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Originally Posted by Orlando
We looked into this project as well. We tried going in with Gerding Edlen, but didn't pursue it. We heard later that other developers, such as Cowboy Partners, dropped out of it due to the site being offered only at market rate, and no discount. The proposed program for the site was very interesting, and did demand a tallish midrise building in order for it to be justified. I really like the GIV group, and their demonstrated ability to build attractive affordable housing in urban areas. Though, I'm still a little doubtful that financing will come through for this. This is their largest project so far, and I hope this does get built as shown.
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It's a really pretty picture for sure but it's just an RFP. They tend to be really flowery. Especially stuff like this:
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The ground floor retail will be anchored by an international food hall and marketplace in partnership with the International Rescue Committee’s Spice Kitchen business incubator program.
The five-story building will consist of micro residential units above a parking podium and the “The Shop at Salt Lake City,” a 30,000-square foot co-working and business accelerator space. According to the mayor’s office, The Shop will offer amenities and programming aimed at stimulating entrepreneurship, small business development, and community engagement.
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Unless the Spice Kitchen starts selling cocaine or are heavily subsidized I find this part highly unlikely. The co-working thing too. The best comp for this type of vertical mixed use here is the Mecham Sugarhouse deal. Those tenants are in the 45-50psf range including CAMS and some of the spaces (the Annex, which is now Black sheep) are showing distress. The economics of an artisan food hall are really tough. Small F&B businesses are highly rent sensitive and touchy. They would need to be in the low teens to pencil. This type of construction is really expensive and it (gf retail) needs to displace the lost profits of the residential that would have gone there. I still haven't seen this type of vertical mixed use work really well in this city. Would have loved to see a horizontal mixed use requirement. Maybe save the SL Roasters building along the way.