics. The medical device manufacturer catering to the cardiovascular market plans to relocate its corporate headquarters to a new facility in the International Center west of the Salt Lake City International Airport. The asset will include corporate and engineering offices, research & development labs and clean-room manufacturing.

The property can accommodate up to 600 employees and will include a full range of manufacturing technologies, including implantable material polymerization, molding, extrusion, coating and catheter assembly. The facility is planned to be FDA and ISO-13485 registered for medical device manufacturing and is slated for completion in the second quarter of 2018. The property will have easy access to Interstate 80.

Biomerics announced in March its plans to invest $39 million in a new headquarters and to add more than 380 new jobs in the next eight years. The State of Utah Governor’s Office of Economic Development provided nearly $3 million in tax incentives for the investment. Biomerics has five locations, with facilities in Minnesota, Utah and Ireland. Wasatch manages more than 3 million square feet of commercial office and retail properties owned by affiliated entities throughout Utah, California, Arizona and Washington.

Image courtesy of Biomerics

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Ernst & Young office in Gateway Tower West, Salt Lake City

Ernst & Young LLP (EY) is relocating its Salt Lake City office at 178 S. Rio Grande St. to a more millennial-friendly environment only 1 mile away. The new home at Gateway Tower West offers a range of settings and technologies to enhance work space flexibility and allow for headcount growth.

Located at 15 West Temple, the new office features approximately 14,500 square feet of space, open layout, more collaboration rooms, tech-enhanced work spaces and a coffee hub. Half of all the new workstations and collaboration rooms offer a sit-to-stand option.

Flexibility is one of the most important non-cash/benefits perks according to a recent EY Global Generations study on work-life challenges across generations. Millennials, who make up 80 percent of the more than 150 professionals in the EY Salt Lake City office, prefer flexibility and technology as these encourage communication, collaboration and creativity. The new EY@Work environment introduced in other EY offices in the West and worldwide is designed around how people work and the task at hand, not where they are or where they sit, so there are no long-term assigned work spaces and higher mobility is powered by technology.

Gateway Tower West is a 278,384-square-foot Class A office asset built in 1998. Owned and managed by the Utah Property Management Associates, the 19-story building also includes 3,000 square feet of retail. The building is near the Utah Museum of Contemporary Art and provides easy access to interstates 15 and 80 and Route 89. The property is 5 miles from Salt Lake City International airport and 2 miles from the University of Utah.

Salt Lake City is in the midst of a boom, as shown by the latest Yardi Matrix report.

Image courtesy of EY

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Rendering of Grove Tower

St. John Properties broke ground on a new 190,000-square-foot office building in Pleasant Grove, Utah. Grove Tower, a six-story, Class A property, is expected to be completed by the end of the year.

Located in the vicinity of two other single-story office buildings that were recently completed by St. John Properties at Valley Grove, the property will offer easy access to Interstate 15. The building is designed to reduce water and energy consumption, as well as air pollution.

“In the heart of Utah County, Grove Tower offers businesses unmatched connectivity and access to the whole valley, giving employees more time for work and play and not in traffic,” said Managing Partner Daniel Thomas.

The company intends to expand Valley Grove, a 60-acre master-planned development, by building three additional four-story, 109,600-square-foot office buildings, as well as more than 70,000 square feet of inline retail space.

Image courtesy of St. John Properties

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One year after announcing the addition of the North Concourse to the $2.9 billion Terminal Redevelopment Plan at Salt Lake City International Airport, the Salt Lake City Department of Airports has awarded the construction contract for the project to Austin Okland Aviation, a joint venture of Austin Commercial and Okland Construction Co. The North Concourse carries a development price tag of $740 million.

Salt Lake City International Airport

“We’ve studied the alternatives to accommodate passenger growth at Salt Lake City International Airport. Building the North Concourse sooner, rather than later, is the best solution for the future,” Maureen Riley, executive director of the SLCDA, said in a prepared statement announcing the decision to build the additional concourse.

Austin Okland’s work will yield 30 new gates, which will replace aging counterparts and pave the way for the airport to accommodate anticipated increases in passenger traffic. The design of the project allows for room for growth—specifically, an additional 15 gates if passenger demand dictates. When all is said and done, the North Concourse will be linked to the South Concourse and the airport’s terminal via a new passenger tunnel.

Austin Okland is on schedule to complete the two-phase development in 2020.

