Sandy, Utah—A new multifamily development in the Salt Lake City suburb of Sandy, Utah, traded for $93.9 million in an acquisition financed by Mesa West Capital.
Los Angeles-based Mesa West Capital originated a $69.1 million first mortgage loan that assisted a joint venture led by ColRich Multifamily in the acquisition of 416-unit Cobblegate at Quarry Bend in Sandy. The sale was timed to the completion of the final 15 four-story residential buildings by seller Miller Development Co., a local developer.
Adding 3,000 apartment units last year had little impact on housing fundamentals in the Salt Lake City area, which continues to experience accelerating rent growth, according to research provided by Co Star.
“Cobblegate’s large unit sizes, superior amenities and desirable location will allow it to perform very well against the competitive set in the sub market,” Mesa West Capital Principal Steve Fried said. Along with Associate Seth Hall, Fried was the originator of the financing.“This financing gave Mesa West the opportunity to lend on a newly-completed, Class A multifamily asset owned by a strong operator with local market experience,” Hall said.
Rebranded as Rockledge at Quarry Bend, the community features one-, two- and three-bedroom residences. Upscale finishes and amenities in each include full-size washer-dryer, fully-equipped kitchens with stainless steel appliances, granite counter tops and wood floors.
The amenity package includes a sprawling two-story clubhouse with a fireside lounge, resort-style swimming pool, recreation room and fitness center, barbecue areas and children playground. Occupancy had reached 50 percent at the time of closing.
“ColRich has extensive experience as a multifamily operator in the Salt Lake City metro, a fundamentally sound apartment market where demand is outpacing supply due to continued job growth in the area,” Fried said.
Mesa West’s five-year, floating rate, non-recourse loan was originated out of the Mesa West Real Estate Income Fund IV LLC, one fund among a fund family managed by the private lender.
The financing was locked in three months ago as part of a forward commitment by Mesa West, which continues to be an active lender in the multifamily arena. Recent financing include a $31.5 million loan to America Multifamily for the acquisition of a 142-unit Class A apartment community in Lacuna Nigel, Calif., a $30.2 million loan to Gogol & Company for the acquisition of a 20-story multifamily tower in Chicago, and a $25.2 million loan for the acquisition of a 144-unit multifamily structure in Dallas.
The acquisition of Cobblegate at Quarry Bend brings to 1,500 units owned by San Diego-based Col Rich in the greater Salt Lake City MSA. The company owns almost 12,000 units across the entirety of the Western United States.
Image courtesy of Yardi Matrix