JORDANAIRE - LoopNet · the property has already attracted a high quality tenant profile. Jordanire also features attractive, well-manicured landscaping. ... 10/16/2017 T12. numbers

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JORDANAIRE2000 7800 SOUTH | WEST JORDAN, UT 84088

Berkadia makes no warranty or representation about the content of this brochure. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The presence of molds may adversely affect the property and the health of some. If you have questions or concerns regarding this issue conduct further inspection by a qualified professional.

JAMES WADSWORTH 801-368-9630

[email protected]

GREG BARRATT 801-532-4900

[email protected]

JASON WADSWORTH 801-230-3794

[email protected]

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JORDANAIREThe Opportunity

Financial Analysis

Property Summary

Site Map

Floor Plan

Exterior Photos

Interior Photos

Transportation Map

Job Density Map

Area Map

Parcel Map

COMPARABLE RENTSComparable Rents Map

Two Bedroom: Monthly Rents

Two Bedroom: Rents Per Square Foot

Vacancy

Concessions

COMPARABLE SALESComparable Sales Map

Unit Price

Price Per Rentable Square Foot

Cap Rate

MARKET OVERVIEWThe Wasatch Front

Salt Lake County Economic Summary

Salt Lake County Employment Map

Quick Facts

Economic Drivers

Economic Development

MARKET OVERVIEW3

2-3

4-5

6

7

8-11

12-15

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MARKET OVERVIEW20-21

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MARKET OVERVIEW26

27

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MARKET OVERVIEW30-33

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36-39

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42-43

TABLE OF CONTENTS

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THE OPPORTUNITY

Excellent Location: Jordanaire is located in the heart of West Jordan City, across the street from Veterans Memorial Park, consisting of 100 acres including pavilions, walking and biking trails, the West Jordan Rodeo Arena, tennis courts, baseball fields, badminton and volleyball courts, basketball hoops, several children’s playgrounds, the West Jordan Historical Museum, the world-class Gene Fullmer Fitness and Recreation Center, the West Jordan Outdoor Pool, the Sugar Factory Playhouse, a military service monument, and a peace garden with water fountains. The area also features the West Jordan Library and West Jordan City Offices.

Access to Jobs and Transportation: Jordanaire is two miles west of I-15 and less than three miles south of I-215, providing tenants easy access to anywhere in the Salt Lake Valley including Sil-icon Slopes and Downtown Salt Lake. The property is also less than a block from Redwood Road, a major thoroughfare extending north and south along the Wasatch Front. The UTA TRAX Red line West Jordan City Center Station, located less half a mile south east, is also walkable from the prop-erty.

Upside Potential: Jordanaire’s rents are below market, and the property has been running at or close to 100% occupancy with a queue of people waiting for the next available unit. 16 units have been outfitted with washer/dryer hookups, and 37 remaining units can also be upgraded. Washer/dryer appliances can be added for additional revenue. There is also potential to install carports, another good source of non-rental income. The property does not have a media package, another potential income stream.

Property Condition: Despite the property’s age, Jordanaire is unusually well maintained. Man-agement diligently follows a schedule to handle routine maintenance procedures. Consequently, the property has already attracted a high quality tenant profile. Jordanire also features attractive, well-manicured landscaping.

Parking Ratio: Jordanaire enjoys a parking ratio of approximately two stalls per unit, well above the average new property being constructed today.

Amenities: For its size and age, Jordanaire has one of the best amenities packages in the submarket, including a spacious interior courtyard, large children’s playground, and a covered barbecue area for tenants to gather.

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FINANCIAL ANALYSISJO

RDA

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IRE Unit Mix Type % of Mix Unit SF Total SF Avg Market

RentMonthly

Market RentAnnualized

Market Rent Roll

Rent / SF Pro Forma Rent

Annualized Proforma

Rent

Avg Rent / SF

27 Two-Bed / One-Bath 51% 880 23,760 $757 $20,439 $245,268 $0.86 $904 $292,912 $1.03

26 Two-Bed / One-Bath w/Connections

49% 880 22,880 $757 $19,682 $236,184 $0.86 $904 $282,063 $1.03

53 100% 880 46,640 $757 $40,121 $481,452 $0.86 $904 $574,976 $1.03

Income T12 T3 In-Place Variance Pro Forma % of MKT

Scheduled Market Rent $485,692 $492,900 $481,452 $93,524 $574,976

Less: Loss to Lease ($22,715) ($25,701) ($13,188) $0 ($13,188) (2.3%)

Gross Potential Rent (GPR) $462,977 $467,199 $468,264 $94,589 $561,788 % of GPR

Less: Vacancy ($9,595) ($5,795) ($9,360) ($18,729) ($28,089) (5.0%)

Less: Concessions ($2,262) ($800) ($802) $0 ($802) (0.1%)

Less: Bad Debt / Delinquency ($3,430) ($3,000) ($3,469) $2,346 ($1,124) (0.2%)

Net Rental Income $447,689 $457,604 $454,633 $74,169 $531,773

T12 T12 In-Place Variance Pro Forma $/Unit Per Yr

Plus: Fee Income $24,793 $24,793 $24,793 $0 $24,793 $468

Plus: RUBS Income $41,645 $41,645 $41,645 $10,878 $52,523 $991

Plus: Media/Internet Income $0 $0 $0 $33,390 $33,390 $630

Plus: Other Income $9,648 $9,648 $9,648 $289 $9,938 $188

Total Other Income $76,086 $76,086 $76,086 $44,557 $120,643 $2276.29

Total Operating Income $523,775 $533,691 $530,719 $118,726 $652,416

Expenses T12 T12 In-Place Variance Pro Forma

Administrative $6,713 $6,713 $6,713 $134 $6,847 $129

Advertising & Promotion $3,305 $3,305 $3,305 $66 $3,371 $64

Payroll $70,076 $70,076 $70,076 $1,402 $71,477 $1,349

Repairs & Maintenance $6,332 $6,332 $6,332 $5,858 $12,190 $230

Turnover $5,325 $5,325 $5,325 $3,950 $9,275 $175

Management Fee $23,639 $23,639 $18,575 $4,259 $22,835 $431

Utilities $54,203 $54,203 $54,203 $1,084 $55,287 $1,043

Media/Internet Expenses $0 $0 $0 $25,440 $25,440 $480

Contracted Services $13,019 $13,019 $13,019 $260 $13,280 $251

Real Estate Taxes $30,459 $30,459 $30,459 $3,046 $33,505 $632

Insurance $13,539 $13,539 $13,539 $271 $13,809 $261

Replacement Reserve $15,900 $15,900 $15,900 $0 $15,900 $300

Total Expenses $242,509 $242,509 $237,445 $45,771 $283,216 $5,344

Management Fee % 4.5% 4.4% 3.5% 3.5%

Net Operating Income $281,266 $291,181 $293,274 $75,926 $369,200 $6,966

Pro Forma Increase Over In-Place

Rent Growth 19.4%

Gross Potential Rent 20.2%

Expenses 19.3%

Net Operating Income 25.9%

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NOTES TO PROFORMA Updated: 10/16/2017

T12 numbers are on September 2016 - August 2017 numbers annualized

T3 Numbers are based on June 2017 - August 2017 numbers annualized. Other income and Expens-es are based on T12 numbers.

