Microsoft, Nordstrom Raise Local Profiles With New Stores

By Alex Girda, Associate Editor

Two big names in retail—one fashion, one high-tech—are targeting Greater Salt Lake City for growth. On April 11, Microsoft opened a 3,500-square-foot space at City Creek Center. Nordstrom Inc. has announced plans to open a 29,000-square-foot Nordstrom Rack this fall at Station Park in Farmington.

The Nordstrom Rack will be the third in metro Salt Lake City for the brand, which offers merchandise at 50 to 60 percent discounts. Nordstrom also operates two regular full-line stores in the Salt Lake City region.

Microsoft’s 3,500-square-foot store at City Creek Center, the 700,000-square-foot regional mall that opened in March 2012, is its the software giant’s 33^rd. It is also part of a strategy of challenging the experience in the retail stores operated by rival Apple Inc.

Microsoft’s store is showcasing its products’ new direction by means of high-tech accents like a digital wall that projects Xbox games and other activities. All devices feature touchscreens and operate with Microsoft products. The store also offers a community theater for public screenings, an amenity that Microsoft hopes will help boost its profile in the community.

Summer Kickoff Eyed for Geneva Steel Site Redevelopment

By Alex Girda, Associate Editor

 After years of planning, one of the state’s biggest master-planned developments may be only months away from construction on the former site of Geneva Steel in Vineyard.

Anderson Geneva Development recently revealed plans to develop up to 2 million square feet of office space, 7,500 residential units and a rail hub on a 100-acre parcel. In all, the community could accommodate up to 20,000 residents. The Vineyard Redevelopment Agency approved plans for the project in 2011 and construction could start this summer.

According to Deseret News, the mixed-use development’s intermodal hub would offer commuter and freight rail access. Utah Valley University is considering adding 120 acres to the 100 acres it already owns at the site for athletic fields.

Megahotel Plans Pick Up Steam From State Funding Sources

By Alex Girda, Associate Editor

In recent years, Salt Lake City’s entrepreneurs and elected officials have recognized the value of developing a convention center and large new hospitality property. Often referred to as the “megahotel project”, the initiative has been picking up steam of late. Legislators have proposed new funding mechanisms to provide approximately $100 million worth of public financing toward the estimated $335 million cost, the Salt Lake Tribune noted.

The state Senate recently passed a measure to provide up to $32.8 million toward the project in annual $3.5 million increments. The funds would be used for land acquisition as well as the development of 85,000 square feet of meeting space.

The proposed 1000-key convention center hotel would produce as much as $600 million in state and local taxes over the next 30 years, theTribunereported.

Salt Lake City and Salt Lake County would supply the rest of the $100 million in public financing. Local authorities could redirect sales tax revenue to generate $67 million.

The city’s requirements stipulate that the project must be developed no more than 1,000 yards from the Salt Palace convention center in order to promote the city’s meetings and conventions business.

Image of the Salt Palace courtesy of user Mangoman88 via Wikimedia Commons

Marriott’s Courtyard Salt Lake City Airport Wraps Makeover Aimed at Business Travelers

By Alex Girda, Associate Editor

As rising demand for hotel rooms in Greater Salt Lake City spurs talk of new development, properties are taking steps now to shore up market share and boost occupancy. A case in point: Marriott’s Courtyard Salt Lake City Airport, which recently underwent an extensive renovation.

Located at 4843 Douglas Corrigan Way,the 154-key hotel now incorporates Marriott’s Refreshing Business concept in its lobby and brand-new suite design. In the lobby, RLJ Lodging Trust has introduced media pods, Wi-Fi access, and a revamped layout designed to accommodate social gatherings and pop-up meetings.

Also new is GoBoard 4.0, a lobby feature offering information, maps, weather, and headline news by means of a 55-inch LCD touch screen.

Through a smartphone integration feature, guests can access local information plus flight updates from nearby airports. The facility’s focus on business travelers extends to building-wide Internet access and a business center offering computers and a printer as well as dedicated terminals for flight inquiries and printing boarding passes.

Highlights of guestroom improvements include more functional work spaces, upgraded bathrooms, separate seating areas, high-speed internet connections and new plush bedding.

Photo courtesy of marriott.com 

Embassy Suites Opening Marks Latest Milestone for $500M Fairbourne Station Makeover

By Alex Girda, Associate Editor

In the latest milestone for West Valley City’s $500 million Fairbourne Station urban renewal program, a 162-key Embassy Suites officially opened its doors on Feb. 12, the Salt Lake Tribune reported.