Salt Lake City International Airport is one of a bevy of airport expansion projects in the works across the U.S. The $4 billion makeover of New York’s LaGuardia Airport is moving forward. In Florida, Fort Lauderdale-Hollywood International Airport’s Terminal 4 Federal Inspection Services Expansion is underway. And the list goes on. “Despite general sluggishness in the global economy since the financial crisis, air passenger traffic has been growing. Owing to this, there continues to be investment in new airports and expansions, as passenger numbers reach design capacity,” according to a report by information solutions provider Timetric.

Image courtesy of Salt Lake City Department of Airports

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The South Towne Corporate Center, Salt Lake City, Utah

A joint venture between Oaktree Capital Management and Hines recently sold South Towne Corporate Center in southern Salt Lake City to a partnership between EverWest Real Estate Partners and Independencia Asset Management. NGKF Capital Markets’ President of West Coast Capital Markets Kevin Shannon, Executive Managing Director Ken White, Managing Director Rick Stumm and Eli Mills with CBRE represented the sellers of the two-building, Class A asset totaling 262,219 square feet.

Located at 150 and 200 West Civic Center Drive in Sandy, Utah, the two buildings sit on more than 10 acres. They are approximately 25 minutes from the International Airport and the Salt Lake City CBD, as well as in close proximity to the Sandy Trax station. South Towne is in the South Valley submarket and within Utah’s Silicon Slopes technology corridor, home to many of the 5,000 tech companies in the state, including Adobe, Microsoft, eBay and Oracle.

“The unrivaled physical asset quality, along with the central location and proximity to surrounding amenities, have consistently attracted top-tier tenants to the property. New ownership is inheriting a best-in-class asset in a highly desirable, tech-driven submarket with stable cash flow and an impressive credit tenant roster,” said Shannon in prepared remarks.

Built in 2000 and 2006, the properties include two six-story buildings that are currently 96 percent leased to tenants such as  E*Trade Financial, CoreLogic Solutions, Cadence Design Systems and New York Life Insurance Co. According to Yardi Matrix data, each building has an adjacent parking structure, plus surface parking for an additional 733 vehicles. Both South Towne Corporate Center buildings received Energy-Star designation in 2010.

At the beginning of this year, NGKF Capital Markets also completed the sale of a Class A office property in the heart of the Irvine Business Complex in California.

Image courtesy of NGKF

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Salt Lake rent evolution, click to enlarge

Utah’s largest city is in the midst of a boom—driven by robust employment and population growth—that is producing healthy demand for housing. Once known as a sleepy mountain town, Salt Lake City is beginning to attract major employers, including Goldman Sachs, due to its low costs and appealing lifestyle.

Many iconic companies have set up home bases in the metro, drawn to the pipeline of science, technology, engineering and math (STEM) workers feeding in from local universities and the favorable costs of doing business. Salt Lake’s robust technology sector, concentrated in the “Silicon Slopes,” has contributed to strong growth over the past year. Other segments that have been expanding employment include trade and transportation, education and health care, and finance and business services.

Multifamily fundamentals are strong, due to a combination of solid demand and low inventory that has produced low vacancy rates. Developers are stepping into the breach and delivering a large amount of new supply, with most units absorbed by in-migration. Rent growth is starting to create concerns about affordability, and the city government recently passed a five-year plan to address the situation. Despite the concerns about supply and affordability, Yardi Matrix forecasts that rents will increase by a robust 6.0 percent in 2017.

Read the full Yardi Matrix report.

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Texas Orthopaedic & Sports Medicine Facility in Tomball, Texas

Oak Brook, Ill.—Inland Real Estate Acquisitions Inc. has recently facilitated the acquisition of four medical office buildings, totaling 119,000 square feet of space, located in North Carolina, Texas and Utah. Senior Vice President Matthew Tice facilitated the transactions on behalf of an Inland affiliate.

Situated at 117 Sunnybrook Road in Raleigh, N.C., within the Research Triangle, the UNC REX Cancer Center is a 13,131-square-foot property built in 2013. The single-story asset provides care to more than 194,000 residents living within a 5-mile radius.

The Texas Orthopaedic & Sports Medicine Facility is located at 13603 Michel Road in Tomball, Texas, approximately 32 miles northwest of Houston. The 36,804-square-foot medical office building consists of state-of-art surgical suites, pre-op rooms, patient exam, X-ray rooms and a therapy center with private physician offices.

