Sunrise Industrial Park One and Two total more than 509,000 square feet. The larger of the two buildings, 3101 Marion Drive, totals more than 271,600 square feet and dates from 1997, based on CommercialEdge data. The other building, the 237,600-square-foot 4601 E. Cheyenne Ave., is of the same vintage. Put together, the buildings are currently 78 percent leased to 10 tenants.

The assets feature 24- to 30-foot clear heights, dock-high loading, ESFR sprinklers and evaporative cooling systems, as is common in this part of the country, though they are banned in new commercial buildings. Floorplans between 20,000 square feet to 89,000 square feet are currently available, with Jerry Doty of Colliers International representing the new owner.

MDH Partners’ James Hwang oversaw the acquisition for the company, with Newmark’s Bret Hardy and Andrew Briner representing Link Logistics.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The company has been on an acquisition roll recently. In 2024, MDH acquired more than 9 million square feet of industrial space in various markets, including a near year-end deal that saw it buy a portfolio of 12 buildings ranging from 140,300 square feet to 1 million square feet.

Supply overshoots industrial demand in Las Vegas

Preleasing on newly completed industrial projects in Las Vegas fell dramatically in the fourth quarter of 2024, bringing the market’s vacancy to 8.6 percent, according to Colliers data. A year earlier, vacancy was roughly 3 percent, and throughout 2022 and much of 2023, the rate hovered around 2 percent.

Net industrial absorption in the fourth quarter of 2024 was 467,260 square feet, Colliers noted. That brought net absorption for the entirety of 2024 to 4.7 million square feet, a decrease of 38.9 percent compared with 2023.

Even so, developers are still quite active in the Las Vegas industrial market, with 5.9 million square feet slated for completion during 2025, Colliers reported. Only 2.5 percent of that space preleased.

The post MDH Partners Enters Las Vegas With $94M Buy appeared first on Commercial Property Executive.

BKM Capital Partners has expanded an existing partnership with StepStone Real Estate, the real estate arm of StepStone Group, for the $154 million recapitalization of Pacific Business Center, a 10-building, 748,813-square-foot industrial campus in the Las Vegas market.

Constructed between 1996 and 1998, Pacific Business Center is comprised of 1045-1175 American Pacific Drive, 160-194 Gallagher Crest Road and 1060-1110 Mary Crest Road in Henderson, Nev. The Class A campus is 90 percent occupied with a diverse mix of high-quality tenants. In-place rents are projected to be 30 percent below market rate, giving BKM an opportunity for immediate value creation. The industrial center is in a designated Foreign-Trade Zone.

BKM, a Newport Beach, Calif.,-based real estate fund manager and operator that focuses exclusively on multi-tenant industrial assets in the Western United States, acquired the industrial center’s properties from Northwestern Mutual Real Estate as a portfolio transaction in July 2019 for $113 million. At that time, it was the firm’s largest deal.

The institutional-grade assets have had more than $12.4 million in capital improvements since 2010. Projects included installing high-quality HVAC and EVAP systems and LED lighting, as well as upgrading office finishes and painting building exteriors. Other features include 24- to 28-foot clear heights, ESFR sprinkler systems and new TPO roofs. BKM has since made other improvements to the facilities, including cosmetic renovations in 2017, according to CommercialEdge. Several of the buildings have two-level office build-out components, CommercialEdge reported.

Partnering with StepStone

In August 2023, BKM formed a partnership with StepStone Real Estate for a GP-led secondary direct transaction that included ownership in Pacific Business Center. SRE acquired interests in two assets, including Backlot Burbank, a light industrial property in Burbank, Calif., leased to entertainment companies. As part of that partnership agreement, SRE would invest in other small- and mid-bay industrial properties across Western U.S. markets.

READ ALSO: Stars Align for CRE Secondary Funds

The recapitalization of Pacific Business Center increases SRE’s ownership in an asset and market that both firms view favorably. BKM notes Las Vegas’s dynamic industrial market fundamentals combined with the asset’s rent growth potential and stable cash flow provide a strong foundation for success.

The Las Vegas industrial market is a versatile market that caters to both big-box tenants and smaller occupiers, with strong demand for spaces under 50,000 square feet, according to Cushman & Wakefield. The market has seen steady leasing activity, but an influx of new supply may give tenants greater leverage in lease negotiations, the firm stated in its third-quarter 2024 report for the Las Vegas industrial market. However, rising vacancy rates – the overall vacancy rate was 8.8 percent, up 180 basis points quarter over quarter in Q3 – may delay new development, which could help balance supply and stabilize vacancy levels, according to Cushman & Wakefield.

BKM’s other activities

The recapitalization of Pacific Business Center represents another milestone for BKM, which has invested more than $4.5 billion in more than 120 small and mid-bay light industrial properties since 2013. The firm has a value-add strategy and targets under-managed and under-capitalized assets. Over the past two years, BKM has acquired high-quality assets at pricing well below replacement cost. It has also undertaken several other recapitalizations.

In December, BKM partnered with Kayne Anderson Real Estate for a $550 million recapitalization of a nine-property light industrial portfolio totaling more than 2.1 million square feet in several urban markets. The largest of the properties is Hughes Airport Center, a 672,424-square-foot asset in Las Vegas. The rest of the portfolio is located in California, Arizona, Colorado and Washington state.

That same month, BKM recapitalized three San Diego business parks from its BKM Industrial Value Fund II LP, with Tokyu Land US Corp. for $76.9 million.

More recently, BKM acquired West Belt Business Park, a five-building industrial park totaling 260,887 square feet for $34.1 million in Houston’s Westchase submarket. Longpoint Realty Partners sold the property, according to CommercialEdge data.

The post BKM Recapitalizes Las Vegas Industrial Center for $154M appeared first on Commercial Property Executive.

Remington Nevada has sold Mountain’s Edge Marketplace, a 115,000-square-foot neighborhood shopping center in metro Las Vegas, for $50.3 million. CBRE arranged the transaction.

The buyer, an out-of-state investor, also assumed the existing $33 million CMBS note encumbering the property. The 10-year loan, issued by Morgan Stanley Bank in 2022, features interest-only payments at a rate of 4.51 percent for 60 months, followed by a calculated amortization under a 30-year basis, according to CommercialEdge information.

READ ALSO: What’s Driving the Retail Sector’s Growth?

The sale closed at a 6.3 percent cap rate and a 30-day due diligence period, three weeks after the loan assumption approval. The note’s interest rate, in the low 4 percent range, was one of the better-than-market terms that favored the transaction, CBRE’s Roy Fritz said in prepared remarks. Fritz and Preston Fetrow, both with the firm’s National Retail Investment Partners-West division, represented the seller.

Mountain’s Edge Marketplace, up close

The retail center is at 7975 Blue Diamond Road in Mountain’s Edge, a master-planned community in Enterprise, Nev., an unincorporated town in Clark County, southwest of Las Vegas.

Built in 2016 on about 14.8 acres, Mountain’s Edge Marketplace was 98 percent leased at the time of closing. Its tenant roster includes 40 national and local retailers, among which are Ross, Planet Fitness, Starbucks, Supercuts, The UPS Store, China A Go Go and T-Mobile. The center is shadow-anchored by an Albertsons supermarket, a property that was not included in the sale.

The retail center is some 16 miles from downtown Las Vegas, serving roughly 118,000 residents within a 3-mile radius. Its position on Blue Diamond Road benefits from a daily car traffic of 46,000 vehicles.

Mixed picture for the Las Vegas retail market

The Clark County retail market has been seeing both slower sales activity and decreased deliveries, according to a third-quarter report from CBRE. The latter presumably has helped with pulling average availability down by 10 basis points to 5.1 percent.

Overall absorption was 88,000 square feet in the third quarter, though power centers had 63,000 square feet of negative absorption over the same period, CBRE reported. Meanwhile, total investment sales amounted to $52.3 million.

In one of the quarter’s deals, Aspen Real Estate acquired a 226,000-square-foot foreclosed shopping center in Las Vegas for $24.7 million. The transaction marked Aspen’s second foreclosure purchase from LNR.

The post Las Vegas Shopping Center Sells for $50M appeared first on Commercial Property Executive.

Investment & Development Ventures has sold IDV Speedway, a 349,875-square-foot industrial building in Las Vegas. AEW Capital Management paid $54.3 million for the Class A property, according to Clark County public records. JLL worked on behalf of the seller.

IDV Speedway came online in the first quarter of this year at 5150 N. Sloan Lane. Investment & Development Ventures had acquired the 19-acre development site in 2022 for $12.4 million, according to CommercialEdge.

Currently vacant, the facility features 36-foot clear heights, ESFR sprinkler systems, two grade-level doors, 52 dock-high doors, 179 vehicle parking spots and 67 trailer parking spots. The one-story building also includes an approximately 4,200-square-foot office component, as well as evaporative cooling and LED lighting in the warehouse area. Furthermore, the property features an additional 1.5-acre site for extra parking spaces.

IDV Speedway provides easy access to interstates 15 and 11, while being 12 miles from North Las Vegas Airport, 17 miles Harry Reid International Airport and 12 miles from downtown Las Vegas. The industrial asset is in the North Las Vegas submarket, in an area with tenants such as FedEx, Amazon, Prologis, DHL and Lowe’s.

JLL Senior Managing Director Mark Detmer with the Capital Markets team, together with Senior Managing Directors Rob Lujan and Jason Simon with the firm’s Las Vegas Markets Team, led negotiations on behalf of the seller.

Recent significant delas in Las Vegas

Las Vegas’ industrial sales volume totaled $242.3 million during the third quarter of this year, according to a CBRE report. The amount marked a 28.9 percent increase year-over-year.

In one of the largest deals of the quarter, Ares Management paid $78.9 million for AirPark Heights, a six-building, 339,000-square-foot industrial campus in Henderson, Nev. TA Realty sold the asset purchased for $53.5 million two years ago.

Earlier this year, CapRock Partners and Ares Management sold a 230,889-square-foot industrial campus in Las Vegas. EastGroup Properties acquired the asset for $54.8 million.

The post AEW Makes $54M Purchase in Las Vegas appeared first on Commercial Property Executive.

Originally scheduled for delivery in August 2024, the BLVD project still has unfinished retail spaces. The grand opening event is now slated for 2025, as reported by Las Vegas Review Journal.

Considered to be the largest standalone retail destination on The Strip, BLVD is developed by Gindi Capital. The company purchased the 9.5-acre site for $172 million back in 2019, with the help of a $97 million loan provided by JPMorgan Chase.

BWA Architects, 5+design and 3 Egg Studio provided architectural services for the three-story building, while Schimenti Construction, Colkitt Architecture and the internal PUMA team spearheaded the tenant fit-out.

READ ALSO: Retail’s Post-Pandemic Recovery

PUMA’s three-story retail space with Las Vegas-inspired apparel features a professional F1 simulator and an interactive arcade. Other retailers at the development include In-N-Out, H&M and Adidas. JLL Vice Chairman Michael Hirschfeld leads the leasing efforts at the property.

BLVD is in the middle of The Strip at 3743-3759 Las Vegas Blvd., east of Interstate 15. The location is surrounded by hotels and within walking distance of major sporting venues.

The retail scene in Las Vegas

The Las Vegas metropolitan area has recorded some positive retail metrics in the third quarter of this year, according to a recent Colliers report. Around 11,695 square feet of retail space came online, bringing year-to-date completions as of September to 109,109 square feet.

Meanwhile, the vacancy rate clocked in at 4.0 percent, 0.3 points lower than in the same period last year. The average asking rental rate for retail space increased to $1.71 per square foot, while the average sale price was $708.39 per square foot.

The post PUMA Opens Flagship Store in Las Vegas appeared first on Commercial Property Executive.

AEW Capital Management has purchased Vista Commons, a 98,716-square-foot retail center in Las Vegas. MIG Real Estate sold the asset for $56.1 million, according to CommercialEdge information. JLL represented the seller.

MIG had acquired the retail center in January 2011 for $24.3 million from GGP, according to CommercialEdge information. In 2018, the property became subject to a 10-year, $26.2 million loan originated by Truist Bank.

Completed in 2007 on a 10.3-acre site, Vista Commons was 100 percent leased at the time of sale. A 56,000-square-foot Albertsons store anchors the property. The tenant roster also includes Bank of America, Wells Fargo and Dunkin’ Donuts.

The retail center is at 11700-11770 W. Charleston Blvd. in the Summerlin area of Las Vegas, in an area where the daily car traffic reaches more than 40,000 vehicles. The average household income within a 3-mile area exceeds $155,000. Downtown Vegas is some 15 miles east.

JLL Managing Director Gleb Lvovich and Senior Director Dan Tyner led the Capital Market’s Investment and Sales Advisory team that secured the deal.

AEW Capital Management occupies the third position in Commercial Property Executive‘s 2024 top commercial real estate owners, after CBRE Investment Management and Clarion Partners. The firm’s $63.4 billion portfolio, totaling 212 million square feet, comprises office, industrial, retail, health-care and hospitality assets.

The post AEW Buys Vegas Retail Center for $56M appeared first on Commercial Property Executive.

Beyond well-known hurdles such as interest rates and capital costs, developers are also being squeezed by rising costs—from land acquisition, government regulations and building complexity to employee retention and operational scale. Builders feel some of that pressure, too.

“The good news is that we know the next five years won’t be as bad as the last five,” Jeff Dvorett, president of Midwood Investment and Development, said last week at the Blueprint Conference in Las Vegas. “We seem to have finally caught a break in the second quarter, as property insurance costs fell for the first time in seven years—by 0.94 percent, according to Aon.”

And indeed, at least one survey showed construction costs were stabilizing. The national average increase was 1.12 percent over the previous quarter. The international property and construction cost consultancy firm Rider Levett Bucknall’s latest quarterly cost report shows that the U.S. national average increase in construction costs is approximately 5.41 percent year-over-year, compared to 5.85 percent year-over-year in the first quarter.

READ ALSO: Blueprint Conference ’24: Office Starts to See Momentum

Land costs grew about 10 percent annually from 2012 to 2020, shared Peter Chavkin, managing principal with Biddle Real Estate Ventures & Sun Homes, at the same event. “Land is not a commodity,” he mentioned. “The values have been escalating because they aren’t making any more land.”

What else are developers facing, trying?

Chavkin said his firm is buying and converting older office space and condos. “There is undervalued land, but the regulatory environment is in the way in New York,” he said. “Because of zoning, you end up paying so much more in terms of costs and time lag.”

Dvorett said some neighborhood officials want to improve the situation, “but it doesn’t happen overnight—it’s a five- to 10-year process,” he added.

READ ALSO: Cause for Optimism on the Tech Front

Stephen Trapp, executive vice president of development at Columbia Property Trust, said prefabricated modular construction design has been “Going through fits and starts for the last 15 years, but there is optimism that progress is being made with it (in asset classes such as student housing and multifamily).”

Meanwhile, technology and mechanization continue to increasingly making a difference in construction as well. Robotics perform repetitive lifting of dangerous objects and work as remote-controlled jackhammers.

“We think this technology will take off, and long-term innovation can make a difference,” Trapp said. “For example, 15 years ago, we had never heard of LED lightbulbs.”

The post Blueprint Special Report: Developers, Builders Feel the Pinch appeared first on Commercial Property Executive.

Warner Bros. Discovery has partnered with UNLV and Birtcher Development. Under the agreement, the company would fully occupy and operate Nevada Studios, the primary studio complex of Las Vegas Media Campus, an 800,000-square-foot mixed-use project. WBD’s commitment in long-term production spend would total a minimum of $8.5 billion.

However, the project depends on a legislative proposal introduced by State Senator Roberta Lange in 2023, which is set to be reintroduced in the Nevada Legislature in February 2025. If the bill passes, WBD will spend about $500 million annually for 17 years, the length of time proposed by one of the legislative efforts to expand the state’s tax credit, The Daily Indy reported.

READ ALSO: Why CRE Investors Are Zooming In on Studios

Construction would begin within 18 months of the Governor signing the forthcoming legislation into law, which could generate up to $95 million in annual film tax credits, according to the same source. The Las Vegas studios will be renamed Warner Bros. Studios Nevada.

Project partners include Birtcher Development and Gardner Nevada Tech Park Studios, an affiliate of the Gardner Co. JLL is representing WBD.

