$1B Master-Planned Utah Industrial Park Signs Build-to-Suit Deal
The Romney Group sold the parcel for a Salt Lake City-area cold storage facility.
The Romney Group, owners of Lakeview Business Park, a $1 billion new warehouse, manufacturing, office and commercial project master-planned for 25 million square feet in Grantsville, Utah, sold 40 acres of improved land to Lineage Logistics LLC to build a 200,000-square-foot cold storage facility.
The $125 million Lineage Logistics project is expected to create 96 jobs. Upon buildout, the Lakeview Business Park is expected to create more than 5,000 jobs.
Situated on more than 1,700 acres in Tooele County in the Greater Salt Lake area, Lakeview will be among the largest industrial business parks to launch in the U.S.
In addition to Lineage, Lakeview signed two tenants to fill the first speculative building in the project that totals 506,930 square feet. Jabil Inc., a global leader in manufacturing, recently leased 357,000 square feet and is expected to occupy its space by December. Late last year, Revman International Inc., a leading distributor of bedding, bath and home décor products, leased 146,000 square feet of space in the building.
The developer broke ground on the first building in late December 2020. The cross-dock building has 40-foot clear height, up to 90 dock-high doors and four grade-level doors. There are 122 stalls for trailer parking.
Tom Freeman, a vice chairman with Cushman & Wakefield’s Salt Lake City office, negotiated the land sale to Lineage and the two leases on behalf of the landlord. Freeman is leading brokerage efforts for the project along with Anthon Stauffer, principal at The Romney Group.
Freeman said in a prepared statement they are pleased with the level and quality of leasing and sales activity they have signed at Lakeview along with the interest they continue to see from other prospects. He said the project offers a wide variety of options for tenants and is capable of serving any sized user. Freeman added that Grantsville is a fast-emerging area and growing commercial submarket that offers opportunities for occupiers and other developers looking for a location in the greater Intermountain West.
The location has close access to I-80 and a new interchange. It’s within a 10-hour drive of half of the U.S., including all major Western ports, Freeman noted. Situated near The Great Salt Lake, Lakeview Business Park is within 20 minutes of the Salt Lake City International Airport, which is undergoing a $4.1 billion phased expansion due for completion by 2025, and the Union Pacific Intermodal Hub. The owners are also working with Union Pacific and the Utah Inland Port to make more than 800 acres of the project site rail served.
Tax Incentives Awarded
Earlier this month, the Utah Governor’s Office of Economic Opportunity awarded Lineage Logistics marginal tax reduction over the next five years for its expansion in the state. Under the Economic Development Tax Increment Financing program, Lineage Logistics may receive up to 25 percent of the additional state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing tax credit.
Each year Lineage meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit. Jabil and Revman also received tax incentives under the EDTIF tax credit program. Jabil, which is expected to create 150 jobs over seven years, may receive up to 30 percent of the additional state taxes it will pay over the seven-year life of the agreement in the form of a REDTIF tax credit. Revman, expected to bring up to 70 jobs over 10 years, may receive up to 15 percent of the additional state taxes it will pay over 10 years in the form of a REDTIF tax credit.
Based in Novi, Mich., Lineage Logistics is a provider of temperature-controlled and supply chain logistics solutions and the world’s largest temperature-controlled industrial REIT. The company owns more than 400 facilities in 198 countries.
In March, Lineage Logistics acquired MTC Logistics of Baltimore and its four cold storage distribution facilities totaling nearly 38 million of cubic feet of capacity and serving major East Coast and Gulf Coast ports. The assets were located in Jessup, Md., and Baltimore, both near the port of Baltimore; as well as in New Castle, Del., near the ports of Wilmington and Baltimore; and in Mobile, Ala., near the port of Mobile.
In other U.S. expansion moves, Lineage Logistics acquired Hanson Logistics and its seven distribution facilities in Michigan and Indiana in August 2021.