HiCap Management has acquired Palladium Apartments, a 38-unit community in Provo, Utah. The deal closed on Jan. 13 and marks the firm’s first purchase in 2021 and its second multifamily acquisition in the state in the past six months. A local private investor sold the property.
CBRE Vice President Ryan Jameson arranged a fixed-rate Fannie Mae loan for the purchase. The mortgage matures in 10 years.
The seller and developer acquired the half-acre site in August 2018, according to Utah County records. In 2019, Deseret First Credit Union provided two revolving credit mortgages totaling $3.4 million for the project, which delivered in 2020.
Located at 538 N. Freedom Blvd., the three-story building comprises one-bedroom units. All apartments have hardwood-style floors, quartz countertops and stainless steel appliances. The community is a short distance from downtown Provo and Utah Valley Hospital, close to Brigham Young University. The Provo Recreation Center is across the street, with a variety of shopping and dining options in the immediate area.
“Utah is an attractive investment market for us due to its strong demographics, above average job growth and high quality of life,” Joseph Baum, managing member of HiCap Management, told Multi-Housing News.
Last August, the company made its first acquisition in Utah when it purchased South Parc Townhomes, an 88-unit community in Salt Lake City. Berkadia assisted in the sale and CBRE provided acquisition financing.