Located at 3592 W. 9000 South in West Jordan, Utah, within the Jordan Valley Medical Center campus, the Jordan Valley Cancer Center was built in 2016. The 25,056-square-foot inpatient and outpatient facility is situated west of Interstate 15, between West Jordan and South Jordan, approximately 17 miles southwest of Salt Lake City.

Memorial Hermann Acute Care Center, a 44,000-square-foot facility, currently occupied by Memorial Hermann Health System, is located at 1431 Studemont St. in Houston. The recently completed property is part of the new Studemont Junction development and will provide one-stop adult and pediatric primary care, specialty physicians, sports medicine and rehabilitation, outpatient imaging and lab services, as well as a 24-hour emergency room.

“These newly constructed medical office buildings have well-established tenants and are ideally located within their respective regions, making them a prime example of the type of acquisitions we continue to seek out in our health care product line,” said Tice in a prepared statement.

Image courtesy of the Texas Orthopaedic & Sports Medicine facility

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Biomerics’ current headquarters in Salt Lake City

Salt Lake City—Biomerics and the Governor’s Office of Economic Development (GOED) recently announced that the medical device plastics manufacturer will build its corporate headquarters in Utah, after an estimated $39 million in capital investment. The company intends to add up to 380 jobs to the community by 2025. The exact location of the new 200,000-square-foot property will be announced at a future date.

Biomerics specializes in the design, development and production of medical devices for diagnostic and interventional procedures for the cardiovascular, structural heart, cardiac rhythm management and vascular access markets. The company may earn up to 20 percent of the new state taxes they will pay over the eight-year life of the agreement. The GOED board has approved a post-performance tax credit rebate not to exceed $3 million.

“Utah provides a unique business environment and community for the growth of the company. We are proud to be part of this community and appreciate the support of GOED and EDCUtah in this important decision,” said Travis Sessions, CEO of Biomerics, in a prepared statement.

The total wages in aggregate are required to exceed 110 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $133 million. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $15 million over eight years.

Founded in 2009, the company currently has five locations, including a recent expansion in Minnesota. The company’s current headquarters is in Salt Lake City.

Image via Google Street View

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USTAR Innovation Center Rendering

Salt Lake City—Sunset Ridge Development Partners, a partnership between Woodbury Corp. and Hunt Cos., broke ground on a new 21,000 square-foot Utah Science Technology and Research(USTAR) Innovation Center at the Falcon Hill National Aerospace Research Park located at Hill Air Force Base, just south of Ogden.

Once complete, the new facility will house approximately 8,000 square feet of office space and labs, and 13,000 square feet of space for both manufacturing and research and development projects. It will help local businesses and entrepreneurs develop new ideas and products, spin-out new companies, and overcome manufacturing challenges. According to USTAR Executive Director Ivy Estabrooke, the company focuses on six industry sectors, including early-stage aerospace, life sciences, advanced materials, energy and clean technology, robotics and automation, along with big data analytics.

Falcon Hill is the result of a public-private partnership between the Air Force and Sunset Ridge that allows the development of commercial property both on- and off-base. The new facility marks the first “outside the fence” office building that Sunset Ridge is developing at Falcon Hill and the seventh major construction project completed by the developer as part of the Air Force Enhanced Use Lease (EUL) project. The USTAR facilities and all developments outside the fence will be accessible to the public.

According to 2016 U.S. Bureau of Labor Statistics data, Utah is the fastest-growing tech state. The USTAR initiative established in 2006 builds on that momentum. The facility will provide the tools and resources needed to support start-up companies in maturing and commercializing their technology. It will also serve Hill Air Force Base engineers by providing them additional space to rapidly prototype new production solutions and to reverse engineer much needed solutions for anticipated supply chain shortages.

“Having USTAR at Falcon Hill is a significant boon for the community here, and is just the first of many ‘outside the fence’ tech-focused office projects we envision for this area,” said Taylor Woodbury, chief operating officer at Woodbury Corp., in a prepared statement. “Much like the Silicon Slopes area down south, our goal is for this new USTAR building to be the cornerstone of the Silicon Hill movement that will help create a thriving tech community in northern Utah.”

The USTAR Innovation Center is expected to open and operate in late fall 2017.

In the coming months, the developer plans to begin construction on a new, 74,000 square-foot software building on base.