A groundbreaking development

In April, the UNLV Research Foundation approved the agreement with developer Gardner Nevada Tech Park Studios to construct Las Vegas Media Campus, a property set to feature film studios and facilities for emerging content creation technologies. The 34-acre media complex would rise within Harry Reid Research & Technology Park, a 122-acre development that will also include 1.5 million square feet of office and retail space.

WBD’s space will also comprise the Nevada Media and Technology Lab, a production and immersive learning facility that will cater to the UNLV film and other academic departments. In addition, the building will have spaces for vocational training, internships and workforce development.

A JLL team led by Executive Managing Director Gary Horwitz, Managing Director Peter Hajimihalis and Director Will Poulsen is acting as representative for the entertainment company.

Production studios are in the spotlight

The surge in content demand is leading to a heightened focus on film and sound production studios in commercial real estate. Despite potential industry cutbacks, the demand for new content remains strong and the studio development pipeline won’t outpace it.

In June, East End Studios obtained a $130 million financing package for the construction of an approximately 250,000-square-foot production studio campus in Los Angeles. The already-underway project, the adaptive reuse of a concrete and steel cold storage warehouse, will come online by the end of next year.

Such projects are also developing in New Jersey, as they benefit from a new tax incentive program introduced last year. In May, Togus Urban Renewal LLC secured a Film-Lease Partner Facility designation from The New Jersey Economic Development Authority for its $1 billion, 1.5 million-square-foot development in Bayonne, N.J. The first campus-style film and studio facility in the Northeast will be completed in 2026.

The post Warner Bros. Eyes Big Vegas Play appeared first on Commercial Property Executive.

In Henderson, Nev., some 16 miles southeast of Las Vegas, a joint venture is investing $30 million in redeveloping a former 100,000-square-foot, two-building office campus into an open-air retail center. And many could see this office-to-retail conversion as a bold move considering the retail industry has been facing its own set of challenges over the past decade. But the team behind the project is banking on local metrics and the fact that residents don’t have access to similar centers in the immediate area.

Together with Partners Capital and AO, CAST is working on The Cliff, an office-to-retail redevelopment project that will bring 25 new retail spaces to the market, ranging between 1,800 and 17,000 square feet, as well as a 26,000-square-foot covered outdoor dining lounge.

For specifics on The Cliff and the rise in adaptive reuse projects at large, Commercial Property Executive talked to Steve Neiger, managing broker at CAST. Along with its partners, the company acquired the two-building office property in 2023 for $17.2 million, aiming to completely remodel it and ultimately change the urban landscape in the city’s Green Valley neighborhood.

READ ALSO: Charting Luxury Retail’s Course in the New Economy

Tell us more about the feasibility of this office-to-retail conversion and how you came up with the idea.

Neiger: It started when we were touring the suburbs with a celebrity chef from the Strip, and there were very few good options in Henderson for a brand of his caliber. Green Valley Ranch is the most desirable commercial area in all of Henderson and was in desperate need of better retail. We saw these office buildings and said: What if?

We did some research on the property, assessed the viability of the game plan, current zoning of the property, and rules at the City of Henderson and realized we could make this happen.

Why will this new retail destination be known as The Cliff? What’s behind the name choice?

Neiger: The naming of The Cliff started as an inside joke. The CAST Nevada team was on the corner of the property, standing on top land elevated about 10 feet above St. Rose Parkway, admiring the view of the Strip and the great traffic counts. It felt like we were standing on a cliff, so one of us looked at Chris Clifford, one of the CAST partners, who we sometimes call ‘Clifford’ or ‘Cliffy,’ and said, ‘We should call it The Cliff.’ It was a joke at the time…but it stuck. After a few weeks of referring to the project as ‘The Cliff,’ we knew there was no going back.

What are some of the major changes that you need to make to the former office space to turn it into The Cliff?

Neiger: Utilities are one of the biggest changes to the property as we prepare for the arrival of numerous new restaurants. Conversion requires bringing gas to the property along with huge, incredibly expensive electricity upgrades. Not to mention we’re also changing every square inch of the exterior surface with far more exciting finishes. We have also been working closely with the municipality to create an Entertainment District overlay to ensure we can deliver the kind of product we want.

Considering all you know today about this building, what other parts of the office-to-retail conversion process do you expect to be difficult?

Neiger: We got relatively lucky with the municipality, zoning and the change of use of the property in this particular case. However, the utility situation is incredibly challenging because the landscape is constantly changing in terms of what’s available, where, and for how much, especially for electricity.

Additionally, business licensing in most municipalities is far behind the retail and food & beverage industry, and that has been no exception in Southern Nevada. We have several prospective tenants, and we’re working hard with the municipality to figure out how we can get them into our property because there’s just not a relevant license for their business type.

What will be the distinctive elements of The Cliff that will make this lifestyle retail center stand out?

Neiger: We’re incorporating several design aspects that haven’t been seen in suburban Southern Nevada. We’re installing an OLED reader board sign that is over 2,100 square feet in surface area. We’re doing a large shaded outdoor gathering space complete with a full outdoor bar and a stage. We’re also incorporating smaller format food and retail kiosks into the courtyard. All of these different elements allow us to bring an unprecedented level of common-area programming to our center, which is something the community hasn’t experienced before.

READ ALSO: NAREE Special Report—Why Conversion Isn’t CRE’s Magic Bullet

What are your thoughts on adaptive reuse becoming increasingly popular among developers?

Neiger: We encourage others to exercise caution when assuming that adaptive reuse presents a significantly lower cost compared to new construction. In reality, this is often not the case, particularly when extensive repurposing is involved. It’s also worth mentioning that there are environmental requirements with adaptive reuse and other similar conversion projects. For example, most municipalities are understandably quite strict about lead and asbestos testing and subsequent abatement when doing adaptive reuse. Structural issues can also be a considerable and often costly consideration when dealing with older buildings, even with simpler updates such as adding windows and doorways.

Finally, just because an adaptive-reuse idea makes sense in terms of market dynamics and economic viability doesn’t mean the community will get behind it. Changing the use of a property often opens up the project to more scrutiny from the general public. We’re seeing the rise of “NIMYBism”, which underscores the importance of carefully navigating stakeholder perspectives and considerations when undertaking property use transformations.

What are some of the key factors to consider in adaptive reuse for retail properties?

Neiger: Retail is a special animal. In our world, the key metrics are demographics, traffic counts, visibility of the property, and municipal considerations such as zoning. If all these factors come back with great numbers and green lights, then you’ve got a chance to do something great.

But you can’t forget about the property itself. It must be the right building with the right bones. Our buildings here in Southern Nevada could have been the same 100,000 square feet of office but stacked into four stories, and this project would have never worked. We find that retail above the ground floor is not as successful in most cases. With retail, we also need to consider building depth and ceiling clearance.

Finally, parking is a big one, and it is probably the reason you may never see an industrial park turned into a retail/restaurant adaptive-reuse project. We had another exciting prospect in California recently, but we couldn’t make it work because it was severely underparked, and parking garages just weren’t a viable option.

How do you expect the adaptive-reuse trend to evolve? Will we see more of these projects going forward?

Neiger: We anticipate seeing more of these projects moving forward, provided the local municipalities can keep up with the private sector and the way things are going. In the coming years, we expect to see more density in existing mature trade areas of U.S. cities, which means more opportunities for adaptive-reuse projects, especially with mixed-uses.

One conversion that has been discussed frequently since COVID-19 is turning office buildings into residential units. Developers all over the country have been trying to figure this out in their markets, but it’s a lot more expensive and a lot more difficult than folks give developers credit for. If you have an empty high-rise office building in your city and you keep wondering why they don’t just turn it into residential condos or apartments since we have somewhat of a housing supply issue right now…well, chances are somebody already thought of it, and tried, or is currently trying to make that work.

The post How an Old Nevada Office Park Is Getting a Retail Makeover appeared first on Commercial Property Executive.

Logic Commercial Real Estate brokered the transaction. Going further, the firm will also serve as the retail center’s exclusive leasing agent. The property was only 40 percent leased at the time of sale.

Aspen intends to rebrand and renovate the property, planning to demolish two buildings to create space for quick-serve drive-thru restaurants. The new owner allocated $7 million for renovations and tenant improvements, Principal Philip Proetto said in prepared remarks.

Completed in 1987, Renaissance III encompasses eight buildings on some 23 acres, according to CommercialEdge information. Its tenant roster includes a diverse mix of retailers such as Planet Fitness, America First Credit Union, Nevada Department of Health and Human Services, Panda Express, Meineke and Chaga Root, among others.

Located at 3300 E. Flamingo Road, in the Paradise-South Las Vegas submarket, the shopping center is in an area where the daily traffic count reaches 62,000 vehicles, according to Aspen. Renaissance III is within 2 miles from the University of Nevada-Las Vegas and serves approximately 465,000 residents and 182,541 households within a 5-mile radius.

Las Vegas’ shopping center investment

The shopping center investment sales were down in Las Vegas quarter-over-quarter and year-over-year, according to a Colliers first-quarter 2024 report. The metro recorded a sales volume of $31.8 million totaling 164,534 square feet at an average $193.38 per square foot in the first three months of the year.

Meanwhile, the vacancy rate dropped to 4.2 percent, down by 10 basis points over the quarter. In terms of supply, the metro saw 72,480 square feet of retail completions in Q1, marking the second consecutive quarter of inventory expansion.

The post Aspen Real Estate Buys Las Vegas Shopping Center out of Foreclosure appeared first on Commercial Property Executive.

The Roxborough Group, together with Bendetti, has closed on a $38.6 million recapitalization for Valley View Business Park, a 195,603-square-foot industrial campus in Las Vegas.

The deal also included the assumption of an existing $20 million loan with an interest rate below the current trends. American Equity Investment Life Insurance Co. originated the five-year note in 2022, according to CommercialEdge information.

Bendetti previously owned the five-building campus in partnership with RGA ReCap Inc. The joint venture had purchased the asset from Morrison Street Capital in 2014, in a $16.3 million deal, the same source shows.

The newly created partnership marks Roxborough’s second industrial investment in metro and its first through Roxborough Fund III LP, a $518 million investment vehicle focused on infill and value-add industrial properties.

A closer look at Valley View Business Park

Valley View Business Park consists of five one-story industrial buildings located at 3859-3871 S. Valley View Blvd. The facilities feature 16-foot clear heights, fire sprinklers, climate control systems, 47,874 square feet of retail spaces located in a freestanding building and a total of 396 car parking spots.

Completed in phases between 1979 and 1981, the properties have undergone significant renovations under Bendetti’s ownership. Improvements included new exterior facades and roofs, a standardized tenant signage program and upgraded landscaping.

READ ALSO: How to engage with tenants on building improvements

The multi-tenant industrial campus has units ranging from 539 square feet to 5,167 square feet, with the capability of hosting approximately 113 tenants. The roster features One Stop Shipping, Italcream, M & M Furniture Inc., Pinnacle Décor and others, according to CommercialEdge.

The 10-acre complex provides easy access to the Las Vegas Strip and the surrounding area via Interstate 15. The location is 4 miles from Harry Reid International Airport, 6 miles from downtown Las Vegas, 9 miles from North Las Vegas Airport and within 21 miles of Henderson, Nev.

The property is also 7 miles from Spanish Ridge Industrial Park, a 230,899-square-foot industrial campus that changed hands in February. EastGroup Properties acquired the three-building asset for nearly $55 million.

The post Roxborough, Bendetti Recapitalize Las Vegas Industrial Campus appeared first on Commercial Property Executive.

ICSC Las Vegas was held from May 19th to May 21st, 2024. Image by Fotios Tsarouhis

The doyens of the retail real estate world struck a sunny tone on the sidelines of ICSC Las Vegas this week, with several telling Commercial Property Executive that the sector is healthier than it has been in years.

“This is the first time people are saying ‘optimistic’ without putting ‘cautious’ in front of it,” Kristin Mueller, president of JLL’s Retail Property Business, told CPE.

Mike Sladich, regional managing director for the Commercial Investment Sales team in Northmarq’s Atlanta office, pronounced the sector “alive and well”, recalling that “retail, a few years ago, was kind of a bad word, and now it’s the belle of the ball again.”

“The retail fundamentals, in terms of retailer performance and retail real estate, could be at one of their best points in history,” said Daniel Taub, national director of Marcus & Millichap’s Retail Division and Net Lease Division. “You have now been experiencing 10-plus years of very little to no net new development; therefore, existing retail real estate has become more valuable, because there’s less new product. The consumer has continued to do what they do best: two-thirds of GDP is consumption.”

Sun Belt states continued to dominate discussions. “That’s where the population is, and we’re all about people,” said Mueller. “Retail follows rooftops.” However, she added that the demand for retail properties remains robust nationwide.

READ ALSO: Street Retail Surges Toward Full Recovery

“The Sun Belt is easy to sell because people are moving there, there’s just a lot of growth,” Sladich told CPE, who noted that retail is booming across the U.S. due to high demand and low unemployment.

Still, “occupancy and rent growth are amazing” in the Sun Belt, according to Ryan Ash, vice president of development at Vestar. The firm’s primary growth-focus markets are West Texas, California, Arizona, Utah and Colorado, with Vestar particularly focused on the Phoenix metro. “Arizona is the one where the population has exploded,” said Ash. “That’s really where we see growth right now.”

Education, health care and revitalization

Retail’s approach to anchor tenants and how to organize properties is evolving, with new assets incorporating all types of grocery, entertainment, education, health-care and life science uses.

“We’re becoming much more diverse through our leasing efforts,” said Mueller, whose firm has developed lifestyle centers with various kinds of anchor tenants, including athletic facilities.

As much as real estate is a business that follows major trends and money, new opportunities can often arise from the needs of downtown areas undergoing revitalization.

“What we love to do is go into underserved communities and bring in quality essential goods and services,” Cary Lefton, CEO of Agora Realty & Management, told CPE. North Las Vegas, Nev., home to several Agora projects, is exactly that kind of municipality. “We saw that there was a tremendous void in the northeast valley of this southern Nevada area.” Agora initially redeveloped a retail center in the city and eventually acquired property owned by the local government to develop further projects.

“Our tenants were doing three times the national average” at the initial property, said Lefton, “and we were thrilled that our tenants were doing so well, but the city was also thrilled that we turned around a blighted center and made it vibrant, and new and thriving.”

Agora’s public-private collaboration with North Las Vegas’ government allowed the firm to meet city needs, like more access to health care, employment and education, Lefton said. “They shared with us what they would like to see, and there was a lack of health care, there were still additional needs for essential goods and services.” The company is also partnering with a state university on a satellite campus in the area.

Among Agora’s North Las Vegas projects was a medical office building, representative of an asset class that has begun to play an increasingly prominent role in retail.

From community colleges to charter schools, educational institutions are becoming a focus for developers, said Mueller. And it’s the same for health-care assets.

“I think a trend across our portfolio is bringing in more health and wellness tenants,” Ash agreed.

Even prior to COVID-19, there had been a trend toward the opening of more urgent care centers. “We’ve seen that be wildly successful and almost every one of our properties now has an urgent care,” said Ash, noting that the advent of telemedicine and small-format general practices is influencing the trajectory of medial retail space.

In Newark, N.J., education is already a major part of life in a city where renewal efforts are drawing in younger residents and more entrepreneurs. Home to one of Rutgers University’s campuses, as well as the New Jersey Institute of Technology and Essex County College, Newark aims to help local residents open businesses even as it welcomes new investors, and many of the efforts are associated with the arts.

“We work very closely with the mayor and with the city hall to make sure that everybody, residents and business owners alike, are benefiting from all the investment and development that is happening,” said Marcus Randolph, CEO of Invest Newark. “We really honor the people that are already here, but we want you to join the community.”

New ground-floor retail has been an important part of the city’s retail landscape as more residential properties have come online. In turn, retail opportunities have emerged as parts of Newark have grown. “It’s a growing community, it’s going to need amenities and services,” said Randolph.

Staying location

“Retail has been as battle-tested as any asset class, between the creation of Amazon, the internet and e-commerce shopping, and COVID,” said Taub. “It has weathered and probably come out on the better side of all of those.

The past few years have ensured that physical retail spaces are here to stay, said Taub, even if they need to be reconfigured, something many stores have begun to do.

Sladich agreed, saying “people don’t want to be just completely sedentary and have everything delivered to them… there’s some stuff people want to go and touch and feel.”

Macro concerns

Concerns over monetary policy impacting investing remained a constant theme throughout the conference. “There’s still a lot of dry powder out there,” said Sladich. “There’s a lot of cash chasing deals. It’s definitely not a capital issue per se, it’s more of just a need to get financing.

