SALT LAKE CITY — KBS, one of the largest owners and operators of premier commercial real estate assets in the nation, announces the sale of the Salt Lake Hardware Building, a 210,938 square-foot, five‑story Class A office building located in downtown Salt Lake City, Utah. The historic asset, which offers multifamily development potential, was acquired by Dart Interests, a U.S. real estate development and investment firm. The Salt Lake Hardware Building was owned by KBS Real Estate Investment Trust III, part of KBS’ portfolio of funds and separate accounts.
According to Giovanni Cordoves, KBS’ Western regional president, the transaction reflects the firm’s disciplined approach to asset selection, value creation, and exit execution. “While the office sector continues to face broader market challenges, this sale demonstrates that well‑located, high‑quality assets with strong fundamentals continue to attract investor demand,” says Cordoves. “The Salt Lake Hardware Building’s historic character, comprehensive renovation, dynamic transit-oriented location and the ability to further densify the site via additional residential development contributed to its appeal. Our strategy remains focused on owning and operating assets in markets with durable economic fundamentals, supported by thoughtful capital allocation and disciplined investment management.”
KBS has a long operating history in the immediate submarket, having previously successfully developed and sold a 453‑unit Class A multifamily community adjacent to the Salt Lake Hardware Building. Together, the transactions reflect KBS’ ability to identify and execute value‑creation opportunities across asset types within markets supported by durable economic fundamentals.
“Situated between high‑end multifamily to the north and a revitalized entertainment district to the south, the Salt Lake Hardware Building offers a creative office environment with a distinctive tenant experience in downtown Salt Lake City,” says Tim Helgeson, senior vice president at KBS and former investment manager of the Salt Lake Hardware Building. “Our experience in the area as an active investor with three additional properties in the market, and our prior ground-up development and sale of a 453‑unit multifamily community adjacent to the property, reinforces continued value creation that’s supported by strong fundamentals.”
Originally constructed in 1909 to sell hardware to help the growth of the transcontinental railroad network, the Salt Lake Hardware Building is a converted historic industrial property listed on the National Register of Historic Places. The renovated creative office property combines historic character with modern infrastructure and amenities. The site includes an additional 2.45 acres zoned for mixed use, providing future development potential for approximately 340 or more residential units. The property benefits from strong regional connectivity, including proximity to the airport, downtown core, the University of Utah and public transit serving the broader metropolitan area. Since acquisition, KBS has invested more than $9 million in capital improvements, enhancing tenant and common areas, amenities and building systems to support long‑term performance and positioning.
According to CBRE, the Salt Lake City office market demonstrated improving fundamentals over the past year, supported by leasing activity, positive net absorption and rent growth. Tenant demand has increasingly concentrated in higher‑quality assets, with Class A direct vacancy remaining well below the market average. Supply has continued to contract, with approximately 391,425 square feet of office space removed from inventory through conversions and demolitions. With new development activity slowing and tenant demand remaining relatively steady, these dynamics are expected to support continued stabilization and positive absorption into 2026.
“This acquisition represents an opportunity to acquire a unique, well-leased historic office asset in downtown Salt Lake City with the added benefit of development potential,” said Jeremy Blickenstaff, senior vice president of Dart Interests. “KBS has been a thoughtful steward of the property, executing significant capital improvements and establishing a strong foundation for continued leasing and long‑term value creation.”
CBRE’s Charley Will, Phil Brierley, Patrick Bodnar, and Cole Macadaeg represented KBS in the sale of the Salt Lake Hardware Building. “KBS executed a thoughtful repositioning of the property, enhancing its functionality while preserving the historic character that differentiates it within the Salt Lake City market,” Will said. “The firm’s targeted capital improvements and disciplined management approach positioned the asset to attract strong interest from buyers.”
Attorneys Bruce Fischer and Howard Chu of Greenberg Traurig LLP represented KBS in the disposition. “The successful sale of the Salt Lake Hardware Building reflects KBS’ long‑term strategy and thoughtful stewardship of the asset, supported by continued growth in the Salt Lake City market,” said Fischer, chair of the firm’s West Coast real estate practice.
The property is located at 155 North 400 West, Salt Lake City, Utah 84103.
About KBS
KBS is a private equity real estate firm and SEC‑registered investment adviser. Since its founding in 1992 by Peter Bren and Chuck Schreiber, KBS and its affiliated companies have completed more than $45.7 billion in transactional activity on behalf of private and institutional investors globally and have invested in nearly 1,700 multifamily, industrial, office and retail assets. The firm acquires and operates high‑quality commercial real estate across U.S. growth markets and is committed to strong business ethics, long‑standing relationships, and disciplined investment management. SEC registration as an investment adviser does not imply any particular level of skill or training. For more information, please visit www.kbs.com.