T12 and T3 Numbers have a management fee of 4.5%

In-Place column is an annualized snapshot of how the property wil l l ikely run under new ownership at current market and property conditions. We used a recent rent survey to determine Scheduled Market Rent and a recent rent roll to determine Gross Potential Rent (GPR). Current Vacancy is 2.0%. Concessions were set to 0.17% of GPR based on T3. Bad Debt was set to 0.74% of GPR based on T12. All Total Other Income was based on T12. A management fee of 3.5% was set in place for a professional management company. All Expenses were found to be within range of in-dustry standards. Expenses are based on T12. Taxes were based on the most recent tax bil l . Because Utah is a non-disclosure state , taxes should not go up at the time of sale .

Variance is the difference between In-Place and Pro Forma numbers.

Pro Forma column represents an estimate for f irst year income and expenses for a new buyer. Pro Forma Market Rent is based on an expected market annual growth rate of 4.0%. Market rent is also impacted by increasing rents by $30 per unit. We see this f itt ing as the property is running at nearly 0% vacancy. There 37 units that can be upgraded at approximately $6,500 per unit for a monthly increase of $100 per unit per month. 26 Units currently have washer/dryer hookups. By adding washer/dryer appliances to these units we estimate an additional $50 per month in rent. Pro Forma Total Other Income items were increased by an annual growth rate of 3.0%. However, RUBS income was increased by 2.0% per annum. We assumed that a media package can been added to the property to supplement other income. Pro Forma Expenses , except as Real Estate Taxes, have been increased by 2.0% per annum. Pro Forma Real Estate Taxes were increased by 10.0% over the latest tax bil l . Although Utah is a non-disclosure state and taxes are not increased at time of sale , al l multifamily properties are assessed regularly using an estimated income approach to value . Taxes wil l go up as this occurs.

Replacement Reserves have been normalized across al l columns for easy comparison at $300 per unit.

Loan is a new agency loan at the current interest rate . We used a more conservative loan based on a f ixed rate 10-year term. Currently two or three years of interest only f inancing is available to quali f ied buyers.

FINANCIAL ANALYSIS

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PROPERTY SUMMARY

125 S 300 E SALT LAKE CITY | UT 84111

PROPERTY SUMMARY

UNITS 53

BUILT 1973

BUILDINGS Six, Two-Story Buildings

Breezeway Connected

CONSTRUCTION Wood Frame & Brick Veneer

ROOF Flat

METERING Gas: Sub-Metered

Electricity: Individually

Water, Sewer, Trash: Master

RENTABLE SF 42,400

ACREAGE 2.44

DENSITY 21.7

PARCEL NO. 2127357023

AMENITIES Spacious Floor Plans

Washer-Dryer Hookups*

Children’s Playground

Lush Green Courtyard

Near Public Transit

2 Parking Stalls per Unit

Close to Shopping

Close to Recreation

On-site Laundry Room

*Select Units

RATINGS

LOCATION B+

BUILDING CONDITION B+

MARKETING WINDOW A-

CURB APPEAL B

ACCESS TO SERVICES B+

AMENITIES B

UNIT MIX TYPE UNIT

SFSTREET RENT

RENT PER SF

28 2/1 880 $780 $0.89

26 2/1 880 $780 $0.89

53 880 $780 $0.89

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NEIGHBORHOOD

NORTH Single-family Homes

EAST CTA Community supports

SOUTH 7800 South RoadVeterans Memorial Park

WEST Single-family Homes

SHOPPING Smith’s (1.3 mi)Target (1.6 mi)Walmart (2 mi)

SCHOOLS Majestic Elementary (1 mi)West Jordan Middle (0.5 mi)West Jordan High (1 mi)

COLLEGE Broadview (0.25 mi)Salt Lake Community (5.2 mi)University of Utah (20 mi)

HOSPITALS Jordan Medical (3.5 mi)Intermountain Medial (6 mi)Riverton Hospital (8 mi)

RECREATION Veteran’s Memorial ParkGene Fullmer Rec CenterGardner Village

TRANSPORTATION UTA bus Route F578UTA West Jordan City Center TRAX Station

NEARBY JOBS

DOWNTOWN SLC 160,000 jobs between the airport and the University of Utah with easy access by bus or TRAX

JORDAN LANDING 7,600 jobs located two miles west, including a plethora of office space and retail such as Walmart, Target, Best Buy, Lowe’s and more

I-15 CORRIDOR 96,000 various jobs within a quarter-mile of the freeway from 800 South to Bluffdale in the south end of the Salt Lake Valley

STATE STREET CORRIDOR

10,000 commercial, retail and service jobs along State Street, a major north south thoroughfare

IHC REGIONAL MEDICAL CENTER

4,500 jobs from one of the largest medical centers in the Western United States

FASHION PLACE MALL

Approximately 4,000 jobs from high-end stores and restaurants including Apple, Nordstrom, Dillard’s, and The Cheesecake Factory

JORDAN SCHOOL DISTRICT

8,000 employees servicing one the largest school dis-tricts in the state with over 52,000 students

SILICON SLOPES Tens of thousands of high tech jobs along the Wasatch Front clustered around the point of the mountain.

PROPERTY SUMMARY

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SITE MAPJO

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FLOOR PLAN

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EXTERIOR PHOTOSJO

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EXTERIOR PHOTOS

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EXTERIOR PHOTOS

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INTERIOR PHOTOS

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INTERIOR PHOTOS

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TRANSPORTATION MAPJO

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750 FrontRunner

Route 217Route 227Route F578

703 TRAX Red Line

Legend

701 TRAX Blue Line

Subject PropertyS

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JOB DENSITY MAP

S

Legend

5 - 906 Jobs/Sq.Mile

907 - 3,612 Jobs/Sq.Mile

3,613 - 8,122 Jobs/Sq.Mile

8,123 - 14,435 Jobs/Sq.Mile

14,436 - 22,553 Jobs/Sq.Mile

1 - 15 Jobs

16 - 227 Jobs

228 - 1,145 Jobs

1,146 - 3,618 Jobs

3,619 - 8,833 Jobs

Analysis Section5 Mile Radius

Subject PropertyS

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AREA MAPJO

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Gardner Village

Subject Property

TRAX Red Line

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City Offices

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PARCEL MAPJO

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PARCEL NO: 2127357023ACREAGE: 2.44

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COMPARABLE RENTS MAPC

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7

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SUBJECT PROPERTY

Comparable Property

1 - Aspen Pines

5 - Park Station

2 - Broadmoor Village

6 - Southwillow

3 - JORDANAIRE

7 - Thornhill Park

4 - Mountain View

8 - Willow Cove

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COMPARABLE RENTS MAP

# Name Address City Units Built Type Unit Size Monthly RPSF Area Location

Drive-By Window

Access to Services

Property Condition

Curb Appeal

Amenities

1 Aspen Pines 7366 South Redwood Road

West Jordan 108 1982 C 804 $725 $0.90 B- A- B B B C+

2 Broadmoor Village

3375 West 7800 South

West Jordan 348 1986 C 867 $1,018 $1.17 B B B B+ B+ A-

3 Jordanaire 2000 West 7800 South

West Jordan 53 1973 C 880 $755 $0.86 B+ A- B+ B- B B+

4 Mountain View 4656 South 3860 West

West Valley 96 1985 C 955 $850 $0.89 B- A B+ B B B

5 Park Station 7155 South High Tech Drive

Midvale 95 1974 C 900 $795 $0.88 B- B A- B B- B-

6 Southwillow 6885 South Redwood Road

West Jordan 440 1987 C 556 $748 $1.34 B+ A A- B+ B+ A-

7 Thornhill Park 1680 West Thornhill Drive

Salt Lake City 232 1984 E-C 548 $857 $1.56 A- A A B+ B A-

8 Willow Cove 9300 South Redwood Road

West Jordan 588 1985 C 969 $900 $0.93 B A- B B+ B+ A-

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AREA LOCATION: In order for a property to score high in this category, the location creates a feeling of “I want to live in this neighborhood.” The location needs to be in an area of: (a) higher income households; (b) higher average price of homes; (c) newer or recently remodeled office or retail developments; and (d) the absence of deteriorating properties.

