Multifamily investment firm DB Capital Management (DB Capital) continues to expand its Utah presence with the acquisition of Marmalade Hill, a 71-unit apartment complex in downtown Salt Lake City for $18.6 million.
Located less than a block from U.S. 89 and a mile from Interstate 15, the Marmalade Hill community offers easy access to all of Downtown Salt Lake City’s important employment hubs and is within walking distance to the state capitol. The apartment complex is also close to entertainment and recreational areas such as Vivint Arena, mixed-use developments City Creek Center and The Gateway, and City Creek Canyon. Marmalade Hill also is within 30 minutes of five of the most popular ski resorts in Utah.
“Salt Lake City continues to be one of the top performing markets in the nation in terms of population growth and unemployment, which combined with a youthful demographic in its prime renting years and relative affordability, drives the Salt Lake City multifamily market into the upper echelon in the U.S.,” said Darren Hulick, Regional Vice President in charge of overseeing DB Capital’s market presence in Salt Lake City and Denver.
The firm identified Salt Lake City as a key target market following its founding in 2018 and has acquired 10 communities ranging in size from 17 – 150 units throughout the metro. After successfully executing its business plan and exiting several investments, DB Capital currently manages a portfolio totaling approximately 2,200 units.
DB Capital plans an 18-month renovation program that includes updates to unit interiors, exterior and amenities, as well as the resolution of all deferred maintenance at Marmalade Hill, which was built in 1953 and later added onto in 1972. Interior improvements will include quartz countertops in kitchen and bathrooms, vinyl plank flooring and new carpet, new appliance packages including washers and dryers, new paint, modern plumbing and lighting fixtures throughout, and new bathroom accessories. Exterior and common area renovations will include new paint, the addition of a built-in BBQ/courtyard area, the conversion of a laundry room into a leasing office and landscaping upgrades.
“We look forward to add value to Marmalade Hill’s excellent location through our strategic, design-driven renovation plan,” said Hulick. “The opportunity to acquire this kind of well-located asset at a significant discount to replacement cost is what really got us excited about this property.”
The property was 96 percent occupied at the time of closing. DB Capital was represented in the acquisition by Brock Zylstra and Danny Shin of Institutional Property Advisors.