Salt Lake City: Official Development News Thread - Part 4

[Orlando]

As always, thanks for the info Viperlord. That's great to hear that 151 will most likely start this year. That's a nice looking building.

Anybody know the status of The Regent Hotel and Void Center? We haven't heard from either one of them for a while. I certainly hope the Regent Hotel is a for sure thing. And, it would be great if the Void center went forward too.

[Liberty Wellsian]

Point & click this afternoon

[Future Mayor]

Great news Viper. That means we could possibly see the 151 and CCH tower crane in the air before the end of 106, and maybe just maybe the Regent Hotel.

[Makid]

Originally Posted by Viperlord

A few bits of information:



2015 Salt Lake County Office Market report:

http://www.comre.com/uploads/reports/p1a9tba9on13do1a2o1kpq4taa993.pdf

from the report:
"Although the suburbs have accounted for a majority of new
construction, the Central Business District (CBD) saw steel reach
to all 24 floors of the 111 Main building. The 440,452 sf building is
estimated to be complete in the fourth quarter of 2016. The
building is currently 42% pre-leased with significant activity that
ownership believes will lead to the building being almost
completely pre-leased when delivered."

The best part of this is that the Suburban lease rates are rising. They are getting really close to the CBD lease rates.

I think that if they get too much closer, the CBD becomes a better sell due to the access and amenities as opposed to the Burbs. The exception to this is Owner Occupied.

I think we will start to see a shift towards the CBD for office tenants if the rates in the burbs goes up as little as $1.00 sq ft from where it is now.

Additionally, the periphery (outside of CBD) is now cheaper than the Burbs and as transit access is increased, this should draw additional people to the areas. This would include the previously discussed Fleet Block.

These rates also bode well for 151 and the pure speculation building at roughly 450 W, North Temple.

Lastly, these rates and occupancy levels do mean that SLC will finally get over 1 large commercial tower per decade level that we have been at for a while.

This does mean it is possible that there will be 5/6 tower cranes working in the CBD in 2017:

CCH
151
Regent Hotel
VCC (Void)
Speculative Tower (450 West North Temple) rumored to be 10 Stories
APS

All of these would be 10 stories or higher. Of course, this doesn't show the AC Hotel nor any housing that may happen such as the Cascade.

[Viperlord]

Originally Posted by Viperlord

A few bits of information:



2015 Salt Lake County Office Market report:

http://www.comre.com/uploads/reports/p1a9tba9on13do1a2o1kpq4taa993.pdf

from the report:
"Although the suburbs have accounted for a majority of new
construction, the Central Business District (CBD) saw steel reach
to all 24 floors of the 111 Main building. The 440,452 sf building is
estimated to be complete in the fourth quarter of 2016. The
building is currently 42% pre-leased with significant activity that
ownership believes will lead to the building being almost
completely pre-leased when delivered."



Also, in late December I heard back from one of the people involved on the design team for the Boyer 151 tower......

from the design team member:
"Boyer has had success in leasing their other two buildings in the Downtown this year so they are hopeful to get going in 2016 with the new tower. It would be good timing for us."


Also, my company has been contacted by an out of state investment firm from California, that will be entering the Utah market for the first time. They plan to purchase an existing large apartment complex downtown (200-300 units). It will be an all cash offer to purchase the apartment complex. The seller has accepted their offer on the property. We will be assisting them with their due diligence & title process on the apartment complex property.

I also just e-mailed the above market report link to the design team member that I've been in contact with.

I said:

With 111 Main seeing great success on the leasing side, hopefully this will be good news for Boyer and the 151 tower.


He responded:

"Thanks, Things are looking favorable for Boyer’s building and they told me they are going to advertise it as 18 stories and see if they get some takers in addition to the two larger tenants that have expressed interest."

[Future Mayor]

Originally Posted by Viperlord

He responded:

"Thanks, Things are looking favorable for Boyer’s building and they told me they are going to advertise it as 18 stories and see if they get some takers in addition to the two larger tenants that have expressed interest."

I was initially wondering if he responded that way indicating that they may try to get more tenants and bump the floor count over 18. As I thought about it though, they already went through the Conditional Use process for the increase in height approval, so I then realized that unless they got another major tenant and could justify 5-10 more floors I doubt they would try to go higher.

[Future Mayor]

County buying Salt Palace land from Mormon Church for $6.6 M. It's Value $34 M

http://www.sltrib.com/news/3464304-155/county-buying-salt-palace-land-from

Yes it was part of the lease contract, but I would assume that the timing has at least something to do with the proposed parcels for the CCH.

[Liberty Wellsian]

Originally Posted by Future Mayor

County buying Salt Palace land from Mormon Church for $6.6 M. It's Value $34 M

http://www.sltrib.com/news/3464304-155/county-buying-salt-palace-land-from

Yes it was part of the lease contract, but I would assume that the timing has at least something to do with the proposed parcels for the CCH.

