Canyon Partners Breaks Ground on Salt Lake City Project
First move-ins are scheduled for 2023.
A joint venture of Canyon Partners, CJM Development Group and Hensel Phelps Construction have launched the development of a three-building multifamily community in Utah. The ground-up project, estimated to cost around $113 million, is being constructed in Draper, a suburb of Salt Lake City.
Canyon provided $23.7 million of preferred equity for the project, and the joint venture secured a $77 million senior syndicated construction loan from CIBC Bank USA. Underwriting and financing for the project was arranged by LGA Capital.
The partners will begin construction on the 423-unit development, located at 12300 Pony Express Road, immediately, with the project ready for the first residents to move in by year-end 2023. Beecher Walker Architects designed the new property, with Rimrock Construction serving as general contractor.
The community will feature 11,700 square feet of ground-floor retail and 703 parking spaces. Resident amenities will include a fitness center, a business center, a pool, a pickle ball court and a dog park. The six-story buildings will each offer rooftop terraces with unobstructed views of the Wasatch Mountains.
Salt Lake City Housing
The joint venture partners are adding new, high-quality housing to the rapidly expanding Salt Lake City metro area, according to a release. The property is less than 20 miles from downtown Salt Lake City and is close to area ski resorts. It is also centrally located within the Silicon Slopes, Utah’s hub of information, communication and technology companies.
There are 127 multifamily properties, totaling 19,270 units, within 5 miles of Salt Lake City, according to Yardi Matrix. Construction is underway on 25 properties that will add 5,238 units to the area and there are plans for 31 projects with 6,154 units. Developers have another 26 properties with 4,126 units in the pipeline.
The Draper development is the second project between Hensel Phelps and CJM, and the fifth project between Hensel Phelps and Canyon. The investment brings Canyon’s real estate portfolio to approximately $6.9 billion of project capitalization.