The famous 24-story building has 255 luxury rental properties.
As the downtown housing boom in Salt Lake City progresses, developers are planning to buy a famous office tower along the South Temple and convert it into a luxury condominium.
Houston-based global real estate company Hines is a white 24-story office building known to long-time residents, working at the University Club Tower in 136 E. South Temple in early 2023. It started at and said that it would change to a height of 255. End studio and one-bedroom and two-bedroom dwellings.
According to Hines, the crew stripped the rectangular office building “to the core” and reused it “for quality housing life in an era when the Salt Lake City market is hungry for coveted housing.” do.
Private companies have recently purchased a 216,976 square foot skyscraper after detailed analysis has shown that it meets walkability and natural light requirements, and that the shape and overall floor plan of the building is shown. Said that. Helped to create that many apartments.
According to the company, by adopting an adaptive reuse approach rather than new construction, carbon emissions are reduced by limiting the use of new building materials, especially concrete, an industry staple that produces large amounts of carbon dioxide. I can do it. According to Hines, updating the building’s mechanical system is also expected to reduce emissions throughout its life cycle.
Downtown real estate is shifting focus
The announcement says that due to the effects of pandemics and telecommuting trends, some new office towers have opened or are built downtown, even though office spaces across the country have shown the highest vacancy rates in 30 years. It is done when it is done.
At the same time, housing demand (renting or buying at all price levels) has reached a new peak, but there are signs that it may begin to ease as interest rates rise.
On the other hand, the trend towards luxury homes in Salt Lake City is: As home prices and rents continue to rise, there is an urgent need for more affordable homes in the region.
Dusty Harris, Managing Director of Hines, mentioned the city’s “huge growth” and housing shortages over the past decade, and said the company “is intervening to meet the needs of the city’s residents.” Stated.
“We are finding creative solutions for lesser-used buildings by transforming them into the uses that the community needs,” Harris said in an interview. “We’re excited about it, and I think there’s probably more of this. Many people in the real estate industry are thinking about this.”
And it doesn’t produce affordable homes directly, he said, “”In our view, cities need all types of housing, which certainly helps to meet the demand for more housing in the community. And just adding it to your home stock should ultimately help make the market more affordable. “
Harris says the South Temple Tower is a great residential area, as it is close to downtown amenities, landmarks and mass transit, as well as views of the Salt Lake Valley.
The latest acquisition of Hines in Utah, just east of the Alta Club near the intersection of State Street and South Temple, is after a $ 10 million overhaul by former owner San Francisco-based Maier Siebel Baber. , Renamed to South Temple Tower in 2015.
This refurbishment restores some of the original historic features of the tower, enhances its exterior, creates a two-story lobby and entrance plaza in the South Temple, and improves views from parts of the upper floors. rice field.
The county’s property record shows a building built in 1965, whose 0.61 acre site was valued at $ 55.7 million as of last year.
Rapid increase in high-end and skyscrapers
Hines has also completed the design of a 31-story luxury residential tower called 150 South Main Street Apartments. Dismantled Utah Theater Located on Main Street, there are 400 apartments, 40 of which are subsidized for rent.
Two residential towers proposed by international developers will participate in several similar projects launched in recent years during the apartment construction boom, increasing demand for luxury skyscrapers in the Utah capital. It is predicted.
The 21-story Liberty Sky, 151 S. State, opened this year. Built in 272 luxury units by a Utah-based cowboy partner, it will be the city’s first rental project over 200 feet.
What will be soon The tallest skyscraper in Salt Lake CityThe Boston-based Kensington Investment crew began construction on the Astra Tower at 200 South State Street in January. Completed in the fall of 2024, it will be 450 feet high and 40 floors high, with approximately 372 luxury condominiums.
Recent research We identified record 3,974 new apartments under construction in downtown and predicted that their rents would likely be at least 30% higher than elsewhere in Salt Lake County.
Researchers have also fixed vacancy rates for typical apartments in Salt Lake County below a record 2%, raising average rents by 10.1% in 2021 alone.