Located at 3524 S. Market Street, Embassy Suites features a Shula’s 347 Grill, part of football coach Don Shula’s Miami-based dining chain. The West Valley City Redevelopment Agency kickstarted development by securing $33 million in private financing and leasing the property to the project’s developer, West Valley Lodging Initiatives L.L.C., the Tribune reported.

The hotel’s guest amenity package features a fitness center, an indoor pool, laundry facilities and 7,500 square feet of meeting space. Renascent Hospitality is the on-site  manager.

Plans for the 40-acre Fairbourne Station redevelopment site call for residential, retail, hotel and office components.

Rendering courtesy of embassysuites3.hilton.com/

City Creek Adds to Accolades With IPA Award for Top U.S. Retail Project

By Alex Girda, Associate Editor

As one of the nation’s largest new retail projects to come on line in the country during the past several years, City Creek Center has already earned wide recognition. Now the property has added to its laurels, winning the prize for the year’s best retail development in the United States at the International Property Awards in London this month. Sponsored by the Royal Institute of Chartered Surveyors and Yamaha, the program has been a mainstay of the awards circuit for the past 18 years.

Developed by Taubman and City Creek Reserve, Inc., an entity controlled by the Church of Jesus Christ of Latter-Day Saints, City Creek beat out thousands of entries to land in the top three worldwide. Candidates from the Americas included projects from Canada, Mexico, South America and the Caribbean as well as the U.S.

The retail component of the development opened last March as the centerpiece of one of the largest mixed-use downtown redevelopment projects in the country. Stores include anchors Macy’s and Nordstrom, a new Apple store and more than 100 in-line retailers. The building incorporates a manmade creek, a re-creation of the original stream that gave its name to the area and the center.  

Image courtesy of shopcitycreekcenter.com

Perry & Associates Plans Spring Start for 70 KSF Lehi Office Project

By Alex Girda, Associate Editor

Perry & Associates, Inc. is planning a May construction start for Traverse Ridge Center I, a 70,000-square-foot office complex in Lehi, according to the Salt Lake Tribune. Completion is scheduled by March 2014.

Traverse Ridge Center I will take shape east of the State Road 92 exit of Interstate 15, the Tribune reports. Perry & Associates is banking on the property’s location next to the TRAX rail line and its proximity to the new Adobe campus and the Outlets at Traverse Mountain retail center to attract tenants. Eric Smith, James Mecham and Jessmine Kim of CBRE Inc.’s Salt Lake City office are handling leasing.

In hospitality investment news, Brian Head Resort, located near Cedar City in southern Utah, is under new ownership following its sale to Brian Head Acquisition Partner L.LC., the The Standard-Examiner reports.

The resort was placed on the market following the death in 2008 of Jim Trees, its former owner. Brian Head Resort includes two mountains, nine lifts, 640 skiable acres, 53 runs and a snow tubing area.

Terms were not disclosed, but the property’s 2010 price of $34.7 million price was later cut to $29 million. In March 2012, the resort was placed into receivership with Wells Fargo.

Image courtesy of snow-forecast.com

Stalled Pioneer Park Condo Project Gets $4.5M in City Financing

By Alex Girda, Associate Editor

Broadway Park Lofts, a stalled Pioneer Park condominium project, has received a lifeline from the Salt Lake City Redevelopment Agency. The Salt Lake Tribune reports that the agency is providing $4.5 million in completion financing to BPL South Tower L.L.C., the new developer of the 51-unit project. BPL South Tower is required to repay the loan over the next two years. Company principals Micah Peters and James Chellis had acquired the unfinished project for a reported $3.5 million.

Located at 300 South, Broadway Park Lofts lost its original developer, Ken Milo, after the market turned sour in 2009. Earlier this year, the Redevelopment Agency attempted to loan $4.5 million to Milo, but that effort to restart the project fell through.

Broadway Park Lofts will comprise 17 live/work units, two 580-square-foot units, ten 700-square-foot units, ten 900-square-foot units and 12 units with 1,200 square-foot floor plans. Prices will range from just under $100,000 to about $500,000. Peters and Chelis are counting on the property’s location near Pioneer Park to boost sales. Completion is expected by the end of 2013.

