Working on behalf of a joint venture of Hines and a global investment firm, Cushman & Wakefield has arranged the sale of 201 Mountain View Park, an approximately 628,600-square-foot industrial development in West Valley City, Utah. The three-building, Salt Lake City-area asset is now under the ownership of Walton Street Capital.
201 MVP proved highly attractive to the lending community. “Interest during the marketing period was extremely strong, resulting in a deep buyer pool that spanned a myriad of investor types,” Mike Adey, an associate with Cushman & Wakefield, told Commercial Property Executive. Cushman & Wakefield’s Kip Paul, Michael King and Jeff Chiate joined Adey in the representation of Hines and partner.
201 MVP is a brand-new addition to metropolitan Salt Lake City’s highly coveted Northwest Quadrant, having delivered in January 2021 as a speculative project of Hines. Located on 41.5 acres of a 49.5-acre site that Hines acquired in 2019, the state-of-the-art industrial distribution warehouses carry the addresses of 6252, 6312 and 6368 W. Beagley Road.
The industrial park is presently 87 percent occupied, with one 126,800-square-foot building leased in its entirety to credit tenant Stuart Irby, a 375,000-square-foot building partially leased to credit tenant Duluth Trading Co., and another building of approximately 126,800 square feet fully leased to the likes of Brewers Supply Group, Industri-Tech and Associated Packaging.
Investors took note of more than 201 MVP’s premier quality and desirable tenant roster; they also homed in on the park’s location in the Northwest Quadrant, which has emerged as a hub for industries ranging from high-tech and medical device manufacturing to aerospace manufacturing to e-commerce. Additionally, the Northwest Quadrant is within 3 miles of all transportation modalities, including Union Pacific’s Intermodal Facility, the Interstate 15 and 80 transportation corridors and Salt Lake City International Airport, which recently debuted the first phase of a multibillion-dollar renovation.
There’s something about Salt Lake
The parties involved in the 210 MVP sale are not disclosing the financial details of the trade; however, when asked what the transaction value indicates about the current state of industrial investment sales in the area, Cushman & Wakefield offered a hint about the AE Urbia-designed property’s price tag.
“Salt Lake City is one of, if not, the most desired non-gateway industrial markets in the Western U.S.,” Adey said.
The rising price of industrial assets is a common theme across the U.S., and Utah’s leading market is no exception. The average industrial sales price in Salt Lake County increased to $120.56 per square foot in the third quarter of 2021, according to a report by Colliers International, and the average achieved sale price rose to $133.77 per square foot. “High demand from industrial owner-users and investors means there are very few buildings for sale, especially large ones,” according to the Colliers report.