Hines acquires South Temple Tower as first office-to-residential conversion
Salt Lake City —Hines, a global real estate firm, today announced the acquisition of South Temple Tower in Salt Lake City, Utah. Serving as its first office-to-residential conversion, Hines plans to embark on the transformation of a 217,000-square-foot office building into a 255-unit luxury multifamily tower. With construction set to begin in Q1 2023, this renovation will include the complete removal of existing office spaces and repurposing the building for high-quality residential living at a time when the Salt Lake City market is starved for much-needed housing.
To achieve this conversion, Hines will strip the existing office building to its core and shell and repurpose the building structure to create an efficient residential floor plan. After extensive analysis, South Temple Tower met the right requirements needed for a successful conversion process including walkability, natural light, shape of the building, number of potential units, and overall floor plan.
The 24-story multifamily tower will feature studios, and one-and-two-bedroom homes, paired with high-quality interior finishes and an expansive amenity offering, designed by Hickock Cole. As part of Hines’ ESG strategy, this adaptive reuse project will reduce embodied carbon by limiting new construction materials including the production of concrete, which can be one of the largest emitters of embodied carbon across the industry. Through the implementation of more efficient mechanical systems, once the building is in operation, Hines expects that it will lower the operational carbon emissions of the building over its lifecycle and new residential utilization.
“Downtown Salt Lake City is experiencing immense growth, with Utah having the second-highest population growth in the country over the last decade, and there is an undersupply of housing,” says Dusty Harris, senior managing director of Hines. “As a local resident, I’ve watched the office market shift and the residential market pick up speed since the dawn of the pandemic. Aligning with the company’s core values, Hines is stepping in to fill a need amongst the city’s residents, by delivering a sustainable high-rise product that will be new and highly attractive for this growing market.”
The property sits on one of the city’s most desirable streets in Salt Lake City close to downtown and all of its amenities, Salt Lake Temple, the light rail, and many major employers. South Temple Tower offers unobstructed views of the city skyline, the Capitol, and the Wasatch Mountain. The acquisition was brokered by Kevin Shannon and Bryce Blanchard of Newmark.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 285 cities in 28 countries. Hines oversees investment assets under management totaling approximately $90.3 billion¹. In addition, Hines provides third-party property-level services to 373 properties totaling 114.2 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,530 properties, totaling over 511 million square feet. The firm currently has more than 198 developments underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.