BRICKYARD HEIGHTS TOWNHOMES
15 TOWNHOMES PROJECT
MILLCREEK , UTAH
INVESTMENT OPPORTUNITY $3,000,000 – 60 MEMBERSHIP UNITS
Brickyard Heights Townhomes
1100 East, Millcreek, Utah
15 Residential Units
2000 Square Feet Each
BRICKYARD HEIGHTS TOWNHOMES
Residential Townhome Project
Brickyard Heights Townhomes, (the “Property”) represents an opportunity to invest in the fastest growing state in the country. The booming economy and population growth in Salt Lake City is largely driven by the growing tech-Industry. The United States Census Bureau ranks Utah as the 9th state for population growth from 2022 to 2023 (1). Next Level Homes has acquired the the land and has received a verbal commitment from the city to rezone for 15 townhomes at the location. Due Diligence and financial analysis have been completed. Next Level Homes is looking for equity partners who would like to invest in the project and earn a 62%+ return over the holding period which is estimated to be 36 months.
An investigation of current market conditions has been made in order to estimate the demand, sales values, and construction cost for the proposed improvements. The site for the development is currently owned by Next Level Homes and entitlements are under review with the city of Millcreek.
The location is considered suitable for development of mid-level townhomes. The site is convenient to employment centers, public transit and major traffic arteries. The site is a reasonable distance from shopping, services, restaurants and entertainment. Most importantly, it is Next Level Homes 3rd project in the city of Millcreek where they have a great relationship with city and county planners. Other similar apartment projects in the vicinity have been successful and well-accepted by the market.
(1) Census.gov
BRICKYARD HEIGHTS TOWNHOMES
Utah Population Growth
Utah's population has been growing rapidly in recent years, making it one of the fastest-growing states in the country:
• 2023 growth: Utah's population grew by 1.1% from 2022 to 2023, adding 36,498 people. This was the lowest percentage growth since the Great Recession.
• 2022 growth: Utah's population grew by 1.7% in 2022.
• 2010–2022 growth: Utah's population grew by an average of 1.7% per year between 2010 and 2022.
• 2010–2020 growth: Utah grew faster than any other state during this period, at 18.4%.
Utah's population growth is attributed to a number of factors, including:
• Net migration: People moving to Utah from out of state accounted for 56% of the state's population increase in 2023.
• Natural increase: The number of annual births minus annual deaths increased in 2023.
• Economic environment: Utah's favorable economic environment attracts new residents.
• Young demographic profile: Utah has a youthful demographic profile.
Utah's population is projected to grow much faster than the United States between 2022 and 2060. Projections estimate that Utah’s population may add one million to two-and-a-half million new residents by 2050.
Source
Anticipated Future Economic Conditions
Utah’s housing shortage is likely to increase by 2025 - Utah's housing shortage decreased from 56,800 units in 2017 to 28,400 units in 2022; however, as homebuilding activity contracts, new households will outnumber new housing units. Consequently, Utah's housing shortage will likely increase to over 37,000 units by 2025.
Housing forecast for 2023 and 2024 - The 2023 forecast for the number of residential units receiving building permits in Utah is 22,750, the lowest level since 2016. Real estate sales of existing homes are likely to fall to 37,500 in 2023, the lowest level since 2014. Both homebuilding activity and real estate sales, however, are expected to increase in 2024. The 2023 forecast for the median sales price is $500,000, just 2% below the statewide median in 2022. By year-end 2023, the mortgage rate will likely be near 7.0% but will trend lower in 2024 averaging 6.5% for the year.
Source
Description: 15 Residential Units
Rezoning & Entitlement: In Process
Projected Investment Construction Time: 24 months
Projected Exit: 36 Months
Minimum Investment: $100,000
Projected Return on Investment: 62.39% (20.80% IRR)
Investment Projections
Floor Plan
Floor Plan
Silicon Slopes Continues To Bring New Companies
Vivint Corporate Center
Adobe Building
Ancestry Headquarters Building
NUVI Building
Silicon Slopes Continues To Bring New Companies
Intermountain Medical
Alsco Building
National Security Administration Data Center
Facebook Data Center
Why Utah?
1. Updated Transportation and Roads
Utah has a good transportation system, with the Salt Lake City International Airport recently renovated. The UTA TRAX system has expanded with more stops over the years, making it easier to travel between cities. There’s also the Frontrunner, another public transit option that runs across the Salt Lake Valley. Moving to Utah means residents can rely on their award-winning public transportation to get around safely and quickly.
2. Beautiful National Parks
Utah has five stunning national parks that will leave you breathless. Arches National Park showcases natural bridges and towering sandstone arches. Bryce Canyon and Canyonlands offer opportunities for hiking or horseback riding into the sunset over rugged sandstone canyons. Capitol Reef features the Waterpocket Fold, a massive geological formation spanning over 100 miles. Zion, Utah’s oldest national park, impresses with its steep red cliffs, the Virgin River, and serene spots like the Emerald Pools. Utah’s natural beauty is truly remarkable and a unique feature of the state.
3. Strong Job Market
The unemployment rate in Utah is remarkably low. Utah placed second in a national ranking of state job creation. All of these statistics are the result of Utah’s diverse economy. Utahns work in a variety of fields, from hospitality to software management to coal mining. Since it has a strong job market, Utah is ideal for recent high school or college graduates. It is also a hub for entrepreneurs who are looking to start their businesses. In recent years, the Silicon Slopes area has generated thousands of jobs in the economic and technology spheres.
4. Rising Housing Market
Compared to the national average, Utah’s median home price is still relatively low. This housing market is causing many to look in various areas outside of Salt Lake City, including newly developed neighborhoods throughout Lehi, Saratoga Springs, Eagle Mountain, and southern Utah County. The good news is that Utah has many great apartments for rent. There are also affordable housing opportunities for those who qualify.