National Park Visitors Flock to App Created by Local Firm

By Alex Girda, Associate Editor

Thanks to a partnership between a Salt Lake City-based digital media company and National Geographic, iPad and iPhone users can get every bit of information they need about the park they’re visiting. The app currently features guides for 20 of the country’s 58 national parks. Zion, Arches and Bryce Canyon are Utah’s three national parks currently featured by the “National Parks by National Geographic” app created by Rally Interactive. The media giant chose Rally because of its previous effort with the Canyon Country National Parks app.

With more than 650,000 downloads from the App Store, Rally has won a following among hiking enthusiasts and tourists. The app is made up of guides that can be purchased for 99 cents or $1.99 each.

When downloading the free main app, the user receives one free guide. Guides include facts and statistics, what-to-do and what-to-see lists, as well as camping and lodging information. Also built in are weather reports and access to tweets originating from park grounds, along with opportunities to share information via Facebook.

Photo courtesy of the National Park Service: nps.gov

Officials Seek Public Works Deal as Budget Deadline Looms

By Alex Girda, Associate Editor

The debate over the 2012-13 Salt Lake City budget appears to be nearing a conclusion as Mayor Ralph Becker’s $204.3 million proposal comes under the City Council’s scrutiny. The mayor’s proposal falls just $1.5 million short of the council’s $205.8 million plan, with major differences primarily related to capital improvements, the Salt Lake Tribune reports.

In particular, Becker recommended a $16.8 million allocation for the fund that pays for street upgrades, sidewalk improvements and the maintenance of storm drains. The city council added $888,549 to the mayor’s initial proposal,amid concerns that the cuts would be too big. In the budget for the current fiscal year, which ends June 30, the city allocated $19.6 million to capital spending.  The additional funding would be provided by an increase in property tax revenue.

The city will also add two officers specializing in zoning enforcement, an area in which the city is aiming to be more aggressive. Downtown parking will get more expensive; the council signed off on the mayor’s proposal to raise rates from $1.50 to $2.00 per hour. The council also eliminated free side street parking during the Christmas holiday season.

 With the July 1 start of the fiscal year looming, budget decisions will also determine the future of the city- owned Jordan River Par-3 Golf Course. Becker wants to close the venue to save on operating costs.

Photo courtesy of destination360.com 

Bear Lake Resort Plan Wins Garden City Approval

By Alex Girda, Associate Editor

A $42 million resort in Garden City has secured approvals from the city council and planning commission, paving the way for development of what could be one of Bear Lake’s largest resorts, the Herald Journal of Logan reported.

Vista Realty plans to build Waters Edge Resort, a Holiday Inn brand, which would include 84 guest rooms, 70 condominium units, 40,000 square feet of retail space and a 5,000-square-foot conference area. The project could create as many as to 500 jobs during construction and after the resort’s completion.

A significant number of investors will be involved through a federal program that encourages investment from foreigners. If that investment results in certain levels of job creation and meets other criteria, the investor and his or her family are eligible to receive green cards. The Herald Journal reported that those investors have already  contributed $19.5 million to the Waters Edge Resort development.

The project also underscores investor interest in Utah, a trend underscored by a recent NAIOP report concluding that the state ranked sixth in the nation last year with $3.6 billion in development investment.

Primary Showdown Looms Over $29M Draper Recreation Center

By Alex Girda, Associate Editor

The city of Draper faces a showdown over a bond issue on the June 26 primary ballot that would finance a $29 million, 120,000-square-foot to 140,000-square-foot recreation center. Since the city placed the issue on the ballot in early April, surveys commissioned by local authorities have shown public backing for taxes that would pay off the bonds. According to The Salt Lake Tribune, 72 percent of local residents support the levy.

As the election approaches, however, critics are ramping up their activity. The Utah Taxpayers Association opposes the bond issue because of the date of the election and because of what it argues is double-dipping. Draper residents would already be paying for a county-funded recreation center to be developed by 2016. As a result, city residents, who also contribute to the county coffers, would be paying for two different recreation center projects, the organization contends.

A Draper recreation center was identified four years ago as a priority in a 2008 parks and recreation master plan, but only recently has the idea gained enough steam for a bond measure to go before the voters. Low interest rates on public bonds and competitive construction costs also motivated Draper’s timing.  The city’s goal is for the facility to operate in the black, with $1.5 million in projected revenues offsetting roughly the same level of operating expenses.

