Pacific Castle Affiliate Sells Utah Shopping Center
The property was part of a multi-property acquisition strategy, across multiple states, to fulfill the buyer’s 1031 exchange requirement, Hanley Investment Group Real Estate Advisors states.
SANDY, UT—An affiliate of Irvine, CA-based Pacific Castle has sold the Canyon Center shopping center here to a local investor as part of a multiple property 1031 exchange transaction.
The deal for the 47,866-square-foot shopping center, shadow-anchored by Smith’s Grocery, was reported by brokerage firm Hanley Investment Group Real Estate Advisors. No financial details of the sale transaction were released.
Hanley EVPs Bill Asher and Kevin Fryman, along with its president Edward Hanley, represented the seller, Pacific Castle affiliate Pacific Canyon Center, LLC. Greg Swedelson and Jon-Eric Greene with SSG Realty Partners represented the unnamed buyer. The property was part of a multi-property acquisition strategy, across multiple states, to fulfill the buyer’s 1031 exchange requirement, Hanley Investment Group Real Estate Advisors states.
Canyon Center was built in 1998 and is located on 6.79 acres at the intersection of 9400 South and Highland Drive in the Salt Lake City suburb of Sandy. The sale included Smith’s gas station, Wells Fargo and Wendy’s (all stand-alone pad locations within the center) as well as 38,000 square feet of active lifestyle and daily needs shop tenants. The property was 80% occupied at the time of the sale.
“The shopping center has enjoyed long-term historical occupancy and an Internet-resistant mix of tenants,” Hanley’s Fryman says. “Nearly 80% of the occupied square footage has been leased by the same tenants since 2010 or earlier.”
The shopping center enjoys very favorable demographics—within a one-mile radius the average household income is $127,000. The current population within a five-mile radius of the center is 223,000. Hanley adds that the Smith’s Grocery at Canyon Center is well-positioned to continue to be the dominant, long-term grocer for the surrounding community.
Canyon Center is minutes from Snowbird and Alta ski resorts and Smith’s is the last grocery store prior to traveling through Cottonwood Canyon to the ski resort properties. Asher adds that the area’s population is expected to grow by 110,000 over the next 30 years.