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| The Gateway, a 651,778-square-foot, mixed-use, upscale retail, office and entertainment complex situated on 21 acres at 41 South Rio Grande in the Central Business District submarket, downtown Salt Lake City, Utah. |
LOS ANGELES, CA –– Holliday
Fenoglio Fowler, L.P. (HFF) announced it has arranged a $96.9 million
refinancing of The Gateway, a 651,778-square-foot, mixed-use, upscale
retail, office and entertainment complex in downtown Salt Lake City, Utah.
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| Aldon Cole |
HFF worked on behalf of the
borrower, a partnership between Vestar and funds managed by Oaktree Capital
Management L.P. (“Oaktree”), to place the floating-rate loan with a bridge
lender. Loan proceeds will be used to retire existing debt and fund
future improvements.
Unique aspects of The Gateway
include the original Union Pacific Railway building that was built in 1910 and
the property’s two newest buildings, which were completed in 2000 and 2001 for
the 2002 Winter Olympics.
When the borrower acquired the
retail portion in 2016 via a sale brokered by HFF, they implemented a
multi-million-dollar plan and converted it from a traditional shopping center
to an experiential retail and entertainment destination complemented by
creative office.
The Gateway transformed Salt Lake City’s
lifestyle scene by introducing numerous public art installations, regular
festivals and concert events and innovative activities like Beer + Yoga in the
courtyard.
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| Paul Brindley |
With an open-air concept
comprising two levels and seven buildings, The Gateway’s retail portion is home
to more than 38 restaurant and retail tenants, including Recursion, Kiln, Punch
Bowl Social, Dave & Buster’s, Midici, Megaplex Theatres, Flemings, Ragnar,
California Pizza Kitchen, Skinny Fats Food Hall and Victoria’s Secret.
Situated on 21 acres at 41 South Rio
Grande, The Gateway is in the Central Business District submarket and is
less than half a mile east of the Salt Lake City Intermodal Hub, which provides
light rail services from Ogden to Provo.
The center is walking distance
from Temple Square, the Salt Palace Convention Center and Vivant Arena.
The HFF debt placement team
representing the borrower was led by senior managing directors Aldon Cole
and Paul Brindley, managing director Todd Sugimoto and analyst Spencer
Richley.
“Gateway has become a great case
study as to how opportunities exist within a well-thought-out plan to repurpose
retail,” Cole said. “The Vestar and Oaktree teams have done an
exceptional job redefining this asset and creating a true sense of place within
the context of the growing entertainment district of downtown Salt Lake City.”
 |
| Todd Sugimoto |
About Vestar
One of the leading privately held
real estate companies in the western United States, Vestar specializes in the
acquisition, management, and development of commercial real estate, including
entertainment-retail complexes, power and lifestyle centers and neighborhood
centers of varying size and scale that serve as community shopping destinations
with a unique sense of place.
Vestar currently owns and manages 30
million square feet of retail assets in the western U.S.
About Oaktree
Oaktree is a leader among global
investment managers specializing in alternative investments, with $119 billion
in assets under management as of March 31, 2019.
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| Spencer Richley |
The firm emphasizes an
opportunistic, value-oriented and risk-controlled approach to investments in
credit, private equity, real assets and listed equities. The firm has over
950 employees and offices in 18 cities worldwide.
CONTACTS:
ALDON COLE
HFF Senior Managing Director
(858)
552-7690
PAUL BRINDLEY
HFF Senior Managing Director
(310) 407-2100
TODD SUGIMOTO
HFF Managing Director
(310) 407-2100
KIMBERLY STEELE
HFF
Digital Content/Public Relations Specialist
(713)
852-3420
