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Salt Lake City's downtown district will extend farther to the south soon with a 10-story office building on the southwestern corner of 600 South and Main Street.
The Patrinely Group, a national real estate development firm based in Houston, formally announced plans Wednesday for 650 Main, the name given to the 320,000-square-foot structure that will be built on part of what has been a parking lot south of Little America Hotel.
And, if market conditions live up to Patrinely's expectations and 650 Main fills with tenants, a second similar structure may replace the rest of the parking lot and a coffee shop on the southeastern corner of 600 South and West Temple. A parking structure surrounded by trees would link the office buildings.
"We're best known for elegantly crafting complex projects," said Robert Fields, Patrinely's president and CEO, explaining that his 34-year-old company is moving into the Salt Lake City market because "the time is right for new Class A space for demanding office tenants."
As defined by the Building Owners and Managers Association, Class A offices compete for premier users with rents above average, "high-quality standard finishes … exceptional accessibility and a definite market presence."
That's the kind of cross-street neighbor that Sinclair Oil Corp. desired when considering offers for the 6.5-acre parcel fronting 600 South.
"Patrinely's will be a tremendous addition to downtown Salt Lake," said Sinclair Senior Vice President Clint Ensign, confirming that the Utah-based company had sold the developers the southwestern corner of 600 South and Main; Patrinely has the option to buy the rest later.
"We're delighted to have them as neighbors," he added. "They have a national footprint. They have done a number of developments in other cities so they're credible, gifted developers."
Patrinely's website said the company has been involved in transactions worth $7.5 billion in 15 states and manages 4.3 million square feet of office space.
Notable projects include Anadarko Petroleum's 800,000-square-foot headquarters in The Woodlands, Texas; a 12-story residential building with 86 condominium units in Phoenix; and involvement in the construction of a 65,000-seat stadium and a large practice facility for the Tennessee Titans of the NFL.
Downtown Alliance Executive Director Jason Mathis was ecstatic that "out-of-state developers are investing in our community. Clearly, downtown's office market remains incredibly strong."
Fields concurred, calling the 650 Main property a "great location" that will get even better if, as the company expects, a TRAX stop is added between 600 and 700 South on Main Street. "And we're right next to the two best hotels in Salt Lake City," he added, referring to Little America and Grand America, both owned by Sinclair.
Two TRAX stops are within three blocks of the proposed development. A call to a Utah Transit Authority spokesman was not immediately returned Wednesday night.
Terms of the land purchase and the projected cost of the building were not disclosed.
Much of the project's financing is coming from USAA Real Estate Co., a Texas financial services firm that Fields said has worked closely with Patrinely for three decades and is its partner in projects valued at $1.5 billion.
Dirk Mosis, USAA's managing director, said his company has invested in Utah before and is eager to do so again because of its reliable workforce and investments in infrastructure.
"We've got capital, we've been around, we'll be around," he pledged.
Designed by HOK, the office tower is projected to have a 26,000-square-foot ground floor with offices, a conference room, a fitness center and a restaurant facing 600 South. A second restaurant is planned to front Main Street, and there would be a tenant courtyard between the offices and a midblock parking structure.
The "low rise" second through fourth floors would have 40,000 square feet of office space per floor, while the narrower tower up to the 10th floor would have nearly 30,000 square feet on each floor.
These design elements and amenities are necessary to attract desirable high-technology companies, said Dennis Tarro, Patrinely's national leasing director.
Companies, he said, "know what they want their buildings to look like. They're dynamic. They're used for recruitment, retention, to foster an air of community and collaboration."
Tarro is confident that his sales team can fill the building, citing clients' interest in relocating to cities with strong business-development organizations, a pro-business tax structure, colleges nearby and easy access to mass transit.
"Salt Lake checks every single box on that list," he said.
Editor Nick Parker contributed to this report.