JLL Arranges Financing for Salt Lake City Office Building
Salt Lake City — JLL Capital Markets announced today that it has arranged first-lien, long-term permanent financing for the acquisition of 2100 Plaza, a 35,291-square-foot, Class B office building in Salt Lake City, Utah.
JLL worked on behalf of the borrower, Salt Lake City-based Boulder Ventures Development, Inc., to place the 15-year, fixed-rate loan with no prepayment penalty. The new owner plans to redevelop the two-story office building into a multi-housing project over some indefinite horizon in the future.
Constructed in 1975, the 2100 Plaza was renovated in 2007 and had significant vacancies at the time of funding. The building is situated on 1.66 acres at 140 W 2100 S in a highly desirable TOD location at the Central Pointe TRAX Station, which provides access to downtown Salt Lake City. The amenity-rich location is adjacent to a variety of retail, restaurant and nightlife options, including the I-15 Marketplace, Interpointe Shopping Center and three million square feet of retail within a one-mile radius.
The JLL Capital Markets team representing the borrower was led by Managing Director Mike White.
“The challenge was creating a competitively-priced, fixed-rate financial structure for an asset to be held profitably over an indefinite horizon prior to future re-zoning and repurposing – without any prepayment penalty or yield maintenance provision,” White said. “Every life company and bank requires a lock-out and/or prepayment penalty on fixed rate loans. Consequently, few Salt Lake City borrowers know that better capital alternatives exist! In this case, the 15-year fixed-rate loan had life company pricing but can literally be prepaid in full the day after it funds at ‘PAR’ without any penalty, defeasance or yield maintenance penalty whatsoever! It was just what the client needed – and obtained – through JLL’s extensive knowledge of these creative alternatives in the capital markets.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.