$124M Salt Lake City Project Starts Construction
- Mar 15, 2019
The Domain Cos. has secured financing and begun the launch of the first phase of construction at its nine-story, $124 million Salt Lake City development, The Exchange. Work has commenced on the first building in the project, an $89 million mixed-use property with 286 apartments.
Located at 330 E. 400 South, The Exchange is a joint venture between The Domain Cos. and Giv Development. The project secured $62.8 million in construction financing from Goldman Sachs, with $14 million of that financed with tax-exempt bonds issued by the Utah Housing Corp. Goldman also provided $7.1 million in equity through the purchase of low-income housing tax credits issued by the Utah Housing Corp.
The joint venture provided an additional $10.9 million in conventional equity, while Salt Lake City provided $3.7 million in construction and permanent financing.
The transit-oriented development will consist of two buildings on a 2.2-acre site along the TRAX light rail system line that will house a total of 412 residential units, 14,000 square feet of retail space and a co-working space dubbed The Shop. The development will also include an international food hall and marketplace within the retail space that will be a partnership with the International Rescue Committee’s Spice Kitchen business incubator program.
A community for all
The energy-efficient apartments will be offered as a mix of studio, one-, two- and three-bedroom floorplans. Of the units, 44 percent will be designated affordable to households ranging from 50 percent to 80 percent of the area median income.
Community amenities at The Exchange will include a landscaped courtyard, terrace, lounge and club room, fitness center and car and bike parking.
“This project demonstrates that through partnership we can have it all, and that [Salt Lake City] is a city for everyone,” said Salt Lake City Mayor Jackie Biskupski, in prepared remarks. “Once complete, approximately half of the units will be affordable; refugees will have space to share their business and culture as part of the Spice Kitchen incubator program; incubators will foster local business growth; and the building will introduce a state-of-the-art product to the market.”
Salt Lake City’s multifamily market has continued to gain steam, with demand still outpacing supply as occupancy in stabilized properties remains above the national average, according to a recent Yardi Matrix report.
Image courtesy of The Domain Cos.