“The investor demand, whether it’s private capital or institutional capital, is bountiful,” said Taub. “That’s not an issue in the equation.” However, the volatility in the capital markets remains a top factor in the number of transactions. “The volatility in the capital markets and the cost of capital have created an impasse on the bid-ask spread between sellers and buyers and sellers are loath to sell, because they’ve got a high performing asset class, there’s demand on the leasing side, they’re getting rent growth, properties are cash flowing.”

In the current climate, developers and property owners have been dealt the best hand, said Taub. High-performing assets mean that, in many instances, owners do not need to sell. However, demand for quality retail assets remains high.

“Sellers are not in a situation, for the most part, where there’s a force behind them that is making them have to become a seller,” said Taub. “They’re deciding in many instances to be a seller if they can achieve a certain amount of pricing. The good thing is that there’s plenty of capital from the demand side that wants to invest in retail because of the long-term sustainability that we’ve been witnessing.”

The post ICSC Special Report: Retail’s the ‘Belle of the Ball’ Again appeared first on Commercial Property Executive.

Lincoln Property Co. has signed two preleasing deals totaling 561,742 square feet at Windsor Commerce Park, an under-construction Class A industrial campus in Las Vegas. The project will total 1.6 million square feet, of which more than 35 percent is now leased.

CBRE’s team of Vice Chairmen Kevin Higgins and Garrett Toft, together with Senior Vice President Jake Higgins and Associate Kelsey Higgins represented the landlord during leasing negotiations and serve as the exclusive leasing agents marketing Windsor Commerce Park.

This is Lincoln Property Co.’s first ground-up industrial project in Nevada. LPC Desert West, the company’s Southwest division, broke ground on Windsor Commerce Park in April last year. The developer purchased the site in August 2022 for $22 million, with R&O Construction tapped as general contractor and Lee & Sakahara Architects as designer.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

Windsor Commerce Park will encompass eight buildings, all currently underway, with delivery scheduled for the first quarter of next year. These will range in sizes from 49,920 to 397,440 square feet and will include clear heights between 30 to 36 feet, rear loading and cross dock configurations, ESFR sprinkler systems and large clerestory windows.

With this deal, Windsor Commerce Park’s largest facility is now 100 percent preleased to a major HVAC supplier. The 397,440-square-foot Building G is at 2300 W. Carey Avenue and includes a 3,344-square-foot office component, amble column spacing, 60-foot speed bays, 90 dock high doors, four drive-in doors, 250 vehicle parking spots and 68 trailer parking spots.

The 296,400-square-foot Building A is now 55 percent preleased to a global e-commerce shipping company. The facility is at 2750 Simmons St. and features 2,951 square feet of office space, 49 dock high doors, four drive-in doors, 282 vehicle parking spots and 23 trailer parking spots. Illinois-based OSM Worldwide is the tenant here, set to occupy 164,320 square feet, according to CommercialEdge data.

Windsor Commerce Park is on 87 acres next to North Las Vegas Airport, 10 miles from Harry Reid International Airport, 20 miles from Henderson, Nev. and within 36 miles of Boulder City, Nev. Additionally, Windsor Commerce Park provides access to U.S. Route 95, as well as to interstates 15 and 515, while being within a five-hour drive of Ports of Los Angeles and Long Beach and within a seven-hour drive from Reno, Nev.

Lincoln Property Co.’s megaprojects

Lincoln Property Co. delivered one of the largest industrial projects to come online last year in the western region. The company’s LPC Desert West completed the second phase of Park303, adding approximately 2.5 million square feet of industrial space to the Glendale, Ariz. market. With the completion of the second phase Park303 now totals 3.7 million square feet.

In October last year, the company broke ground on a $515 million industrial project in the same area. Dubbed Luke Field, the industrial development is set to encompass 2.4 million square feet, with delivery scheduled for late 2024.

The post Lincoln Property Co. Preleases 562 KSF in Las Vegas appeared first on Commercial Property Executive.

A joint venture between CapRock Partners and Ares Management Corp. funds has sold Spanish Ridge Industrial Park, a 230,889-square-foot industrial campus in Las Vegas. EastGroup Properties acquired the asset for $54.8 million, public records show. Newmark and JLL represented the seller.

Last year, the partnership sold CapRock Tropical Logistics Phase II, a Class A industrial complex totaling 442,780 square feet in North Las Vegas, Nev. Stockbridge Capital Group paid $87 million for the three-building asset.

Spanish Ridge Industrial Park, up close

The developer completed the three-building property last year, financing its construction with two loans originated by Farmers and Merchants Bank totaling $20.8 million, according to CommercialEdge data.

Measuring 21,988 square feet, 75,836 square feet and 133,075 square feet, the buildings feature a combined 50 dock-high loading doors, 11 drive-in doors and five office spaces. Additionally, the warehouses have 24- to 30-foot clear heights, ESFR sprinklers and 128- to 180-foot truck courts. The facilities were fully leased at the time of sale to five tenants.

The warehouses are adjacent to each other at 8875 W. Hacienda Ave. and 5425 and 5365 S. Riley St., some 12 miles from Harry Reid International Airport and 21 miles from downtown Las Vegas.

Newmark Executive Managing Directors Andrew Briner and Bret Hardy represented the seller, along with JLL Managing Directors Rob Lujan and Jason Simon.

CapRock’s recent industrial expansion

CapRock Partners has more than 35 million square feet of acquired and developed industrial facilities. In August, the firm started work on a 1.3 million-square-foot development within CapRock Central Point in Visalia, Calif. At full buildout, the four-building development will comprise 2.7 million square feet.

A few months earlier, the company completed the construction of two properties in Norco, Calif., amounting to approximately 1.1 million square feet. Palomino Ranch Business Park’s first phase comprises eight buildings, while Saddle Ranch South encompasses three warehouses.

The post CapRock, Ares Sell Las Vegas Industrial Campus appeared first on Commercial Property Executive.

The Las Vegas Valley Water District has completed its $21.3 million purchase of Meadowview Corporate Center, a 166,409-square-foot office building in Las Vegas. The Class B asset’s previous owner was J.A. Tiberti Construction, according to CommercialEdge information.

The Las Vegas office of Cushman & Wakefield’s Private Capital Group represented the seller. Brokers included Executive Director Marlene Fujita Winkel, alongside Senior Associates Emily Brun and Cody Seager.

What are the buyer’s plans?

Located at 330 S. Valley View Blvd., in an Opportunity Zone, Meadowview Corporate Center came online in 1983. Rising two stories on a 10-acre parcel, the building includes an open atrium, controlled access doorways, fiber optics and ethernet cabling, as well as a backup generator. The property is 3 miles west of downtown Las Vegas and roughly 4 miles north of The Strip.

READ ALSO: Office Trends in 2024: How Much Will the Sector Change?

Fully vacant at the time of sale, Meadowview Corporate Center previously hosted offices and communications infrastructure used by Sprint, the Las Vegas Review-Journal reported. The LVVWD’s plans for the site are unknown, but the same article speculates that the site will either be used to house communications operations or may be demolished to allow for the digging of new groundwater wells. The company owns more than 250 acres of property further south along Valley View Boulevard, where its headquarters are.

Suburban successes

Las Vegas’ office market remains stable, with a vacancy rate of 10.9 percent and 102,505 square feet of year-to-date net absorption as of October 2023, according to a report from CBRE. Meanwhile, sales amounted to some $406 million, at an average $267 per square foot.

Class B properties in suburban markets accounted for roughly 60 percent of the metro’s leasing activity, with more than 1.3 million square feet coming under occupancy over the same period. Health services, software and utility companies had the largest share of leases.

Early in 2023, Barton Associates committed to 45,257 square feet at The Boulevard Mall, a 1.2 million-square-foot mixed-use property. The space can accommodate up to 360 employees.

The post Vegas Water Agency Picks Up Office Building appeared first on Commercial Property Executive.

BLVD will be the largest standalone retail destination on The Strip. Image courtesy of JLL

Gindi Capital and partner CHERNG Family Trust have topped out BLVD, a 400,000-square-foot retail center in Las Vegas.

The developer acquired the 9.5-acre site in 2019 for $172 million, with the help of a $97 million loan provided by JPMorgan Chase. At the time of the sale, the lot comprised several existing buildings and a closed Hawaiian Marketplace.

BWA Architects, 5+design and 3 Egg Studio provided architectural services for the project, while PENTA Building Corp. serves as general contractor. The three-story building is set to have approximately 700 feet of street frontage and include a 110,000-square-foot terrace. The largest standalone retail destination on The Strip is slated for completion by August 2024.

READ ALSO: Why Prime Urban Retail Corridors Are Thriving

Gindi also announced BLVD’s first three tenants, which signed leases totaling 65,000 square feet. Adidas committed to 25,000 square feet at the property, while H&M and Puma will occupy 20,000 square feet each.

JLL’s Vice Chairman Michael Hirschfeld leads the leasing efforts at BLVD. In prepared statements, Hirschfeld said that the partnership continues to seek premier brands for the retail destination, which will benefit from millions of new and unique consumers each year.

A future sought-after retail destination

Located at 3743-3759 Las Vegas Blvd., in the heart of The Strip, the property is close to Interstate 15, which provides easy access across the Las Vegas metropolitan area. Harry Reid International Airport and an abundance of entertainment venues and hotels are within a 3-mile radius of the retail destination.

Retail activity in Las Vegas continues to exceed last year’s figures, according to a recent Marcus & Millichap report. Some 700,000 square feet are expected to enter the metro’s inventory by the end of the year, marking a 0.7 percent stock expansion year-over-year.

The post Las Vegas Shopping Center Tops Out appeared first on Commercial Property Executive.

Completed in 2013, Decatur 215 comprises eight buildings on a 16.2-acre site. Image courtesy of Brixton Capital

Brixton Capital has sold Decatur 215, a 126,678-square-foot shopping center in Las Vegas. A private investor purchased the asset in a 1031 exchange for $36.3 million, according to CommercialEdge data. Lucescu Realty brokered the transaction, working on behalf of the buyer.

Brixton acquired Decatur 215 five years ago from Kimco Realty for $28.6 million, the same source shows. After the purchase, Brixton repaved and restriped the parking areas.

Completed in 2013, the retail center comprises eight buildings on a 16.2-acre site. Fully leased at the time of the sale, Decatur 215 has a diverse mix of national and regional tenants such as Petco, Hobby Lobby, ULTA Beauty, Sprouts Farmer’s Market, Sleep Number and Blaze Pizza.

Located on the southeast corner of N. Decatur Boulevard and W. Tropical Parkway, the property is in The Springs neighborhood. Decatur 215 is also near Route 95, which provides direct access to downtown Las Vegas.

Brixton Capital recently purchased a 143,217-square-foot retail center in Stockton, Calif. Hanley Investment Group arranged the off-market transaction on behalf of the seller, CORE Commercial.

Despite numerous challenges, Las Vegas’ retail sector has shown signs of resilience. According to a recent Marcus & Millichap report, the metro had a 3.0 percent population growth between 2021 and the first quarter of the year, resulting in the creation of almost 50,000 new households. Jobs in the sector also grew, with the metro’s retail trade headcount rising by 3,500 roles in the first five months of 2023.

The post Brixton Capital Sells Las Vegas Shopping Center for $36M appeared first on Commercial Property Executive.

Craig Road Logistics Center is the company’s third project in Las Vegas. Image courtesy of The Rockefeller Group

The Rockefeller Group has acquired the site of a former Walmart Supercenter in Las Vegas to develop two speculative industrial buildings spanning 369,198 square feet. The project is named Craig Road Logistics Center and is the company’s third industrial development in the metro.

The largest building at Craig Road Logistics Center will comprise 227,660 square feet and include 36-foot clear heights, along with 176 auto-parking stalls and 29 dock doors. The second one is set to total 141,538 square feet with 32-foot clear heights, 219 auto-parking stalls and 18 dock doors.

Located at the intersection of Craig Road and North Nellis Boulevard, the 19-acre site is close to Interstate 15 and roughly 7 miles from downtown Las Vegas. It is 20 miles from Harry Reid International Airport, as well as some 5 miles from the Las Vegas Intermodal Yard. It is also less than 3 miles away from Cheyenne Industrial Park, a 145,630-square-foot project being developed by Rockefeller Group on North Lamb Boulevard.

Vacancy and absorption remained strong in Q2

Lee & Sakahara Architects will design the building and TWC Construction will serve as general contractor. JLL’s Managing Director Jason Simon and Vice President Rob Lujan will be the project’s listing brokers.

Rockefeller Group Senior Associate James Wall mentioned in prepared remarks that the company’s expansion in Las Vegas is driven by the tenant interest in its previous projects in the metro. Wall also added that at the end of 2023’s second quarter Las Vegas registered 1.6 percent vacancy and a net absorption of approximately 3.1 million square feet, further emphasizing the metro’s robust industrial market.

The post Rockefeller Group Eyes Spec Project in Vegas appeared first on Commercial Property Executive.

The McGarey Group is the exclusive retail leasing advisor for Origin at Symphony Park in downtown Las Vegas. Image courtesy of The McGarey Group

The McGarey Group has been selected as the exclusive retail leasing advisor for Red Ridge Development’s downtown Las Vegas project. In partnership with Paragon Commercial Group, the company will lease the more than 100,000 square feet of retail space at the mixed-use Origin at Symphony Park community.

The master-planned development is situated on an approximately 6-acre site and is set to feature office and retail space along with a 32-story residential building and another mid-rise apartment community. The project will also include restaurants, cafes, an urban market and outdoor space.

Origin is set to be the first walkable community in Las Vegas, an area with a notoriously low walkability scale. Located in an opportunity zone, the project is situated at 93 South City Parkway, CommercialEdge data shows.

READ ALSO: The Big City Rebound and Its CRE Implications

Future tenants and residents of the Origin at Symphony Park are in proximity to other retail and dining opportunities, as well as entertainment in downtown Las Vegas and the nearby Arts District neighborhood.

The Cello Tower, featuring the luxury apartment units, will feature 240 homes. It is designed by Perkins Eastman. Interiors are designed by One Line Design Studio. Origin at Symphony Park is scheduled for completion in 2026.

The McGarey Group was acquired by Divaris Real Estate as part of a merger deal announced by both companies in March. Operating as a division of Divaris Real Estate, the McGarey Group team continues to operate under new leadership.

The post Leaning Into Walkability, Vegas Project Taps Retail Agent appeared first on Commercial Property Executive.

CapRock Tropical Logistics Phase II. Image courtesy of Ares Management Corp.

A joint venture between Ares Management Corp. and CapRock Partners has sold CapRock Tropical Logistics Phase II, a Class A industrial complex totaling 442,780 square feet in North Las Vegas, Nev. The buyer of the recently completed asset was Stockbridge Capital Group, which paid $87 million for the three-building campus, according to CommercialEdge data. Cushman & Wakefield, together with JLL, negotiated on behalf of the seller.

The fully leased asset represents the second phase of a 1.5 million-square-foot logistics campus. Phase I, a two-building, 1.1 million-square-foot Class A property situated on 85 acres, sold in 2022.

READ ALSO: Expanding Into Industrial: Diversifying for Long-Term Success

Located at 6325, 6215 and 6185 N. Beesley Drive, CapRock Tropical Logistics Phase II comprises three single-tenant facilities ranging from 91,591 to 249,085 square feet. Features include 32-foot clear heights, concrete truck courts, a total of 62 dock-high doors and six grade-level doors, ESFR sprinkler systems and an office component totaling 10,969 square feet of space.

Providing direct access to Interstate 15, the 22-acre property is 11 miles from downtown Las Vegas, 13 miles from North Las Vegas Airport and within 27 miles from Henderson, Nev. Industrial users in the area include Amazon, Sephora and Niagara Bottling, among others.

Recent industrial developments in Las Vegas

There are multiple industrial projects currently underway in the Las Vegas market. The metro’s development pipeline amounted to nearly 10.5 million square feet as of June, CommercialEdge data shows.

In April, Lincoln Property Co. commenced construction on a 1.6 million-square-foot campus in North Las Vegas, with completion estimated in the third quarter of 2024. The project marks the company’s first ground-up industrial endeavor in Nevada.

In January, DIV Industrial acquired a 94-acre lot in the El Dorado Valley for the development of a 1.7 million-square-foot industrial campus in Henderson, Nev. Groundbreaking is expected this summer.

