The Domain Companies Commences Construction of The Exchange in Salt Lake City in Partnership with Goldman Sachs
Salt Lake City—The Domain Companies is excited to announce the financing and commencement of construction of The Exchange’s first building, an $89M, mixed-use project to feature 286 apartments and over 14,000sf of retail space at 330 East 400 South in Salt Lake City. The project is a joint venture between New York- and New Orleans-based The Domain Companies and SLC-based Giv Development.
With the first phase underway, the second will soon follow and include 126 unique, efficient “Smart Unit” residences and The Shop co-working space. The Shop workspace will offer access to programming aimed at stimulating local entrepreneurship, small business development, and community engagement.
“We’re honored to officially become a part of the Salt Lake City community,” said Matt Schwartz, co-CEO of The Domain Companies. “The commencement of our first project in the city is a tremendous milestone for us, and we look forward to making a positive impact for years to come. We’re thrilled to take this first step, and grateful to our project partners and the Salt Lake City community for welcoming us.”
The Exchange’s first phase will leverage creative planning, density, and innovative design to construct 286 studio, one-bedroom, two-bedroom, and three-bedroom, mixed-income apartments. Once complete, both phases of The Exchange will total 412 units and approximately 44 percent of units will be affordable to households ranging from 50 percent to 80 percent of AMI. The market rate units will be positioned at the top of the SLC market.
The property represents a significant leap in design and amenities over anything available in the market, combining an accessible location, world-class architecture, and stunning views with luxurious amenity spaces, hand-crafted finishes and fixtures, and modern, elegant apartment homes. Residents will enjoy a landscaped courtyard, terrace, lounge and clubroom, fully-equipped fitness center, onsite car- and bike-parking, and the MyDomain suite of resident services offered at all Domain properties.
The building’s first two floors will feature more than 14,000sf of food/beverage- and service-related retailers, anchored by an international food hall and marketplace in partnership with the International Rescue Committee’s Spice Kitchen business incubator program. This announcement marks the beginning of The Exchange’s focus on public art, valuable residential and community amenities, and honoring the city’s surroundings through sustainable design, natural materials, and engaging local artists and artisans.
“This project demonstrates that through partnership we can have it all, and that [Salt Lake City] is a city for everyone,” said SLC Mayor Jackie Biskupski. “Once complete, approximately half of the units will be affordable; refugees will have space to share their business and culture as part of the Spice Kitchen incubator program; incubators will foster local business growth; and the building will introduce a state-of-the-art product to the market.”
Once both buildings are complete, The Exchange will offer an energy-efficient, entrepreneurial, exceptionally-designed development capable of supporting a wide range of residents and businesses. The $124.3M project will cover 2.24 acres directly along the TRAX light rail system line and serve as a cornerstone of the ongoing development along 400 South and SLC’s Civic Campus.
“With inclusively-activated ground floors, a rich variety of uses, thoughtful architecture, and exceptional housing stock that’s sustainable and built for everyone, this project serves as a model for how our urban core can not only weather future growth, but thrive in it,” said Chris Parker, executive director at Giv Development. “We’re excited to see this important project rise in a city we love.”
To advance The Exchange, Domain tapped a team of trusted financial partners. Goldman Sachs provided $62.8M in construction financing, with $14M of the $62.8M financed with tax-exempt bonds issued by the Utah Housing Corporation. Goldman also provided $7.13M in equity through the purchase of Low-Income Housing Tax Credits issued by the Utah Housing Corporation.
“The Exchange is a great example of what strong partnerships can produce,” said Claudia O’Grady, vice president of multifamily finance at the Utah Housing Corporation. “The Domain Companies and Giv Development have put together a very dynamic project that will help address the housing crisis we are currently experiencing at all income levels, while activating a variety of public uses that will enhance downtown livability.”
The joint venture between Domain and Goldman Sachs provided an additional $10.9M in conventional equity. A $62.8M Freddie Mac Permanent Loan was arranged by Jones Lang LaSalle (JLL). Salt Lake City provided $3.7M in construction and permanent financing.
“JLL has a longstanding relationship with The Domain Companies, whom we consider to be one of the elite in terms of delivering developments that go beyond providing housing. Their developments change neighborhoods and impact entire communities,” said Tim Leonhard, international director of JLL Capital Markets. “JLL has a long history of providing financial services to the Salt Lake City market, and we’re thrilled to be a part of not only facilitating a groundbreaking development, but also delivering a very unique financing structure that is new to this market. We expect this will change the way the community’s housing needs are met over the long term.”
“We are proud to invest in The Exchange in order to strengthen Downtown Salt Lake City with more essential neighborhood building blocks such as quality affordable housing, community-serving retail, space for local businesses to grow, and better access to public transit,” added Margaret Anadu, Goldman Sachs managing director and head of the Urban Investment Group. “We hope that this project, the result of a strong partnership with The Domain Companies and Giv Development, serves as a model for collaboration that can be replicated across the region.”
Completion is expected in Q2 2021, following the completion of the coinciding building in Q3 2020. KTGY will serve as architect for The Exchange, Wadman Construction as general contractor, and Farouki Farouki as interior designer.
About The Domain Companies
Founded in 2004, The Domain Companies is based in New Orleans and New York and specializes in the development and management of unique, mixed-use properties in core urban locations. Domain creates high-quality properties that stand apart through innovative design and exceptional management, enhancing the communities in which they build. Domain’s projects include the new construction and preservation of affordable, mixed-income, and luxury housing; the acquisition and repositioning of distressed housing; historic restoration; brownfield redevelopment; seniors and special needs housing; and hospitality, retail, and commercial development. www.thedomaincos.com
About Giv Development
Giv Development is based in Salt Lake City and focuses on mixed-use, catalytic developments in urban corridors. Giv boasts significant experience across a broad range of real estate classes, creating sustainable, lasting, innovative structures that reside well in their place. Giv’s projects often serve as a testing ground for the region in new and emerging community design and building techniques. The company believes in creating community benefit and serves as the primary funding sources for its sister non-profit, Giv Communities. www.givdevelopment.com