university downs - loopnet › d2 › 7paplxzryskonkttck0...2.19% increase. utah valley university...

1240 West University Parkway | Orem, Utah 84058Offering Memorandum

UNIVERSITY DOWNS

Colliers International111 Main Street | Suite 2200

Salt Lake City, UT 84111P: +1 801 947 8300

+1 801 441 [email protected]

Mark Jensen+801 441 [email protected]

Rawley Nielsen+1 801 448 [email protected]

Darren Nielsen+1 801 441 [email protected]

Chris Turner

• High-density student housing and multi-family development site

• Located directly across from UVU

• 15 minutes from BYU

• 20 minutes from Silicon Slopes in Lehi.

COLLIERS INTERNATIONAL P. 2University Downs | Offering Memorandum

Table of Contents

> Executive Summary.......................................3Executive Overview ..........................................................4

Area Overview ...................................................................5

Student Housing Village ....................................................6

PD-21 Zone ........................................................................7

Approved Plan (2016) .......................................................8

Aerial Map ..........................................................................9

> Market Summary ..........................................11Market Rate Overview ..................................................... 12

Utah Valley University ..................................................... 14

Pipeline ............................................................................ 15

Pipeline ............................................................................ 16

Land Sale Comparables .................................................. 17

Market Rent Comparables ............................................... 18

Student Rent Comparables ............................................. 21

UNIVERSITY DOWNS Offering Memorandum

COLLIERS INTERNATIONAL

> Executive Summary


EXECUTIVE SUMMARY

Executive Overview

Property Name: University Downs

Property Address:

1240 W. University PkwyOrem, UT 84058

Price: $10,500,000 $35.97/SF

APN: 18-027-0195 18-030-0042

Site Size: 6.52 Acres (284,011 SF)

Zoning:PD-21 (High-Density Student Housing and Multi-family)


EXECUTIVE SUMMARY

> THE MARKET:

The real estate market continues to be extremely robust for the Provo-Orem MSA, which been touted as the second-best market to invest in housing in 2018 by Forbes Magazine. The young, highly educated, family-oriented demographic that dominates the region bodes well for continued multi-family absorption and rent growth. More broadly, Provo-Orem was ranked as the best performing economy in 2017 by the Milken Institute, due in large part to strong job growth (extraordinary low unemployment of 2.95%) and the competitive cost of doing business compared to coastal primary markets, without having to sacrifice accessibility to lifestyle and well-being that is afforded in close proximity to the Rocky Mountains. Additionally, Utah continues to prove fiscal prudence and maintains a AAA credit rating by all three major rating agencies—one of ten to receive the credential which will continue to prove a major competitive advantage over other markets.

> OREM, UTAH

Orem has a population of 93,220 people with a median age of 25.9 and a median household income of $56,376. Between 2015 and 2016 the population of Orem grew from 91,697 to 93,220, a 1.66% increase and its median household income grew from $55,166 to $56,376, a 2.19% increase.

Utah Valley University is Utah’s largest university by enrollment, producing 5,082 graduate in 2017.

The median property value in Orem is $215,200, and the homeownership rate is 60%. Most people in Orem commute by driving alone, and the average commute time is 16.7 minutes.

Area Overview> PROVO-OREM METRO AREA

Provo-Orem Metro Area has a population of 613,430 people with a median age of 24.7 and a median household income of $64,315.

The largest universities in Provo-Orem Metro Area are Brigham Young University-Provo, with 7,918 graduates, Utah Valley University, with 5,082 graduates, and Mountainland Applied Technology College, with 2,182 graduates.

The median property value in Provo-Orem Metro Area is $277,000, and the homeownership rate is 67.2%. Most people in Provo-Orem Metro Area commute by driving alone, and the average commute time is 19.7 minutes.


EXECUTIVE SUMMARY

> PD-21 ZONE | STUDENT HOUSING VILLAGE

The PD-21 Student Housing Village Zone was created for the purpose of providing student housing and other high-density residential housing in a mixed-use village, recognizing the present and future demand for student housing in the vicinity of Utah Valley University. The objective of the PD-21 Zone is to create a mixed use residential and commercial use village with a safe, comfortable, and pleasant environment such as might be found in older European town villages. This includes the use of streetscape and landscape features, recreational Amenities and social gathering areas. The village will include commercial businesses on the ground level with student housing, residential units on the floors above. One intent for businesses within the village area will be to serve the commercial needs of the village residents. The PD-21 Zone is designated to provide a pedestrian-friendly environment and to encourage travel to Utah Valley University by walking, bicycle riding, and by use of a mass transit shuttle operation.