DRIVE-BY WINDOW: In order for a property to score high in this category, the property location will have: (a) a high number of cars drive by the site each day; (b) high visibility from a freeway; (c) easily found by a prospective resident; and (d) have an easy ingress and egress to the property.

ACCESS TO SERVICES: In order for a property to score high in this category, the property would be located so that: (a) the residents have close access (less than a 5- to 10-minute drive) to shopping especially a major super-market, a dry cleaning store, and fast food restaurants; (b) convenient access (within 15 minutes) to regional shop-ping such as the “big box” merchants, and the regional malls; (c) easy access to major streets or freeway exchanges for commuters; (d) easy access to light rail stations or bus stops; and (e) easy access to churches and schools.

PROPERTY CONDITION: In order for a property to score high in this category, the condition of the property is such that: (a) there are no major deferred maintenance items (e.g.new roofs, new windows, or new parking lots); (b) floor coverings have been replaced regularly; (c) the interiors of the units (e.g. bathtub surrounds, kitchen cabinets, countertops, and appliances) are up-to-date; and (d) landscaping is manicured and groomed.

CURB APPEAL: In order for a property to score high in this category, the presentation of the property creates a feeling of “I want to live at this property.” Noticeable elements would include: (a) the entrance is attractive (e.g. monument sign is well-built, entry path is well-lit, and the flower garden is well-manicured); (b) the direction signs are easy to follow and attractive; (c) there are no rundown cars in the parking lot; (d) the balconies or patios are free from storage items; (e) landscaping is manicured with no noticeable weeds; (f) there is no trash or windblown debris on the property; and (g) the overall appearance is inviting and pleasant.

AMENITIES: In order for a property to score high in this category the apartment amenities would include such fea-tures as: each unit is well-designed, larger unit size, nine-foot ceilings, vaulted ceilings in top floor units, fireplaces, kitchen appliances are color coordinated and modern, washer dryers or washer / dryer connections, walk-in clos-ets, balconies, extra storage, and individual central air conditioning. Property amenities would include: a separate, fully equipped clubhouse containing such things as a business center, theatre room, recreation room, fitness center, swimming pool, basketball court; other common amenities would include covered parking, garages, direct-access garages, courtyards with children play areas, picnic or barbecues area, sand volleyball, mountain views, etc

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# Name City Avg SF Avg Monthly Avg $/Sq Ft Vacancy Concessions

3 Jordanaire West Jordan 880 $780 $0.89 1.9% 0

1 Aspen Pines West Jordan 810 $850 $1.05 1.9% 0.5

5 Park Station Midvale 900 $875 $0.97 2.1% 0

8 Willow Cove West Jordan 1000 $982 $0.98 0.3% 0

Avg SUBMARKET AVERAGE 921 $1,001 $1.10 1.5% 0

4 Mountain View West Valley 955 $1,060 $1.11 3.1% 0

7 Thornhill Park Salt Lake City 750 $1,120 $1.49 0.0% 0

2 Broadmoor Village West Jordan 879 $1,143 $1.30 2.9% 0

6 Southwillow West Jordan 759 $1,303 $1.72 2.3% 0

Monthly Rent

$550

$750

$950

$1,150

$1,350

3 1 5 8 Avg 4 7 2 6

Rent Per Square Foot

Subject Property Comparable Property Submarket Average

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Rent Per Square Foot

$0.60

$0.90

$1.20

$1.50

$1.80

3 5 8 1 Avg 4 2 7 6


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Vacancy

0.0%

1.0%

2.0%

3.0%

4.0%

7 8 Avg 1 3 5 6 2 4


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CONCESSIONS








8 Willow Cove West Jordan 1,000 $982 $0.98 0.3% 0

Avg SUBMARKET AVERAGE 921 $1,000 $1.10 1.7% 0.03


Concessions

0

0.25

0.5

0.75

1

2 3 4 5 6 7 8 Avg 1


2

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COMPARABLE SALES MAPC

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7 - Windgate at Bountiful6 - Village at Raintree 8 - Woodside at Holladay

5 - 500 Townhomes1 - Alta Pines 2 - Apple Honey 3 - Holladay Grove

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Comparable Property

S - JORDANAIRE

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COMPARABLE SALES MAPC

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# Name Address City Units Built Type Area Location

Drive-By Window

Access to Services

Property Condition

Curb Appeal Amenities

1 Alta Pines 4070 South 900 East Salt Lake City 64 1975 C B+ B B+ C+ B- C+

2 Apple Honey 7205 S Apple Honey Lane (350 East)

Midvale 36 1986 C B+ A B+ B B C

3 Holladay Grove 4791 South Kingsrow Drive (1665 East)

Millcreek 36 1985 C A- B A- B B B

4 The 500 Townhomes

3440 South 500 East Salt Lake City 109 1975 C B B+ B+ C+ B- B-

5 The Village at Raintree

870 North 900 West Salt Lake City 152 1984 C B A- A- A- A- B+

6 Windgate at Bountiful

2030 South Main Bountiful 100 1986 C A A B+ B+ B+ B

7 Woodside at Holladay

1726 East Woodside Drive

Holladay 54 1974 C A C+ B+ B+ B B

S Jordanaire 2000 West 7800 South

West Jordan 53 1973 C B+ A- B+ B- B B+

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AREA LOCATION: In order for a property to score high in this category, the location creates a feeling of “I want to live in this neighborhood.” The location needs to be in an area of: (a) higher income households; (b) higher average price of homes; (c) newer or recently remodeled office or retail developments; and (d) the absence of deteriorating properties.

DRIVE-BY WINDOW: In order for a property to score high in this category, the property location will have: (a) a high number of cars drive by the site each day; (b) high visibility from a freeway; (c) easily found by a prospective resident; and (d) have an easy ingress and egress to the property.

ACCESS TO SERVICES: In order for a property to score high in this category, the property would be located so that: (a) the residents have close access (less than a 5- to 10-minute drive) to shopping especially a major supermarket, a dry cleaning store, and fast food restaurants; (b) convenient access (within 15 minutes) to regional shopping such as the “big box” merchants, and the regional malls; (c) easy access to major streets or freeway exchanges for commut-ers; (d) easy access to light rail stations or bus stops; and (e) easy access to churches and schools.

PROPERTY CONDITION: In order for a property to score high in this category, the condition of the property is such that: (a) there are no major deferred maintenance items (e.g.new roofs, new windows, or new parking lots); (b) floor coverings have been replaced regularly; (c) the interiors of the units (e.g. bathtub surrounds, kitchen cabinets, countertops, and appliances) are up-to-date; and (d) landscaping is manicured and groomed.