It would be stupid not to purchase given the difference between the price and the value but doesn't the timing give us an idea of which developer will get the CCH?

My understanding was that JLJL was primarily looking at the south lot, DDRM was looking at Arrow Press Square, and RLB Swerdling was looking at the north lot. Doesn't that leave RLB Sweerdling as the most likely developer?

Shouldn't this also give us an idea as to the dimensions?

[airhero]

DDRM was the one looking to develop on the northern parcel. Info hasn't been revealed about where RLB Swerdling was wanting to develop. And none of them are going to develop on the Arrow Press lot. The owner has his own intentions for that location.

[Makid]

Originally Posted by airhero

DDRM was the one looking to develop on the northern parcel. Info hasn't been revealed about where RLB Swerdling was wanting to develop. And none of them are going to develop on the Arrow Press lot. The owner has his own intentions for that location.

The owner is open to APS being the location. Only if the spot isn't used for the CCH will he use it for another hotel.

[Future Mayor]

Originally Posted by Liberty Wellsian

It would be stupid not to purchase given the difference between the price and the value but doesn't the timing give us an idea of which developer will get the CCH?

My understanding was that JLJL was primarily looking at the south lot, DDRM was looking at Arrow Press Square, and RLB Swerdling was looking at the north lot. Doesn't that leave RLB Sweerdling as the most likely developer?

Shouldn't this also give us an idea as to the dimensions?

If this purchase has anything to do with the CCH, and not simply that the lease was expiring. Then it could signal that RLB could be the leading candidate, as the northern most parcel, UMOCA and Abravenel Hall, is one of the parcels that was owned by the LDS Church.

Again it could simply be that is was time for the county to actually own the land that several of it's facilities are built on.


It doesn't however give us any more detail than the early massings did on the possible dimensions of the potential hotel.


One idiot on the FB news feed, said something stupid along the lines of with the purchase and the new CCH we'll probably lose Abravanel Hall. Seriously some people are so completely idiotic and don't do a lick or research before posting the first random stupid thought in their brain.

[jedikermit]

Originally Posted by Future Mayor

Seriously some people are so completely idiotic and don't do a lick or research before posting the first random stupid thought in their brain.

Shoelaces would make terrible dental floss.

[nushiof]

Interesting. Basically a $27 million gift from the LDS Church to the County. Very generous.

I love that we are starting to learn nuggets about how CCH is coming together.

[Orlando]

$27 million...that's about the cost of a 15-20 story urban office building, I believe.

[Old&New]

I'm just going to put this here.



This facade should be restored:



http://m.deseretnews.com/photo/705344802?nm=1

[bflatflat9]

Old & New:
Good ideas, and not that all unlikely....on this one, although I'd bet that Zions would utilize the northwest spot where you've got retail, for parking exit/entrance.
You city plan then.

[Old&New]

Originally Posted by bflatflat9

Old & New:
Good ideas, and not that all unlikely....on this one, although I'd bet that Zions would utilize the northwest spot where you've got retail, for parking exit/entrance.
You city plan then.

Thanks! So split the retail into two, bisecting it with a second entrance/exit parking ramp? That's a great idea. it'd be directly across the street from the entrance/exit to City Creek Center.

[jtrent77]

Old&New, yes this is a much more realistic idea for the block. I would change the drive thru banking/ATM (if you have it at all). I doubt many people would be aware of the drive thru banking with it being in the middle of the block, so maybe instead with your changing the entrance ramp, put in one additional lane that either connects through the block and out West Temple or out Main. IF you have the drive thru banking at all, it will be far more recognized if the entrance to it is right by the bank. As far as the exit, that doesn't really matter.

[nushiof]

Originally Posted by Liberty Wellsian

It would be stupid not to purchase given the difference between the price and the value but doesn't the timing give us an idea of which developer will get the CCH?

My understanding was that JLJL was primarily looking at the south lot, DDRM was looking at Arrow Press Square, and RLB Swerdling was looking at the north lot. Doesn't that leave RLB Sweerdling as the most likely developer?

Shouldn't this also give us an idea as to the dimensions?

Handsome John. Are you able to comment on this article and where that leaves JLJL?

[LookUpSLC]

I'm a quiet lurker, but I check this thread almost daily because I'm really excited about everything that's happening downtown. I can't wait for the five new high rise potentials to break ground.

I do have a question. The housing complexes that have been mentioned...are they rentals or condos? Specifically I'm talking about these locations:

1. 2nd East between first and second south.
2. The new ones going in the Central 9th District
3. The nice ones being built near the old SL Hardware building.
4. The ones on the west side of Pioneer Park.
5 The ones to the east of West Gate & also those proposed on the Greed Orthodox parking lot.

Any insights would be appreciated.