Acquisition and Lease Highlight Investor Confidence and Continued Leasing Activity in Utah County
Through a strategic investment embracing the ongoing growth and logistics opportunities in Utah County, Vesta Realty Partners and the Larry H. Miller Company recently acquired 3715 South Tracy Hall Parkway, Provo, UT, a newly developed Class A 171,556 square foot industrial/manufacturing building. The transaction was brokered by Colliers and Woodley Real Estate on behalf of the buyers, with CBRE representing the seller, STAG Industrial.
The building’s new owners have already executed its first lease with Swig, one of the fastest-growing beverage companies in the country. Swig was motivated to occupy the building for production and showroom space given its overspecifications, including robust in-place utilities, a climatized warehouse, fully equipped dock packages, a Class A office storefront, and fully fit-out offices with a mezzanine level.
“We’re pleased to continue to execute our industrial investment thesis across the Wasatch Front and are privileged to partner with the Larry H. Miller Company on this off-market acquisition,” said Jeff Grasso, founder and managing partner of Vesta. “Our acquisition was immediately validated with the SWIG lease where we were able to leverage the market’s fundamentals relative to the overspecification of the base building improvements across the asset.”
“Given our growth strategy and focus on providing exceptional product and customer experiences, we knew we needed to expand our operations and bakery,” said Alex Dunn, Swig CEO and managing partner for the Larry H. Miller Company. “Colliers and Woodley Real Estate are in tune with our needs for additional space, but more importantly, understand where we are headed and how uniquely positioned this property is related to our ability to test and create new products for our valued customers. Having a new location in Utah County provides great access to a skilled workforce, transportation infrastructure, and proximity to other tenants.”
Eric Woodley of Woodley Real Estate represented Swig in this significant lease, while Jarrod Hunt of Colliers represented the landlord.
“This deal highlights ongoing leasing activity in Utah County, with investors taking advantage of market opportunities and national businesses like Swig expanding their presence,” said Jarrod Hunt of Colliers.
“This lease reflects the strong demand for high-quality spaces in Utah County, and we are excited to facilitate Swig’s growth in the area. It’s a testament to the thriving business environment here,” added Eric Woodley.
Utah County’s compelling industrial market fundamentals are driven by the county’s strategic location, diverse economic base, business-friendly environment, and access to a dense population of highly skilled labor. Situated in the heart of Utah, aptly nicknamed “The Crossroads of the West,” Utah County is strategically located in the center of the Western United States, with major interstate, rail, and airport connections, serving as a key logistics relief valve for Western U.S. ports.
Driven by strong demand from a diverse tenant base and a limited construction pipeline, vacancy rates in Utah County’s industrial market have consistently remained low, evidenced by a trailing 10-year vacancy average of 3.0%. Utah County’s industrial market is further supported by a business-friendly regulatory environment and proactive economic development initiatives aimed at attracting investment and fostering growth. Utah County is also home to several institutions of higher education, including Brigham Young University (BYU) and Utah Valley University (UVU), which contribute to the region’s educated workforce and innovative culture, sparking the “Silicon Slopes” technology corridor.
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About Vesta Realty Partners
Vesta is a Salt Lake City based institutional real estate investment manager and developer with a Utah portfolio and development pipeline exceeding $1 billion. Vesta currently owns and is developing over 3.3 million SF of industrial across Utah’s Wasatch Front. For more information, visit www.vesta-rp.com.
About the Larry H. Miller Company
The Larry H. Miller Company (LHMCO) oversees the Miller family’s business platforms, including real estate, senior health, sports + entertainment, and investments. For more information, visit www.LHM.com.
About Swig
Swig, Home of the Original Dirty Soda, is one of the fastest-growing and most successful beverage-focused brands in the country. Founded in 2010 in St. George, Utah, by Nicole Tanner, Swig has expanded to 80+ locations in eight states, becoming thousands of people’s go-to destination for refreshing drinks. By the end of 2024, Swig will be open in 13 states across the country. For more information, visit SwigDrinks.com.
About Colliers
Colliers is a leading diversified professional services and investment management company. With expertise in commercial real estate and dedicated advisory, Colliers assists clients in maximizing the potential of their properties.
About Woodley Real Estate
Woodley Real Estate is a full-service real estate firm focused on finding space for Utah’s top tech companies and their employees. Unlike traditional real estate firms, Woodley excels in both the commercial and residential sectors, making it a one stop shop for all your real estate needs. Woodley is known for personalizing services by putting clients at the forefront of every decision with our unique team approach.