CURB APPEAL: In order for a property to score high in this category, the presentation of the property creates a feeling of “I want to live at this property.” Noticeable elements would include: (a) the entrance is attractive (e.g. monument sign is well-built, entry path is well-lit, and the flower garden is well-manicured); (b) the direction signs are easy to follow and attractive; (c) there are no rundown cars in the parking lot; (d) the balconies or patios are free from storage items; (e) landscaping is manicured with no noticeable weeds; (f) there is no trash or windblown debris on the property; and (g) the overall appearance is inviting and pleasant.

AMENITIES: In order for a property to score high in this category the apartment amenities would include such fea-tures as: each unit is well-designed, larger unit size, nine-foot ceilings, vaulted ceilings in top floor units, fireplaces, kitchen appliances are color coordinated and modern, washer dryers or washer / dryer connections, walk-in closets, balconies, extra storage, and individual central air conditioning. Property amenities would include: a separate, fully equipped clubhouse containing such things as a business center, theatre room, recreation room, fitness center, swim-ming pool, basketball court; other common amenities would include covered parking, garages, direct-access garages, courtyards with children play areas, picnic or barbecues area, sand volleyball, mountain views, etc

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UNIT PRICE

# Name Address City Units Built Type Date Price UnitPrice Price/ RSF Cap% Area Building

2 Apple Honey 7205 S Apple Honey Ln Midvale 36 1986 C 11/30/16 $3,350,000 $93,056 $106.35 6.10 B+ B

3 Holladay Grove 4791 South Kingsrow Dr Millcreek 36 1985 C 2/1/17 $3,600,000 $100,000 $130.43 6.21 A- B

1 Alta Pines 4070 South 900 East Salt Lake City 64 1975 C 3/1/17 $7,000,000 $109,375 $117.29 5.78 B+ C+

6 Windgate at Bountiful 2030 South Main Bountiful 100 1986 C 5/26/16 $11,275,000 $112,750 $139.81 5.40 A B+

7 Woodside at Holladay 1726 East Woodside Dr Holladay 54 1974 C 6/1/16 $6,500,000 $120,370 $133.67 5.56 A B+

5 The Village at Raintree 870 North 900 West Salt Lake City 152 1984 C 5/18/17 $18,300,000 $120,395 $164.44 5.60 B A-

4 The 500 Townhomes 3440 South 500 East Salt Lake City 109 1975 C 12/20/16 $13,575,000 $124,541 $132.58 6.10 B C+

Unit Price

$70,000

$85,000

$100,000

$115,000

$130,000

2 3 1 6 7 5 4

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Type C = Conventional Market Rate

AREA: In order for a property to score high in this category, the location creates a feeling of “I want to live in this neighborhood.” The location needs to be in an area of: (a) higher income households; (b) higher average price of homes; (c) newer or recently remodeled office or retail developments; and (d) the absence of deteri-orating properties.

BUILDING: In order for a property to score high in this category, the condition of the property is such that: (a) there are no major deferred maintenance items (e.g.new roofs, new windows, or new parking lots); (b) floor coverings have been replaced regularly; (c) the interiors of the units (e.g. bathtub surrounds, kitchen cabinets, countertops, and appliances) are up-to-date; and (d) landscaping is manicured and groomed.

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PRICE PER RENTABLE SQUARE FOOT


2 Apple Honey 7205 S Apple Honey Lane (350 East)

Midvale 36 1986 C 11/30/16 $3,350,000 $93,056 $106.35 6.10 B+ B


3 Holladay Grove 4791 South Kingsrow Drive (1665 East)

Millcreek 36 1985 C 2/1/17 $3,600,000 $100,000 $130.43 6.21 A- B


8 Woodside at Holladay 1726 East Woodside Drive

Holladay 54 1974 C 6/1/16 $6,500,000 $120,370 $133.67 5.56 A B+



Price Per Rentable Square Foot

$70

$95

$120

$145

$170

2 1 3 4 8 6 5

Cap Rate

2


AREA: In order for a property to score high in this category, the location creates a feeling of “I want to live in this neighborhood.” The location needs to be in an area of: (a) higher income households; (b) higher average price of homes; (c) newer or recently remodeled office or retail developments; and (d) the absence of deteri-orating properties.

BUILDING: In order for a property to score high in this category, the condition of the property is such that: (a) there are no major deferred maintenance items (e.g.new roofs, new windows, or new parking lots); (b) floor coverings have been replaced regularly; (c) the interiors of the units (e.g. bathtub surrounds, kitchen cabinets, countertops, and appliances) are up-to-date; and (d) landscaping is manicured and groomed.

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AREA: In order for a property to score high in this category, the location creates a feeling of “I want to live in this neighborhood.” The location needs to be in an area of: (a) higher income households; (b) higher average price of homes; (c) newer or recently remodeled office or retail developments; and (d) the absence of deteriorating properties.

BUILDING: In order for a property to score high in this category, the condition of the property is such that: (a) there are no major deferred maintenance items (e.g.new roofs, new windows, or new parking lots); (b) floor coverings have been replaced regularly; (c) the interiors of the units (e.g. bath-tub surrounds, kitchen cabinets, countertops, and appliances) are up-to-date; and (d) landscaping is manicured and groomed.



7 Woodside at Holladay 1726 East Woodside Drive Holladay 54 1974 C 6/1/16 $6,500,000 $120,370 $133.67 5.56 A B+



2 Apple Honey 7205 S Apple Honey Lane Midvale 36 1986 C 11/30/16 $3,350,000 $93,056 $106.35 6.10 B+ B


3 Holladay Grove 4791 South Kingsrow Dr Millcreek 36 1985 C 2/1/17 $3,600,000 $100,000 $130.43 6.21 A- B

Cap Rate

5.30

5.55

5.80

6.05

6.30

6 7 5 1 2 4 3

3

33

34

MARKET OVERVIEW: THE WASATCH FRONT

The Wasatch Front, also known as the Greater Salt Lake area, consists of four counties: Salt Lake, Utah, Davis and Weber. Over 80 percent (approximately 2,262,207 people) of Utah’s population live within this four-county area. Salt Lake City is both the region’s core and largest city with nearly 200,000 residents. The northernmost city, Ogden, is located 40 minutes to the north of Salt Lake City in Weber County. The southernmost city, Provo, is located 45 minutes to the south of Salt Lake City in Utah County.

DEMOGRAPHICS

Utah is the fastest growing state in the nation. In 2015, Utah’s population reached 3 million. Over the next 35 years, Utah’s population is projected to double. The vast majority of this growth will take place in the Greater Salt Lake area. While the US population growth sits at a paltry 0.8 percent, the Greater Salt Lake area enjoys a much more robust growth rate of 1.7 percent. While natural increase contributed 58 percent of Utah’s annual growth in 2016, net in-migration continues to accelerate and exceed estimates. Utah ranks tenth in the nation for net migration and first for natural increase.

Between 2009 and 2014, family households throughout the U.S. increased by an average of 2.5 percent. In Utah, family households grew by more than triple that rate at 7.58 percent, according to Census estimates. Family households in Utah are also larger, consisting of more children. They are power behind Utah’s explosive growth. Utah’s fam-ily friendly atmosphere, strong growth, low cost of living, scenic views and wide variety of recreation-al and cultural activities foster an environment where people love to live, work, and raise families. In fact, Utahns are among the happiest, healthiest, and most charitable people in the nation.

