A historic building on Main Street has sold for nearly $3 million, a deal that the real estate agent who listed the property says signals strength in the market of the popular shopping, dining and entertainment strip.
A firm called PC Main, LLC purchased the building at 591 Main St. for $2,950,000, the listing agent, Cushman & Wakefield | Commerce's Steve Hooker, said. PC Main, LLC is based in Pensacola, Fla., according to Utah Division of Corporations and Commercial Code records. The person listed on state records as the registered agent of PC Main, LLC declined to comment. Hooker said the principal of the firm is based in Park City.
The Gaucho boutique is currently a tenant in the building. There is another commercial space in the building that is not occupied. There are also four residential units upstairs -- two two-bedroom, one one-bedroom and one studio. The original section of the building dates to 1899, the year after a terrible fire destroyed much of Park City. Hooker said the building underwent major remodels in the 1990s, the 1980s and the 1970s.
"It's a very solid price for a very good property," Hooker said.
The building was listed for $3.2 million. It is estimated at 4,800 square feet. The sale valued the building at approximately $628 per square foot. Cushman & Wakefield said the sale price per square foot is "higher than the market has seen in some time." It was on the market four months. Hooker said in a prepared statement the deal "was a significant transaction for the sellers and a new benchmark for the other commercial real estate offerings on Main Street.
The Summit County Assessor's Office values the building at a little more than $1.4 million. Estimated property taxes in 2014 are $12,637.44, the Assessor's Office says. Property records show PC Main, LLC acquired the building from a firm called Meyer Crest Ltd.
Hooker, who has been involved in commercial real estate on Main Street since 1986, said the street is a hot market. He said commercial leases are reaching toward record prices set in 2006, one of Park City's great boom eras. Commercial leases along Main Street command between $45 and $55 per square foot, in range of the $50 to $60 per square foot paid in 2006, according to Hooker.
"You can't touch Main Street . . . There's really no space available," Hooker said.
Hooker said PC Main, LLC intends to remodel the commercial square footage into one space spreading through 2,400 square feet. The work is planned over the course of four or five days in October. The building owner anticipates leasing the redone commercial space by the start of the ski season, Hooker said.
The four residential units are being remodeled with plans to rent them on a nightly basis. They have traditionally been in the rental pool. Marketing material accompanying the listing indicated the units ran between $200 and $600 per night during the ski season.
The marketing material says the building generated gross income of $166,512 in 2013, with the commercial spaces generating a little more than half of the gross income. The material says commercial lease rates on Main Street "show potential" for an increase of between 30 percent and 50 percent at 591 Main St.
The sale of 591 Main St. continues a realignment of ownership along Main Street since the depths of the recession. There has been a series of high-profile transactions up and down Main Street or just off the street as buyers remain confident in Park City's appeal. There has been an extraordinary amount of investment in renovations or new construction projects. The renovation of the former Main Street Mall, now underway, is the largest construction project on Main Street.