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| Hardware Apartments, a 463,956 square-foot, Class A luxury resort-style apartment community, 455 West 200 North, Salt Lake City, UT |
SALT LAKE CITY, UT (May 13, 2020) – KBS, one of the
largest investors in premier commercial real estate in the nation,
announced today that it has sold Hardware
Apartments, a 463,956 square-foot, Class A luxury
resort-style apartment community in the Salt Lake City real estate market.
The
property, owned by KBS Real Estate Investment Trust III, was sold in an
off-market transaction to Oakmont
Properties for an undisclosed amount.
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| Rod Richerson |
KBS and Salt Development began ground-up
construction on the 453-unit multifamily property in mid-2016 with the first
phase of 267 units – Hardware West – being completed for the asset in June
2018.
The sale was concluded shortly after Phase II was completed on
Hardware East, which comprises the remaining 186 units of the community.
Hardware Apartments is situated in Hardware Village adjacent to the historic Salt
Lake Hardware Building, which
is also part of the KBS portfolio.
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| Tim Helgeson |
The development project represents KBS’
extensive understanding of the Salt Lake City market and the firm’s ability to
leverage its deep expertise in markets throughout the country, according to Rod
Richerson, regional president, Western United States for KBS.
“We are very strategic about when and where we
do ground-up construction but being active investors for well over a decade in
the market we thought this would be a successful venture,” says Richerson.
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| Thomas Vegh |
"Considering how hard it is to close deals during the current economic
environment this sale was a major accomplishment but we worked diligently with
the buyer over the last couple of months to see it through.
"We hit a particular
challenge when they lost their lender at the last moment so KBS provided
short-term market rate seller financing to help Oakmont Properties complete the
transaction.”
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| Tatyana Litovsky |
Salt Lake City is an ideal fit with KBS’ proven
strategy of investing in key growth markets nationwide with solid economic
fundamentals, adds Tim Helgeson, asset manager for Hardware Apartments
and senior vice president for KBS.
According to CBRE’s office report in Q1 2020, the Salt
Lake City-Provo office market absorbed 196,654 square-feet on net – a high for
Q1 over the past two years.
The abundance of incoming supply (over 3.0 million square-feet) with substantial preleasing reaffirms that there is still strong confidence in the Salt Lake-Provo marketplace.
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| Amanda Kennedy |
The abundance of incoming supply (over 3.0 million square-feet) with substantial preleasing reaffirms that there is still strong confidence in the Salt Lake-Provo marketplace.
Situated near the heart of downtown Salt Lake
City, Hardware Apartments offer a distinct variety of penthouses, lofts,
studios, one- and two-bedroom luxury apartments, townhomes and stunning
brownstone row houses.
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| Chrisdo Fan |
A state-of-the-art fitness center, yoga room,
and a resort quality rooftop lounge with an infinity pool are among the luxury
common amenities at the property, making it one of the highest-level amenities
packages in the area, according to Helgeson.
“This development’s leading design and
unparalleled urban finishes showcase the depth of attention KBS pays to every
aspect of the properties in its client portfolio,” says Helgeson. “We have seen
a ramp up in leasing tied to the recent completion of construction on the
second phase of this unique community.”
KBS partnered with local developer SALT on the
development of this project. “Hardware Village’s ideal location, combined with
KBS’ deep knowledge of the Salt Lake City market and unparalleled track record
of successful properties in downtown areas throughout the country, encouraged
us to partner with the firm on this project,” says Thomas Vegh,
president and CEO of SALT.
“KBS left no stone unturned in ensuring that Hardware Apartments would be a multifamily community of the finest quality in downtown Salt Lake City, which made the partnership a win-win for both companies.”
“KBS left no stone unturned in ensuring that Hardware Apartments would be a multifamily community of the finest quality in downtown Salt Lake City, which made the partnership a win-win for both companies.”
Hardware Apartments is located steps from the
TRAX light rail, Downtown Salt Lake City, Trolley Square and Liberty Park, and
is connected to all major thoroughfares, employment centers, arts and
entertainment in the Salt Lake City market. The property is within walking
distance of restaurants, shops and retail stores.
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| Bruce Fischer |
“We immediately recognized the value of this
asset for its high-end amenities and prime location,” says Ryan Ashley of
Sacramento, California-based Oakmont Properties. “Hardware Apartments is
prominently positioned in the robust downtown Salt Lake City market to create
an elegant living experience unlike any other in the area.”
Attorneys Bruce Fischer, Tatyana Litovsky and
Chrisdo Fan, and paralegal, Amanda Kennedy, of global law firm Greenberg
Traurig, LLP’s Orange County office represented KBS as legal counsel in the
disposition.
“We were very pleased to represent KBS in what was a truly a unique disposition of Hardware Apartments.” said Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County Office, who led the Greenberg Traurig team.
CONTACT:
Micaela
Fehrenbach