The state is home to one of the youngest popu-lations in the country. With a median age of just under 31, Utah’s population is roughly seven years younger than the rest of the country. Additionally, 31 percent of residents are younger than 20, as opposed to just 26.2 percent for the rest of the country. Provo, Salt Lake, and Ogden are among the

most educated cities in the nation. 29.6 percent of residents age 25 and older possess at least a bach-elor’s degree, up slightly from 28.8 percent at the US level. Companies benefit greatly from a pool of young and vibrant workers fresh from Brigham Young University, Utah Valley University, Weber State, and the University of Utah. Combined, these factors make Utah’s workforce young, diverse and growing by thousands every year.

ECONOMY

For the 10th year in a row, Utah has been crowned as the state with the best economic outlook in the nation according to a recent American Legis-lative Exchange Council report. Utah’s expansion-ary economy continues at a firm and steady pace. The state’s strong job market is the fuel behind its growth. In fact, both Forbes and CNBC list Utah as the #1 state to do business. Utah businesses attracted an impressive $732 million in venture capital last year, placing the state in the top tier nationally. Utah’s large families also help make the state resistant to economic downturns and help it recover faster. During the recession, Utah’s unem-ployment rate peaked at about 8 percent—far less than the majority of other states in the nation.

Much of Utah’s growth is fueled by the state’s low cost of doing business and the Silicon Slopes—a growing number of high-tech businesses clustered around northern Utah County and southern Salt Lake County. Goldman Sachs also has its second largest operations in the nation located in down-town Salt Lake City, employing nearly 1,800 work-ers. Companies including eBay, Oracle Corp, Twit-ter Inc., and the National Security Agency, have data and service centers located in the Salt Lake Valley. In fact, Silicon Slopes accounts for 40 per-cent of the state’s job growth since 2010. Provo led high-tech employment growth nationally from Q3 2014 to Q3 2015 with Salt Lake coming in third, sandwiching second place San Francisco and best-ing San Jose, Portland, and Seattle.

Tourism is also a top employment generator as several world-class ski resorts, including Deer Val-ley, Brighton, Park City, Alta and Snowbird, are less

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than an hour drive from the Salt Lake City Interna-tional Airport. Last year, tourism spending in Utah grew to almost $8 billion.

Low unemployment, steady job gains, and wage growth all contribute to Utah’s healthy economic climate. The current unemployment rate has held at a low 3.1 percent since November 2016. Nation-ally, the jobless rate holds steady at 4.4 percent. Meanwhile, job growth continues at a rate of 3.2 percent annually—more than double the national level of 1.5 percent. Utah’s wage growth also out-paces the rest of the nation. Utah’s total quarterly wages grew at an annual rate of 7.25 percent, tying for No. 8 nationally in wage growth for 2015. To put this in perspective, this represents an increase of $3.9 billion in total wages earned in the state on an annualized basis. These wage increases have also been surprisingly balanced across both low wage industry sectors as well as high-wage industry sec-tors, which is an essential element in avoiding in-come inequality.

Other smaller, accolades continue to pour in from diverse sources as well for Utah’s capital, Salt Lake City. Nationwide, Salt Lake ranks as the fifth best city to make a fresh start, eighth best for jobs, and sixth best for college graduates to get a job right

out of school. Salt Lake’s outstanding economic cli-mate has lead to a huge influx of new residents.

MULTIFAMILY MARKET

Utah is experiencing historic demand for housing. The rise in Utah households exceeds the number of new housing units for the first time in 40 years, according to the Gardner Institute. As a result, de-mand exceeds supply across all segments of the housing market.

A severe labor shortage exists for both single and multifamily building despite Utah’s construction sector posting job growth of 6.8 percent in 2016. Developers are struggling to keep up with demand. Single family home developers are selling every-thing they build in record time. New home starts increased 17 percent in 2016 and are already up 24 percent so far this year. Were it not for the short-age of labor, the number of new homes built would be even higher.

Affordability for entry-level buyers is in decline. New home starts under $200,000 have decreased 17 percent and only 23 percent of all new homes built in the last year were priced under $300,000. Meanwhile, 2016 saw a 35 percent increase in homes

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MEDIAN HOME PRICE

RENT VS. OWN

November 2015 $272,000

November 2016 $295,000

Avg Monthly Mortgage $1,454

Avg Monthly Rent $1,061

built in the $350,000-$400,000 and $500,000-$800,000 segments.

Utah’s median sales price of a single-family home is at an all-time high. In 2016, the median sales price rose to $295,000. Prices are expected to contin-ue to increase this year by 5 to 7 percent to the $310,000 to $315,000 price range. New homes are even more expensive. Data indicates the median price for a new single-family home is $348,500. Wages, however, are expected to increase by 5.8 percent this year. This will not be enough to count-er the higher home prices.

The multifamily apartment market remains tight. Apartment vacancy rates have been at the low-est level in decades despite historic levels of new units being delivered to the market. Since 2012, 20,000 units have been delivered statewide. This

represents a 7 percent increase in the rental inven-tory, according to the Gardner Institute.

Utah’s median household income has risen to $65,700 per year, more than $10,000 higher than the national average, and housing costs are 7.1 per-cent lower than the national average. Still, many renters are finding it increasingly difficult to save up for a down payment on a home. The number of renters has grown significantly in Utah over the last decade. Qualifying for a loan has become sig-nificantly more difficult since the Great Recession. This is a result of rising rents coupled with high demand and low supply of homes across the state. Additionally, many millennials prefer the conve-nience of lifestyle renting to buying. Monthly mort-gages for a median-priced home after accounting for a downpayment, taxes and insurance is $1,454. When compared with average rents across the Wasatch front, an affordability gap of about $393 per month exists that favors renting over home-ownership.

Since 2009, Utah’s multifamily market has seen sig-nificant year-over-year improvement. Vacancy rates are falling and rental rates are climbing. Rents in Salt Lake have increased more than 25% since 2011. The average two-bedroom, two-bath unit in Salt Lake City 10 years ago rented for $890 a month. Today the same units average about $1,061. Cur-rent vacancy rates among stabilized product linger at a low 3 percent. The scarcity of available rental units amid growing demand has resulted in rents

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seeing consistent increases, driven up in part by operators slashing the usage of rental concessions. Product in the last ten years is better designed with 10 foot ceilings and improved floor plans. Such units are much more preferred by lifestyle renters. As a result, Salt Lake County is seeing the biggest apartment boom in 30 years.

Due to Utah’s stellar growth, there is much pent up demand for housing. Developers delivered more than 3,500 units between Q2 2015 and Q2 2016 to the Greater Salt Lake area. More than 12,000 units are currently under construction with completion dates stretching through 2019. Typically, roughly 50% of planned projects begin construction and are completed according to schedule. The Utah market tends to absorb approximately 2,500 units per year—a growth rate of about 2%. However, over the past few years, due to the increase of life-style renters and shortage of housing, demand has outpaced supply and construction is attempting to catch up, providing the overdue supply Utah has been lacking. Investors and developers will contin-ue to enjoy a healthy multifamily business climate with relatively minimal change over the next 12 months while the state continues to catch up with demand. With so many new units coming online in the next year, the red-hot rent growth is expected to cool slightly to approximately 3 percent annual-ly in 2017. Vacancy is also expected to rise slightly as new units are completed.

