1441 Ute Blvd, Park City, UT 84098

This offering provides the unique opportunity to acquire a portfolio of three best-in-class office assets in the Kimball Junction submarket of Park City, Utah. The offering consists of irreplicable, rarely-traded assets located in a highly desirable and supply constrained submarket. This marks the very first time these assets are being widely marketed for sale, and represents the ability to control a sizable chunk of the Kimball Junction office market (Investment estimated to be 11% of the market). Combined, Newpark One and Three are virtually fully leased and their diversified tenant rosters include local and national firms from multiple sectors of the economy.
Newpark One is a fully leased multi-tenant office building totaling 61,506 square feet. Tenancy features a blend of national and regional occupiers including Morgan Stanley, Western Steel, and Wells Fargo Advisors. This opportunity represents a true mark-to-market value-add play as in-place rents average $26.76 psf NNN while the market is commanding upwards of $30.00 psf NNN, exemplified by recent lease renewals and representing a 12% rental income upside. Newpark Dentistry and Park City Gynecology both signed renewals at $30.00 psf NNN in the latter half of 2023. The WALT is 3.6 years, thereby providing a quick path and opportunity to increase rents as leases expire while maintaining stable cash flow.
Newpark Three is a LEED Silver Certified multi-tenant office building totaling 61,219 square feet. At 96% occupancy, the property consists primarily of smaller but well-established local businesses, including Big-D Signature, a subsidiary of one of the largest general contractors in the U.S., Assemble Park City, a co-working space frequently having a waitlist of users, and investment bank, Stifel (NYSE: SF). Like Newpark One, this opportunity represents a true mark-to-market value-add play as in-place rents average $26.29 psf NNN while the market is commanding upwards of $30.00 psf NNN, exemplified by recent leasing activity and representing an 14% rental income upside. Ohana, Cadinha, and Big-D all signed renewals at $30.00 psf NNN in the latter half of 2023, while Monterey Technologies signed a new lease at the same rate. The WALT is approximately 3 years, thereby providing a quick path and opportunity to increase rents as leases expire while maintaining stable cash flow.
Built in 2016, the Skullcandy Headquarters building is a 45,000 square foot two-story, single tenant office asset and home to Skullcandy, the original lifestyle audio enterprise. This build-to-suit mission critical facility includes an anechoic chamber, a soundproof shielded room for testing audio equipment, which is one of only two such facilities in the state of Utah. The interior and exterior features creative contemporary design, floor to ceiling glass with picturesque Olympic Park views, significant outdoor seating and patio space, and ample on-site parking. The Park City lifestyle strongly appeals to the Skullcandy workforce profile, and the physical facility further supports that mindset. Post-Covid workflows have created excess space for which Skullcandy is currently marketing half of its space for sublease. There are four years remaining on Skullcandy’s initial lease term (12/31/2027 expiration). A future owner can remeasure the property to BOMA standards to 47,839 sf from 45,000 square feet, thereby potentially increasing rental income.