Image courtesy of the city of Draper.

Sterling Bay Plans Upscale Buildout for Victory Ranch Club

By Alex Girda, Associate Editor

Sterling Bay Cos. recently snapped up one of the state’s prime development sites: the 6,500-acre Victory Ranch Club in Park City. The sale price for the property, which was acquired from an affilate of Wells Fargo Bank, was not disclosed. The parcel was originally slated for a 650-unit luxury residential development, the Salt Lake Tribune reported.

Chicago-based Sterling Bay plans to trim the number of units in favor of a more upscale residential development on a site that it has called “the most beautiful piece of property” in the state.

Victory Ranch also hosts the private Rees Jones championship golf course, Victory Ranch Club, which  recently opened to the public. The site is surrounded by the Wasatch and Uinta mountains, the Deer Valley ski resort and the Provo River.

Photo courtesy of facebook.com/victoryranchclub

For additional SLC market data, click here.

Sugar House Awaits $400M Revival on Streetcar Route

By Alex Girda, Associate Editor

The Sugar House district is among the sections of Salt Lake City that has been affected most severely by the economic downturn. But thanks to the recent resurgence of investment in development, Sugar House could be on the verge of getting a new lease on life.

A report from the Salt Lake City Redevelopment Agency estimates that $400 million in private investment encompassing up to 2 million square feet is in the pipeline. The greenway surrounding the streetcar alignment will add nearly 6 acres of public green space.

Among projects in the works:

• Sugar House Center West – 250 residential units; 95,000 square feet of retail space; 80,000 square feet of office space. Cost: $85 million.

• Sugar House Center East – 100 residential units; 150,000 SF of retail; 150,000 SF of office space. Cost: $85 million.

• Sugar House Loop – a $53 million, 263,000-square foot development including 211 residential units and 56,000 square feet of retail space

• Granite Furniture – 20,000 square feet of retail and 30,000 SF of office space. Cost: $50 million.

• Wilmington I North – 112 residential units; 50,000 square feet of retail; 30,000 square feet of office space. Cost: $35 million.

• Wilmington I South – 100 residential units and 10,000 square feet of retail space. Cost: $35 million.

• Westminster – a $28 million development comprised of 44 student housing units, 8,500 square feet of retail and 15,000 square feet of office space.

• Cowboy Partners – 171 residential units, 1,200 square feet of retail totaling 135,200 square feet valued at $23 million.

• Sugar House Apartments – 70 residential units totaling 70,000 square feet of space. Cost:  $11 million.

Photo courtesy of user JonMoore via Wikipedia

For additional Salt Lake City Market data click here. 

Utah Jumps to 6th Place in U.S. Development Spending: NAIOP

By Alex Girda, Associate Editor

Utah’s development and construction market recorded a substantial upswing in 2011, according to a report from NAIOP. The state’s $3.6 billion in spending on direct investment on all categories of commercial real estate ranked sixth nationwide. That
investment propelled Utah from 26^th place in 2010, a jump second only to West Virginia’s leap from 48^th to third place.

Last year Utah trailed only Texas (ranked first with $7.9 billion), New York, West Virginia, California and Arizona. Leading the resurgence is the $1.5 billion City Creek project in Salt Lake City (pictured), which opened in March.

Thanks in part to its accelerated development activity, Utah will come out of the recession earlier han expected, the NAIOP study predicted. Besides spurring development in the office, industrial and retail sectors, the investment also produced an estimated 77,550 jobs.

Major employers like Ebay, EMCCorp and Adobe are choosing to expand in Utah rather than higher-cost locations like California.
These firms are also creating a workforce of young professionals that will continue
the momentum of residential and commercial development in Utah.

For additional insights regarding the Salt Lake City real estate market, click here.

Photo courtesy of shopcitycreekcenter.com

KBS Expands Salt Lake City Foothold With Gateway Tech Center

By Alex Girda, Associate Editor

KBS Realty Advisors has added to its Utah portfolio with the
acquisition of Gateway Tech Center, a 198,565-square-foot Class A office
building located near the 40-acre Gateway District in Downtown Salt Lake City.

