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

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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