Home Alts News Cottonwood Multifamily Opportunity Fund Buys Salt Lake City Multifamily Development Site

Cottonwood Multifamily Opportunity Fund Buys Salt Lake City Multifamily Development Site

Cottonwood Multifamily Opportunity Fund Inc., a Regulation A fund that invests in multifamily development projects located throughout the United States, has acquired a majority interest in a 1.7-acre site situated in Salt Lake City’s Sugar House neighborhood.

image_pdf

Cottonwood Multifamily Opportunity Fund Inc., a Regulation A fund that invests in multifamily development projects located throughout the United States, has acquired a majority interest in a 1.7-acre site situated in Salt Lake City’s Sugar House neighborhood for approximately $6.5 million.

The land was purchased through a joint venture with affiliate Cottonwood Residential O.P., in which the fund contributed 90 percent of the capital towards the purchase, or nearly $5.9 million.

Development is expected to break ground in Spring 2019 on a mid-rise, 240-unit multifamily apartment community that is slated for completion by the Fall of 2021. The projected total development cost is approximately $54.5 million, with total equity capital contributions of $19 million.

It is anticipated that the developed property, Cottonwood at Sugar House Apartments, will be comprised of a mix of studio, one-bedroom, and two-bedroom units with an average size of 770 square feet. Amenities will include a fitness center, clubhouse, and pool and lounge area.

Adjacent to a 110-acre recreational park, the property is situated near major freeways and a mass transit hub, offering access to employers and retail destinations throughout the greater Salt Lake City metropolitan area.

Situated approximately six miles from downtown Salt Lake City, the Sugar House neighborhood is occupied by several retailers including Whole Foods Market, Michaels, Petco, Barnes and Noble, Bed, Bath & Beyond, Nordstrom Rack, 24-Hour Fitness, Cinemark and Orangetheory. The property is also located two miles from the University of Utah.

Cottonwood Multifamily Opportunity Fund Inc. seeks to invest in multifamily construction and development projects and/or make mezzanine loans to, or preferred equity investments in, entities that have been formed to develop multifamily construction and development projects. It expects to make its investments through joint ventures with affiliate, Cottonwood Residential O.P., LP, a general partner of Cottonwood Residential Inc. Cottonwood Residential is an owner/operator of multifamily properties.

Click here to visit The DI Wire directory page.