TRANSPORTATION

Three major interstate highways serve the region: Interstates 80, 15, and 215. Interstate 80 runs from the northeast coast through Salt Lake City to the west coast. The counties are connected via Inter-state 15, the primary north-south freeway through Utah around which the majority of development occurs. Interstate 15 also reaches southwest to Las Vegas and Southern California and links to Inter-state 84 in the north, providing access to the Pa-cific Northwest. Additionally, Interstate 215 loops around the city, servicing the high-growth areas in the eastern and western portions of the metro.

Air transportation is provided by Salt Lake City In-ternational Airport (SLC) and two general aviation airports. More than 20 million passengers each year use SLC, which also serves as a hub for Delta Airlines. To meet the demands born from the re-gions growth, the Salt Lake City International Air-port is currently undergoing a massive $2.5 billion terminal redevelopment project with completions expected in 2023. The project will inject invest-ment dollars into the regional economy and pay dividends for years to come.

The Utah Transit Authority (UTA) operates, Front Runner a high speed commuter rail covering over 88 miles from north Ogden to Salt Lake City Pro-vo. FrontRunner connects with a lightrail system (TRAX) that connects Draper, Sandy, South Jor-dan, Murray, West Valley, Salt Lake and other cities spread across Salt Lake County. UTA also provides the local and regional bus service and rideshare programs.

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SALT LAKE COUNTY ECONOMIC SUMMARYM

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ECONOMY

MEDIAN HOME VALUE $327,000

MEDIAN HOUSEHOLD INCOME $65,694

MEDIAN MONTHLY RENT $1,495

AVERAGE VACANCY 7.5%

NEW CONSTRUCTION 2017 +5,000 Units

UNEMPLOYMENT 3.2%

JOB GROWTH 2.3%

WAGE GROWTH 5.8%

POPULATION

POPULATION 1.11 Million

MEDIAN AGE 32.3 years

HOMEOWNERSHIP 71.2%

AVERAGE HOUSEHOLD SIZE 2 People

HIGH SCHOOL DEGREE 86.8%

BACHELOR’S DEGREE 27.4%

Subject PropertyS

S

MEDIAN INCOME MAP

39

VA Medical Center

COMPANY NAME COMPANY NAMEEMPLOYMENT EMPLOYMENT

Intermountain Medical Center 5000-6999Salt Lake County 5000-6999University of Utah Medical Center 5000-6999Utah National Guard 5000-6999Discover Products Inc. 3000-3999L-3 Communications Corporation 3000-3999University of Utah 3000-3999C.R. England, Inc. 2000-2999Delta England, Inc. 2000-2999Jetblue Airways Corporation 2000-2999Primary Children’s Medical Center 2000-2999Skywest Airlines Inc. 2000-2999VA Salt Lake City Health Care 2000-2999Adobe Systems Inc. 1000-1999Associated Reg & Univ Pathology 1000-1999C3/Customer Contact Channels Inc. 1000-1999Clear Link Technologies Payroll, LLC 1000-1999Convergys CM Delaware LLC 1000-1999

eBay Inc. 1000-1999Fidelity Brokerage Services LLC 1000-1999Goldman Sachs and Co 1000-1999IM Flash Technologies 1000-1999Lake Park Campus 1000-1999LDS Hospital 1000-1999Microsoft Corporation 1000-1999Merit Medical Systems, Inc. 1000-1999Oracle Corporation 1000-1999Overstock.com Inc. 1000-1999Salt Lake Community College 1000-1999Selecthealth, Inc. 1000-1999Snowbird Corporation 1000-1999St Marks Hospital 1000-1999Staffing Solutions 1000-1999Ultradent Products, Inc. 1000-1999United Parcel Service 1000-1999Xactware Solutions 1000-1999

SALT LAKE COUNTY EMPLOYMENT MAPM

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Subject PropertyS

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QUICK FACTS

SP- JWGB_BOOK UTAH MARKET 2017BerkadiaREA.com

Job FriendlySalt Lake City ranked no. 5 among "2016's Best Cities to Find a Job" - WalletHub

Career PotentialSalt Lake City named "The Best Place to Start a Career" - WalletHub

SALT LAKE COUNTY | UTAHECONOMIC AND DEMOGRAPHIC OVERVIEW FEBRUARY 2017

INTRODUCTIONLocated in north-central Utah, Salt Lake County is the political power and

economic center of the greater Salt Lake City Metropolitan Statistical Area

(MSA) and the state of Utah. With a current population exceeding 1.12

million residents, Salt Lake County is the largest county in Utah and home

to economic drivers such as University of Utah, University Health Care,

Salt Lake City International Airport, Sinclair Oil Corporation, seven world-

class ski resorts. The region’s productive workforce, dynamic economy,

exceptional recreational opportunities, Free Trade Zone status, and

overall quality of life are a few of the reasons Salt Lake County is

considered one of the nation’s economic hot spots.

Salt Lake County accounts for more than 94% of the Salt Lake metro area

population, and according to IHS Global Insight, the Salt Lake City gross

metropolitan product (GMP) is projected to surpass $86.5 billion in 2017,

an increase of 6.1% from 2016. The metro area’s GMP is ranked 42nd

among U.S. regional economies, ahead of Providence, RI, Raleigh, NC,

and Richmond, VA.

Quality of Life Salt Lake City among the top 10 "Best Places to Live in 2016" - Good Life

Efficient Government Salt Lake City ranked no. 1 among the top 10 "Fiscally Fit Cities" - Sperling

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45Data and images pertaining to employment, income, permits, population, rents, single-family housing, and vacancy are year-end figures. Absorption, construction, and apartment sales figures are full-year totals. Numbers for 2016 are estimated values, while 2017 figures are forecast projections. Apartment market data criteria and methodologies vary by market.

SALT LAKE CITY

Vibrant economic activity in the Salt Lake City metro area continued to underpin favorable apartment fundamentals last year. Employment expanded 2.8% in 2016 as 19,100 jobs were created. Professional and business services companies contributed the greatest share of growth, adding 6,600 workers, a 5.4% annual increase. The financial activities sector followed, with 4,300 new jobs, a 7.4% gain. The construction industry was supported by ongoing Utah Department of Transportation highway projects totaling $585 million. Multifamily developers demonstrated confidence in the sustained economic expansion by requesting permits for 3,170 apartments in 2016, the greatest number since 1985. Completions were also elevated, with 2,110 apartments delivered, more than one-third of which were in the Midvale/Sandy submarket. Metrowide apartment absorption surpassed deliveries, causing vacancy to dip 10 basis points to 3.8% by year-end. Operators responded to lower vacancy by increasing asking rent 4.5% to $1,041 per month.

2016 REVIEW

Job growth and apartment fundamentals are expected to decelerate slightly in 2017, though will remain favorable compared to most other metro areas in the country. Local employers are projected to add 18,900 workers to payrolls, equating to a 2.7% year-over-year increase. The construction sector will continue to benefit from major projects, including the redevelopment of the Salt Lake City International Airport and the development of Huntsman Cancer Institute, which together will support thousands of jobs over the next several years. Builders will complete approximately 1,500 apartments metrowide among several multifamily communities in 2017. Renters drawn to urban-core living will have additional choices as nearly 1,100 apartments come online in the Central Salt Lake City submarket. The largest of these completions will be the 493-unit 4th West midrise apartment community. Brisk leasing activity across the metro is anticipated, fueling a 10-basis-point decrease in vacancy to 3.7% in December. Landlords will capitalize on the diminishing availability by raising asking rent 4% to $1,083 per month. Additionally, operators are expected to enhance rent revenue by cutting concessions 40 basis points to 0.2% of asking rent, resulting in effective rent appreciating 4.4% to $1,081 per month.

