Hawaiian investors pay $10 million-plus for Summit Watch
January 31, 2014
An investment group headquartered in Hawaii has purchased the commercial square footage at the Marriott Summit Watch, one of the largest properties along Main Street.
The buyer is a firm called 900 Lower Main Street Associates, and it was created to hold the title on the property, according to Joe Wrona, the attorney who represented the buyer. The deal involved 44,331 square feet of commercial space. It also included a proportional share of the parking garage. The purchase price was slightly more than $10 million, Wrona said.
None of the residential square footage at the Marriott Summit Watch was involved in the deal.
It is among the largest transactions along Main Street in years and continues what has been an extraordinary ownership realignment on the street since the recession. The Marriott Summit Watch comprises much of the property on the east side of Main Street north of the Heber Avenue intersection.
The commercial space is nearly entirely leased. Tenants include Prime Steak House, Coda Gallery and the sports bar Collie’s, among others.
Wrona said one of the primary investors in the firm that bought the property, Michael Bennett, has a vacation home in The Colony. Some of the investors earlier acquired the Summit Center commercial property at Kimball Junction, Wrona said.
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The buyers see Park City rapidly rising from the recession, Wrona said, describing the "vibrancy of the Main Street economy." He said the Marriott Summit Watch will benefit from improvements underway at the nearby Sky Lodge. Wrona said the pedestrian path between the Main Street-Heber Avenue intersection to the Marriott Summit Watch is better than it was prior to the work at the Sky Lodge patio. They anticipate much heavier pedestrian traffic as a result, he said.
"It is the opinion of my clients that this particular asset has been an underperforming asset for a long time," Wrona said.
Wrona said the buyers do not anticipate making significant physical changes to the Marriot Summit Watch. The management of the parking garage could be altered so it is more automated, he said.
Wrona, though, maintained that some of the businesses at the Marriott Summit Watch hold leases that are below market rates and are due to expire soon. Those leases would generally be renegotiated at higher rates to match the market, he said. Wrona said he does not anticipate significant tenant turnover.
Mark Jensen and Bryce Blanchard represented the seller in the deal, known as Lower Main Street Venture. Jensen said the principal figure in Lower Main Street Venture purchased the property with the intent to open a restaurant in one of the spaces. The restaurant, Vinto, will remain as a tenant, Jensen said.
The property was on the market for approximately three weeks.
The deal is the latest in a series of high-profile transactions along Main Street since the recession. Other properties that have changed ownership include the Sky Lodge, the Claim Jumper, the Silver Queen Hotel and the building once known as the Main Street Mall. Other, less prominent buildings along Main Street have also been sold in the past few years.