UDOT to Auction Off Mixed-Use Properties in…

UDOT to Auction Off Mixed-Use Properties in…

FOR IMMEDIATE RELEASE

UDOT to auction off mixed-use properties in growing region of Salt Lake City County

Surplus land between SR 111 and Mountain View Corridor
to go on sale in final UDOT online auction of 2019

Salt Lake City, UT (October 28, 2019) The Utah Department of Transportation (UDOT) will hold an online auction of prime, mixed-use development land in Salt Lake City County, Utah. The 50.7 acres of surplus property is off a major highway in a rapidly developing area of the county.

UDOT will auction the property via an online platform created and managed by SVN Auction Services. The auction, the largest so far and the last one for 2019, is scheduled to run from Oct. 31 through Nov. 7.

The acreage on SR 111 is the largest of 16 properties up for auction during that period, and has a starting bid of $4.5 million. The starting bids for all 16 properties total more than $9.3 million.

“The SR 111 property is highly versatile: The zoning permits both residential and commercial use,” said Louis B. Fisher, III, national director of SVN Auction Services. “It’s situated between two busy roadways, and the average income of the surrounding neighborhood is higher than the state average.”

The property is split into two parcels. One contains about 38 acres that sits along SR 111. The smaller, about 12 acres, will connect to SR 111 from a bridge scheduled for construction. The busy Mountain View Corridor lies to the east of the property.

“This whole area will be getting some major improvements in transportation and infrastructure in the near future,” Fisher said. “This is highly desirable property and an excellent opportunity, whether the buyer wants to develop it for retail, commercial or residential.”

The other properties up for auction are in the Utah cities of Riverton, West Valley City, Clinton, Roy, West Haven and Syracuse.

The auction website at www.UDOTauctions.Utah.gov provides continuous access to UDOT property information. Qualified buyers can bid from the website in real time. The auctions comply with the state’s recently established process for the sale of surplus property.

UDOT’s online auction in March included 89 approved bidders from four states. Entities working with UDOT on this project include the SVN Auction Services team of Fisher and Dave Gilmore, and Chet Barber and Tia Shim of SVN Alta Commercial in Salt Lake City.

Darek Sagers, UDOT’s deputy director of rights-of-way, said UDOT has been pleased with the online auction process so far. “We’ve been very glad to see things go so smoothly,” Sagers said. “The buyers are receptive to the convenience of the platform. It’s been a win for both sides as we continue to market this surplus property.”

More information on the auction is available at www.udotauctions.utah.gov/auctions.

Contacts
Louis B. Fisher, III, CAI, National Director, SVN Auction Services / 954-931-0592 / fisherL@svn.com
Ken Zeszutko, Z Corp. PR / 321-213-1818 / kenz@zcorppr.com

UDOT Surplus Properties Auction Set …

UDOT Surplus Properties Auction Set …

FOR IMMEDIATE RELEASE

UDOT surplus properties auction set for June 5-12

 Following the successful inaugural auction using its new online platform, UDOT will conduct next auction of 15 surplus properties June 5- 12

Salt Lake City, UT (May 15, 2019) The Utah Department of Transportation (UDOT) is conducting an online auction of 15 surplus properties June 5 -12. For more information on the properties, visit www.UDOTauctions.Utah.gov.

UDOT launched and successfully auctioned off its first series of surplus properties using its new, innovative online auction platform in March. With nearly 90 approved bidders from four states, the online auction was an overwhelming success.

“We are extremely pleased with the results of our first online auction event and very encouraged with the buyer market receptivity to our newly created platform and program designed for UDOT,” said Rod McDaniels, UDOT’s deputy director of right-of-way. “It allows us to sell surplus parcels with wide market exposure and more efficiencies at scale.”

The upcoming online auction June 5-12 includes commercial lots, residential development and land. Register to bid at https://udotauctions.bidwrangler.com/accounts/sign_in

The UDOT auction website provides round-the-clock access to UDOT property slated for auction and allows qualified buyers an opportunity to bid in real time. The auctions comply with state law and accompanying administrative rule R907-80.

“This new platform is very user-friendly for the bidders,” said Louis B. Fisher, III, national director of SVN Auction Services, which worked closely with UDOT in launching the auction platform. “UDOT established a framework and we worked in concert with them within that framework. It’s been a tremendous relationship. Based on the response to the first auction, it’s the right solution–the right platform.”

