Orion Real Estate Expands Utah Portfolio
The firm and two partners acquired a 144-unit asset in Salt Lake City.
Los Angeles-based Orion Real Estate Partners continues expanding its holdings in Utah with the acquisition of Lakeside Village, a 144-unit active adult multifamily community in Salt Lake City. The firm acquired the property in partnership with Denver-based Headwaters Group and Atlanta-based Formation Development Group.
The combined team will bring operational knowledge and experience within the senior housing space to deliver best in class services for the community, Orion stated. The team intends to improve the property’s amenities and unit interiors but did not say how much is expected to be spent on renovations.
The seller of the property at 1580 W. 3940 South was Acacia Capital Corp., according to Yardi Matrix data. Yardi Matrix estimated the sale price at approximately $26.2 million. Acacia Capital had purchased the asset in December 2014 for an estimated $10.6 million from Retirement Living Group, Yardi Matrix data showed.
Orion secured a fixed-rate loan from Fannie Mae arranged by CBRE’s San Diego capital markets team. The 10-year loan was in the amount of $19.7 million with an interest rate of 4.37 percent per year that is due Oct. 1, 2032, according to Yardi Matrix data.
AMC, a Salt Lake City-based property management group that currently manages more than 1,200 units for Orion, will oversee Lakeside Village.
It is the third acquisition in Utah for Orion, which has acquired 2,848 units since 2016. Orion, which currently owns 2,511 units in Colorado, Texas, Utah and California, is focused on expanding its portfolio in Utah and other high-growth Western states. Salt Lake City was recently ranked as the top market in the country by a recent CBRE research report. The city has outpaced the national average in both job and population growth, growing at more than two times the rate, according to data from the U.S. Census Bureau.
Orion acquired the Ranches, a build-to-rent townhome community in North Ogden, Utah, in August, with plans to invest nearly $1 million in interior and exterior improvements. In June 2020, Orion made its first Utah purchase—Lookout Pointe Apartments, a 115-unit partially affordable community in Provo, Utah.
Lakeside Village details
Lakeside Village is located on a 7.7-acre site with views of the Wasatch Mountains. The community, which has nine two-story buildings, was 97.2 percent occupied at the time of the sale. The property, which has major street exposure on 3900 South/Meadowbrook Expressway, was completed in 1997. Lakeside Village has a clubhouse, outdoor swimming pool and spa, community pond, resident garden and 220 parking spaces. Covered parking is available for an additional fee.
The property has a mix of one- and two-bedroom layouts, with units ranging in size from 838 to 1,004 square feet and 906 square feet on average. Washer and dryer hookups are in all units and laundry facilities are also available on-site. Residents also have access to high-speed internet. Apartments have private balconies or patios. Rents range from $1,199 to $1,459, or an average of $1,306, according to Yardi Matrix data.