KBS REIT III Acquires Salt Lake City Office Tower for $170M
- Mar 04, 2014
KBS REIT III has acquired 222 Main, a Class A, LEED Gold office tower in the center of Salt Lake City’s CBD for $170.5 million.
Built in 2009, the 426,657-square-foot structure was 85-percent leased at the time of purchase.
“We feel 222 Main is a great investment for a number of reasons, including its location in the epicenter of Salt Lake City’s CBD (two blocks from City Creek Center), adjacency to TRAX light rail station, commanding views of the Wasatch Range and its first-class finishes,” Tim Helgeson, KBS’ senior vice president/asset manager, told Commercial Property Executive. “It is the newest Class AA office tower in the CBD with state-of-the-art building systems and an efficient floor plate design.”
Designed by Skidmore, Owings & Merrill, the building was Utah’s first LEED Gold building and includes a nine-story parking structure and 9,000 square feet of ground floor restaurant and retail amenities.
Currently, Goldman Sachs is 222 Main’s largest tenant, occupying 176,373 square-feet of the tower. Law firm Holland & Hart is the asset’s second-largest tenant.
According to Helgeson, 222 Main represented a very key and strategic opportunity for KBS to expand its presence in the Salt Lake City market, as KBS REIT III already owns the 198,324-square-foot Gateway Tech Center in Salt Lake City.
“KBS’ investment philosophy is always to seek to acquire the best assets in the best locations. 222 Main’s location, quality and premier tenant roster was perfectly aligned with this strategy,” he said. “KBS plans to execute upon an amenity enhancement plan which will include the addition of a state-of-the-art fitness center and conference center for the use of 222 Main’s tenants.”
It is located at the southwest intersection of South Main Street and West 200 South St., and is just 15 minutes away from Salt Lake International Airport.
According to Rodney Richerson, KBS’ western regional president, 222 Main’s location was one of the key influencers in KBS REIT III’s decision to move forward with the acquisition.
“Certainly, its proximity from the City Creek Center mixed-use development factored in, as well as its location in the center of Salt Lake City’s CBD,” he told CPE.