MINIMUM REQUIRED DENSITY: 90 OCCUPANCY UNITS/ACRE*

*Occupancy Unit: A bedroom have 110 SF or less of floor space area. A bedroom having more than 110 SF of floor space shall be two (2) occupancy units.

StudentHousingVillage

NAPA

UTA

Golden Living

I-15 SB

I-15 NB

Geneva Road

College Drive

800 South

1330 South

University Parkway

1000 South

1390 South

1350 West

1230 South

1250 South

1150 South

1020 South

1250W

est

1555

Wes

t

1125

Wes

t 1050 West

1240 West

1050 South

1100 West

I-15 NB ONRAMP

I-15 SB OFFR

AMP

1145

Wes

t1275 South

1480

Wes

t

1295 South

13

80 West

1220 West 11

90 W

est

1520 West

1090 West1250 South

800 South

PD-21 Zone1000 SOUTH GENEVA ROAD

PD-21 ZoneAcres: 44.57

I

XPD-21 Zone44.57 Acres.

NIA CONTACT:Sunset Heights

Mike Walker

670 0 670335 Feet

R12

CMLight

Industrial

C2

PD-31

M2

PD-21

R8

R6

R5

O r e m

C2SH

PD-21 Zone

Buildings

Parcels

PD-33

UNIVERSITY DOWNS


EXECUTIVE SUMMARY

NAPA

UTA

I-15 SB

Geneva Road

I-15 NB

University Parkway

1350 West

1230 South

1150 South

1020 South

1000 South

College Drive

1240 West

1250 West

I-15 SB OFFR

AMP

1100 South

1130 South

1250 South

1480

Wes

tPD-21 Zone Area Map

1200 SOUTH GENEVA ROAD

IX

PD-21 Zone44.57 Acres.

360 0 360180 Feet

O r e m

PD-21 Zone

Buildings

Parcels

Area 1

Area 2

Area 3

PD-21 Zone

NAPA

UTAI-15 SB

Geneva Road

I-15 NB

University Parkway

1350 West

1230 South

1150 South

1020 South

1000 South

College Drive

1240 West

1250 West

I-15 SB OFFR

AMP

1100 South

1130 South

1250 South

1480

Wes

t

PD-21 Zone Area Map1200 SOUTH GENEVA ROAD

IX

PD-21 Zone44.57 Acres.

360 0 360180 Feet

O r e m

PD-21 Zone

Buildings

Parcels

Area 1

Area 2

Area 3UNIVERSITY DOWNS


EXECUTIVE SUMMARY

Approved Plan (2016)

> UNIVERSITY DOWNS

# of Units: 446 (1,532 beds)

Density: 68 units/acre (235 “occupancy units”/acre)

This plan was taken before the city council and planning commission in mid-2016 and received site plan approval


EXECUTIVE SUMMARY

Aerial Map

381'

519'388'

369'382'

60'

726'

ST265

1230 S

1250

W

1240 W

1260

W

Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community

0 0.025 0.05Miles

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2018. All rights reserved.Produced by: brandon.dalton | University Downs (00990)d Overview 5/10/2018

111 S. Main St.Suite 2200Salt Lake City, UT 84111

+1 801 441 5937colliers.com


EXECUTIVE SUMMARY

Aerial Map

FrontRunner: Orem Station

Exit 269University Pkwy

§̈¦15

§̈¦15

ST265

ST114

Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community

0 0.1 0.2Miles


This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2018. All rights reserved.Produced by: brandon.dalton | University Downs (00990)e Area 5/10/2018



SITE

UNIVERSITY DOWNS Offering Memorandum

COLLIERS INTERNATIONAL

> Market Summary


MARKET OVERVIEW

Market Rate Overview


MARKET OVERVIEW

Market Rate Overview

> VACANCY

Vacancy overall is expected to remain peak this quarter near 9% as the market continues to absorb the latest cycle of development. We anticipate 5% market vacancy by the time any development would be complete at University Downs.


MARKET OVERVIEW

Utah Valley University

UVU Enrollment Trend

> FOUNDED: 1941

> LOCATION: Orem, Utah

> HISTORY: Originally founded in 1941, the school was renamed Utah Valley State College in 1993 and began awarding four-year degrees. The Utah legislature approved renaming Utah Valley State College as a university in February 2007 (effective July 1, 2008), allowing it to begin offering master’s degrees, although the school continues to place particular emphasis on its two- and four-year degree programs.