Contacts
Louis B. Fisher, III, CAI, National Director, SVN Auction Services, 954-931-0592 / fisherL@svn.com
Ken Zeszutko, Z Corp. PR / 321-213-1818 / kenz@zcorppr.com

SVN Auction Services Awarded Contract to …

SVN Auction Services Awarded Contract to …

FOR IMMEDIATE RELEASE

SVN Auction Services awarded contract to support UDOT to meet mandate to sell surplus real property 

SVN Auction Services builds electronic online auction platform to enable the Utah Department of Transportation to accelerate and close sales of surplus real property as mandated by Utah state legislature

Salt Lake City, UT (February 20, 2019) – SVN Auction Services has been awarded a five-year contract with the Utah Department of Transportation (UDOT) to create and manage an electronic online auction platform and clearinghouse to streamline sales of surplus real property owned by UDOT.

The UDOT SVN-managed online auction platform accelerates surplus real property sales for UDOT.  The service and website address at www.UDOTauctions.Utah.gov delivers 24/7 access to UDOT auction-related information allowing interested parties to register for opt-in email notifications. It also allows real-time mobile platform bidding for qualified buyers.

“Based on our extensive national online auction experience, we have created an online solution to maximize value for UDOT,” said Louis B. Fisher III, national director of SVN Auction Services. “This allows the department to more efficiently direct all sales-related proceeds back into the Transportation Fund to offset future transportation developments costs.”

The website is currently live. The first online auction starts advertising in February and goes live March 13-20, with nine surplus properties to be sold.

Working in full collaboration with the national SVN Auction Services team, SVN Alta Commercial, the SVN Salt Lake City office provides local brokerage activities for the auctions.

“This partnership is exactly what we need to assist us in creating a new process and platform to meet our department’s goals and initiatives,” said Rod McDaniels, UDOT’s deputy director of right of way.

The surplus land auctioning process is governed by Utah Administrative Code R907-80 (Disposition of Surplus Land), establishing the process required for UDOT to dispose of real property declared as surplus to the state’s needs.

Contacts
Louis B. Fisher III CAI, National Director, SVN Auction Services, LLC, 954-931-0592 / fisherL@svn.com
Ken Zeszutko, Z Corp. PR / 321-213-1818 / kenz@zcorppr.com

Utah’s Commercial Real Estate Market, California’s Investment

Utah’s Commercial Real Estate Market, California’s Investment

Last year the top investors in Utah’s commercial real estate market were from California.

 

Given the economy and amount of capital in California it shouldn’t come as a surprise that investment dollars spill over into Utah. What is surprising is the profound number of Californian investors – double that of the next closest state, which happens to be Utah. California represents 37% of the top 100 investors while Utah comes in second at 18%. The remaining 48 states don’t really show up in any significance, with the exception of Washington – 8%.

 

Interest and cap ratesBy comparing the cap rates, which measures the rate of return on investments in Utah to that of the largest three markets in California, it is easy to see why investors place their money here. It is only part of the story however. After all, there are markets with better cap rates. But, investing in Utah over California is a sound practice. In 2017, the average cap rate in Los Angeles and San Francisco was 4.6%, in San Diego it was 5.3%. For the same time period, the average cap rate in Utah was 7.3%. That is a difference of over 200 basis points.

 

Investors feel safe making an investment in the top three California markets, which is easy to understand. An enormous economy and an equally large population mean that apartment buildings, office towers, retail centers and industrial warehouses will rarely be vacant. But, the same is true in Salt Lake City, where low vacancies tend to rival those of California.

 

Salt Lake City survived the Great Recession in good form, in some metrics better than California. Vacancy rates climbed to just below 7%. That rate is on par with Los Angeles and lower than San Francisco at 9% and San Diego at just over 10%. Meaning, Salt Lake City fared better than two of the three big California markets at retaining tenants. The only metric where the three California markets beat Salt Lake City was in the way that rents rebounded. The Salt Lake City commercial real estate market took longer to bounce back to pre-recession values. It wasn’t until 2016 that rents in Utah reached the levels where they were in 2008. Whereas, rents in Los Angeles and San Diego rebounded in 2014 and in San Francisco rents never lost momentum, but were able to climb to new heights within two years of the recession.

 

All of the fundamental metrics are good reasons for investment in Utah.

 

However, the biggest factor which attracts investment in commercial real estate is the increasingly familiar news of international corporations moving to the state. As companies like Adobe, Amazon, Overstock.com and Goldman Sachs locate here, the big money in real estate follows. And, it makes perfect sense. For an investor looking to purchase a building where a large corporation is a tenant, the return is much higher in Utah than California, yet the chances that the corporate tenant vacates the space, is equal. Thus with the same amount of risk, an investment might yield up to 200 basis points more in Salt Lake City than it would in San Francisco.