Located at 155 North 400 West Street, the five-story Gateway
Tech Center was built in 1909 as a warehouse and converted to office space in 1996. Currently leased to 16 tenants, Gateway Tech Center is 92 percent
occupied, with a tenant roster including Western Electricity Coordinating
Council, SUPERVALU INC., and Utah Associated Municipal Power Systems.

KBS expects Gateway Tech Center’s vintage construction to
provide a competitive advantage. “The building’s brick and timber construction
is the preferred product type for the vibrant Salt Lake City technology
sector,” said Peter Mette, senior vice president for the northwest
region and director of acquisitions and dispositions. Another draw for tenants is
expected to be a neighboring multimodal transit center that will provide
convenient access to employees when it opens next year.

Gateway Tech Center is the fifth asset acquired by KBS Real Estate Investment Trust II, a non-traded REIT that has purchased properties totaling 1.2 million square feet. KBS Realty Advisors owns office assets in Utah
totaling 636,993 square feet, including Parkside Tower in Downtown Salt Lake
City and South Towne Corporate Center in Sandy.

For further Salt Lake City insights check out our Market Snapshot.

Sky Lodge Trade Signals Main Street Changes in Park City

By Alex Girda, Associate Editor

Park City’s Sky Lodge is the latest property to change hands after investor Kenneth Abdalla announced the purchase of the iconic boutique hotel. The 3-guest room  property is an integral part of the developer’s plans in the area, as Abdalla suggested that the property is part of much bigger investment and development plans for Main Street.

Financial terms of the deal were not disclosed, although The Salt Lake Tribune reported that the hotel was listed for around $12 million. The Sky Lodge regularly winds up on lists of the nation’s top hotels. Travel website TripAdvisor.com notes that the hotel is the best-rated venue in Park City and ranks 14th nationally.

In other real estate news, Centerline Capital Group has recently provided a loan facility totaling $6.6 million that helped the acquisition of two Utah multifamily properties. The company said  that it had processed the loan through Fannie Mae’s Multifamily Affordable Housing Program. The program allows financing of Low Income Housing Tax Credit properties.  Both properties are garden-style affordable apartment communities located in Layton and South Ogden

Photo courtesy of modern-traveler.com   

80-Unit Student Housing Complex Trades in Orem

By Alex Girda, Associate Editor

An 80-unit, 300-bed student housing complex near Utah Valley University in Orem recently came under new ownership. The asset, College Terrace Apartments, is located at 643 West 1200 South near Interstate 15. Completed in 1985, the 64,500-square-foot complex is located on a 2.6-acre site in one of Utah’s fastest-growing student communities.

The units are fully furnished and feature high-speed wireless Internet, central air conditioning, a deck and a storage area. Amenities range from an outdoor basketball court and a heated outdoor pool, to a clubhouse with a large TV and an on-site laundry facility.

Daniel Shin, a senior associate with the Salt Lake City office of Marcus & Millichap Real Estate Investment Services Inc., arranged the sale on behalf of an undisclosed investor.

Stalled 1.4MSF Orem Mixed-Use Project Inches Toward a Restart

By Alex Girda, Associate Editor, and Paul Rosta, Senior Editor

For years, the once-promising Midtown Village project has been a sore point for Orem. Midtown Joint Venture L.L.C., the original developer, planned a 1.4 million-square-foot residential, retail and office project featuring three mixed-use towers. But the developers completed only a seven-story condominium and office tower and a small, stand-alone office building before running out of money about half a decade ago.

As recounted by the Daily Herald of Provo, construction of the second tower got only as far as completion of the shell, and the third tower never proceeded beyond excavation. Those woes eventually tied up Midtown Village in a foreclosure action by the project’s lead lender and a lawsuit by its contractors, who placed a lien on the property.

But now the stalled project is taking steps the first steps toward revival. Salt Lake City-based Blackstone Financial Group L.L.C., which acquired the property through foreclosure last fall, settled the lawsuit with the contractors in February. Then last month, Blackstone Financial—which is unaffiliated with the Blackstone Group L.P., the giant private equity firm–retained Marcus & Millichap Real Estate Investment Services Inc. to market the property.