> ENROLLMENT: Utah Valley University is the largest public university in the state of Utah, with an enrollment of 37,282 students in Fall 2017. UVU will increase by 13,100 students between 2015 and 2025, to a total of approximately 46,500 students, and will reach 50,000 by 2030.

> STUDENT HOUSING: UVU does not have On-Campus Housing. The university website states: “Utah Valley University helps to establish revenue within the local economy by not competing against the local housing market. Through off-campus housing we believe UVU engages the community in mutually beneficial collaboration while students are here attending school.”

> EMPLOYMENT: UVU is the largest employer in Orem, with over 1,900 full-time faculty and staff and over 3,300 part-time faculty and staff.

> STUDENT BODY: UVU students represented all 50 US states, the District of Columbia, and 74 countries.

> UTAH COUNTY: Utah County’s population doubled between 1990 and 2010 and will grow by 60% between 2010 and 2030.


MARKET OVERVIEW

Pipeline

Market Rate HousingName: Midtown 360 II

Address: 360 South State Street

Developer: The Ritchie Group

# of units: 268

Estimated Completion: March 2020

Density (per unit): 71 units/ac.

Market Rate HousingName: The Mix at Rivers Edge

Address: 2338 N University PKWY

Developer: Westport Capital Partners

# of units: 293

Estimated Completion: June 2020

Density (per unit): 72 units/ac.

Utah Multi-family Construction SummaryPeriod # of Projects Total Units

Completed 2011 – Present 39 5,727

Under Construction 12 1,894

Planned Starts 19 4,301

Student HousingName: Palos Verdes

Address: 400 West Campus Drive

Developer: Woodbury/PEG

# of units/beds: 450/1,605

Estimated Completion: August 2020

Density (/unit | /bed): 63 units/ac. | 223 beds/ac.


MARKET OVERVIEW

Pipeline

!!Ã

!!Ã

Midtown360 II

The Mix atRivers Edge

Palos Verdes

UniversityDowns

HOLDAWAY RD

1650 N

2230 N

800

E

900

E

4800 N

400 N900 E

2200 NCA

NYO

N R

D

CA

NYO

N R

D

CENTER ST

CENTER ST

VINE

YAR

DR

D

ST52

ST114

ST114

ST265

ST176

£¤189

£¤89§̈¦15

Copyright:© 2014 Esri

0 0.8 1.6Miles


This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2018. All rights reserved.Produced by: brandon.dalton | University Downs (00990)c Pipeline 5/10/2018




MARKET OVERVIEW

PROPERTY ACREAGE SALE PRICE PRICE/SF

400 West Campus Drive. 7.2 $8,543,000 $27.14

Land Sale Comparables

!!Ã

!!Ã

400 W Campus DrUniversity

Downs

HOLDAWAY RD

1650 N

2230 N

800

E

900

E

4800 N

400 N900 E

2200 NCA

NYO

N R

D

CA

NYO

N R

D

CENTER ST

CENTER ST

VINE

YAR

DR

D

ST52

ST114

ST114

ST265

ST176

£¤189

£¤89§̈¦15


0 0.8 1.6Miles


This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2018. All rights reserved.Produced by: brandon.dalton | University Downs (00990)b Land Comps 5/10/2018




MARKET OVERVIEW

PROPERTY YEAR BUILT RENT/S STUDIO RENT 1 BED RENT 2 BED RENT 3 BED RENT VACANCY

200 City View Apartments255 South University Ave. 2018 $1.69 $924 $1,045 $1,401 N/A

ICO Monteval355 West 920 South 2015 $1.43 $1,150 $1,297 $1,744 6.9%

Parkway Lofts1225 West 1000 South 2016 $1.37 $948 $1,253 $1,389 $1,588 11.10%

The Aston at University Place730 East 950 South 2016 $1.34 $929 $1,063 $1,270 $1,817 23.5%