Rendering courtesy of Hill Air Force Base

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Homewood Suites by Hilton Salt Lake City Draper

Salt Lake City— Homewood Suites by Hilton Salt Lake City Draper is the latest addition to Hilton’s All Suites portfolio. The 121-key asset was developed and is owned by West 77 Partners and managed by The Hotel Group.

The property offers studios and one-bedroom accommodations, some with views of the Wasatch mountain range, featuring fully-equipped kitchens and separate living and sleeping areas. Guests are also provided complimentary full-hot breakfast, evening social Monday-Thursday, Wi-Fi and a grocery shopping service. Property amenities include a fitness center, indoor pool, hot tub and event space.

Located at 473 W. 13490 S., the asset has easy access to Salt Lake City International Airport and local attractions like Loveland Living Planet Aquarium, Rio Tinto Stadium, Hale Centre Theatre, Timpanogos Cave National Monument and Cowabunga Bay Water Park, as well as Big Cottonwood and Little Cottonwood Canyon and five ski resorts.

“Rated one of the top cities to travel to ‘without going broke’, Salt Lake City offers a strong variety of unique and inexpensive attractions for travelers,” Troy Morzelewski, general manager, said in prepared remarks. “Whether a business or leisure trip, our new hotel offers a comfortable and affordable stay for those visiting the area.”

Hotel revenue in the city boomed to $464 million in the last reported year, according to Visit Salt Lake City.

Image courtesy of Hilton

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Salt Lake City—UPS will build a $275 million, new regional operations hub in Salt Lake City, an 840,000-square-foot facility that will process 69,000 packages per hour as a complement to the existing 200,000-square-foot operations in town.

Mark Wallace

When completed in 2018, the project will be among the largest processing facilities in the company’s global package network.

“This new regional hub is one of our strategic initiatives to continue to build the long-term future of UPS,” Mark Wallace, UPS’ senior vice president of global engineering and sustainability, said in a prepared release. “Utah is the crossroads to serving the Western U.S., and the state-of-the-art automation technology being deployed will improve performance, increase capacity and create additional flexibility to handle the non-stop growth of e-commerce business in the region.”

The property will include onsite fueling to accommodate both diesel and natural gas alternative fueled vehicles. Two automated processing areas will focus on smaller-sized packages, typical of today’s e-commerce purchases.

Approximately 160 acres were assembled with convenient interstate and airport access to support UPS’ growth across the mountain west, much of it from commercial and residential e-commerce.

“UPS’ customers benefit from new efficiencies and capacity and we sustain and grow jobs in the area for a positive economic impact,” Ken Cherry, president of the UPS Desert Mountain district, said in the release.

UPS has made a number of significant capital investments over the past 24 months focused on new construction combined with modernization and expansion of top tier hubs in the U.S. to address planned growth. Next year, the company is in line to handle more B2C shipments than business-to-business traffic for the first time ever.

Since December, the company has announced plans to build facilities in Atlanta, Ga. and Columbus, Ohio, and said it would expand its existing facility in Jacksonville, Fla. Additionally, it is automating its 30 busiest U.S. hubs, in a program its calling “Tier One,” designed to yield 20 to 25 percent in productivity improvements per facility by the time all the work is done in 2020.

UPS currently employs more than 3,500 workers across Utah in package, heavy freight and contract logistics operations. The company’s footprint includes 24 operating facilities and 46 The UPS Store locations as independently owned small businesses that are part of a franchise network.

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Click on image to enlarge

Salt Lake City’s multifamily market continues to produce gains, fueled by the favorable demographic picture, robust employment and Utah’s strong economy. A healthy influx of professional jobs and the area’s relative affordability are attracting residents and lifting demand for apartments.

The metro’s universities and medical institutions beget a skilled workforce that attracts technology and medical firms, while large firms such as Goldman Sachs, Adobe, eBay and accounting’s Big Four have established outposts that hire many of these graduates. Furthermore, the number of high-paying science, technology, engineering and math (STEM) jobs is expected to grow over the next few years.

Out-of-state investors, particularly those from California, are being lured to the area by the operating costs, which are a fraction of what they would be in neighboring metros. Investor interest is expected to grow, especially now that Google Fiber has flipped the switch on its super-high-speed network in Salt Lake City, providing service in the city center starting in August. Apartment development is on pace to reach another high in 2016, with more than 6,700 units under construction. Most of the development is occurring along the downtown region, with headline projects underway in Salt Lake City, Orem and Sandy. The supply of new rentals is outstripping construction, with metrowide vacancy dropping below 4 percent.

Read the full report.

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