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Ares buys Studio McGee distribution center in Salt Lake City

Ares buys Studio McGee distribution center in Salt Lake City

Money Moves Salt Lake City, UT local

A 325,215-square-foot Northwest Quadrant warehouse changes hands, leased to McGee & Co. through 2033.

Yesterday: JLL announces Ares purchase

Overview

Updated 1 hour ago

A 325,215-square-foot distribution center in Salt Lake City's Northwest Quadrant has a new owner. An Ares Real Estate fund bought the building at 5270 W. John Cannon Drive, with the sale closing in October and JLL Capital Markets announcing it Monday.

The building is fully leased to McGee & Co., the home furnishings company behind Studio McGee, through February 2033. The deal gives Ares a long-term tenant in a warehouse near Interstate 80, Interstate 215 and Salt Lake City International Airport.

Why it matters

The sale ties a Studio McGee fulfillment hub to an institutional landlord through 2033, locking in long-term warehouse capacity in Salt Lake City.

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Key Indicators

325,215 sq ft
Warehouse size
Class A distribution center on 20.5 acres in the Northwest Quadrant.
20.5 acres
Site area
Property includes 89 dock-high doors and 354 car parking spaces.
89
Dock-high doors
Cross-dock layout with a 36-foot clear height.
3%
Annual rent increases
Lease terms cited in JLL offering materials.
37%
Projected rent upside
Estimated when the lease expires in February 2033.
February 2033
Lease expiration
Building fully leased to McGee & Co. on a triple-net basis.

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People Involved

TT
Todd Torok
JLL managing director
Led the sale of the Salt Lake City distribution center.

Organizations Involved

AR
Ares Real Estate
Real estate investment fund
Buyer of the distribution center

An Ares Management fund that bought the Salt Lake City warehouse.
Marq Logistics
Marq Logistics
Logistics real estate platform
Will manage the property

Ares Real Estate's logistics platform, which will manage the warehouse.
CM
JLL Capital Markets
Commercial real estate brokerage
Marketed the property and announced the sale

JLL Capital Markets marketed the property and announced the sale.
MC
McGee & Co.
Home furnishings retailer
Tenant through February 2033

Home furnishings company behind Studio McGee, leasing the warehouse as its primary distribution center.

Timeline

2022 November 2026

3 events Latest: Yesterday

  1. JLL announces Ares purchase

    Latest Announcement

    JLL says Ares fund bought 325,215-square-foot warehouse leased to McGee & Co.

  2. Sale closes

    Transaction

    Ares fund closes purchase; price and seller undisclosed.

  3. Distribution center completed

    Construction

    Class A building completed on 20.5 acres in Salt Lake City's Northwest Quadrant.

Scenarios

1

McGee & Co. renews before 2033 lease expiry

Possible Resolves by Mar 1, 2033

Discussed by: JLL offering materials

The building is fully leased to McGee & Co. through February 2033, and JLL materials project about 37% rent upside at expiry. A renewal would keep the fulfillment hub in place and let Ares capture higher rent without finding a new tenant.

2

Ares sells the warehouse before lease expiry

Unlikely Resolves by Feb 28, 2033

Discussed by: Building Salt Lake reporting on institutional demand

Ares bought the property for long-term income, but institutional buyers have been active in Salt Lake industrial. A sale before 2033 would test whether the fund treats the asset as a hold or a trade.

3

Ares buys another Salt Lake industrial property by 2027

Possible Resolves by Nov 9, 2027

Discussed by: Ares' Marq Logistics platform

Ares has bought Class A industrial properties in other markets, including Houston in April 2026. Another Salt Lake acquisition would show the fund is building a regional logistics portfolio.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

April 2026

Ares acquires Fairbanks Northwest Distribution Center in Houston (2026)

JLL announced the sale of a 357,570-square-foot, two-building Class A industrial property in Northwest Houston to an Ares Real Estate fund. Marq Logistics was set to manage the property, which was about 80% leased.

Then

Ares added a newly built Houston logistics asset to its platform.

Now

The deal showed Ares and Marq were buying Class A industrial properties in multiple markets.

Why this matters now

The Salt Lake City purchase follows the same pattern: an Ares fund buys a leased industrial building and Marq manages it.

2022

Northwest Quadrant distribution center completed (2022)

The 325,215-square-foot Class A warehouse was completed on 20.5 acres in Salt Lake City's Northwest Quadrant. It has a 36-foot clear height, cross-dock layout and 89 dock-high doors.

Then

The building became McGee & Co.'s primary distribution and fulfillment center.

Now

It gave Salt Lake City a modern industrial asset near Interstate 80, Interstate 215 and the airport.

Why this matters now

The 2026 sale transfers that 2022-vintage building to an institutional owner with a lease running to 2033.

Sources

(2)
Building Salt Lake JLL