The post Stockbridge Capital Pays $87M for Las Vegas Industrial Campus appeared first on Commercial Property Executive.

Cheyenne Industrial Park. Image courtesy of Rockefeller Group

The Rockefeller Group plans to develop its second Las Vegas industrial project: Cheyenne Industrial Park, a two-building campus that will encompass 145,630 square feet. The company purchased the 7-acre site for $8.5 million and construction is expected to begin by the end of this year.

The development team will include HPA Architecture as designer and Martin Harris Construction as general contractor, while Kimley-Horn will serve as civil engineer. JLL’s Senior Vice Presidents of Logistics and Industrial Services Jason Simon and Rob Lujan are the appointed leasing brokers.

READ ALSO: Will CRE Construction Hold Steady in 2023?

Cheyenne Industrial Park will come online at 3102 N. Lamb Blvd. and is set include two facilities of 104,400 and 41,190 square feet. The property was designed to feature 32-foot clear heights, 135-foot truck courts and a total of 173 vehicle parking spaces.

Close to interstates 15 and 515, the development site is 4 miles from Las Vegas Intermodal Terminal, 5 miles from downtown Las Vegas and 12 miles from Harry Reid International Airport. The location is also within 2 miles of Rockefeller Group’s first Las Vegas project, the 134,100-square-foot Nellis Logistics Center, slated for completion in the first quarter of 2024.

Recent Las Vegas industrial developments

There are multiple industrial projects underway in the Las Vegas area. In April, Lincoln Property Co. broke ground on its first ground-up development in Nevada, a 1.6 million-square-foot campus in North Las Vegas. The eight-building complex will come online in late 2024.

In March, CapRock Partners delivered two industrial projects in the Sin City: Tropical Logistics Phase II, a three-building campus totaling 442,780 square feet, and Spanish Ridge Industrial Park, a 230,899-square-foot, three-building property. JLL is providing leasing and brokerage services for both assets.

The post Rockefeller Group to Build 2nd Las Vegas Industrial Project appeared first on Commercial Property Executive.

BLVD rendering. Image courtesy of 5+design

Gindi Capital has started construction on BLVD, a retail development on the Las Vegas Strip. The 9.5-acre site, which incorporates several existing buildings, and a closed Hawaiian Marketplace, was purchased in 2019 for $172 million. The sale involved a $97 million loan from JPMorgan Chase, according to CommercialEdge. Architectural services are provided by 5+design and 3 Egg Studio, along with BWA Architects.

The property is slated to comprise 400,000 square feet of retail space and have 700 feet of street frontage. It will also include a 110,000-square-foot terrace meant for events. Plans aim for a diverse range of indoor and outdoor tenants to offer shopping and entertainment options. The two-story building will rise 54 feet.

Located at 3743-3759 Las Vegas Boulevard, the property will be in the heart of the Strip. It will also be close to Interstate 15, roughly 7 miles south of the metro’s downtown.

Although the retail market has slowed down significantly, it has mostly stayed resilient in spite of economic uncertainty and rising interest rates. Nationwide, the first quarter of 2023 represented the 10th consecutive one for positive absorption for the asset type, according to CBRE. Development, however, nearly ground to a halt. Deliveries in the first quarter registered a record low of 5.1 million square feet across the whole U.S., the same source shows.

The post 400 KSF Retail Center Coming to Las Vegas Strip appeared first on Commercial Property Executive.

Skyline Industrial Portfolio. Image courtesy of Colliers

Link Logistics has acquired the Skyline Industrial Portfolio, a six-building assemblage totaling 350,712 square feet and 18.4 acres, in the southwest submarket of Las Vegas. Colliers represented the undisclosed private seller. The transaction was valued around $80 million.

Skyline’s six buildings are at:

• 3555 Ponderosa Way (69,144 square feet)
• 6065 S. Polaris Ave. (162,860 square feet)
• 5435 Procyon St. (39,992 square feet)
• 5440 Procyon St. (39,916 square feet)
• 5480 Procyon St. (23,800 square feet)
• 3950 W. Oquendo Road (15,000 square feet)

The portfolio is fully leased to a diversified rent roll of 14 tenants from various employment sectors, according to Colliers.

READ ALSO: Will CRE Conditions Become More Challenging?

Colliers’ Western Region Industrial Capital Markets Group, consisting of Michael Kendall, Gian Bruno and Kenny Patricia, partnered with Colliers’ Las Vegas market experts Dan Doherty, Paul Sweetland, Chris Lane and Jerry Doty in marketing the portfolio.

The Las Vegas industrial market continues to boast solid fundamentals and strong demand, said J.R. Cisneros, vice president of investments for the Las Vegas market at Link Logistics, in a prepared statement. He added that acquiring this portfolio fits with Link’s “market investment strategy of adding high-quality infill properties to our Las Vegas footprint.”

Active everywhere

The Las Vegas industrial space market is tight, at 4.2 percent overall—and just a super-tight 0.7 percent for Class A space—according to a first-quarter report from JLL.

Net absorption in the first quarter was nearly 1.4 million square feet, on an inventory of 111.8 million square feet. A record 12.9 million square feet of space is currently under construction; better yet, 38 percent of that is preleased.

Meanwhile, Link has been active all across the country recently.

In January, it sold a seven-building, 376,218-square-foot industrial portfolio in suburban Minneapolis–St. Paul to Biynah Industrial Partners. JLL Capital Markets represented the seller and arranged an acquisition loan.

In March, Link landed GXO Logistics as a full-building tenant for a 611,000-square-foot warehouse in South Brunswick, N.J. Link will renovate the property, built in 1989, before GXO takes occupancy.

And in a $263 million deal just last month, Link sold a seven-property, 851,131-square-foot industrial portfolio in Orange County and Los Angeles County, Calif., to a joint venture of George Urban Advisors, Five Horizons Partners and DRA Advisors.

The post Link Logistics Pays $80M for Las Vegas Industrial Portfolio appeared first on Commercial Property Executive.

Windsor Commerce Park groundbreaking ceremony. Image courtesy of LPC Desert West

Lincoln Property Co.’s Southwest division LPC Desert West, has broken ground on Windsor Commerce Park, a 1.6 million-square-foot industrial campus in North Las Vegas.

LPC purchased the site in August 2022 for the construction of its first ground-up industrial project in Nevada, for which the company paid $22 million, Clark County records show. The campus will come online in the third quarter of 2024.

The project, which encompasses eight buildings across an 86-acre site, has been designed by Lee & Sakahara Architects. R&O Construction will serve as general contractor.

READ ALSO: Will CRE Construction Hold Steady in 2023?

Upon completion, the Class A buildings in Windsor Commerce Park will range between 49, 920 square feet and 397,440 square feet and will feature 36-foot clear heights, 24-foot-tall glass entries and touchless technology. The property will also include speculative office suites. Vice Chairmen Kevin Higgins and Garrett Toft, Senior Vice President Jake Higgins, alongside Associate Kelsey Higgins with CBRE will handle leasing efforts for the property.

The site is located at 2898 W. Carey Ave., less than 5 miles from downtown Las Vegas and has access to State Route 95. The industrial park will be situated 2 miles from the North Las Vegas Airport. The surrounding area includes companies such as US Foods, PFS Distribution Center, GT Ventures and FedEx, among others.

Windsor Commerce Park will expand Lincoln Property’s existing 4.5 million-square-foot industrial portfolio in Nevada. Earlier this year, the company also broke ground on a project in Arizona. Goodyear AirPark will encompass a total of 7 million square feet.

Industrial development in Las Vegas

CommercialEdge data shows that Las Vegas had 33 industrial properties under construction as of April, totaling 9.2 million square feet, and 52 projects in the planning and prospective stages, set to add approximately 18.5 million square feet to the existing inventory.

Earlier this year, DIV Industrial announced plans to develop EL Dorado Valley Logistics Center, a 1.7 million-square-foot industrial campus in Henderson, Nev. Last month CapRock Partners completed two warehouse and distribution facilities in Las Vegas.

The post Lincoln Property Breaks Ground on 1.6 MSF Las Vegas Project appeared first on Commercial Property Executive.

Tropical Logistics Phase II. Image courtesy of CapRock Partners

CapRock Partners has completed the construction of two Class A warehouse and distribution facilities in Las Vegas. Tropical Logistics Phase II and Spanish Ridge Industrial Park are located at 6185-6325 N. Beesley Drive and 5425-5365 S. Riley St., respectively.

At present, Tropical Logistics Phase II is fully leased, with tenants moving to occupy the park’s buildings in the first quarter of this year. Spanish Ridge Park is partially leased, with tenants moving in during the second quarter. JLL is providing leasing and brokerage services for both properties and is actively marketing the remainder of the space at Spanish Ridge Park.

Taylor Arnett, first vice president of acquisitions at CapRock, detailed the strength of the projects’ locations to Commercial Property Executive, particularly their placement within their respective submarkets. “Both projects are meeting their respective submarket demands with Tropical catering to tenants requiring 100,000-250,000 square feet of warehouse space in North Las Vegas and Spanish Ridge generally catering to tenants requiring 20,000-100,000 square feet in the Southwest Submarket,” Arnett said.

In-depth property profiles

Tropical Logistics Phase II was built in 2022 over 21.9 acres and spans three single-tenant industrial facilities totaling 442,780 square feet. The complex is the second phase of CapRock’s Tropical Logistics industrial park. The first phase, completed in the second quarter of 2022, totals two buildings that host 1.1 million square feet, built over 85 acres, according to CommercialEdge information.

READ ALSO: 2023 Net Lease Industrial Sales and Cap Rates

The three buildings in Tropical Logistics Phase II each feature 32-foot clear heights, 185- to 202-foot concrete truck courts, ESFR sprinkler systems and mechanical loading doors with dock levelers and bumpers. Located within a 1.6-mile gap between Interstate 15 and State Route 604, the facility has quick trucking access to much of Las Vegas and is within a day’s drive of the Western U.S.’ largest industrial markets. The three facilities include:

• A 91,591-square-foot warehousing and distribution facility located at 6185 N. Beesley Drive
• 6215 N. Beesley Drive, a 102,104-square-foot distribution facility that is built over 4.5 acres, according to CommercialEdge information
• 6325 N. Beesley Drive, a 249,052-square-foot property that directly faces Interstate 15

Spanish Ridge Industrial Park. Image courtesy of CapRock Partners

Spanish Ridge Industrial Park was built over 12.95 acres and comprises three single- and multi-tenant buildings totaling 21,988 square feet, 75,836 square feet and 133,075 square feet. The assets feature 24- to 30-foot clear heights, alongside 50 total dock-high loading doors and 11 grade-level doors. Additionally, the park includes five speculative office spaces totaling 2,000 square feet. Located in the western portion of the city’s Spring Valley neighborhood, the complex is within 2 miles of State Route 215. Access to Interstate 15, which passes directly through Las Vegas, is within 5.5 miles from the property.

JLL Senior Vice Presidents Rob Lujan and Xavier Wasiak, together with Vice President Jason Simon, represented CapRock in the leasing of both complexes, and currently serve as their agents.

Western industrial endeavors

The delivery of Tropical Logistics Park Phase II and Spanish Ridge Industrial Park takes place as the developer and owner increases its industrial presence in the Western U.S. With a significant portfolio, CapRock is one of the most active developers and investors of its kind in the region.

Earlier this month, the firm purchased a 130,800-square-foot industrial building in Phoenix for $11.9 million. In April of 2022, CapRock broke ground on Palomino Ranch, a 2 million-square-foot speculative warehouse project in the Inland Empire that will span 24 buildings across 112 acres.

The post CapRock Delivers Las Vegas Industrial Parks appeared first on Commercial Property Executive.

Valley View Business Center IV. Image courtesy of BKM Capital Partners

BKM Capital Partners has expanded its Las Vegas footprint by 740,000 square feet in one fell swoop with the acquisition of a seven-property light industrial portfolio.

Acting in partnership with an affiliate of Investcorp, BKM purchased the assets from Terry York Properties in an off-market transaction valued at a total of approximately $157.8 million, according to the Clark County Recorder’s Office.

Boasting coveted locations in the city’s Southwest submarket, the group of small-bay properties is close to the Las Vegas Strip and between 5 and 7 miles of the Harry Reid International Airport. The collection consists of 21 buildings spanning four locations, including the 481,100-square-foot Valley View Business Center I-IV, the 140,600-square-foot Decatur Crossing II, the 71,300-square-foot Sunset Business Center and Gateway Business Center, the smallest of the group at 46,900 square feet. With 240 tenants in place, the portfolio was 98 percent leased at the time of sale.

READ ALSO: How CRE Capital Flows Now

BKM will take on the role of operating partner, and as part of its investment strategy, the industrial real estate-focused institutional fund manager will add value to the assets via strategic capital improvements that will include interior-unit sizing, new HVAC units and cosmetic upgrades.

With the closing of the transaction, BKM’s presence in metropolitan Las Vegas exceeds 2.3 million square feet. In 2019, the company made a major play in the market with the $111.3 million acquisition of Pacific Business Center, an approximately 900,000-square-foot complex in neighboring Henderson.

Best buy

Las Vegas industrial properties are highly coveted among investors in the current climate. The metro recorded a total vacancy rate of just 1.9 percent in the fourth quarter of 2022, marking a record low, according to a report by Avison Young. Demand for space is robust, and rental rates continue on the upswing, having increased nine consecutive years to an average of $12.17 in 2022. The investment community is more than a little keen on the Las Vegas market, and the rising sales figures tell the story.

“Las Vegas’s quality industrial real estate continues its long-term upward trend in value. This is evidenced by the fact that the average price per square foot on completed transactions has increased year-over-year for eight consecutive years,” according to the Avison Young report. The Las Vegas industrial sector logged a record-setting average price of $203.26 per square foot in 2022.

The post BKM, Investcorp Close $158M Industrial Deal appeared first on Commercial Property Executive.

Pecos Plaza. Image courtesy of CommercialEdge

Woodside Health has acquired Pecos Plaza, a 124,000-square-foot medical office campus in Henderson, Nev. MIG Real Estate sold the asset for $26.7 million and the facility was subject to an acquisition loan of $20.6 million provided by Independent Bank, Clark County records show. With this purchase, Woodside Health exceeded $1 billion in transaction volume.

The property last traded in 2014, when the previous owner bought the campus from Wells Fargo Bank for $17.5 million, as part of an REO sale, according to CommercialEdge data.

Pecos Plaza came online in 2006 and encompasses eight one- and two-story buildings spread across 7.6 acres. The Class B medical campus offers controlled access and parking at a ratio of 4.2 spaces per 1,000 square feet. The assets are 90 percent occupied, with the tenant roster including Belle Medical, Las Vegas Urology, Serenity Dental and Innovative Pain Care Center, among others.

The property is located at 9005-9089 S. Pecos Road, 6.9 miles from downtown Henderson, 18.3 miles from Las Vegas, and has access to Interstate 215. Other medical facilities in the surrounding area include ER at Green Valley Ranch, Southwest Medical Heights Urgent Care and Dignity Health Rehabilitation Hospital.

Recent Woodside Health deals

Founded in 2008, Woodside Health owns more than 2.5 million square feet of health-care assets. The current purchase marks the company’s 48th acquisition. The firm previously made investments in the medical office sector in Arizona, Florida, Georgia, Nevada, Ohio and Texas.

Earlier this year, Woodside Health recapitalized a 10-property, 423,000-square-foot medical office portfolio spanning four states, in a transaction valued at $140 million. Last year in June, the company acquired Optum Center, an 81,907-square-foot medical office building in Phoenix anchored by UnitedHealthcare. Talia Jevan Properties Inc. sold the asset for $20 million.

The post Woodside Pays $27M for Las Vegas-Area MOB appeared first on Commercial Property Executive.

The Boulevard Mall. Image courtesy of Avison Young

Barton Associates, together with its subsidiary, Barton Healthcare Staffing, has signed a 45,257-square-foot office lease at The Boulevard Mall, a 1.2 million-square-foot mixed-use property in Las Vegas. Avison Young Principals John Dolan and Scott Donaghe negotiated on behalf of the tenant.

Barton Associates will occupy the entire first floor starting in June. The space can accommodate up to 360 employees, and is planned to support the company’s local healthcare operations and support any potential expansions, added Dolan in prepared statements.

