Newmark Knight Frank arranges sale of Creative Office Building in Salt Lake City, UT
Salt Lake City— Newmark Knight Frank (“NKF”) has arranged the sale of a 221,145-square-foot recently renovated creative office building in the heart of Downtown Salt Lake City for an undisclosed amount.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Ken White and Senior Managing Director Rick Stumm cooperated with Executive Managing Director Bryce Blanchard, who brokered the sale. Mortenson Properties, the real estate investment arm of M.A. Mortenson Companies, acquired the property from Hamilton Partners and Cantor Equities.
The five-story, brick-clad building, located at 324 South State Street, is 75 percent leased to a strong mix of tenants, including Ancestry.com, Spectrum Engineers and Utah’s Department of Financial Institutions, among others. The building, which was awarded the Energy Star label in 2018, features large floorplates, scenic views, a fitness center, an adjacent parking structure, collaborative common areas and signage. Additionally, Ginger Street restaurant recently opened on the ground level in 2019, adding a new vibrant night scene to the property with music and outdoor patio seating.
“We are excited to announce yet another Salt Lake City central business district office sale,” said Blanchard. “The asset garnered tremendous national interest pre-COVID and was brought to the finish line amid the pandemic with the transacting parties including sellers, Hamilton Partners and Cantor Equities, and the buyer, Mortenson.”
Situated in Downtown’s financial, cultural and retail/entertainment districts, the property is ideally located and in proximity to hotels, restaurants, shopping centers, public transit and residential housing options. New office, residential, hotel and arts and entertainment developments are redefining Salt Lake City’s skyline while creating jobs and attracting residents, visitors and wealth into the urban center.
The strength of Salt Lake City’s economic diversification allowed for the metro to weather the pandemic and it is on track to recover faster than much of the nation, according to NKF Research. Office vacancy went up across all class types in Q2 2020, with Class A having the largest quarterly jump from 5.2 percent to 7.1 percent; much can be attributed to the influx of Class A deliveries.