2017 PREVIEW2016 PERFORMANCE HIGHLIGHTS

2.8% YOY

EMPLOYMENT19,100

4.5% YOY

ASKING RENT$1,041

10 BPS YOY

VACANCY3.8%

2.4% YOY

CONSTRUCTION2,110 Units

0 BPS YOY

UNEMPLOYMENT RATE3.2%

0 BPS YOY

CONCESSIONS0.6%

MARKET FACTS

POPULATION1,192,000 $68,812

HOUSEHOLDS407,300 18.2%

ASKING RENT AND VACANCY

*Estimate; **Forecast | Source: Berkadia, Moody’s Analytics

CAP RATE | PRICE PER UNIT

*Estimate | Source: Berkadia, CoStar Group

SALES ACTIVITY INDEX

*Estimate | Source: Berkadia, CoStar Group

EMPLOYMENT CHANGE

YE 2016 1.2% YOY YE 2016 1.6% YOY YE 2016 4.3% YOY YE 2016 0 BPS YOY

Ind

ex

Valu

e (

Base

Ye

ar

20

10 =

10

0)

PERMITS AND DELIVERIES

3.5%

4.0%

4.5%

5.0%

5.5%

$700

$800

$900

$1,000

$1,100

2013 2014 2015 2016* 2017**

Rent & Vacancy

$80,000

$100,000

$120,000

$140,000

5.5%

6.0%

6.5%

7.0%

2012 2013 2014 2015 2016*

Cap Rate & PPU

-30,000

-15,000

0

15,000

30,000

2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017**

Employment

0

1,200

2,400

3,600

2013 2014 2015 2016* 2017**

Permits & Deliveries

0

100

200

300

2012 2013 2014 2015 2016*

Sales Index

MEDIANHOUSEHOLD

INCOME

RENTSHARE OFWALLET

*Estimate; **Forecast | Source: Berkadia, Axiometrics, Moody’s Analytics

*Estimate; **Forecast | Source: Berkadia, Axiometrics, Moody’s Analytics

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QUICK FACTS


1ST 9%

DEMOGRAPHICS

WHITE-COLLAR WORKERS MAKE UP

67% OF THE LOCAL WORKFORCE

COMPARED TO 63% U.S. AVERAGE

MOST POPULATEDCOUNTY IN UTAH

HOUSEHOLD INCOME GROWTH

BY 2021

1.2m

Countywide population

is projected to grow

6.8% over the next five

years

211k32% of residents hold

a bachelor’s degree or

higher, compared to 29%

nationally

94k

Approximately 25%

of Salt Lake County

households earn

$100,000 or more

annually, compared to

23% nationally

6.5%

A total of 396,926

households projected in

2021, a 6.5% increase

over the next five years

32.3years

The median age in the

county is 32.3 years,

compared to the 38.2

years for the U.S.

BY THE NUMBERS

TOTAL POPULATION

2010 1,029,655

2016* 1,121,976

2021* 1,198,615

Growth Rate (2016 - 2021) 6.8%

TOTAL HOUSEHOLDS

2010 342,622

2016* 372,657

2021* 396,926

Growth Rate (2016 - 2021) 6.5%

MEDIAN INCOME

2010 $57,488

2016* $62,535

2021* $68,083

Growth Rate (2016 - 2021) 8.9%

MEDIAN AGE

2010 31.2

2016* 32.3

2021* 33.1

MEDIAN HOME PRICE

November 2015 $253,425

November 2016 $272,000

Growth Rate Y-o-Y 7.3%

RENT VS. OWN

Average Mortgage Payment** $1,454

Average Rent $1,061

Difference $393

*Projected**30-yr fixed; 20% down; 4.15% interest rate; 1.75% property taxes

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QUICK FACTS


EMPLOYMENT TRENDS

The county's monthly

unemployment rate was

down 20 basis points y-o-y.

created year over year

through December of 2016, a

3.4% annual increase.

2.6%

23,700jobs

DECEMBER2016

DECEMBER2016

(40,000)

(20,000)

0

20,000

40,000

0%

2%

4%

6%

8%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Unemployment Rate Jobs Added / Lost*PROJECTED

SALT LAKE COUNTY

LARGEST EMPLOYERS

University of Utah & Health System 20k - 26.9k

Intermountain Health Care 15k - 19.9k

State of Utah 10k - 14.9k

Granite School District 7k - 9.9k

Jordan School District 7k - 9.9k

Salt Lake County 5k - 6.9k

Canyons School District 4k - 4.9k

Delta Airlines 3k - 3.9k

Zion's Bank Management Services 3k - 3.9k

L3 Communications 3k - 3.9k

Source: Utah Department of Workforce Services - Salt Lake County Major Employers

0 50,000 100,000 150,000

Information

Other Services

Mining, Logging, & Construction

Manufacturing

Financial Activities

Leisure & Hospitality

Education & Health Services

Government

Professional & Business Services

Trade, Transportation, & Utilities

Industry Breakdown Dec-15 Dec-16

annual increase in the professional

and business services sector,

representing 8,100 new jobs

6.9%JOB

GROWTH

METRO INDUSTRY BREAKDOWN

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ECONOMIC DRIVERS


Downtown Salt Lake City is the primary employment and entertainment hub in Salt Lake County,

consisting of 10.9 million square feet of office space, 2.6 million square feet of retail space,

and 74,150 employees; accounting for $3.5 billion in wages. The Salt Palace Convention Center

hosts numerous conventions during the year which attracts more than 340,000 delegates, who

spend upwards of $318 million during their stay. Downtown is also home to Vivant SmartHome

Arena, and the Utah Jazz, which has an estimated annual impact of $887 million on the county.

With its 5% flat tax and AAA bond rating Utah is an attractive place to establish a headquarters.

Salt Lake City has been able to retain many of their homegrown companies, and attract outside

investments as well. At least a dozen companies currently have headquarters operations in

Salt Lake City, including but not limited to: Zion Bancorporation, Easton Technical Products,

Overstock.com, Questar Gas, and ARUP Laboratories. Fidelity Investments and Goldman Sachs

also maintain large operations in Salt Lake City.

DOWNTOWN SALT LAKE CITY

HEADQUARTERS AND SHARED SERVICES

$3.5 billionin Employee Wages

AAABond Rating

$887 millionAnnual Impact from

SmartHome Arena

12+ Headquarters in Salt

Lake County

$318 million

Spent Annually by

Convention Attendees

74,150Employees

OVERSTOCK.COM HEADQUARTERS

VIVINT SMARTHOME ARENA

Salt Lake City is a major distribution hub as the Salt Lake City International Airport (SLC)

is within a 2.5 hour flight from approximately half of the nation’s population. The airport is

home to Delta Airlines’ fifth-largest hub, which operates approximately 74% of the traffic. SLC

supports approximately 35,300 full-time jobs, which produce an estimated $1.1 billion in wages

and salaries. The Salt Lake City International Airport annually generates $3.3 billion in total

economic output to the state’s economy.

Tourism is a major economic driver in Salt Lake City. Many skiing and outdoor magazines

consistently rank Utah’s ski resorts as the best in the nation. Utah is home to 14 ski resorts, nine

of which are within 60 minutes of Salt Lake City. The Salt Lake City metro area ranked No. 2 on

WalletHub’s “2016’s Best Summer Travel Destination in the Nation”. Tourism boasts an economic

impact of $1.3 billion and meetings and conventions have an impact of $318 million.

