LEHI, UTAH — Sorenson Media has leased 61,329 square feet of space at Thanksgiving Station 5 in Lehi, located south of Salt Lake City. The building is being constructed at 2300 N. Ashton Blvd. It will serve as Sorenson’s new headquarters. Chris Falk of Newmark Grubb Acres represented Sorenson.
Increased activity and record amounts of positive net absorption created a new commercial landscape across the Wasatch Front. The majority of 2016 leasing activity was a result of tenants occupying new space that was pre-leased during 2015. While sublease availability increased over each quarter, overall market indicators like local population growth and continued economic development will remain strong into 2017. The Salt Lake County office market grew by an additional 1.7 million square feet in 2016, primarily in the South submarket. More than 1.5 million square feet of space was under construction at the close of 2016. This product will be introduced to the market by mid-year 2017. Vacancy rates increased slightly from 8.6 percent in 2015 to 8.74 percent at the end of 2016. Notable Salt Lake office projects completed in 2016 include 111 South Main (440,000 square feet); Vista Stations 4 through 8 (655,000 square feet); The Pointe I (77,703 square feet); the Overstock Peace Coliseum (231,000 square feet); and Town Ridge Center I & II (250,000 square feet), to name a few. An additional 1.5 million square feet of space was under construction at the end of the year. Buildings like 53rd Center 1 (200,000 square feet); …
With nearly 3 million square feet of industrial space under construction, and climbing lease rates averaging $5.64 per square foot, it is safe to say the industrial market along Utah’s Wasatch Front is alive and well. The primary Salt Lake County market reports an overall industrial vacancy level of 5.08 percent. In the fast-growing Utah County submarket that’s just south of Salt Lake City, the vacancy rate is 3.44 percent. This is in line with the pre-recession levels experienced in the mid-2000s. The most noticeable difference in today’s environment is the scale of buildings being built on spec, as well as who is carrying out these projects. We continue to see construction starts and announcements on buildings larger than 300,000 square feet — many of which are speculative — by out-of-state development or investment groups. This includes companies like Clarion Partners, Exeter Property Group and Seefried Industrial Properties. This represents a new resurgence of interest by many of the “brand name,” major-market players who want to be part of the dynamic growth occurring in Utah. This is a growing trend nationally as well, which is interesting to see in the relatively smaller, 170-million-square-foot Wasatch Front market.Activity from the local players …
SALT LAKE CITY — Capital Freight Management has leased an 88,000-square-foot industrial building in the Pioneer Business Center in Salt Lake City. The building is located at 1855 S. Fremont Drive and is situated on 5.6 acres. Capital Freight Management buys local hay and barley, which it ships to China and other Asian countries. Eli Priest of Newmark Grubb Acres represented the renter. The firm’s Jeff Heaton and Lucas Burbank represented the landlord, Colony Industrial, in this transaction.
AMERICAN FORK, UTAH — Four Foods Group (FFG), a restaurant development, investment and management company, has acquired 48 Little Caesars restaurants in Alabama and Louisiana. This acquisition caps a flurry of recent activity for FFG, including the acquisition of the R&R Barbecue restaurant concept and its locations in Salt Lake City and the acquisition of The Soda Shop and its Arizona-based locations. These transactions add to FFG’s presence as a franchisee in the Kneaders Bakery & Cafe brand, where the company currently owns 44 Kneaders restaurants. In all, FFG now operates 97 restaurants in Utah, Arizona, Nevada, Colorado, Alabama and Louisiana, with 2017 annual revenues projected to exceed more than $150 million. In addition to its American Fork-based corporate headquarters, FFG has now opened a second corporate office in Birmingham, Ala., that will initially house 28 FFG corporate employees. More than 800 additional employees will serve in the Little Caesars locations in Alabama and Louisiana, bringing FFG’s total employee base to more than 3,000 employees across seven states. W Partners Group LLC acted as the exclusive financial advisor to Four Foods Group in the transaction. Carman Lehnhof Israelsen LLP acted as legal counsel.
SALT LAKE CITY — Restore Utah has purchased The 500, a 109-unit apartment community in South Salt Lake City, for an undisclosed sum. The community is located at 3440 S. 500 E. The 500 offers two-bedroom apartment and townhome units near downtown Salt Lake City. Amenities include a swimming pool, playground, large private patios and covered parking. Restore Utah plans to enhance the community through interior renovations and a common area overhaul that will include a dog park and gathering pavilion. The acquisition was made possible by Goldman Sachs’ increased equity commitment of $24 million to Restore Utah’s Multifamily Acquisition Fund. The commitment allowed the fund to significantly increase its acquisitions and improve affordable housing options throughout the Wasatch Front. Restore Utah revitalizes low- and moderate-income neighborhoods by transforming vacant or neglected properties hit by the financial crisis into quality, affordable rental homes for low-income families.
SOUTH JORDAN, UTAH — Love Funding, a lender specializing in FHA loans for healthcare real estate, has closed a $6.8 million bridge loan for the construction of an assisted living and memory care community in the Sale Lake City suburb of South Jordan. Our House of South Jordan will offer 62 beds in a 42,000-square-foot facility. Giza Development LLC, Stout Construction and Primera Group are building the property. SAL Management Group LLC will manage the community once construction is complete. James Vanar of Love Funding’s Los Angeles office arranged the laon, with Love Funding’s parent company, Midland States Bank, providing the capital. This is the second bridge loan Vanar has obtained for Giza Development, which started construction of Shadow Valley Assisted Living and Memory Care in nearby Ogden last year.
SALT LAKE CITY — An out-of-state investor has acquired the 180-unit Eastside Apartments in Salt Lake City for $36.8 million. The community is located at 350 S. 600 E. The community is situated less than a block from a TRAX light-rail stop and near the University of Utah. Community amenities include gated underground parking, an outdoor basketball court and a party patio. Daniel Shin and Brock Zylstra of Marcus & Millichap represented both parties in the transaction.
DRAPER, UTAH — Hilton has premiered the 121-room Homewood Suites by Hilton Salt Lake City Draper. The hotel is located in the Salt Lake City submarket of Draper. West 77 Partners developed and owns the property, which The Hotel Group will manage. It is situated near Salt Lake City International Airport, Loveland Living Planet Aquarium, Rio Tinto Stadium, Hale Centre Theatre, Timpanogos Cave National Monument and Cowabunga Bay Water Park.
SANDY, UTAH — An out-of-state-investment group has acquired the 192-unit Coppergate Apartments in Sandy for $22.5 million. The community is located at 8870 S. State St., approximately 14 miles south of Salt Lake City. The Section 42 Low Income Housing Tax Credit apartment community is composed of seven three-story buildings on almost nine acres. The two- and three-bedroom units range from 866 square feet to 1,068 square feet. Daniel Shin and Brock Zylstra of Marcus & Millichap represented both the buyer and seller, a local developer, in this transaction.