Located on a 10.3-acre site at 320 South State St., Midtown Village has two completed components: a residential tower with 79 units—about half of them occupied—39,942 square feet of office space and 27,863 square feet of retail. Also complete is a 4,493-square-foot stand-alone building. In November, Blackstone Financial executives told the Daily Herald that the North Tower can be finished despite standing neglected for several years. The first developer’s plans called for 77 residential units, 29,000 square feet of retail and 38,101 square feet of office space. And if the future owners move ahead with the original developer’s plan, the final phase would consist of West Tower, a 171-unit residential building with 38,279 square feet of retail.

Image courtesy of rentv.com 

Indoor Stream Gets Retail Traffic Flowing at City Creek

By Alex Girda, Associate Editor

The new City Creek development has any number of distinctions. A joint venture of the Mormon Church and Taubman Centers Inc., the $1.5 billion project is one of the largest private developments in the U.S. in the last few years. The  23-acre project features 700,000 square feet of retail and dining space, 1.7 million square feet of office space, 535 residential units, plus the only regional shopping center to open in the U.S. so far in 2012.

The retail portion has brought a number of national brands to Utah for the first time and features a retractable roof. However, one of the most popular features of City Creek is not an anchor tenant or even its roof, but 1,200-foot-long man-made creek that flows through the center. The largest waterway of its kind in the U.S., the stream is proving to be a popular draw for shoppers, local residents and retailers who coveted a premium location within view of the creek.

The stream re-creates the property’s namesake, which once flowed through Downtown Salt Lake City before being diverted underground to mitigate flooding risks.  It features footbridges, three fountains with computer-choreographed water displays and a pair of 18-foot-tall waterfalls. Completing the picture are locally sourced 14-ton boulders and 200 resident rainbow and cutthroat trout.

Gordmans Unveils New Stores in Farmington and South Jordan

By Alex Girda, Associate Editor

Gordmans unveiled a pair of new locations on March 15 as part of a major expansion in the Intermountain West region. The Omaha, Neb.-based discount retailer opened 50,000-square-foot stores at the Station Park retail center in Farmington and at The District in South Jordan, eight days before an official grand opening on March 23. Next up is a third new location in Riverdale, which is scheduled for a July opening. Thursday’s openings expand Gordmans’ portfolio to 77 stores in 17 states.

In multi-family news, McCormack Baron Salazar has added a 61-unit Salt Lake City apartment complex to its portfolio. The St. Louis-based developer of economically integrated urban neighborhoods bought the property for $5.25 million, or about $86,000 per unit.

Located at 1625 Riverside Drive, the complex offers 76,555 square feet of residential space on a 4-acre parcel. Apartment Realty Advisors represented the seller, Peak Capital Partners, which specializes on the acquisition of multifamily properties and other distressed assets in growth markets nationwide. McCormack Baron Salazar, which was self-represented in the deal, has developed 149 projects encompassing some 16,300 housing units in 35 cities since 1973.

Park City Home Sales Top $1B Despite Declining Prices

By Alex Girda, Associate Editor

Last year was a decidedly mixed bag of progress and challenges for the Park City residential market. First, the good news: overall transaction volume hit nearly $1.1 billion, a 6 percent increase from 2010, according to the  Park City Board of Realtors. That is the only the seventh time that total volume has reached the billion-dollar mark. While the total fell far short of the $2 billion plus in transactions recorded in 2005, it reflects a healthy jump from the 2009 low of $867.2 million.  

“The market continues to be active, with the number of sales in all four quarters of 2011 being strong, with the second quarter of 2011 having the most sales that we’ve seen since the fourth quarter of 2007,” commented Mark Seltrenrich, statistician and past president of the Park City Board of Realtors.  The number of total home sales for the year reached 1,662, a 17 percent increase and a 32 percent jump from 2009. In another positive trend, foreclosure sales fell by one-third compared to 2010 and to 50 percent of the 2009 total.

Specifically, the number of single-family home sales rose 19 percent  condominium transactions were up 10 percent, and land sales improved a record 23 percent. Some submarkets enjoyed a significant boost in pricing, such as Old Ranch Road homes, which increased 12 percent in price year-over-year.

On the whole, though, the uptick in total transaction value took place despite a generally downward trend in prices, which have declined as much as 45 percent since the market peak. Last year, for example, median prices in Old Town slipped 13 percent year-over-year, to $817,000, and Jeremy Ranch prices fell to $624,000, an 11 percent decline.