The Parcon Center1042 West Center Street 2016 $1.20 $1,016 $1,277 $1,714 8.90%

Canyon View Crossing1500 South State Street 2016 $1.18 $961 $1,145 2.20%

The Alloy at Geneva125 North Mill Road 2015 $1.17 $1,040 $1,051 $1,382 3.70%

Midtown 360320 South State Street 2015 $1.11 $985 $1,199 $1,331 $1,550 11.90%

AVERAGE $1.31 $947 $1,091 $1,270 $1,633 9.74%

Market Rent Comparables

$1.11$1.17 $1.18 $1.20 $1.34 $1.37 $1.43

$1.69

$1.31

$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80

Midtown 360 The alloy at Geneva Canyon ViewCrossing

The Parc on Center The Aston atUniversity Place

Parkway Lofts ICO Monteval 200 CityViewApartments

Rent/SF

Rent/SF Market


MARKET OVERVIEW


$1,382$1,550 $1,588 $1,714 $1,744 $1,817

$1,633

$0$200$400$600$800

$1,000$1,200$1,400$1,600$1,800$2,000

The alloy atGeneva

Midtown360

ParkwayLofts

The Parc onCenter

ICOMonteval

The Astonat University

Place

3 Bed Rent/Unit

3 Bed Rent Market

$924 $929

$948

$985

$947

$880

$900

$920

$940

$960

$980

$1,000

200 CityViewApartments

The Aston atUniversity Place

Parkway Lofts Midtown 360

Studio Rent/Unit

Studio Rent Market

$1,051$1,145 $1,270 $1,277 $1,297 $1,331 $1,389 $1,401

$1,270

$0$200$400$600$800

$1,000$1,200$1,400$1,600

The alloy atGeneva

CanyonView

Crossing

The Astonat

UniversityPlace

The Parcon Center

ICOMonteval

Midtown360

ParkwayLofts

200CityView

Apartments

2 Bed Rent/Unit

2 Bed Rent Market

$961$1,016 $1,040 $1,045 $1,063 $1,150 $1,199 $1,253

$1,091

$0$200$400$600$800

$1,000$1,200$1,400

CanyonView

Crossing

The Parcon Center

The alloyat Geneva

200CityView

Apartments

The Astonat

UniversityPlace

ICOMonteval

Midtown360

ParkwayLofts

1 Bed Rent/Unit

1 Bed Rent Market


MARKET OVERVIEW


!!Ã

!!Ã

200 City ViewApartments

ICO Monteval

Parkway Lofts

The Aston atUniversityPlace

The ParconCenter

Canyon ViewCrossing

The Alloyat Geneva

Midtown 360

UniversityDowns

HOLDAWAY RD

1650 N

2230 N

800

E

900

E

4800 N

400 N900 E

2200 NCA

NYO

N R

D

CA

NYO

N R

D

CENTER ST

CENTER ST

VINE

YAR

DR

D

ST52

ST114

ST114

ST265

ST176

£¤189

£¤89§̈¦15


0 0.8 1.6Miles

Thi s do cume n t h as b ee n p r ep a r e d by C ol l i e r s In t e rn a t i o n a l f o r a dve r t i si n g a n d g e ne r a l i n f o r m a t i o n o nly. C ol l i e r s In t e rn a t i o n a l m ake s n o gua r a n t ee s, r ep r e s e n t a t i o ns o r w a rr a n t i e s o f a n y ki n d , e xp r e ss e d o r imp l i e d , r e ga rd i n g t h e i n f o r m a t i o n i ncl u d i n g, b u t n ot l imi t e d t o, w a rr a n t i e s o f co n t e n t , a c cur a cy a n d r el ia b il i t y. An y i n t e r e st e d p a r t y s houl d u n d e r t ake t h ei r ow n i n qu i r i e s as t o t h e a c cur a cy o f t h e i n f o r m a t i o n. C ol l i e r s In t e rn a t i o n a l e x cl u d e s u nequ ivo c a l ly a l l i n f e rr e d o r imp l i e d t e r ms, co n d i t i o ns a n d w a rr a n t i e s a r i si n g ou t o f t hi s do cume n t a n d e x cl u d e s a l l l ia b il i t y f o r lo ss a n d d am ag e s a r i si n g t h e r e fro m.

Thi s pub l i c a t i o n i s t h e copy r i gh t e d p rop e r t y o f C ol l i e r s In t e rn a t i o n a l a n d/o r i t s l i ce ns o r(s ). © 2018 . Al l r i gh t s r e s e rve d.Produce d by: br a n do n.d a lt o n | Unive r si t y Dow ns (00990)a Re n t C o mps 5/10/2018




MARKET OVERVIEW

Student Rent Comparables

1240 West University Parkway | Orem, Utah 84058Offering Memorandum

UNIVERSITY DOWNS

Colliers International111 Main Street | Suite 2200

Salt Lake City, UT 84111P: +1 801 947 8300

+1 801 441 [email protected]

Mark Jensen+801 441 [email protected]

Rawley Nielsen+1 801 448 [email protected]

Darren Nielsen+1 801 441 [email protected]

Chris Turner

• High-density student housing and multi-family development site

• Located directly across from UVU

• 15 minutes from BYU

• 20 minutes from Silicon Slopes in Lehi.

university downs - loopnet › d2 › 7paplxzryskonkttck0...2.19% increase. utah valley university...

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