Hatteras Sky Launches Opportunity Zone Fund for Adaptive Reuse of Salt Lake City’s Historic Union Pacific Train Depot
Salt Lake City— Real estate development firm Hatteras Sky has launched an Opportunity Zone Fund targeting a hotel development in downtown Salt Lake City, Utah featuring the newest US addition to Autograph Collection Hotels, a part of Marriott International. Hatteras Sky is co-developing the hotel with The Athens Group, a Phoenix, Ariz. based real estate development company specializing in the development of luxury resorts and hotels, upscale resort communities, golf courses, and hotel-serviced residential and recreational properties. The proposed development will be housed in the converted Union Pacific Depot railroad station and a new eight-story guestroom structure featuring 225 guestrooms, 10,000 square feet of restaurant and retail space, 8,000 square feet of meeting and function space, and complimented by The Depot by Live Nation, an existing 17,000 square foot live music venue.
Originally constructed in 1909, the historic Union Pacific railroad station is regarded as one of the most outstanding architectural structures in Utah. The historic station features irreplaceable French Second Empire architecture, original stained glass windows and original oil on canvas murals: “Driving The Golden Spike” commemorating the completion of the Transcontinental Railroad at Promontory Summit depicting the driving of the Golden Spike at Promontory Summit, and “This is the Place” portraying Brigham Young making his famous exclamation upon first seeing the Great Salt Lake Valley. Located in The Gateway, a one million square foot mixed-use commercial business, retail, residential, dining and entertainment center, the site sits directly across the street from Vivint Smart Home Arena, the TRAX Blue and Green light rail stops and is within walking distance of the Salt Palace Convention Center.
“We are excited to partner with The Athens Group on this project. Salt Lake has exhibited great economic development in recent years, placing it as one of the top cities in the country for employment and population growth.” says Oz Friedmann, Managing Director of Development for Hatteras Sky. “This project will be a marquis asset for the community.”
Thirteen specialty guestrooms, food and beverage outlets, retail and meeting space will be crafted inside of the historic railroad station, with the remainder of the hotel constructed in the eight-story building situated directly behind it. Hotel guests will have immediate access to all dining, entertainment and business venues located adjacent to the hotel. The development aims to capture the region’s growing hospitality market given the project’s location in downtown Salt Lake City and within The Gateway.
Hatteras Sky’s Union Station Opportunity Zone Fund is available to investors who qualify as “accredited investors” and offers opportunity zone tax benefits, including a deferral of capital gains tax until 2026, a discount on that tax, and the elimination of all tax on appreciation earned by the fund. The opportunity zone incentive was created in the Tax Cuts & Jobs Act of 2017. Additional terms and conditions of the investment offering are set forth in the offering’s prospectus.
“We aim to give investors a straightforward investment opportunity that avoids the complexity that pundits focus on when discussing the opportunity zone incentive,” says Jason Cordon, co-founder and CEO of Hatteras Sky. “This is a single asset fund and
we anticipate starting construction in summer 2020, so a lot of the timing and ‘deployment’ issues in the law are not really present.”
Hatteras Sky has also teamed with law firm Morris, Manning & Martin, LLP and accounting firm CliftonLarsonAllen, LLP, both leaders in the opportunity zone space. The investment is being offered through Cabot Lodge Securities.
Investors can request more information about the investment offering and Union Station project **here**.
ABOUT HATTERAS SKY
Hatteras Sky is a commercial real estate development company based in Atlanta, Georgia that was founded by Jason Cordon and Amy Kelly. The group specializes in tax-incentivized and conventional development, focusing on opportunity zones, affordable housing, and historic rehabilitation. For more information about the firm and its team, please visit the Hatteras Sky website.
ABOUT THE ATHENS GROUP
The Athens Group is a full-service real estate development company specializing in the development of environmentally conscious upscale resort communities, luxury resort and urban hotels, golf courses and related residential and recreational properties. The firm was founded in 1988 by Kim Richards. For more information about the firm and its team, please visit The Athens Group website.