Known for its mixed-income developments in New Orleans and New York, The Domain Cos. has started construction on its first project in Salt Lake City.
The developer is teaming with Salt Lake City–based Giv Development on the first phase of The Exchange, a $124.3 million mixed-use, transit-oriented development with residential, retail, and shared work space.
The $89 million first phase will leverage creative planning, density, and innovative design to build 286 studio, one-, two-, and three-bedroom apartments and over 14,000 square feet of retail. The second phase will soon follow with 126 efficient “Smart Unit” homes and The Shop co-working space, which will offer access to programming aimed to stimulate entrepreneurship, small business development, and community engagement. Approximately 44% of the units at both phases will be affordable to households earning 50% to 80% of the area median income.
“We’re honored to officially become a part of the Salt Lake City community,” said Matt Schwartz, co- CEO of The Domain Co. “The commencement of our first project in the city is a tremendous milestone for us, and we look forward to making a positive impact for years to come. We’re thrilled to take this first step and grateful to our project partners and the Salt Lake City community for welcoming us.”
Amenities will include a landscaped courtyard, a terrace, a lounge and clubroom, a fully equipped fitness center, on-site car and bike parking, and the MyDomain suite of resident services offered at all Domain properties. As part of the first phase, the nine-story building’s first two floors will feature food/beverage- and service-related retailers, anchored by an international food hall and marketplace in partnership with the International Rescue Committee’s Spice Kitchen business incubator program.
Financing for the development includes $62.8 million in construction financing from Goldman Sachs, with $14 million financed with tax-exempt bonds issued by the Utah Housing Corp. (UHC). Goldman Sachs also provided $7.13 million in equity through the purchase of low-income housing tax credits issued by UHC. The joint venture between Domain and Goldman Sachs provided an additional $10.9 million in conventional equity. In addition, a $62.8 million Freddie Mac permanent loan was arranged by Jones Lang LaSalle, and Salt Lake City provided $3.7 million in construction and permanent financing.
“The Exchange is a great example of what strong partnerships can produce,” said Claudia O’Grady, vice president of multifamily finance at the UHC. “The Domain Cos. and Giv Development have put together a very dynamic project that will help address the housing crisis we are currently experiencing at all income levels, while activating a variety of public uses that will enhance downtown livability.”
The first phase is expected to be completed in the second quarter of 2021, following the completion of the second phase in the third quarter of 2020. Additional partners on The Exchange include KTGY as the architect, Wadman Construction as the general contractor, and Farouki Farouki as the interior designer.