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Tooele, UT

Tooele Rail Industrial Park Development

Address:
1150 West 1220 South, Tooele, UT 84074
Property Type:
Land
Price:
$3,500,000
Lot Size:
92.45 Acres
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* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • 92.45-Acre Industrial Development Site Consisting of Four Parcels
  • Located Within the Proposed Tooele Rail Industrial Park
  • Opportunity to Co-Develop with the City of Tooele
  • Property Makes Up Nearly 30% of the Total Project

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1150 West 1220 South in Tooele, Utah. The subject property consists of approximately 92.45 acres of land. The asset features four parcels of land and potential access to a Union Pacific rail line. The property is part of a larger 324-acre business park known as the Tooele Rail Industrial Park. In June of 2023, the industrial park underwent approval and rezoning as the Tooele City Business Park (TCBP) district. Under the TCBP district, the land to the East adjacent to the residential area can accommodate commercial and office uses with a height of up to 35’. On the West side closest to the rail line, the land is approved for heavier industrial uses up to 70’ (Toole Transcript Bulletin). Buyers also have the opportunity to co-develop the property with the city of Tooele.

Located just off of State Route 36, which feeds directly into Downtown Salt Lake City via Interstate 80, the subject property is primely situated in the Tooele County industrial submarket. The submarket is relatively small, containing 6.2 million square feet of industrial space. Logistics space is by far the largest subtype, making up 84 percent of inventory, followed by specialized space and flex space at 15 percent and 1 percent, respectively. By the end of Q3 2023, the vacancy rate in the Tooele County submarket remained steady at 3.7 percent, down significantly from 9.5 percent a year earlier. This comes at a time when the overall Salt Lake City market has experienced a 330-point bump in industrial vacancies to 6.2 percent. While annual rent growth has slowed down to 13.7 percent in Q3, the pace sits well above the 7.6 percent average over the last decade. Market rents now average $5.70 per square foot, offering tenants a 49 percent discount compared to the overall market. Affordable rents have helped spur development in Tooele County in recent years, including the construction of the 503,000-square-foot Lakeview Commerce Center due in the fourth quarter of 2023 (CoStar).

Salt Lake City, known as the Crossroads of the West, is centrally located among major Western US markets. The metro area encompasses Salt Lake and Tooele counties, nestled in the Great Salt Lake Valley in northern Utah. With a population of 1.3 million people, the region experiences significant suburban growth, particularly in areas like South and West Jordan. The presence of tech firms has brought higher-paying job opportunities, attracting skilled and educated workers. The Salt Lake City economy benefits from its status as Utah’s capital and the headquarters of the Church of Jesus Christ of Latter-day Saints. Major employers include Intermountain Healthcare, University of Utah, and eBay. The metro area is also renowned for its world-class ski resorts and offers numerous recreational and cultural attractions. The University of Utah and several other colleges and universities contribute to the region’s educational landscape. With projected population growth and above-average incomes, Salt Lake City remains an attractive and vibrant area for residents and businesses alike.

BROKER OF RECORD
ADAM LEWIS
Utah Broker of Record
1144 15th Street, Suite 2150
Tel: (303) 328-2000
Adam.Lewis@MarcusMillichap.com
License #: 6250302-SA00
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0060787)