From Deseret News archives:
Investment sales soar
Rise posted in all Utah real estate categories
Last year's investment sales showed a 130 percent increase over 2004's sales at $679.8 million, according to a report released Thursday by Salt Lake-based Commerce CRG.
Last year's two biggest transactions were the sale by the Boyer Co. of The Gateway mall in downtown Salt Lake City to Inland Western Retail Real Estate Trust Inc., based in Illinois, and the sale of the Cottonwood Corporate Center, which was purchased by Hines, based in Houston.
Increases in sales were posted across all investment categories, the report said, with significant gains in the office and retail areas.
"Although high demand and rising property values have generated an increase in willing sellers," the report added, "there is still an insufficient supply of product to meet demand."
Office buildings in 2005 made up $488.4 million, or 31 percent, of Utah's total investment sales. Those transactions were followed by retail investments at $453.2 million and apartment purchases at $389.4 million.
Kip Paul, investment specialist with Commerce CRG, said about half of 2005's sales were by out-of-state investors.
Paul said Utah has hit bottom and turned the corner, with office and apartment rents now on the rise.
"I think we're just starting our run here," Paul said. "I think we are going to go for at least three years or maybe more."
Other transactions included:
- The purchase of the Questar Corp. building in downtown Salt Lake City by Wells Real Estate Investment Trust II Inc.
- The sale of most of a 178-acre Salt Lake City office, industrial and technology park to Natomas Meadows Two, which does business as Freeport West and is owned by Nevadan Kern Schumacher.
James Wadsworth, senior apartment adviser at Hendricks & Partners in Salt Lake City, said 2005 was the firm's best year in this market. Wadsworth said he closed on a 378-unit apartment complex last week that received eight written offers from qualified buyers.
"Properties aren't sitting and waiting for buyers, that's for sure," Wadsworth said. "There seem to be more buyers than there are sellers. If you put a property on the market today, unless there is something drastically wrong with it, you will have all of your offers probably within 30 days."
E-mail: danderton@desnews.com
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