Barton plans to consolidate its existing footprint into the new space—it currently has another office in The Boulevard Mall, as well as an additional one at 2500 N. Buffalo Drive.

The building is located at 3634 S. Maryland Parkway. The property is also home to companies such as UEI College, Teletech and Metro PCS, among others. Situated on a 56-acre lot, the asset is close to University District and interstates 515 and 15, 3.5 miles from downtown Las Vegas, 3.7 miles from Harry Reid International Airport and within some 13 miles of Barton Associates’ Summerlin office.

Earlier this year, Avison Young was appointed by Grosvenor to provide leasing services for some of its assets. The brokerage company is in charge of a four-building office portfolio in San Francisco and is aiming to bring small to medium size companies from the finance, architecture or engineering sectors.

The post Avison Young Brokers 45 KSF Las Vegas Office Lease appeared first on Commercial Property Executive.

Image by Adrian Sulyok via Unsplash.com

InProduction, a provider of luxury seating and scenic production in the U.S. events industry, has signed a full-building, long-term preleasing agreement at Lincoln Commerce Center, a new Class A industrial facility in Las Vegas. Cushman & Wakefield negotiated on behalf of the tenant, while CBRE represented the landlord, EBS Realty Partners. The company expects to occupy the 102,168-square-foot building in the following few weeks, with the property in its final stages of development.

Situated on a nearly 5-acre lot within the North Las Vegas submarket, the project is 5 miles from downtown Las Vegas, 8 miles from North Las Vegas Airport and is offering easy access to interstates 15, 515 and 215.

Located at 2970 Lincoln Road, the property will feature 32-foot clear heights, dock and grade level loading, a two-story office space and ESFR sprinkler systems.

A Cushman & Wakefield team formed of Directors Jason Griffis and Alma Cuevas worked on behalf of InProduction, while CBRE Senior Vice President Sean Zaher brokered the transaction on behalf of the developer.

Las Vegas industrial continues to grow

According to a recent Avison Young Las Vegas industrial report, the market’s asking rent continued to climb in the last quarter of 2022, setting a record of $12.17 per square foot, while the year ended with an average vacancy rate of 1.9 percent, the lowest value that Las Vegas industrial has seen. Development activity also increased in 2022, with development up 45.1 percent and 6.4 million square feet delivered, the market’s construction activity is projected to double in 2023.

Another industrial project is making progress in the area: In October 2022, Trammell Crow Co. and Washington Capital Management started construction on Phase III of Golden Triangle Logistics Center, a 135-acre development in Las Vegas, while JLL Capital Markets secured a tenant at one of the project’s buildings. Earlier this month, DIV Industrial announced plans to develop a 1.7 million-square-foot logistics center in Henderson, Nev., marking its first big development.

The post Cushman Brokers Full-Building Lease in Las Vegas appeared first on Commercial Property Executive.

El Dorado Valley Logistics Center. Image courtesy of DIV Industrial

DIV Industrial plans to develop El Dorado Valley Logistics Center, a 1.7 million-square-foot industrial campus in Henderson, Nev. The newly formed investor and developer recently acquired the 94-acre lot in the El Dorado Valley, with the assistance of Cushman & Wakefield.

DIV intends to break ground this summer on the project that represents its first big development and, at the same time, the largest industrial campus to be constructed in Henderson. HPA Architecture is the project’s architect and Kimley-Horn will serve as civil engineer.

READ ALSO: Frank Crivello on What’s Next for Industrial Real Estate

El Dorado Valley Logistics Center will be a LEED-certified property aiming for the highest efficiency specifications in the industry. Upon completion, the industrial campus will comprise two buildings ranging from 600,000 to 1 million square feet, featuring 42-foot clear heights and ESFR sprinkler systems.

Recently annexed to the City of Henderson, the development site is at the intersection of Roger Ray Road and Highway 95, close to interstates 11, 15 and 215. Downtown Las Vegas is some 24 miles northwest.

Cushman & Wakefield Executive Managing Directors Donna Alderson and Greg Tassi worked on behalf of the developer in the land acquisition.

Las Vegas’ industrial market

Nicholas Ilagan, co-founder and managing partner of DIV Industrial, said in prepared remarks that El Dorado Valley Logistics Center will be a much-needed addition to a market where demand for more logistics warehouse space continues.

According to CommercialEdge information, nearly 8.9 million square feet of industrial space was under construction in metro Las Vegas as of January. One of them is Golden Triangle Logistics Center, a 135-acre industrial development that will encompass 2.9 million square feet at full build-out.

The same data provider shows the metro’s planned and prospective projects added up to some 13.8 million square feet in the beginning of 2023. In August, Lincoln Property Co. announced its plans to develop its first industrial project in Nevada, bringing 1.6 million square feet of space to the area by the end of 2024.

The post DIV Industrial to Build 1.7 MSF Las Vegas Campus appeared first on Commercial Property Executive.

1475 Raiders Way. Image via Google Street View

Capital Square has acquired the Las Vegas Raiders’ corporate headquarters and training facility in Henderson, Nev. The company made the purchase on behalf of CS1031 Zero Coupon LV Training Facility, a Delaware statutory trust investment offering which seeks to raise $57.6 million in equity from accredited investors.

The football team has about 26 years remaining on its lease, with seven 10-year renewal options with Raiders Football Club, owner of the National Football League franchise. In a prepared statement, Capital Square Co-Chief Executive Officer Whitson Huffman said that the Las Vegas Raiders team has contributed to the metro’s post-pandemic economic rebound, having earned an enterprise value of $6.5 billion.

In the past year, the Greater Las Vegas area witnessed an increase in investor confidence, with acquisitions poised to capitalize on the rebound of office leasing fundamentals in the Sun Belt.

The 336,000-square-foot, built-to-suit facility was completed in 2020 on a 3.6-acre site and features a three-story, 139,000-square foot office building. The property also comprises a 130,000-square-foot indoor practice facility with full- and half-sized football fields, as well as a 50,000-square-foot performance center with a gym, locker rooms, three outdoor football fields and an outdoor swimming pool.

A growing market

Situated at 1475 Raiders Way and adjacent to Henderson Executive Airport and just off Interstate 15, the property is 10 miles from Harry Reid International Airport and 11 miles from the Allegiant Stadium, where the football team plays. The facility is in proximity of the residential communities of Anthem, Nev. and Southern Highlands, Nev.

Home to market leaders Amazon, Google, Toyota Financial Services, Barclays, FedEx, Levi’s and Ocean Spray, Henderson has diversified its economy through adding new jobs to metro Las Vegas’ inventory. A 2.3 million-square-foot industrial tool manufacturing facility for HAAS Automation, a 600,000-square-foot Amazon distribution facility, along with a $385 million, seven-story tower at the West Henderson Hospital campus, are among the latest additions to the submarket.

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Marnell Corporate Center 5. Image courtesy of Cushman & Wakefield

Patriot Real Estate Holdings and Moonwater Capital have jointly acquired Marnell Corporate Center 5, a five-story, Class A office building in Las Vegas. At the time of the sale, the 110,974-square-foot property was 88 percent leased.

According to Clark County public records, the asset traded for $31.9 million. The same source also reveals that the property is subject to a Wells Fargo Bank loan. A Cushman & Wakefield team brokered the transaction on behalf of TA Realty, which was the previous owner, CommercialEdge data shows.

The five-story Marnell Corporate Center 5 was built in 2007, on a 2.7-acre site. MP Materials, Shoptech Software, CIP Real Estate, Las Vegas Global Economic Alliance and GoldenWest Management are among the tenants at the property.

According to a Cushman & Wakefield report, $604 million in office assets traded this year through the third quarter in Las Vegas, marking a 34 percent increase compared to last year’s same time frame.

The Cushman & Wakefield team that brokered the transaction on behalf of the seller was led by Executive Directors Marlene Fujita Winkel and Brad Tecca, Executive Managing Director Rick Reeder, together with Senior Associate Emily Brun and Brokerage Specialist Alex Casingal.

Patriot Real Estate, Moonwater Capital venturing into the Vegas market

In a prepared statement, Tecca confirmed an increase in investor confidence toward Las Vegas this year. He added that properties such as Marnell Corporate Center 5 are poised to capitalize on the rebound of office leasing fundamentals in the Sun Belt.

Located at 6720 Via Austi Parkway, the office building is part of Marnell Corporate Center, a 736,000-quare-foot master-planned business campus, totaling seven buildings. Connected to Interstates 15 and 215, the campus is adjacent to Harry Reid International Airport. The property is also located less than a mile from the 1.5 million-square-foot regional lifestyle center Town Square and close to the Las Vegas Strip, offering proximity to the area’s array of retail, dining and entertainment providers.

Following the 2018 acquisition of the 93,702-square-foot Marnell Corporate Center 4, earlier this year, the joint venture also picked up the 71,378-square-foot Marnell Corporate Center 3 office building. Dornin Investment Group was the seller of both assets. Now, Patriot Real Estate and Moonwater Capital own three assets in the campus.

The post Patriot Real Estate, Moonwater Capital Acquire Las Vegas Office Building appeared first on Commercial Property Executive.

Tropicana Centre. Image courtesy of First National Realty Partners

First National Realty Partners has entered the Nevada market with the acquisition of Tropicana Centre, a 586,000-square-foot grocery-anchored retail center in Las Vegas.

Graystone Capital Advisors brokered the transaction. CommercialEdge data shows that the asset last traded in 2013 for $39.8 million.

The 14-building shopping center came online in 1978, covering 57 acres. A 40,000-square-foot Sprouts Farmer’s Market anchors the property. The retailer plans a $1 million capital improvement plan, aimed at upgrading its location at the center.

Tropicana Centre is also anchored by a 134,000-square-foot Sam’s Club and a 120,000-square-foot Walmart, which have been operating at the location since 1991. Other tenants include Ace Hardware, Ross, Conn’s HomePlus, Big 5 Sporting Goods, Dollar Tree, Rainbow and McDonald’s. The retail center still has 26,000 square feet of space available for lease.

Expanding in growing markets

Located roughly 6 miles from downtown Las Vegas at 3075 E. Tropicana Ave., the property is situated in a high-density retail corridor. The property is some 4 miles east of the Las Vegas Strip, in an area where the daily car traffic reaches approximately 71,000 vehicles. More than 454,000 people live within a 5-mile radius.

In prepared remarks, FNRP Director of Acquisitions Stephen Joseph acknowledged Las Vegas’ retail market potential, due to the area’s population growth and ongoing residential building efforts. He also added that entering the Nevada market with the acquisition of Tropicana Centre marks a solid investment for the company, as the metro is expected to experience further expansion in the near future.

With an extensive grocery-anchored portfolio, FNRP continues to invest in the open-air retail property sector. Earlier this year, the company acquired two grocery-anchored shopping centers: a 287,000-square-foot retail center in Manassas, Va., and a 158,000-square-foot marketplace in O’Fallon, Mo. The firm has also added Southern Plaza, a 268,000-square-foot, grocery-anchored shopping center in Indianapolis, to its retail portfolio.

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Summerlin South office groundbreaking. Image courtesy of The Howard Hughes Corp.

The Howard Hughes Corp. has commenced construction on a Class A office development in Summerlin South, Nev. The 147,000-square-foot suburban Las Vegas campus will encompass a pair of three-story buildings across 8.8 acres of land.

Linked by a first-floor lobby, each of the two buildings will span 73,500 square feet. Ed Vance & Associates Architects is leading the design efforts for the project, while Kalb Industries is the general contractor. Slated for completion in the third quarter of 2023, the office development will aim for LEED Silver certification.

The property is taking shape at the intersection of Flamingo Road and Hualapai Way, adjacent to the Aristocrat Technologies campus—a 180,000-square-foot office building developed by Howards Hughes Corp. back in 2018. Located less than 14 miles from downtown Las Vegas, the site offers ease of access to the Bruce Woodbury Beltway, Interstate 15 and Summerlin Parkway. The Las Vegas Ballpark and City National Arena, as well as an array of retail and dining options, are also nearby.

Founded by Howard Hughes Corp. in 1990, Summerlin is a 22,500-acre master-planned community located along the western edge of the Las Vegas Valley. In June 2021, the company broke ground on a 267,000-square-foot, Class A office building in downtown Summerlin. Situated near the Las Vegas Ballpark, the 10-story 1700 Pavilion is scheduled for completion by the end of the year.

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Golden Triangle Logistics Center. Image courtesy of Trammell Crow Co.

Trammell Crow Co. and Washington Capital Management, on behalf of their client, have commenced construction on Phase III of Golden Triangle Logistics Center, a 135-acre industrial development in Las Vegas.

Plans call for 600,000 square feet of space across two Class A facilities, which would bring the industrial park’s total square footage to nearly 2.9 million.

Building Four and Five are slated for completion in mid-2023 and spring 2023, respectively. Building Five secured Fasteners Inc. Southwestern Supply, a wholesaler of construction equipment and supplies, as tenant. The company will use the facility as its West Coast distribution location.

READ ALSO: Supply Chain Challenges: The Era of Deglobalization

The first phase of the project was completed in 2020, with Whitebox Technologies signing a full lease for the 350,538-square-foot Building One. Brothers Trading Co. Inc. signed a 455,350-square-foot lease at Building Two, along with ShipHero LLC, which committed to 196,652 square feet.

The second phase broke ground in 2021 and was completed in April 2022. This third facility was leased to a manufacturing company.

A significant addition to the North Las Vegas submarket

Building Four, located on the southeast corner of East Washburn Road and Statz Avenue, includes 400,371 square feet and features 36-foot clear heights, 63 dock high truck doors, two drive-in doors, and parking space for 338 cars and 74 trailers. The 202,705-square-foot Building Five, located at 2815 E. Washburn Road, will feature 36-foot clear heights, 29 dock-high truck doors, one drive in door, 127 car parking spaces and 35 parking spots for trailers. The facilities include office space and feature energy-efficient lighting and insulation and drought-tolerant landscaping to reduce water usage.

Golden Triangle Logistics Center is 11 miles north of downtown Las Vegas and has access to Interstate 15. North Las Vegas Airport is roughly 8.5 miles away. Other industrial tenants in the surrounding area include Amazon, TJ Maxx, UPS, Honest Co. and Dr. Pepper, among others. Jared Riemer, Senior Vice President with TCC, stated in prepared remarks that North Las Vegas is the largest industrial submarket in Last Vegas and as of mid-2022, only 0.3 percent of inventory was vacant, out of 60 million square feet of industrial space.

Senior Vice President Rob Lujan of JLL Capital Markets represented the tenant. Cushman & Wakefield’s Executive Managing Director Donna Alderson and Kevin Higgins, Executive Vice President with CBRE, served as leasing agents for Golden Triangle.

Trammell Crow’s industrial projects in 2022

Since the beginning of the year, TCC has initiated several industrial projects across the U.S. In January, the company closed on the acquisition of a 68-acre site in Greater Phoenix, with plans to develop a 975,000-square-foot logistics campus. Later in March, TCC entered the Idaho market with an industrial development totaling 362,000 square feet in the city of Nampa.

TCC is also developing a large project in Central New Jersey. The company has teamed up with CBRE Investment Management, on behalf of a fund it manages, to build Arsenal Trade Center, a 1.1. million industrial development slated for completion by the end of 2023.

The post Trammell Crow Launches Phase 3 of Las Vegas Project appeared first on Commercial Property Executive.

Helios Health and Wellness Campus illustrative plan. Image courtesy of Pacific Group

Salt Lake City-based Pacific Group has broken ground on the Helios Health and Wellness Campus, a 135-acre, mixed-use medical campus in North Las Vegas, Nev. The multi-billion dollar project is anticipated to create more than 10,000 jobs.

Helios will take shape in phases over the next seven to 10 years and will eventually encompass more than 2 million square feet of laboratory, research and medical office space and about 600 hospital beds. More than 500,000 square feet of retail and restaurant space is also envisioned, along with 250 to 290 rooms of lodging in two buildings.

Situated in a Job Creation Zone, the Helios site is at the southwest corner of Highway 215/Woodbury Beltway and North Pecos Road, directly across from the North Las Vegas VA Medical Center. Pacific Group acquired the parcel earlier this year for some $37 million, according to Las Vegas Review-Journal.

North Las Vegas currently has only one full-service hospital, Pacific Group stated, leaving its rapidly growing population—up 132.3 percent since 2000—severely underserved for acute healthcare services, with one hospital bed per 1,432 people, versus one bed per 232 people in Las Vegas.