Green Shoots Emerge for Salt Lake City Market

By Alex Girda, Associate Editor

Salt Lake City’s real estate market showed strong signs of a comeback in  2011 after several tough years, and 2012 shows additional, if modest potential. The office vacancy rate last year dropped from 17.1 percent to 15.3, with absorption reaching a healthy 652,000 square feet , a CBRE Group Inc.  report recently pointed out. That means 2011 doubled 2010’s absorption. Construction has also recorded an uptick, with 481,000 square feet of office space currently in the pipeline, nearly 300,000 square feet of it pre-leased. Projects include the Gateway 6 building in Salt Lake City and the Interchange office building in Draper.  

Though CBRE projects that the pace of absorption is unlikely to keep up through 2012, the year ended with a significant volume of deals . A recent press release from the NAI WEST realty company confirms the fact that commercial real estate in Utah  had a fairly solid record in  December. NAI WEST, to name one local firm, closed multiple deals in the office, industrial and retail sectors. NAI WEST arranged a 15,000 square-foot  office lease at Thanksgiving Point, and represented  owner Valley Green Holdings in a 8,259-square -foot lease at Draper Corporate Park.  Highlights of industrial transactions include representing the owner in a 120,000-square-foot lease at Decker Lake Business Center in Salt Lake City, as well as a 114,364-square-foot lease of a former big-box retail building in Midvale.

Also on the horizon this year is an event that is expected to have a major long-term impact on the Salt Lake City real estate market. A March 22 opening is scheduled for City Creek Center, the 700,000-square-foot retail anchor of the $1.5 billion City Creek project. The 23-acre redevelopment will also encompass office and residential components on its three-block footprint.  The retail component is a partnership between the Taubman Co., the project’s developer and owner, and the real estate affiliate of Church of Jesus Christ of Latter-Day Saints, which is leading the overall redevelopment program. As the Deseret News reported, City Creek Center is the only new regional mall scheduled to open this year in the U.S., according to the International Council of Shopping Centers.

Ancestry.com, CLEARLINK Lease Office Space in Orem

By Alex Girda, Associate Editor
In one of Utah County’s biggest recent Class A office leases, a pair tenants have taken a total of 54,000 square feet at Canyon River Office Park in Orem. As reported by utahbusiness.com, CLEARLINK and Ancestry.com have expanded to 727 North 1550 East, a four-story property. The transaction is a major step forward for the property, which was acquired by Ace Real Estate Ventures as a distressed asset last year.

The leases were arranged by a team from Orem Commerce Real Estate Solutions that included James Bullington, Josh Martin, Dan Donaldson and Brandon Huntsman. The building offers covered parking, convenient access to Interstate 15 through the 800 North and University Avenue and to nearby recreational venues.

Both transactions represent expansion for Utah-based companies. CLEARLINK, which has its headquarters in Salt Lake City, is a content and conversion services provider for consumer brands. A leading online resource for family history research, Ancestry.com is based in Provo.

Tavaci Road at Center of Yet Another Cottonwood Heights Dispute

By Alex Girda, Associate Editor

Cottonwood Heights is facing another issue just a few weeks after developer Terry Diehl filed a petition to disconnect his Tavaci development from the city and make it part of Salt Lake County. The main reasons for his desired shift were the ability for a higher housing density and to add a commercial component to the development. However, the developer did not find favor with the city council and the initiative fell through.

The latest dispute centers on the winding road leading to the project. According to the Salt Lake Tribune, while the road that leads to the site has received acclaim for both its architecture and engineering, critics have voiced fears that it will not be able to sustain heavy traffic. Zoning currently allows 43 homes to be built along the road.

The developer dismissed the problem regarding the structure’s resistance, claiming it would support the traffic generated by the multi-use development. The Tribune also mentions that a 2009 traffic report doesn’t seem to point out any issues with the road. The road, although not included in the separation suite between Cottonwood Heights and developer Terry Diehl, was cited as the main reason to deny permission to disconnect the community. The road currently stands under private ownership and is managed by the homeowners association. That along with the fact that it features a gate at its foot constitute the developer’s arguments for its being only meant for private use.

