Hines JV Sells Salt Lake City-Area Industrial Asset

Cushman & Wakefield arranged the disposition of the newly developed property.

201 Mountain View Park, West Valley City, Utah
201 Mountain View Park. Image courtesy of Cushman & Wakefield

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.

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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.

201 Mountain View Park, West Valley City, Utah
201 Mountain View Park. Image courtesy of Cushman & Wakefield

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.

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