Pacific Group has engaged Colliers to begin discussions with prospective development partners.

A modest medical office market

The first building to come online at Helios will be a medical office facility. According to a second-quarter report from Colliers, the North Las Vegas medical office inventory consisted of only about 293,000 square feet as of June, two-thirds of that being Class C space, with no Class A space at all.

Overall availability was 12.5 percent, up from 9.4 percent in the first quarter as the result of about 9,000 square feet of negative absorption. Southern Nevada, however, has seen six straight quarters of positive net absorption, also according to Colliers.

North Las Vegas might be underserved for health-care facilities, but its industrial space market is booming.

Last November, the parent company of luxury fashion brands Coach and Kate Space broke ground on a 788,000-square-foot fulfillment center in North Las Vegas. Clarion Partners and Seefried Industrial Properties were scheduled to complete the project this year.

This past April, VanTrust Real Estate started construction on its 350-acre Vantage North project, which should eventually total about 4.5 million square feet of industrial space.

And in August, Lincoln Property Co. affiliate LPC Desert West acquired an 86-acre site adjacent to North Las Vegas Airport to develop the eight-building, 1.6-million-square-foot Windsor Commerce Park.

The post Pacific Group Breaks Ground on 135-Acre Las Vegas Medical Project appeared first on Commercial Property Executive.

Albertsons at Craig Marketplace. Image courtesy of JLL Capital Markets

Gerrity Group has sold its grocery-anchored retail center, Craig Marketplace, for $41.2 million. The asset, a 119,280-square-foot property located in Las Vegas, was purchased by a California buyer in a 1031 exchange.

Built in 2002, the center occupies a 12.28-acre land plot. Gerrity Group initially purchased Craig Marketplace in 2016 for $33 million, according to CommercialEdge data.

Currently 94.5 percent leased, the anchor tenant is an Albertsons grocery store on a long-term lease. Other tenants include Jack in the Box, Starbucks, Subway and Popeyes Chicken.

READ ALSO: Retail Fundamentals Stay Positive

Located at 7101-7181 West Craig Rd., Craig Marketplace is at the intersection of U.S. Highway 95 and Craig Road, in an area that’s transited by more than 135,000 cars daily. Traffic in the area comes in westbound from the Las Vegas Strip and southbound from Centennial Hills, as well as the larger Northwest Las Vegas County.

Summerlin, a wealthy community with some 125,000 residents, is within a 5-mile radius of the center. The Summerlin submarket and North Las Vegas are attracting large industrial and e-commerce companies like Amazon, Fanatics and WeWork. Another 18 million square feet of industrial space is planned for construction in the area, according to The Review Journal.

JLL Capital Markets closed the Craig Marketplace sale, representing Gerrity Group and arranging financing for the buyer. Gleb Lvovich, managing director at JLL retail capital markets investment sales and advisory team, and Daniel Tyner, senior director, represented the seller. The debt capital markets team that acquired the buyer’s financing was led by John Marshall, senior director, and Jordan Leake, analyst, as well as Carl Beardsley, senior director.

In prepared remarks, Tyner said that Craig Marketplace is the second Las Vegas retail sale to close that featured an Albertsons as the anchor tenant that the team has arranged.

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Windsor Commerce Park. Image courtesy of LPC Desert West

LPC Desert West, the Southwest arm of the Dallas-based Lincoln Property Co., has purchased an 86-acre site in North Las Vegas for the development of Windsor Commerce Park, an eight-building, 1.6 million-square-foot Class A industrial campus.

The project represents the company’s first ground-up industrial development in Nevada. It is slated to break ground in the first quarter of 2023 and come online at the end of 2024.

The developer plans to construct all eight buildings, designed by architect Lee & Sakura, in one phase. Named after the adjacent Windsor Park residential community, the project is expected to bring more than 1,500 new jobs to the area.

Located on the northeast corner of Carey Avenue and Simmons Street, the development will be across the street from North Las Vegas Airport. Upon completion, the project will total nearly 1.6 million square feet and its buildings will range from 397,440 square feet to 49,920 square feet. All buildings will feature up to 36-foot clear height, 24-foot glass entries as well as touchless technology.

LPC already owns and operates 4.5 million square feet of industrial space in Nevada. The same division plans to develop the $515 million, 2.3 million-square-foot industrial megaproject Luke Field. Earlier this year in May, LPC Desert West acquired 140 acres of land in Glendale, Ariz., for the new development, for $53 million.

The post Lincoln Property to Build 1st Industrial Development in Las Vegas appeared first on Commercial Property Executive.

Virtua had owned 2716 N. Tenaya since 2014, when it acquired the asset for $60 million. The property, occupied in its entirety by United HealthCare Services Inc., turned heads in the investment community.

“High net worth, private capital buyers expressed interest in this transaction. 1031-exchange motivations fueled interest in the transaction as well and the majority of investors who expressed interest were located within the western region,” Marlene Fujita, an executive director with Cushman & Wakefield’s Capital Markets team, told Commercial Property Executive.

READ ALSO: 4 Property Trends to Watch in 2022

Rick Reeder, Brad Tecca and Charles Moore of Cushman & Wakefield joined Fujita in representing Virtua, while Voit Real Estate Services’ Mike Bench represented Premier Realty.

2716 N. Tenaya Way. Image courtesy of Virtua Partners

2716 N. Tenaya, located along a stretch that has evolved into a medical corridor of sorts, with clinics, medical office buildings and other hospital support services, has featured United HealthCare as the sole name on its tenant roster since reaching completion in 1998. The office building serves as the health-care company’s regional headquarters and encompasses a host of amenities, including a conference facility, a 40,000-square-foot cafeteria, multiple breakrooms and a credit union. United HealthCare owns the adjacent building, so together with 2716 N. Tenaya, the buildings essentially operate as a single campus.

Big-ticket transaction

The 2716 N. Tenaya deal marks an important juncture in the Las Vegas office market this year. “The sale represents the highest trade price for an office transaction in 2021, not to mention the largest single-tenant office transaction,” Fujita said. “This transaction indicates an investment in the tenant credit, Nevada’s largest HMO, as well as the building’s location.”

The office sales landscape has changed drastically in Las Vegas over the last 12 months as the city recovers from the pandemic effect. Sales volume went from 11 properties totaling $73 million in the third quarter of 2020 to 10 assets totaling $139 million in the third quarter of 2021, according to a Cushman & Wakefield report. The average year-over-year sale price jumped from $192 to $243 per square foot. 2716 N. Tenaya fetched roughly $328 per square foot.

The post Las Vegas Office Building Sells for $67M appeared first on Commercial Property Executive.

READ ALSO: Reimagining Industrial Space

Construction is expected to begin in the summer of 2022 on the site at Boomtown Garson Road. Building 1 will be 170,500 square feet and Building 2 will be 258,500 square feet. Planned features will include a 32-foot clear height, 85 dock high doors, more than 300 auto parking stalls and the latest ESFR sprinkler system. Dermody, a Reno-based national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, will be making on-site and off-site improvements including enhanced landscaping throughout the project. The firm will also add a publicly accessible walking and bike trail system around the perimeter of the business park.

LogistiCenterSM at I-80 West. Image courtesy of Dermody Properties.

The logistics park is located 4 miles from the California border, with immediate access to and highway frontage along Interstate-80. The location provides prospective tenants the advantage of access to a major highway to manage current high-speed delivery expectations. Northern Nevada is the hub of an 11-state western region with 53 million people within a one-day drive.

Dickson Commercial Group arranged the land purchase. Leasing, which is ongoing, is being handled by DCG’s industrial team of Joel Fountain, Baker Krukow and Nick Knecht.

Active leasing

John Ramous, partner in Nevada at Dermody Properties, said in a prepared statement the time was right to leverage the growing market to benefit the company’s customers. He noted leasing activity has been resilient in the region, with multiple leases of more than 100,000 square feet over the last few quarters.

Ramous also said net absorption for the third quarter was 1 million square feet, representing the ninth quarter in a row that net absorption was more than 800,000 square feet. Noting vacancy rates are about 3.6 percent, he added demand for newly built properties continues. In the third quarter, 4.6 million square feet of construction was in play, with an additional 2.1 million square feet set for groundbreaking. Citing another example of strong demand, he said early tenant renewals have become more common as occupiers look to secure space in the growing market.

Dermody deals

Dermody also owns LogistiCenter at 395, a multi-phase, master-planned industrial park totaling more than 2.8 million square feet in the North Valleys submarket of Reno-Sparks. That property is 8 miles from I-80, 12 miles from Reno-Tahoe International Airport and within minutes of three major shipping providers—UPS, FedEx and OnTrac. PCCP LLC was Dermody Properties’ strategic capital partner on the industrial park.

Earlier this month, Dermody acquired a 446,850-square-foot cold storage facility in Kent, Wash., for $62 million from Olympic Steamship Co., according to King County Records. The structure, which is connected to rail service operated by BNSF, is less than 1 mile from State Route 167 and within 4 miles of Interstate 5. Downtown Seattle is 18 miles northwest.

In September, Dermody secured a new tenant for a 258,737-square-foot lease in Rialto, Calif. DGC Fulfillment, a third-party logistics company inked the five-year, full-building lease that will begin in December.

In June, Dermody closed its third industrial fund by raising $1.1 billion from investors. Dermody Properties Industrial Fund III L.P. surpassed its investment target and will focus on Class A logistic facilities nationwide.

The post Dermody Properties Expands Nevada Project appeared first on Commercial Property Executive.

Tapestry Fulfillment Center. Image courtesy of Tapestry

Tapestry, a New York-based luxury clothing and accessories retailer, has broken ground on a 788,000-square-foot fulfillment center in North Las Vegas, Nev. The company is working with Clarion Partners and Seefried Industrial Properties to deliver the project next year. The facility is set to bring 400 jobs to the city of North Las Vegas by 2029.

The industrial facility will serve Coach and Kate Spade, two of the company’s brands. The property will feature automated systems expected to handle 22.2 million units and store 4 million units for e-commerce and retail.

The warehouse is designed to meet LEED Gold certification standards. Part of the strategy to lower the environmental impact includes rooftop solar panels, optimized irrigation systems and electric vehicle charging stations.

The development site is located near East Tropical Parkway, less than 3 miles from Interstate 15, according to 8NewsNow. The area is also home to several Amazon distribution centers and other large retailers, including Sephora.

A booming industrial market

Las Vegas’ industrial market has had a particularly strong streak this year, also boosted by proximity to Southern California and Phoenix. Vacancy in the metro slid to 3.2 percent at the end of the third quarter, the metro’s lowest figure since 2006, according to a recent Colliers report.

When it comes to construction activity, some 3 million square feet of industrial space was delivered in Las Vegas during this year’s third quarter. Most of it was in the rapidly growing North Las Vegas submarket, the same report indicates.

Reflecting the submarket’s appeal, Clarion Partners—who’s part of Tapestry’s project—acquired a 2.4 million-square-foot industrial portfolio in North Las Vegas. The company paid $335.6 million to the International Union of Operating Engineers for Golden Triangle Industrial Park, a 130-acre property off Interstate 15.

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1700 Pavilion. Image courtesy of The Howard Hughes Corp.

The Howard Hughes Corp. makes a move to enhance the work segment of the live-work-play lifestyle at its 22,500-acre master-planned Summerlin community in suburban Las Vegas with the groundbreaking on 1700 Pavilion, a new 267,000-square-foot, Class A office building.

READ ALSO: Top 5 Markets for Office Transactions

1700 Pavilion will sprout up on a 3-acre site just south of the Las Vegas Ballpark in walkable downtown Summerlin, which spans 400 acres highlighted by amenities and a natural, open environment.

“Our existing office portfolio in Summerlin is essentially full, Kevin Orrock, president of the Las Vegas Region with The Howard Hughes Corp. told Commercial Property Executive. “This new development gives us the opportunity to meet the growing needs of our existing tenants as well as meet the demand for other tenants that are looking to grow their businesses in the heart of downtown Summerlin.”

Designed by Hart Howerton, the premier office building will feature a shared first-floor common area that not only offers conference rooms and gathering spaces but also provides a direct connection to retail and dining options across the street. The 10-story tower will also offer amenities exemplifying Summerlin’s focus on healthy and active lifestyles, including bike storage. And in a nod to the post-pandemic environment, the building will feature touchless entry from the KGA Architects-designed garage all the way up to the tenant suites, as well as an enhanced air filtration system.

Living and working

Along with the groundbreaking on 1700 Pavilion, Howard Hughes also began work on the 295-unit Tanager Echo apartment building, marking the start of the second phase of the Tanager luxury multifamily complex in downtown Summerlin.  More than 100,000 residents call Summerlin home.

“Even before the pandemic, the trend to move workplaces closer to home was evident as major corporations across the country began to move away from dense urban cities,” Orrock noted.

1700 Pavilion. Image courtesy of The Howard Hughes Corp.

“As life begins to normalize during the post-COVID-19 era, many companies are offering employees hybrid opportunities to work from both home and the office, so office locations that offer urban amenities but within natural settings with expansive open space are even more desirable. And, of key relevance is the fact that many who have worked alone at home for more than a year, are eager to engage again with fellow employees and associates, to socialize, collaborate and build camaraderie.”

Howard Hughes is relying on Whiting Turner to serve as general contractor for 1700 Pavilion and has tapped CBRE to oversee leasing activity for the project. If all goes as planned, the office building will reach completion in the third quarter of 2022. The Las Vegas office market is showing signs of recovery, according to a first quarter report by CBRE, and 1700 Pavilion is already garnering attention.

“People’s priorities are shifting as we emerge from the pandemic and redefine the nature of an office commute and work environment. The incredible momentum we are seeing in Summerlin, including the already strong interest for 1700 Pavilion, shows that businesses are clearly realizing that they can attract—and most importantly retain—today’s top talent if they can provide an amenity-rich, walkable, urban environment integrated into a natural, open setting that encourages an active, outdoor lifestyle.” David O’Reilly, CEO, The Howard Hughes Corp., told CPE.

The post Howard Hughes Corp. Breaks Ground on Las Vegas Project appeared first on Commercial Property Executive.

Energos Reno. Rendering courtesy of TerraScale

TerraScale, a California-based clean infrastructure design and development firm, places green energy at the heart of its data center development. Last December, the company introduced Energos Reno, a 3,700-acre mixed-use development near Fernley, Nev. The $3 billion project will include the development of a data center with 500MW of on-site generated renewable power and will be a fully carbon-neutral off-grid facility. 

In an interview with Commercial Property Executive, Mark Schonberg, president of TerraScale, alongside Soheila Yalpani, co-founder & COO, provide more details on the nation’s largest carbon-neutral industrial park, as well as emerging green technologies. They also discuss the challenges of building in a high-desert environment.

READ ALSO: What’s Ahead for Data Centers in 2021

Why is northern Nevada the best place for the Energos Reno pilot project?

(From left to right) Mark Schonberg, Soheila Yalpani. Images courtesy of TerraScale

Yalpani: In recent years, northern Nevada has been a growing hot spot for businesses, with a number of large, high-profile companies choosing to set up locations here thanks to its business-friendly climate and growing and talented workforce. This location also allows the data center to service customers from the Northern California/Silicon Valley area, but also Las Vegas and Southern California.

Additionally, TerraScale received the support and guidance of the Economic Development Authority of Western Nevada over the last several months.

What makes this particular site ideal for data centers?

Schonberg: The site has good access to major roads and railway and enough of a technical workforce available locally within the Reno area. There is also a low incidence of natural disasters, a low energy cost, a favorable climate and proximity to fiber infrastructure.

Elaborate on the data center facility’s state-of-the-art building design and features.

Schonberg: The data center will feature a flex (modular) design that allows it to be easily repeatable globally in any type of terrain. The cooling system will avoid heavy water use due to the limited amount of water in the area.

This data center will be 100 percent carbon emission-free via on-site power, featuring on-site behind-the-meter renewable energy generation/storage capable of backup and primary power for times when there is no sun, wind or utility. The Energos Reno facility also offers the ability to add protection features against loss and can easily inject satellite or 5G transportation options to provide customer data where needed anywhere in the world.

The project site will also act as a pilot ground for new and emerging green technologies, including locally generated renewable energy. Tell us more about these sustainable features.

Schonberg: Whether it is solar, wind, or geothermal, we intend to design an on-site power microgrid that can utilize any form of renewable energy. This will be coupled with advanced battery technologies that allow for cost-efficient, long-term battery power storage.

