SLC Office Campus Changes Hands
- Jun 06, 2018
A joint venture between the Muller Co., and an affiliate of Cerberus Capital Management LP has acquired Canyon Park Technology Center, a 924,634-square-foot office campus in Orem, Utah.
The sellers and price of the transaction were not disclosed.
“We purchased the property through a foreclosure sale,” Jon Muller, Muller’s principal, told Commercial Property Executive. “The previous owners had not invested in improving the buildings and as a result the property was only 60 percent occupied. The opportunity to lease up the property along with the demographics of the area fit well with our business philosophy.”
This marks the second time the two firms have teamed up, following last year’s recapitalization of an 841,036 square-foot, three-building office portfolio in Orange County, Calif.
Originally constructed between 1988 and 1992 to serve as headquarters for WordPerfect Corp., the campus is made up of 14 single-, two- and three-story buildings, with spaces ranging in size from 100 square feet to 60,000 square feet. This allows for configurations of everything from single-office incubator space to whole-building headquarter opportunities.
Amenities in the office campus, which is located at 1501 Technology Way, include a conference center with theater-style seating that seats up to 400 people; UVU’s Culinary Arts Institute’s internship kitchen; and outdoor amenities such as sand volleyball courts, basketball courts, West End Park and BBQ facilities. It also includes 7,840 parking spaces.
“The Muller Co. specializes in value-add opportunities where we can capitalize on repositioning assets with a quality of management and operations consistent with other ‘best in class’ properties in the market,” Muller said. “This property presents the opportunity for us to extend the Muller ‘brand’ to a new market for us.”
Situated on 85 acres, Canyon Park Technology Center offers scenic views of the Wasatch Mountains. The sprawling campus is less than an hour from Salt Lake City and offers convenient access to the city via the I-15 and State Route 189.
According to Muller, the economics of the marketplace are very strong.
“A combination of positive quality of life, low cost of living and a well-educated workforce has made the area attractive to both start-up and more mature tech-oriented companies,” he said. “In fact, the area has acquired the nickname ‘Silicon Slopes’ as a result of the rapid growth in the tech sector.”
Three universities within close proximity also provide a steady source to increase the area’s workforce.
The joint venture plans to invest significant capital to upgrade the common areas and grounds, and enhance the branding of the property with updated signage, color schemes and better wayfinding through the campus.
“We plan on investing $8.6 million over the next two years to significantly upgrade the property,” Muller said. “An indoor amenity center will feature an upscale gym, snack center, gaming rooms and gathering areas. An outdoor area will be developed with sports-minded activities, picnic alcoves, fire pits and bike parking.”
There will also be a food truck alley, as well as outdoor dining areas to take advantage of the adjacent café operated by the UVU culinary school.
In April, Cerberus Capital Management partnered with Harvest Properties on the acquisition of DC Station, an office building in San Francisco’s suburb of Daly City, Calif.
Image courtesy of The Muller Co.