PASSENGER AIR TRANSPORTATION

TOURISM

Supports

35,300Full-Time Jobs

Economic Impact $1.3 BillionAnnually

Economic Impact $3.3 BillionAnnually Statewide

NineSki Resorts within One

Hour of Salt Lake City

ALTA SKI RESORT

SALT LAKE CITY INTERNATIONAL AIRPORT

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ECONOMIC DRIVERS


Utah is one of the best-educated states in the nation as over 90% of its residents are high

school graduates, and more than 32% of Salt Lake County residents, age 25 and above,

have earned a bachelor’s degree or higher.

Several colleges and universities are located in Salt Lake County. The University of Utah is the

state’s flagship university and is home to 31,592 students, who can choose from more than

75 undergraduate degree programs, one of two law schools in the state, and the state’s only

medical school. The university’s 1,534-acre campus includes the Health Sciences complex,

Research Park, and Fort Douglas. The Research Park’s mission is to attract and stimulate

growth in the industrial technology sector and is home to numerous research companies,

including ARUP, Evans & Sutherland Computer Corporation, Myriad Genetics Inc., and

Blackrock Microsystems. The research park employs more than 10,000 employees, across

more than 160 organizations, who produce an economic impact of $550 million.

students enrolled in higher learning

in Salt Lake County

66,000+HIGHEREDUCATION

among universities in the U.S. for

R&D expenditures

No. 40U OF U R&D

EDUCATION

SALT LAKE COUNTY

LARGEST HIGHER EDUCATION

University of Utah 31,592

Salt Lake Community College 29,350

Westminster College 2,821

LDS Business College 2,153

Stevens - Henager College 1,125

Fortis College - Salt Lake City 368

Eagle Gate College - Murray 353

Midwives College of Utah 236

Broadview Entertainment Arts University 118

Source: National Center for Education Statistics

Salt Lake City’s extensive transportation network includes Interstates 15, 80,

and 215 and State Routes 85, 154, and 201.

Public transit is provided by the Utah Transit Authority (UTA), which

operates light rail, commuter rail, bus, and streetcar options for residents.

TRAX is a 45-mile light rail system that serves Salt Lake City and many of its

suburbs throughout Salt Lake County. The Salt Lake City Intermodal Hub is a

transportation center used by UTA’s TRAX light rail system and FrontRunner,

UTA’s commuter rail train.

Salt Lake City International Airport (SLC) is the largest airport in Utah and

operates as a joint civil-military facility. In 2016, SLC served 23.1 million

passengers, up 4.6% from the year prior. SLC is a major hub for Delta

Airlines, which is responsible for roughly 70% of the airport traffic. By 2030,

the airport is projected to serve 27 million passengers per year.

passengers served annually by

TRAX light rail

18.7mTRAX

LIGHT RAIL

passengers served in 2016

23.1mSLC INT'L AIRPORT

TRANSPORTATION


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NEW ECONOMIC DEVELOPMENT


CONSTRUCTION AND DEVELOPMENT

Construction is underway on a $2.6 billion redevelopment project of the Salt Lake

City International Airport. The project will restructure the airport into a multi-

story, single-terminal airport and add a new rental car facility, parking garage,

700,000-square-foot terminal, two concourses, and other infrastructure. Phase

I of the west side and south concourse is slated to open in 2020 followed by a

30-gate, 854,000-square-foot, expanded north concourse. The redevelopment

project will create more than 23,900 full-time jobs with $1 billion in wages. The

project will have a $3 billion economic impact on the region through 2024.


$2.6 BillionRedevelopment

Economic Impact$3 BillionThrough 2024

The Utah Department of Transportation has invested approximately $585

million on Salt Lake County projects, which encompass widening freeways,

maintaining highways, and building new roads. These projects include the $252

million Point Project on Interstate 15, the $180 million Mountain View Corridor

project, the $105 million reconstruction of Interstate 215, and the $48 million

Bangerter Highway project, all to be completed in 2017.

TRANSPORTATION PROJECTS

$585 MillionInfrastructure Investment

Hundredsof Construction Jobs


The Salt Lake City Planning Commission has approved a proposed office

tower in downtown Salt Lake City. The 18-story glass skyscraper will be

295 feet tall and include a walk-out plaza and rooftop garden, as well as a

parking structure to the east. The start of construction on the $211 million

project is to be determined. Additional recently completed projects in the

area are a 16,000-square foot restaurant and retail space, and AIR, a 14-story

boutique hotel.

151 TOWER

$211 MillionInvestment

18-StorySkyscrapper

In mid-2015, South Towne Center announced a $20 million, 18-month renovation

and expansion. The 1.3 million-square-foot retail center will make improvements

on lighting, landscaping, parking, and a new off-ramp from the northbound I-15.

Completion is expected in 2018. The South Towne Center redevelopment is part

of The Cairns, a 1,100-acre city center “mountain meets urban” project. The

Cairns will feature 20 million square feet of development over the next 30 years

and will include new apartments, condominiums, restaurants, offices, and new

retail space.

SOUTH TOWNE CENTER

1.3 MillionSquare-Foot Retail Center

$20 MillionRenovation and Expansion

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Construction is currently taking place on the 220,000-square-foot expansion

of the Huntsman Cancer Institute (HCI), which is part of the University

of Utah Health Sciences system. The $105 million investment will double

the research space currently within the institute and add a biotechnology

center, equipped with the latest advanced genetic sequencing and imaging

equipment. This expansion project will house 35 new research teams and is

slated to be completed in April 2017.

HUNTSMAN CANCER INSTITUTE

$105 MillionInvestment

220kSquare-Foot Expansion

Station Center, a mixed-use development, is proposed for a two-square

block area between the Rio Grande Depot and the Utah Transit Authority Salt

Lake Central Station just west of downtown Salt Lake City. A combination of

retail, commercial, and residential space will encompass the nine-acre area.

Additionally, a "festival street" will be dedicated to host local events. Once

construction begins, the development is expected to be completed in three

to five years.

STATION CENTER

9-AcreDevelopment

3- to 5-YearConstruction Timeline

According to the U.S. Census Bureau, permits for approximately 4,042

multifamily apartment units, including both apartments and condos, five or

more units, were issued in Salt Lake County in 2016, the greatest number since

1985.

Builders completed 1,850 apartment units countywide in 2016. Approximately

40% of the new inventory came online in the Midvale/Sandy submarket.

In 2016, net absorption outpaced new supply by 129 units as renters in Salt Lake

County absorbed 1,979 apartment units, 34.2% greater than the previous five-

year average.

in 2016, up over 34.1% from the

previous five-year average

1,850unitsNEW

DELIVERIES

in 2016, an increase of 50.3% from 2015

4,042unitsMULTIFAMILY

PERMITS

PERMITS / ABSORPTION / NEW CONSTRUCTION

0

1,200

2,400

3,600

4,800

2010 2011 2012 2013 2014 2015 2016

Construction vs. Absorption

New Construction Absorption Permits

NEW CONSTRUCTION VS. ABSORPTIONSALT LAKE COUNTY APARTMENT MARKET

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Documents

JORDANAIRE - LoopNet · the property has already attracted a high quality tenant profile. Jordanire also features attractive, well-manicured landscaping. ... 10/16/2017 T12. numbers