The energy will be produced on-site at a facility as opposed to energy from the grid. What are the advantages/disadvantages of this process?

Yalpani: If the grid or the main power source goes out, we can continue to supply power, ensuring that there is no disruption to the supply from power failures or blackouts. On-site energy, production and storage enable our development to be self-sufficient.

In addition, with the growing number of climate change-related natural disasters and terrorism events, as well as other threats, having power sources resilient to the impact of such disasters is key, especially for critical facilities like data centers.

What other companies are involved in the development process?

Schonberg: Ambri, Netorian, RedHat, EYP Mission Critical Facilities, JLL and additional partners which we will be announcing soon.

The project received increased support from state and local government, having applied for tax incentives. It is also located within a federally designated Opportunity Zone. How does this reflect upon the development process?

Yalpani: TerraScale applied for the standard tax abatement program from the state of Nevada through the Governor’s Office of Economic Development. This program offers a variety of incentives to help qualifying companies make the decision to do business in the state and is an affirmation of the state of Nevada’s commitment to bringing economic activity to the region.

What are the challenges you’ve come across so far, considering the project’s high-desert operations?

Schonberg: Data centers traditionally utilize significant amounts of water to run the cooling systems which keep the servers cool. With water scarcity existing as a growing local and global concern, TerraScale’s data centers are designed to require minimal water usage. This makes our data centers suitable for the desert location.

Energos Reno. Rendering courtesy of TerraScale

Other than the restrictive nature of water—which has been addressed in the design—the only significant issue is the fine dust. That will require special design criteria as well.

Tell us more about the project’s impact on the area.

Yalpani: Our project will create local jobs during, both the construction and operations phases. The TerraScale portion of the project will consist of five data centers totaling $250 million each. In addition, we are actively bringing in battery, logistics and waste management partners at the site. This is anticipated to bring the overall project value to approximately $3 billion. This ancillary growth and development will create significant local economic activity. It is our hope that the Energos Reno project will put Fernley, Nev., on the map as a hot spot for business.

What are some trends in the data center industry you expect to see going forward?

Yalpani: With the growing focus on climate change, sustainability will continue to be a leading trend in the data center industry as well, with demand for greener data centers on the rise. However, there is still much work to be done across the industry when it comes to renewable energy use in data centers. 

We are hoping the data industry will look to how TerraScale is incorporating on-site renewable power and that our design will be the next big trend for the industry. Additionally, you are going to see a trend where small data centers start to become more prevalent in urban areas.

The post Behind Nevada’s 1st Carbon-Neutral Data Center appeared first on Commercial Property Executive.

Golden Triangle Industrial Park is located on a 130-acre site off Interstate 15. The industrial park comprises Class A properties constructed between 1999 and 2007 and is 95 percent leased to 24 tenants. 

One of the properties involved in the transaction is the 200,953-square-foot warehouse at 4980 Statz St. The building features 30-foot clear heights, six grade-level and 36 dock-high loading doors and a parking ratio of 0.5 spaces per 1,000 square feet. The property is fully leased to MANN+HUMMEL and Morgan Termite and Pest Control, according to CommercialEdge.

Other buildings in the industrial park range from 78,702 to 392,040 square feet. The properties all feature ESFR sprinklers, 30-foot clear heights and gated truck courts. The park is rail served. CommercialEdge data shows that, prior to the sale, the properties were managed by Transwestern with Cushman & Wakefield overseeing marketing efforts.

An industrial hotspot

Clarion Partners has long been active in North Las Vegas. The company bought the nearly 700,000-square-foot Lone Mountain Corporate Center in early 2018 and is actively developing new space. The investor-developer delivered a 200,000-square-foot property at Silver State Commerce Center late last year and has another three buildings totaling 842,779 square feet underway. Those are expected to deliver this summer.

According to CommercialEdge data, five other industrial properties have also changed hands since the start of the year, totaling just over 740,000 square feet. Las Vegas’s industrial sector had been growing in importance even before the pandemic: The market’s modest price points and relative proximity to Southern California and Phoenix put it in a strong position for future growth.

According to the latest CommercialEdge industrial report, a general lack of available space has driven up both rents and sale prices nationwide. Average rents across the country were $6.47 per square foot in February, a 5.1 percent year-over-year increase. Sales in the first two months of the year averaged $112 per square foot.

The post Clarion Partners Pays $336M for Las Vegas Industrial Park appeared first on Commercial Property Executive.

Distribution Circle Commerce Center

Dermody Properties has landed a tenant for its newly expanded, 225,937-square-foot Distribution Circle Commerce Center in Las Vegas. One Solution—a sales, marketing, consulting and training organization—committed to the entire warehouse. JLL represented the landlord, while Colliers International arranged the deal for the tenant.

Dermody purchased the asset in mid-2020 from truck manufacturer PACCAR, in a $13.4 million deal. The original structure dates back to 1995 and comprised 120,000 square feet. A nearly 100,000-square-foot expansion was completed in 2021.

READ ALSO: Top 10 Industrial Projects Under Construction

Located on some 13 acres at 4141 Distribution Circle within the North Las Vegas submarket, the property is just off Interstate 15. Central Las Vegas is 5 miles south, while McCarran International Airport is within 11 miles of the building. The location offers access to 55,000 workers in logistics and manufacturing and has some of the lowest labor costs in the region, according to John Ramous, partner in Nevada at Dermody.

Distribution Circle Commerce Center has 29-to 32-foot clear heights, 50-by-50-foot column spacing, 37 dock high doors, LED lighting and ESFR fire system.

JLL’s Xavier Wasiak, Rob Lujan and Jason Simon acted as leasing agents for the property, while Eric Molfetta of Colliers represented One Solution. Last month, Dermody chalked up the first lease at its upcoming LogistiCenter at Southport project in West Sacramento, Calif. Developed in partnership with Tom Schaal and Mark Heavey of Schaal Realty Advisors, the property will encompass 380,000 square feet. LKQ Corp.’s prelease agreement brought the project’s occupancy to 40 percent.

The post Dermody Properties Inks Full-Building Lease in Las Vegas appeared first on Commercial Property Executive.

READ ALSO: CRE Finance Outlook Brightens: Report

The project, at Durango Drive and the 215 Beltway, is slated to begin opening in early 2022. On its eventual completion, UnCommons will include more than 500,000 square feet of office space, 830-plus residential units, an entertainment venue, restaurants and cafes, health and fitness studios, a multi-purpose conference center, a pedestrian trail and public art.

Commercial real estate giant CBRE will be moving its Las Vegas headquarters to UnCommons, where it will occupy one full floor, of nearly 20,000 square feet, in one of UnCommons’ five office buildings.

But there has been a blip along the way. After the pandemic’s onset in early 2020, Matter re-engaged Gensler, UnCommons’ architectural firm, for a redesign that would integrate health and safety features set by the WELL Building Standard.

From green to greener

These reportedly include near–hospital-quality HVAC systems, operable windows, touch-free access, abundant natural daylight, interior finishes made with materials to limit the spread of bacteria and additional sheltered outdoor seating. The UnCommons food hall, Platform One, will introduce a touchless food pickup mechanism for carry-out or delivery.

According to Matter, UnCommons will be the first project in Nevada built to the standards for WELL Certification, the highest third-party endorsement of a building’s performance for the health of its occupants.

UnCommons is also pursuing certification by Green Globes, a nationally recognized green rating assessment, guidance and certification program. The project has recently achieved the Registered Green Globes Merit Award and Registered WELL Merit Award from the San Diego Green Building Council, at its 2020 Sustainability Awards.

A Commercial Property Executive Q&A in November covered some of the post-pandemic issues in green building and in landscape architecture.

And last June, we looked at the roles that green standards like LEED and WELL are playing during the COVID-19 era.

The post Matter Real Estate’s $400M Las Vegas Project Begins to Rise appeared first on Commercial Property Executive.

2779 W. Horizon Ridge Parkway. Image courtesy of Newmark

Soon after purchasing a South Florida medical office portfolio, White Oak Healthcare MOB REIT has acquired a 38,129-square-foot property in Henderson, Nev. Stable Development sold the Class A medical office asset in suburban Las Vegas for $18.8 million.

According to CommercialEdge data, the sale was subject to a Capital One loan. Newmark represented both parties in the off-market transaction.

A White Oak representative confirmed for Commercial Property Executive that the acquisition is their first foray into Nevada, adding that the state constituted an attractive investment destination due to its quickly recovering and diversifying economy, among others.

The property, known as Coronado Medical and Surgery Center, occupies more than 2 acres at 2779 W. Horizon Ridge Parkway, close to Dignity Health – St. Rose Dominican hospital campus. Completed in 2008, the two-story facility also features a two-story parking garage. Newmark Director Mark Schuessler told CPE that the building was fully leased at the time of sale, with most of the tenants having signed long-term agreements.

The property is some 9 miles northwest of downtown Henderson and 16 miles south of downtown Las Vegas, along the St. Rose Medical corridor. Other nearby health-care providers include Seven Hills Medical Center and Pageantry Horizon Park.

Schuessler worked together with Newmark Managing Director Mike Tabeek to represent both parties in the transaction. Last February, Schuessler was also part of the team representing Providence St. Joseph Health in the $59 million disposition of a 10-property portfolio across five states.

MOBs’ appeal to investors

Despite the uncertainty brought about by the COVID-19 pandemic, medical office buildings continue to make for solid investments. A recent Nuveen report predicts that over the next decade investors will have an increased focus on health-care assets, including life science facilities and medical office buildings.

Since the beginning of 2021, White Oak Healthcare MOB REIT has made several acquisitions across the U.S., all of which are Class A medical assets located close to large health-care facilities. January portfolio additions included a four-building property in Petersburg, Va., and four medical office buildings in Ohio and Minnesota.

“High-quality medical assets with credit tenants and long-term leases are highly coveted by investors seeking yield and safety during these uncertain times. The current low interest rate environment allows for buyers to push pricing while still maintaining significant positive leverage to boost their returns,” Schuessler told CPE.

The post White Oak Healthcare Continues Buying Spree appeared first on Commercial Property Executive.

1135 S. Hualapai Way

CubeSmart has finalized the $16.8 million acquisition of StorageOne, a 47,481-square-foot facility in Las Vegas. A private investor sold the property, according to Clark County records. The new owner has renamed the property, which will now operate under the CubeSmart brand.

The two-story building came online in 2005 and occupies a 3-acre parcel at 1135 S. Hualapai Way. The property provides climate-controlled and drive-up access units with sizes from 20 to 300 square feet, as well as 300-square-foot parking spaces for RVs, boats and vehicles. The facility has an on-site manager, security cameras and sells packing and moving supplies.

Situated in the West Charleston Boulevard retail corridor, the property is 11 miles west of downtown Las Vegas. There are at least 13 other self storage facilities encompassing more than 800,000 net rentable square feet within a 3-mile radius, according to Yardi Matrix data. Additionally, CubeSmart operates 12 facilities in the larger Las Vegas metro.

In October, CubeSmart completed the $540 million purchase of an eight-property portfolio in New York City. Storage Deluxe sold the assets, which total 780,425 rentable square feet.

The post CubeSmart Pays $17M for Las Vegas Storage Asset appeared first on Commercial Property Executive.

Golden Triangle Logistics Center. Image courtesy of Cushman & Wakefield

With Nevada working on reigning in the health crisis and stimulating the economy at the same time, Governor Sisolak announced stricter restrictions this month: Both private and public gatherings are limited, and businesses must operate at a reduced capacity of 25 percent, down from 50 percent. Meanwhile, the Las Vegas commercial real estate market forged ahead. While industrial assets continue to perform well on the leasing, development and transactions side, investors also poured capital into office and self storage properties. Read our November selection of Las Vegas must-knows:

1. DEAL – Lincoln Property acquires logistics park for $48.6 million.

A joint venture between Huntington Industrial Partners and Polk Street Industrial sold West Craig Industrial Center, according to public records. The three-warehouse complex spans 343,820 square feet and sits on 20 acres at 70-78 W. Craig Road. The property was the fifth-largest Las Vegas industrial delivery of 2019. The buildings have 32-foot clear heights, ESFR sprinklers and a total of four drive-in doors and 87 dock-high loading bays.

2. LEASING – Washington Capital Management lands full-building industrial lease.

Whitebox moved into a 350,528-square-foot, newly constructed warehouse in Golden Triangle Logistics Center. Cushman & Wakefield assisted the tenant, while a team of brokers from Cushman & Wakefield and CBRE represented the owner. The property sits on a 17-acre parcel at 3049 E. Washburn Road and has two grade-level and 53 dock-high doors. Situated within 2 miles of Interstate 15, the property is 3 miles northeast of West Craig Industrial Center.

3. DEVELOPMENT – Majestic Realty starts construction on 330,000-square-foot project.

The next phase of the company’s Beltway Business Park will include the 94,500-square-foot Building 11 and the 235,275-square foot Building 12. Additionally, an undisclosed tenant committed to 78,000 square feet in the larger facility. Upon full build-out, the company’s industrial footprint in the metro will encompass more than 6.1 million square feet. The firm partnered with Thomas & Mack Co. for the 360-acre master-planned campus.

4. DEAL – Strategic Storage Growth II acquires newly developed 950-unit facility.

The SmartStop Self Storage REIT-affiliated fund already owns and manages eight other self storage properties in the metro. StorageOne sold the 99,300-square-foot asset for $13.8 million, according to Clark County records. Located on 2 acres at 5730 S. Durango Drive, the property has video monitoring, individually alarmed doors, drive-up access and climate-controlled units.

5. DEVELOPMENT – CapRock breaks ground on North Las Vegas industrial campus.

In partnership with ARES Management, the company will build CapRock Tropical Logistics, a two-building complex totaling 1.1 million square feet. The developer received a $134.6 million loan from Mesa West Capital for the project, public records show. The industrial park will encompass a 271,262-square-foot facility and an 857,060-square-foot build-to-suit warehouse that is already fully leased to an e-commerce company. Located at 5802 and 5902 E. Tropical Parkway, the properties are expected to deliver in the third quarter of 2021.

6. DEAL – Office asset changes hands for $13.1 million.

Eightfold Real Estate Capital sold the 71,000-square-foot building to a private investor, according to CommercialEdge. The buyer financed the purchase with an $8.4 million loan from Starwood Capital Group. Built in 2002, the property sits on 4 acres at 375 E. Warm Springs Road. Located in the McCarran International Airport submarket, the property is 2 miles from Interstate 215.

The post Las Vegas Commercial Real Estate Wrap-Up – November 2020 appeared first on Commercial Property Executive.

West Craig Industrial Center

A partnership between Huntington Industrial Partners and Polk Street Industrial has completed the $48.6 million disposition of West Craig Industrial Center, a 343,820-square-foot logistics property in North Las Vegas, Nev. Lincoln Property Co. acquired the asset, according to Clark County records.

The property came online in 2019, marking the fifth-largest Las Vegas industrial delivery of that year. The seller and developer financed the speculative project with $18.2 million of construction financing from Texas Capital Bank. Upon full build-out, the property was fully leased.

The logistics park encompasses three single-story buildings which occupy 20 acres at 70-78 W. Craig Road. The warehouses have a total of four drive-in and 87 dock-high doors, 32-foot clear heights, ESFR sprinkler systems and insulated ceilings. The tenant mix includes OSM Worldwide, Tire’s Warehouse and Jack Morton Worldwide Production.

The industrial complex is 2 miles west of Interstate 15 and 6 miles north of downtown Las Vegas. Major companies in the I-15 industrial corridor include Amazon, ETA Transportation and Parker Plastics.

Earlier this month, Lincoln Property Co. completed the $240 million acquisition of an 11-asset portfolio encompassing 474,100 square feet of medical office space in six states. At the time of closing, nine of the properties were fully leased.

The post North Las Vegas Logistics Park Trades for $49M appeared first on Commercial Property Executive.

5730 S. Durango Drive. Image courtesy of Strategic Storage Growth Trust II

Strategic Storage Growth Trust II, a private trust affiliated with SmartStop Self Storage REIT, has made its entry into the Las Vegas market with the acquisition of a newly constructed 950-unit self storage facility. It is the ninth property owned or managed by SmartStop in the Las Vegas area. SmartStop did not release the price or seller.

