Patrinely Group, USAA Real Estate Top Out Salt Lake City Tower

650 Main. Image courtesy of Patrinely Group and USAA Real Estate

650 Main, a 10-story, 332,000-square-foot Class A office building in downtown Salt Lake City has topped out and is on track for delivery in the first quarter of 2022, the development venture of Patrinely Group and USAA Real Estate announced.

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Sited at Main Street and 600 South, the building was designed by HOK and is targeting LEED v4 Gold. It recently received Platinum certification from Wired Score for its wired infrastructure, resilience and wireless network.

The location provides easy access to I-15 and is adjacent to a future TRAX light rail station.

Features and amenities include 10- and 11-foot ceiling heights and floor- to-ceiling glass to maximize sunlight and panoramic mountain views; an indoor/outdoor fitness center with locker rooms; outdoor courtyards with a bocce court, ping pong tables and an area for social gathering with a fire pit. Other amenities will include secure bike storage, conference facilities, and an onsite retail space with indoor and outdoor dining options.

650 Main nailed down its first office lease in March 2020, when EnerBank USA, a national consumer lending company focusing on home improvement loans, agreed to take 88,900 square feet on the building’s top three floors.

Leasing is being handled by Aaron Jones, Todd McLachlan and Roman Bernardo of Newmark.

Up to a further 325,000 square feet of office space should eventually be available in 645 W. Temple, an adjacent office building representing a future second phase of the development masterplan.

Strong headwinds

Based on the state of the Salt Lake City office market, Patrinely and USAA have done quite well to get nearly 30 percent of 650 Main preleased.

In addition to pandemic fallout, the SLC office sector is beset by negative net absorption, rising overall and sublease vacancy, and an active development pipeline, all of which are contributing to soft rents and rising concessions, according to a first-quarter report by JLL.

More than 365,000 square feet of office space that delivered in the first quarter is completely vacant, and in downtown specifically, more than a million square feet of office product is underway, including a 425,000-square-foot building, Sundial Tower, announced by Hines.

JLL adds, however, that the local economy does have some resilient sectors, including aerospace, defense and financial services.