AIG Global Real Estate, the global real estate equity investment manager of American International Group, Inc. (NYSE: AIG), today announced the formation of a strategic joint venture with RedHill Realty Investors, a privately held real estate company headquartered in San Diego, to acquire River Oaks Apartments & Suites, a 180-unit, garden-style apartment and extended stay community in Salt Lake City, UT.
Originally constructed in 1999 and situated in the high-growth and high-barrier to entry market of Salt Lake Valley in West Jordan, the third largest city in Utah and a major suburb of Salt Lake City, River Oaks consists of 5 three-story exterior corridor walk-up buildings and one four-story extended stay building on 7.26 acres. The transaction represents a compelling opportunity to add significant value by converting the extended stay units to traditional unit rentals to lower structural vacancy and expenses and renovating a portion of the existing classic units, the common areas and amenity spaces.
“Investors and tenants alike are attracted to Salt Lake City for its diverse economy and affordable and attractive lifestyle,” said Mark Hertz of AIG Global Real Estate. “Due to significant in-migration from higher cost coasal markets, the greater Salt Lake City multifamily market has experienced strong demand and rental growth throughout 2021 and we anticipate this expansion will continue. We thank RedHill for their partnership in this venture and look forward to our continued work together.”
“Salt Lake City and Utah both continue to be ranked among the top cities and states in terms of economic, employment and population growth,” said President and COO of RedHill Realty Investors David Jensen. “We are pleased to expand our multifamily portfolio in such an expansive and thriving region of the US in partnership with AIG Global Real Estate.”