City Buys Old Farm Site; SkiLink Could Unite Resorts in Larger Recreation Network

By Alex Girda, Associate Editor

The city of Farmington has acquired a foreclosed development site, having received approval for funds from the city’s redevelopment agency as well as two other funding sources. The development, known to locals as Old Farm, was bought from OREO Corp. Mayor Scott Harbertson termed the acquisition “very important” and noted that the site is a gateway to the city and must be taken care of, according to the Standard-Examiner.

The city moved to purchase the site after repeated attempts to get a concrete deal in place with potential developers; according to LoopNet, the land is currently entitled for office, retail and residential structures. There are now a series of possibilities on the table, including affordable housing, open space/active park space or additional storm drain facilities. Funding used for the $1.9 million deal includes $1 million in RDA proceeds, $100,000 from the agency’s fund balance, $600,000 from park impact fees as well as additional funds from the city’s storm drain fund.

Also making headlines is a proposal for rethinking the area’s alpine tourism by uniting the Canyons ski resort with Solitude via gondola. However, the project would necessitate the use of 30 acres of forest that is owned by the U.S. Forest Service.

The project, tentatively called SkiLink, would aid in bringing together 6,000 acres of terrain in order to concentrate the snow sport industry. This would create a recreation network unparalleled by anything the United States currently has to offer when it comes to mountain sports, Deseret News reported. Having a unified gondola system would ensure a better coordination between the area’s mountain resorts, and a comprehensive ticketing system should help with moving as many as 1,000 people each way every hour, eliminating the 45-minute drive tourists are currently subjected to between the two canyons.

Museum of Natural History of Utah Strives to LEED by Example

By Alex Girda, Associate Editor

One of Salt Lake City’s attractions-to-be is the brand-new Natural History Museum of Utah as it reopens in a brand-new, $103 million facility. The building’s catchy design is inspired by what the museum strives to present: the diverse landscape and particularities of Utah. The Rio Tinto Center, as it is currently called, was funded through a public-private partnership.

The modern venue will employ both traditional and multimedia techniques in its presentations while charging a surprisingly small entrance fee for a new and attractive location. According to AirlinesandDestinations.com, an adult visitor is required to pay a fee of $9. This places the Natural History Museum of Utah’s charging plan at a much cheaper level than other major museums across the United States. The structure will be as much an exhibit on the exterior as on the inside, as its 163,000 square feet of space will be covered in 42,000 square feet of copper.

The building that will house the museum’s more than 1.2 million specimens and objects was designed by a team comprising designer Todd Schliermann and Don Weinreich of Ennead Architects, as well as David Brems and John Branson from Gilles Stransky Brems Smith Architects. The design intends to encapsulate the feel of Utah’s specific landscape, with its location – above the shoreline of the ancient Lake Bonneville – being one of its most significant features. The building will be marked by a central public space that will stand 60 feet high, serving as the building’s focal point.

The structure is loaded with green features, striving to incorporate non-polluting materials and use as many environmentally friendly technologies as possible. The Rio Tinto Center uses recycled materials, local resources, photovoltaic energy, radiant cooling, as well as a complex system to capture and manage storm water. It is striving for LEED Gold certification, an award that would make it only the 18th building to receive the distinction in the entire state of Utah.

Broadway Comes A-Knocking as City Sets Up Two Major Theatre Projects

By Alex Girda, Associate Editor

It only took two moves for the city to become a haven for the arts. The city council has recently voted to the tune of Broadway notes when it gave an initial “thumbs up” to the Utah Performing Arts Center. The $110 million project is on its way to receiving a tax dollar-provided bonus that will streamline the development process.

Although it is still early to fully commit to the project, the step forward is a positive one for the facility, which would occupy the lot that spans from 100 South to 200 South between Main Street and State Street, The Salt Lake City Tribune reports. There’s also a second act to this love letter to Broadway: The Utah Theatre may be the subject of a renovation.
One of Salt Lake City’s councilmen has proposed legislation that would direct another chunk of taxpayer money to the defunct entertainment hall. Councilman Luke Garrott has found a number of supporters for the idea. New uses being considered for the aging building include a film center.

The old Utah Theatre is just over the road from the proposed site of the Utah Performing Arts Center. The Broadway-style playhouse and the potential renovation of the now-decrepit theater looks set to whip the theater scene into shape and start what may be considered a cultural revolution.