An apartment complex featuring a mechanical car lift system has broken ground in Salt Lake City, marking Utah’s first project to benefit from the federal Opportunity Zone incentive program. The two-acre development, Paperbox Lofts, will comprise 195 apartment units across three buildings, along with retail and restaurant space and a 10,000-square-foot park open to the public.
PEG Cos. teamed up with Clearwater Homes Utah to build the property. Located at 160 S. 300 W., less than one block from the Vivint Smart Home Arena, the two-acre project is being developed within a federally designated Qualified Opportunity Zone (QOZ). In a statement, PEG cited the generous tax incentives offered by the program to reward investment in local communities.
The development partners have earmarked 39 apartment units as affordable housing for low-income residents. Preleasing is targeted to begin in late 2020. The project is also slated to include Utah’s first car-stacker system, a seven-level structure with 112 parking spaces that will automatically transfer cars to and from their designed spots. The system is designed by CityLift.
“The Paperbox Lofts project exemplifies the kind of thoughtful connectivity the City strives for in its redevelopment projects,” commented Salt Lake City Mayor Jackie Biskupski in a prepared statement. “The addition of both a one-way street and mid-block walkway creating connections to 300 West and 200 South will not only increase access to the reborn Gateway District, but also allow for more overall walkability and activation in the West Downtown area.”
PEG an early investor in QOZ program
The 2017 Tax Cuts and Jobs Act created the Opportunity Zone program, which aims to promote long-term investment in low-income rural and urban communities across the U.S. by offering large tax cuts to companies that hold the investment for at least 10 years.
More than 8,700 opportunity zones have been created. Qualified investments in the zones may include real estate, businesses and infrastructure and they must be made through opportunity zone funds. Last December, President Trump created a new council to oversee the program’s implementation.
“While many real estate developers across the country are rushing to identify QOZs where they can build, PEG is fortunate to be operating well ahead of the curve,” PEG CEO Cameron Gunter noted in the statement. “We saw the merits of the program from its inception, allowing us to be first to market with projects like this.”
Based in Provo, Utah, commercial real estate specialist PEG develops hospitality, retail, office and multifamily projects across the U.S. West. The company’s portfolio includes more than 4,230 multifamily units.
Video courtesy of CityLift. Featured image courtesy of PEG Cos.