The Franklin Campus in West Valley City, which is the former headquarters of FranklinCovey. Image via Colliers
One of the largest commercial real estate deals in Utah this year has closed.
Colliers Salt Lake City announced earlier this month it brokered the sale of the Franklin Campus — a 312,234-square-foot campus of five buildings in West Valley City — to the State of Utah, according to a news release from Colliers.
The state government purchased the site for $40 million, and the campus will serve as the new home for the Utah Department of Health and Human Services (DHHS). Currently, DHHS is headquartered at a multi-agency office building in Salt Lake City just off North Temple.
“This landmark acquisition secures a campus capable of meeting Utah’s operational needs for decades to come,” Brandon Fugal, Colliers chairman, said in a news release. “Acquiring an asset of this quality at a fraction of replacement cost reflects responsible stewardship of public resources while creating lasting value for the state.”
The five-building complex is located at 2650 S. Decker Lake Blvd. in West Valley City and totals 21.7 acres across multiple parcels. The campus is anchored by the Franklin building, which totals over 168,000 square feet across five floors.
The complex was initially built to be the corporate headquarters of FranklinCovey, a publicly traded company that’s known for its book, The 7 Habits of Highly Effective People. The company’s headquarters are now located in Draper, according to the company’s website.
The state government has had its eye on the Franklin Campus for some time now. During the Utah Legislative session earlier this year, state lawmakers set aside $35 million in one-time funding to purchase the campus.
In addition to over hundreds of thousands of office square footage, the complex also has a cafeteria, fitness center and auditorium, along with other amenities on site. The press release says that large corporate complexes like Franklin Campus have become difficult to replace due to construction costs and construction timelines. But a complex like this allows a large government body like DHHS to begin work quickly.
“Transactions like this are exceptionally rare,” Chris Kirk, Colliers managing director, said in the news release. “Properties of this caliber and operational readiness seldom become available. For the State, this acquisition secures long-term certainty through a campus that would be extraordinarily difficult to replicate in today’s market.”
Indeed, a deal like this is rare — and it’s likely one of the biggest deals of the year around Salt Lake County. Colliers’ office market reports for Q1 and Q2 each show noteworthy transactions from the respective quarters, and neither report featured deals nearly as big as Franklin Campus.
The only acquisition that could compete with the state’s Franklin Campus purchase was a deal made earlier this year, when Western Governors University bought the Sheraton Hotel and 9.6 acres of land in Downtown Salt Lake City.
WGU plans to demolish the existing hotel and develop the site into nearly 1 million square feet of office space.
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