Image courtesy of silverleaf-financial.com

Tech Tenants Eyed for Rebranded 500 KSF Provo Office Park

By Alex Girda, Associate Editor

Utah-based developer Warren King has acquired a 500,000-square-foot office park in Provo and is rebranding the campus as East Bay Technology Park in a bid to reel in high-tech tenants.

Laurie Adair, Tab Cornelison and Scott Wilmarth of CBRE Inc. will handle leasing, and the firm’s asset services division is tasked with property management. The new owner and leasing team have some work ahead; the complex is about 60 percent vacant. That rate is several times higher than it is for the Greater Salt Lake City office market as a whole. Vacancy for the area is hovering around 18 percent, according to Marcus & Millichap Real Estate Investment Services Inc.

But King and the leasing team are betting that the property’s proximity to Interstate 15, and to the new FrontRunner South rail line linking Provo to Salt Lake City, will help expand its roster of technology tenants.

Built from 1986 to 1993, and renovated in 2009-2010, the six buildings are linked by a series of enclosed corridors and sky bridges. The complex had previously served as a campus for Novell, the software company.

Chart courtesy of Marcus & Millichap Real Estate Investment Services  

Sun Products Inks Record 1 MSF Lease at Freeport West Industrial Park

By Alex Girda, Associate Editor

In Salt Lake City’s largest-ever industrial lease, Sun Products Corp. is taking 1 million square feet at Freeport West Landmark Industrial Park.  The consumer products manufacturer will move from six different buildings into two, enabling it to centralize and streamline operations. respond to customers more efficiently and reduce its carbon footprint.

Wilton, Conn.-based Sun Products, which produces familiar brands like Wisk, All, and Snuggle, will begin using one building at the new logistics and distribution center this month. Delivery of the adjacent second building is scheduled for the third quarter of 2013.

Developed by Big-D Construction, Freeport West Landmark Industrial Park is being marketed by NAI West, which arranged the Sun Products lease. NAI West’s Zach Anderson, Bryce Blanchard, Kyle Roberts and Mike Falk worked on the transaction.

Image courtesy of daviscountyutah.gov

Strategic Capital, Compass Development Launch N. Salt Lake City Mixed-Use Project

By Alex Girda, Associate Editor

Strategic Capital Partners and Compass Development Group have broken ground on the initial phase of Eaglewood Village, a mixed-use development located in North Salt Lake City. The community will take shape across a 96-acre site at Eagle Ridge Drive and Highway 89. Phase one, a 214-unit apartment complex dubbed Eaglewood Lofts, is scheduled for completion next June.

Set on a parcel originally owned by the Compass Development Group, Eaglewood Village will include office, retail, multi-family and single-family components. Compass sold its stake to Strategic Capital except for the apartment portion. Strategic Capital now owns 17 acres of land that will feature office and retail space, as well as entitlements for 300 residential units.

The apartment complex will feature a community clubhouse with kitchen, fitness facilities, executive business center, pool with spa and outdoor grills. In-unit amenities will include designer interiors, personal decks and patios, granite countertops, modern cabinetry and a full set of kitchen appliances.

Multi-family construction trends are on the rise in the Salt Lake City area, according to Marcus & MIllichap Real Estate Investment Services Inc. This year’s completions may lag 2011, but an uptick in permitting volume suggests that volume will bounce back during the next few years.

Image courtesy of eaglewoodlofts.com

Dunkin’ Donuts to Open 16 Stores in Salt Lake City by 2018

By Alex Girda, Associate Editor

Sixteen Dunkin’ Donuts locations are on their way to Salt Lake City. As part of a strategy to expand the brand in the West, an affiliate of Sizzling Platter L.L.C. plans to open the first location next year, followed by a phased rollout through 2018.

In February, the Murray-based firm’s Sizzling Donuts L.L.C. affiliate secured deals for 11 Dunkin’ Donuts restaurants in Denver and eight in El Paso, Texas. All told, Sizzling Platter operates seven national brands of quick-service and family restaurants in the western U.S.

The coffee and baked goods franchise currently has no minimum unit requirement in place for its franchise deals, a provision that company officials say make the brand an attractive option for first-time franchisees. Sizzling Platter did not immediately specify the locations of the new stores; however, Dunkin’ Donuts is known for its variety of formats and locations, ranging from free-standing restaurants, end caps, in-line sites, gas stations, convenience stores, travel plazas and colleges.

