City Centre I, Salt Lake City
SALT LAKE CITY—An affiliate of Unico Investment Group LLC of Seattle has acquired the 10-story City Centre I office building here, increasing its portfolio to three properties here.
The acquisition, which also includes an adjoining 1.8-acre surface parking lot, adds City Centre I's 229,600 square feet to Unico's portfolio in Downtown Salt Lake City, which now totals more than 1 million square feet of space.
City Centre I is one of Unico's major transactions in the third quarter of 2018; in July, the investment firm purchased a full-block, Class A portfolio in Seattle's CBD; and in September acquired MODA Tower in Portland, OR., and the iconic One Nashville Place in Nashville, Altogether, the transactions totaled $750 million and comprised 1.8 million square feet of office space. The firm did not disclose financial details on its purchase of City Centre I.
City Centre I encompasses half a city block on State Street. The building is situated on the TRAX light rail line and offers direct freeway access to I-15 as well as excellent walkability throughout the downtown core. The building is just blocks from City Creek Center, the primary retail attraction anchoring the downtown core; it also sits across the street from the public park grounds surrounding the Salt Lake City and County Building and the Salt Lake City Public Library.
“We see City Centre as a great addition to our portfolio—it's a quality asset with a strong tenant base and we are attracted to its proximity to expanded mass transit and downtown's improving retail amenities,” says Unico VP of acquisitions Robert Penney. “We're drawn to the population, employment, and labor force growth evident in the Salt Lake metro and see this as a long-term driver of the commercial real estate market.”
Unico began investing in Salt Lake City in 2014, with its acquisition of the historic Boston Building, a 105,000-square-foot creative office building located within Exchange Place Historic District, just around the corner from City Centre I. In 2017, the private equity real estate firm purchased a two-building, 672,500-square-foot portfolio from CenturyLink that had been owned and occupied by the telecommunications company for more than 30 years. Located in Salt Lake City's CBD within blocks of City Centre I, the portfolio includes a 16-story, 366,500-square-foot office building with an adjoining 461-stall parking garage, as well as a six-story, 306,000 square foot former data center.
Unico plans to invest in several upgrades to each of their new properties, with the goal of creating a top-tier experience for their tenants. Renovations are underway at the office tower acquired from CenturyLink; rebranded as Tower 250, the building will boast new amenities and a new lobby, along with Class A finishes when its reposition is complete. Unico intends to reposition City Centre I as a market leading office building through a thoughtful rebrand, an enhanced amenity package, and capital upgrades targeting the lobby and the property's abundant decks.
Along with the acquisition, Unico also announced the opening of its first management office in Salt Lake City. Located at Tower 250, the office is presently staffed by Unico general manager Nicole Quirk and Unico chief engineer Todd Taft, with a growing team of property managers and engineers scheduled to join in the coming weeks. Unico VP of real estate services Russ Davis oversees the office.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
