The Crowdstreet real estate investment platform is set to open a new offering up for investor contribution. The Asher Adams/Union Station is an adaptive re-use project in a Salt Lake City opportunity zone. This project will convert the existing Union Station, built in 1908, into a luxury Marriott MAR hotel and concert venue, which has already secured a long-term lease with Live Nation.
The project sponsor is being co-sponsored by The Athens Group and Hatteras Sky. They are seeking to raise $40,000,000 in investor capital to acquire, renovate and retrofit the offering to its new purpose.
The fact that the Asher Adams/Union Station is in a qualified opportunity zone (QOZ) allows investors a chance to get some significant tax benefits. The QOZ status lets investors participate in the offering on a tax-deferred basis by using gains realized from other investments.
Although the Asher/Adams Union Station is in a QOZ, the area is already home to many other attractions. It’s within walking distance of the Vivint Home Smart Arena (home of the Utah Jazz) and the Salt Lake City Convention Center. Additionally, it will connect directly to The Gateway, which is a 1.4 million square foot mixed-use development that will offer first class dining and retail outlets, office space and multi-family apartments.
Currently, there is a shortage of Class-A hotel offerings in the immediate area surrounding The Asher Adams/Union Station. It will be the first full-service, luxury hotel to open in Salt Lake’s downtown area since the Grand America Hotel in 2001. This would make the 225 unit Asher Adams/Union Station a strong player in Salt Lake City’s luxury hotel market.
- Minimum investment: $25,000
- Projected hold period: 10 years
- Projected internal rate of return (IRR): 15.2%
- Projected equity multiple: 3.0x
- Projected annual cash yield: 7.6%
The Asher Adams/Union Station opens up to investors on June 1, 2022. Investors must make their offers no later than June 10, 2022 and fund those offers by June 14, 2022. The sponsors are currently targeting September 2024 for the first owner distributions.
About the Project Sponsors
The Athens Group is a real estate investment firm that develops luxury properties across a number of different real estate sectors, including hotels, golf courses and resorts. Its portfolio is currently valued at just over $700 million with $1.5 Billion worth of assets under management.
Hatteras Sky is an Atlanta-based development firm that focuses heavily on multi-family properties and hotels in rapidly expanding markets. It also seeks out opportunity zone fund opportunities for mixed-use developments. It currently have $600 million worth of assets under management.
Find more real estate investment offerings on Benzinga’s Alternative Investments Hub.
Photo: Courtesy of CrowdStreet