Lights, Camera, Action: $40M Production Center Planned

By Alex Girda, Associate Editor

Utah’s recently sweetened incentives for movie production are bearing fruit in the form of new development.  Woodbury Corp. and Redman Movies and Stories plan to start construction early next year on a $40 million studio production in South Salt Lake. The joint venture will redevelop the 105-year-old Granite High School campus as a 90,000-square-foot complex of sound stages, office and retail space, the Salt Lake Tribune reported.

The project marks a win for efforts to lure more movie shoots to the state that served as a backdrop for such classics as The Searchers, 2001: A Space Odyssey, Planet of the Apes and Rio Grande. In response to a falloff in film production, state officials took steps last year to get a bigger share of Hollywood’s business.

Taking a cue from Louisiana, which attracted more movie production after raising tis rebate, Gov. Gary Herbert, signed legisation that increases Utah’s motion picture incentive from 20 percent to 25 percent. That brought Utah on a par with New Mexico, which has successfully competed for films that require a distinctively Western setting like like the Coen brothers’ remake of True Grit and the Walt Disney Co.’s John Carter.  

Image courtesy of Google Maps

Birkhill on Main Project Targets Murray’s Thriving MF Market

By Alex Girda, Associate Editor

Parley’s Partners has broken ground on Birkhill on Main Apartment Homes, a $45 million transit-oriented project in the thriving multi-family market of Murray.  

As reported Sept. 17 by Multi-Housing News, the first of four phases of construction will consist of 137 rental units, 96 of them designated as affordable housing. Following completion of phase one during the first quarter of next year, the developers will start construction of another 65 units in June 2013. The third phase will add the final 109 residential units by 2016, followed by construction of a three-story office building. The development will meet the Enterprise Green Communities Certification Standard and feature Energy Star-compliant appliances.

 Designed by KTGY Group Inc., the complex will include such amenities as a clubhouse, a courtyard, basketball court, fitness facilities, swimming pool and an attached $1.8 million parking structure that will offer residents direct access to their vehicles. A paved trail will link the property to the Jordan River Parkway’s 40-mile network of trails. Apartments will have tall ceilings, granite countertops, generous closet space and balcony or patio access. Birkhill on Main Apartment Homes is near retail and dining spots and the TRAX light rail line.

  According to Marcus & Millichap Real Estate Investment Services Inc., Murray is Salt Lake City’s strongest multi-family residential submarket, with a 2.9 percent vacancy rate. Demand is expected to tighten the market further, and developers appear to be responding.  Permitting for new multi-family projects is far outpacing the tally for 2010 and 2011.

For a more in-depth take on the Birkhill development, click here.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com 

For additional Salt Lake City market data, click here.

Fall Construction Start Eyed for 122-Unit CityScape Complex

By Alex Girda, Associate Editor

 CityScape Apartments is the latest luxury residential project destined for Downtown Salt Lake City, with construction set for a fall kickoff, the Salt Lake Tribune reported.

Located at 150 S. 400 East in Salt Lake City, the 122-unit development is a collaboration betwen Wasatch Advantage and Strategic Multifamily, companies that have previously worked together locally.

When vacancy slipped below 5 percent in 2008, the two firms  partnered to develop high-quality rental housing. Wasatch Advantage acquired parcels on the Wasatch Front that could accommodate about 2,500 apartment units, most of which have since been built and rented.  

For its part, Strategic Multifamily, which is an affiliate of Henry Walker Homes, continues to develop housing along the Wasatch Front. Its pipeline currently includes 750 units.

The new CityScape complex will feature a rooftop courtyard, a spa, a business conference center, a dog park and barbecue areas, all geared toward a target market of the city’s young professionals..

After 2012 Parade of Homes, Permit Levels Will Tell the Tale

By Alex Girda, Associate Editor

Like many other cities whose housing markets took a punch during the recession, Salt Lake City is still looking for clear signs of recovery. It remains to be seen how the designs showcased at the 2012 Salt Lake Parade of Homes impressed prospective homebuyers, but the volume of new home permits in the next several months will offer unmistakable clues to the market’s direction. 

Through the first seven months of 2012, new home permits totaled 3,788. That is far below than the 7,200 recorded at the market’s peak from January through July 2007, but it also represents a 28 percent increase compared to the same period in 2010.

This year’s Parade of Homes showcased properties from around the area that represent a broad spectrum of sizes and styles. In addition to the 23 properties built specifically for the event, the parade presented a dozen other designs. Most models were priced between $200,000 and $400,000, while four designs carried price tags between  $800,000 and $900,000.

Image courtesy of SaltLakeParade.com

For additional Salt Lake City market data, click here.

Premier Park City Ranch Slated for Sept. 14 Auction

By Alex Girda, Associate Editor

A premier 214-acre Park City residential property is set for a Sept. 14 date with the auctioneer. Located near Park City along a half-mile stretch of the Weber River, RiverBend Ranch was originally priced at $29 million, according to Concierge Auctions.

The property features fenced pastures, trails and hillside ranges, with living accomodations provided by a 16,800-square-foot residence. Paul Benson, an agent handling the auction for Summit Sotheby’s International Realty, said that while zoning restrictions prevent the construction of homes closer within 100 feet of the river, a grandfather clause allowed construction of the house only steps away from the river.

High-end furnishings and art will also be included in the auction. The residence includes eight separate bedrooms, each with its own private deck and patio; nine bathrooms, a theater that can hold up to 20 people, four laundry centers and an art studio.  

Photo courtesy of duPontRegistry.com

Plans Unveiled for $42M Waters Edge Resort on Bear Lake

By Alex Girda, Associate Editor

The developers of the Waters Edge Resort have unveiled their plans for their $42 million project adjacent to Bear Lake. The project will include a hotel, as well as retail and business space, but also a residential component in the form of condominium units.

 Waters Edge Resort will capitalize on Bear Lake’s nickname of “Caribbean of the Rockies” in an area where resorts have yet to proliferate. It will be located in immediate proximity to the beach, just off Highway 89. An 84-key full service hotel will spearhead a development that will also feature 70 condominium units, 40,000 square feet of retail, restaurant and office space that will be leased out as soon as possible, as well as 5,000 square feet of conference and meeting space for company events.

The entrepreneurs and investors linked to Waters Edge are Vietnamese investors drawn by South Jordan resident and investor Hai Huynh, who is himself of Vietnamese origin. Huynh acknowledged in an interview for the Deseret News that many Vietnamese are unfamiliar with Utah, but he is confident that a special visa measure for foreign investors will put Utah firmly on the map.

Image courtesy of cachevalleydaily.com

For a Salt Lake City market snapshot, click here.

Hines/Oaktree JV Buys 248 KSF Office Complex in Sandy

By Alex Girda, Associate Editor

KBS Realty Advisors has closed on the sale of South Towne Corporate Center in Sandy to a joint venture of Hines and an affiliate of Oaktree Capital Management. The deal is Hines/Oaktree’s second acquisition following last year’s pickup of Alton Corporate Plaza in Irvine, Calif.

Located 15 miles from Downtown Salt Lake City, the 248,352-square-foot property  consists of 150 Civic Center Drive, a six-story, 124,046-square-foot building unveiled in 2000, and 200 Civic Center Drive, a 124,306-square-foot office building developed in 2006. Adjacent structures offer 592 parking spaces, complemented by 733 surface spaces.   

The complex has a 99 percent occupancy rate a tenant roster featuring names such as Cadence, CoreLogic, E*Trade, New York Life and Seamless.

 As part of the deal, Hines is assuming property management tasks for the property. Eastdil Secured handled all aspects of the transaction for KBS.

Photo courtesy of Google Maps

City Officials Grapple With Funding Proposed Arts Venue

By Alex Girda, Associate Editor

Talks regarding Mayor Ralph Becker’s proposed Utah Performing Arts Center in downtown Salt Lake City are now focused on hammering out the financing package for the $110 million project.  Considered a centerpiece of an effort to re-energize Downtown Salt Lake City, the 2,500-seat venue would be capable of hosting touring Broadway shows and other major performance events.

The County Council is slated to provide $20 million toward the project. However, now that the council is controlled by a conservative Republican bloc, that $20 million share could be reduced dramatically. Signs of the County Council’s reluctance to help fund the development were reported by the Salt Lake Tribune, which noted that the council’s Republican members voted against placing a $123 million parks bond issue on the November ballot. David Wilde, the council’s chairman, gave further indications of the body’s mindset in comments that his colleagues are reluctant to commit funds to big-ticket items.

City officials are proposing to increase the county’s say in the facility’s operations as a tactic for sweetening the deal. The county-controlled Center of the Arts currently operates a number of other downtown venues such as the Rose Wagner Theatre, the Capitol Theatre and Abravanel Hall.

Image courtesy of utahperformingartscenter.org