READ ALSO: Self Storage Rents Show Significant Improvement

Wayne Johnson, chief investment officer, said in a prepared statement there is significant multifamily and residential growth in the immediate area that will be beneficial to the asset. Located at 5730 S. Durango Drive south of the Spanish Trail Golf Course, the state-of-the-art air-cooled facility has about 99,300 square feet of space. It is situated at the intersection of Durango Drive and Russell Road near State Route 215 and is well positioned to serve the Spring Valley, Rhodes Ranch, South Summerlin, West Sahara and Sovana areas.

The new property has a sophisticated security system with high-definition camera surveillance, secured and alarmed doors, gated entry, LED lights, ground-floor drive-up units, interior climate-controlled units with two easily accessible large capacity elevators and covered exterior parking for RVs and boats.

Growing portfolio

SSGT II wholly owns nine self storage facilities comprising approximately 7,000 units and 730,000 square feet of storage space. The REIT also has one operating property in a joint venture in the Toronto area with SmartCentres REIT, one of the largest REITs in Canada.

In September, SSGT II acquired a two-property portfolio totaling 1,580 units and 150,000 square feet in St. Petersburg, Fla., and Lutz, Fla., from Crow Holdings for an undisclosed amount. Crow Holdings had owned the assets in two separate partnerships with private capital firms. The St. Petersburg property is the larger and older of the two with 790 units built in 2018, compared to 750 units at the newly constructed Lutz location.

In March, SSGT II acquired a 970-unit property with 91,400 square feet of space in Homestead, Fla., from a joint venture between Angelo Gordon and Andover Properties. The price was not released. Located on 3 acres across four buildings completed in 2019, the facility was formerly named Storage King USA Self Storage. It now operates as SmartStop Self Storage.

Also in Florida, SmartStop’s Strategic Storage Trust IV REIT, acquired a self storage property in Punta Gorda with 800 units and 106,000 square feet of rentable space from a private investor for an undisclosed price in June.

The post Strategic Storage Growth II Expands to Las Vegas appeared first on Commercial Property Executive.

Circa Resort & Casino. Image courtesy of Steelman Partners

In October, Las Vegas’ commercial real estate market saw several important moves taking place. Despite the hospitality sector’s ongoing struggles, developers are still active and working to add new landmarks to the city’s skyline. On the transactions side, industrial assets continue to be in high demand for both tenants and owners, but even office properties roused investors’ interests this month. Check out our October list of Las Vegas must-reads:

1. DEAL – Las Vegas Sands considers $6 billion sale of assets.

The company is looking into the disposition of some or all of its flagship properties along The Strip, namely the Venetian Resort Las Vegas, Palazzo and Sands Expo and Convention Center, according to a Bloomberg report. While ink has not yet touched paper, this move could lead to the gambling giant’s exit from the U.S. gaming industry. In addition to its assets in the metro, the company’s global portfolio includes properties in Macau and Singapore.

2. DEVELOPMENT – Stevens brothers debut $1.2 billion casino.

Greg and Derek Stevens, who also own Golden Gate and The D, opened Circa Resort & Casino, a 1.3 million-square-foot adult-only gaming property. This is the first ground-up resort development to open in downtown Las Vegas in 40 years. The 36-story tower is located at 8 Fremont St. and encompasses a two-level, 8,000-square-foot casino, 777 hotel guestrooms, retail space and the world’s largest sportsbook. Steelman Partners was the architect for the project.

3. DEAL – Zappos sells downtown headquarters for $65 million.

The company, in partnership with Resort Gaming Group, finalized the disposition of its 300,000-square-foot corporate offices to DTP Cos., an entity led by Tony Hsieh, Zappos’ former CEO. The seller’s joint venture paid $18 million for the asset in 2012 and executed a $48 million capital improvement plan the following year. KMD Architects redesigned the property, which received LEED Gold certification in 2014.

4. LEASING – Colliers International arranges U.S. Postal Service lease.

The brokerage company facilitated the 118,000-square-foot agreement at a 163,000-square-foot warehouse owned by RDS Investments. Executive Vice President Dean Willmore led the team that negotiated on behalf of the owner. Completed in 1999 and expanded in 2008, the building is located on 8 acres at 6650 Spencer St., less than 1 mile east of James C. Brown Jr. Post Office.

5. DEAL – Amazon-leased warehouse changes hands.

Panattoni Development sold the 616,150-square-foot industrial property at 12300 Bermuda Road to Stockbridge Capital Group. Located on 55 acres, the building delivered earlier this year and has 102 dock-high doors. In April 2019, the seller had funded the development with a $62.4 million loan from JPMorgan Chase, according to Yardi Matrix data. Prudential Financial provided the buyer with a $450.2 million portfolio loan which encumbers 17 industrial properties totaling 9.3 million square feet across the U.S.

The post Las Vegas Commercial Real Estate Wrap-Up – October 2020 appeared first on Commercial Property Executive.

400 Stewart Ave.

Zappos, in a joint venture with Resort Gaming Group, has completed the $65 million disposition of its 300,000-square-foot headquarters in downtown Las Vegas. DTP Cos. acquired the property, according to Yardi Matrix data.

The asset last traded in 2012, when the City of Las Vegas sold it for $18 million. Amazon’s Zappos had financed the purchase with a $15 million seller carryback loan and a $5.3 million note from City National Bank. 

Located on 6 acres at 400 Stewart Ave., the property was developed in two phases: The 11-story building delivered in 1973, and the three-story structure surrounding it opened in 2003. In 2013, the seller implemented a $48 million capital improvement plan on the property prior to Zappos’ relocation, Las Vegas Review Journal reported. The company tapped KMD Architects to redesign the building, which received LEED Gold certification in 2014.

The deal was a sale-leaseback transaction, according to the same publication. The buyer’s entity is led by Tony Hsieh, Zappos’ former chief executive officer. Hsieh retired from the company in August after more than 20 years in the role.

The property is a short distance from CIM Group’s Downtown Grand Hotel & Casino, which recently expanded with a 495-key addition named Gallery Tower. The new construction is the first ground-up hotel built in downtown Las Vegas in more than a decade.

The post Downtown Las Vegas Zappos HQ Trades for $65M appeared first on Commercial Property Executive.

Gallery Tower, Downtown Grand Hotel & Casino. Image courtesy of CIM Group

While the global health crisis continues to unfold, Nevada recorded a sizeable hike of 54 percent in the average number of new COVID-19 cases in the last two weeks of September, The New York Times reported. Even as its hospitality-driven economy bore the brunt of the pandemic, the Las Vegas commercial real estate market saw several major moves last month. While some investors hedged their bets on safe, in-demand assets such as industrial properties, others focused on the hospitality sector’s eventual comeback. Check out our September selection of Las Vegas must-knows:

1. FINANCING – Caesars Entertainment lands $400 million loan.

VICI Properties originated the large financing package, which encumbers the 500,000-square-foot Caesars Forum Convention Center. The five-year note has an initial interest rate of 7.7 percent and is pre-payable in the third year. The lender financed the mortgage with cash on hand. Delivered earlier this year, the property is located at 3911 Koval Lane.

2. DEAL – Black Creek Group acquires two industrial assets.

Panattoni Development Co. sold South 15 Airport Center buildings C and D for $32.5 million, Yardi Matrix shows. The two buildings, which were completed this year, total 266,560 square feet and are located at 1720 and 1725 Chaparral Road. In 2019, the seller and developer funded both projects with a $17.8 million construction loan from JP Morgan Chase.

3. DEVELOPMENT – CIM Group opens 495-key downtown hotel addition.

The developer delivered Gallery Tower, Downtown Grand Hotel & Casino, a 250,000-square-foot, eight-story building. The asset is the first ground-up hotel to rise in the city center in more than a decade. The company broke ground on the project in January 2019. The addition is the third building part of the Downtown Grand complex, which encompasses a total of 1,124 rooms. The property is located at 206 N. Third St.

4. DEAL – RREEF joint venture pays $88.5 million for fully leased warehouse.

In partnership with DWS Group, the company acquired Tropical Distribution Center 2, a 715,000-square-foot industrial property. Massachusetts Mutual Life Insurance Co. financed the acquisition, public records show. VanTrust Real Estate, which also developed the facility, sold the asset. Located on 39 acres at 6260 E. Ann Road, the building was delivered in May 2019 and serves as a distribution center for Sephora.

5. DEVELOPMENT – Harsch Investment Properties kicks off industrial project.

The company started work on Tropical Speedway Commerce Center, a 150,000-square-foot facility. R&O Construction serves as the general contractor. The developer has also tapped VLMK Engineering + Design and VTN Consulting Engineers on the project, which is slated for completion next year. The property will have eight grade-level and 36 dock-high doors. JLL will be in charge of leasing.

6. LEASING – CBRE signs full-floor lease at upcoming development.

The company is set to relocate to a 20,000-square-foot space at UnCommons, a 40-acre mixed-use project with an estimated cost of $400 million. CBRE is slated to move its regional office in the first quarter of 2022, when the campus is scheduled for completion. Located at the intersection of Durango Drive and the 215 Beltway, the property will include five office buildings.

The post Las Vegas Commercial Real Estate Wrap-Up – September 2020 appeared first on Commercial Property Executive.

Tropical Distribution Center 2. Image via Google Earth

VanTrust Real Estate has closed the $88.5 million disposition of Tropical Distribution Center 2, a 715,000-square-foot industrial building in Las Vegas. The buyer is an entity affiliated with DWS Group and RREEF Property Trust. The new owner received an acquisition loan from Massachusetts Mutual Life Insurance Co., according to Clark County records.

Located on 39 acres at 6260 E. Ann Road, the single-story facility delivered in May 2019 following 10 months of construction. The property has 36-foot clear heights and a moment-resisting frame structural system. The distribution center, fully leased to Sephora, is the beauty product retailer’s fifth warehouse in the U.S. The building can accommodate up to 1,000 employees.

The building, just west of the Las Vegas Motor Speedway, is 2 miles from Interstate 15 and 18 miles northeast of McCarran International Airport. The immediate area has seen an abundance of industrial development in recent years: Yardi Matrix shows more than 7.3 million square feet of modern, Class A logistics space within 1.5 miles of the property.

The property is next door to Tropical Distribution Center 1, the largest Amazon-leased warehouse in Nevada. In May, Preylock Holdings paid $110 million to acquire the 855,000-square-foot asset from VanTrust.

The post VanTrust Sells Las Vegas Warehouse for $89M appeared first on Commercial Property Executive.

Caesars Forum Convention Center Ballroom. Image courtesy of Caesars Entertainment

VICI Properties Inc., the “experiential REIT” that was spun off from a subsidiary of Caesars Entertainment Corp. just about three years ago, has provided a $400 million mortgage loan to a subsidiary of Caesars Entertainment Inc.

READ ALSO: Caesars Entertainment, VICI Properties to Sell Louisiana Casino

The loan is secured by the 550,000-square-foot Caesars Forum Convention Center in Las Vegas, according to a letter of intent entered into on June 15. The loan bears interest at an initial rate of 7.7 percent, has a term of five years and is pre-payable beginning in the third year, subject to certain conditions. VICI funded the loan with cash on hand.

In addition, the parties have waived the conditionality of the mortgage’s consummation on the consummation of a previously disclosed potential sale by Caesars to VICI of about 23 acres of land near The LINQ Hotel & Casino, Bally’s Las Vegas, Paris Las Vegas and Planet Hollywood gaming facilities, which was initially contemplated by the letter of intent. VICI and Caesars reportedly are continuing to evaluate a potential transaction involving that land.

The property features 300,000 square feet of flexible meeting space and what reportedly are the world’s two largest pillar-free ballrooms. More than 20,000 hotel guests are within walking distance, according to Caesars.

VICI’s portfolio consists of 31 gaming facilities totaling more than 50 million square feet, about 20,200 hotel guestrooms, and more than 200 restaurants, bars and nightclubs. VICI properties are leased to such prominent operators as Caesars, Century Casinos, Hard Rock International, JACK Entertainment and Penn National Gaming.

A chancy market

In late June, a Las Vegas Review-Journal headline asked “Could pandemic permanently change Las Vegas convention industry?” Understandably, the article beneath didn’t deliver definitive answers, but some experts the newspaper interviewed did opine that the rise of virtual/online conferences could indeed change the nature of the convention business.

One warning sign: Virtual trade shows can “bring in” much larger audiences than traditional in-person shows, no matter how much attendees might prefer the latter. What’s likely, it seems at the moment, is that in-person events will resume when circumstances allow, but in parallel with online events. One economist quoted by the Review-Journal suggested that convention business in Las Vegas could lag the recovery of tourism by six to 12 months.

In April, Caesars and VICI agreed to sell Bally’s Atlantic City Hotel & Casino in New Jersey for $25 million. The buyer, once the deal closes, will be Twin River Worldwide Holdings Inc.

In July, Caesars Entertainment Corp. completed its $17.3 billion merger with Eldorado Resorts Inc., creating Caesars Entertainment Inc. As part of the transaction, VICI acquired the real estate assets of Harrah’s New Orleans, Harrah’s Laughlin (in Laughlin, Nev.) and Harrah’s Atlantic City for about $1.8 billion.

The post VICI Properties Provides $400M Mortgage to Caesars Entertainment appeared first on Commercial Property Executive.

Gallery Tower, Downtown Grand Hotel & Casino. Image courtesy of CIM Group

CIM Group has just enhanced lodging offerings at Downtown Grand Hotel & Casino in Las Vegas with the completion of the 495-key Gallery Tower. The arts-centric Gallery Tower marks the first ground-up hotel to be erected in downtown Las Vegas in more than a decade.

READ ALSO: Rethinking Hotels for a Post-Pandemic Scenario

“With the opening of Gallery Tower, Downtown Grand Hotel & Casino continues to contribute to the vibrancy of Downtown Las Vegas by providing locals and visitors with a premier resort experience in this historic area,” Gary Schweikert, Managing Director-Hospitality, CIM Group, told Commercial Property Executive.

The addition of Gallery Tower, named for Downtown Grand’s hotel collection, comes 13 years after CIM acquired the former Lady Luck Hotel & Casino for $20.4 million, with plans of redeveloping and repositioning the asset. Six years later in 2013, the company reintroduced the property as Downtown Grand following a $100 million investment. In January 2019, endeavoring to meet the increased customer demand for lodging in Las Vegas, CIM broke ground on the 250,000-square-foot Gallery Tower. The eight-story building offers a direct connection to the ground floor of the property’s casino, dining options and entertainment venues.

Gallery Tower marks the third building at Downtown Grand, which spans two full city blocks, and boosts the property’s lodging accommodations to a total of 1,124 guestrooms. The new addition is scheduled to open to visitors on September 22.

Timing

CIM Group announced it had reached the topping out stage on Gallery Tower on February 19, 2020, almost precisely one month before the governor of Nevada mandated the closing of all casinos in the state due to the COVID-19 health crisis. Casinos reopened in June but with restrictions, including a 50 percent capacity limitation in hotels and on gaming floors. According to the Las Vegas Convention and Visitors Authority, total occupancy in Downtown Las Vegas reached 41.8 percent in July, down from 85.1 percent in July 2019.

Despite the unavoidable downturn, the future bodes well for the Las Vegas hotel market. “The fundamentals that have made Las Vegas an iconic destination before the pandemic, including the variety of entertainment offerings, large amount of state-of-the-art meeting and convention space, and new resorts, will be a catalyst for the market’s eventual recovery,” Shannon Okada, managing director of gaming with HVS, noted in a new report by the global hospitality consulting firm.

The post CIM Group Debuts Gallery Tower in Las Vegas appeared first on Commercial Property Executive.

Bellagio Resort & Casino. Image via Pixabay.com

As the average number of new COVID-19 cases trended downward in the second half of August, Las Vegas’ commercial real estate saw a steady stream of activity. Facing ongoing uncertainty, a commercial rental assistance program for small businesses began taking applications on August 24. Industrial space continued to be in high demand as logistics companies sought to expand operations. After many hotel and casino operators reported major losses during the second quarter, some investors began looking into a key growth area for the sector: online gaming. Check out our August selection of Las Vegas must-knows:

1. M&A – InterActiveCorp pays $1 billion for minority stake in MGM Resorts.

The company acquired a 12 percent interest in the hotel & casino giant. The firm expects to tap into MGM’s potential for expansion in online gaming. In January, MGM and Blackstone entered into a $4.6 billion sale-leaseback agreement for Mandalay Bay and the MGM Grand. Blackstone also acquired a 95 percent interest in the Bellagio in October 2019.

2. LEASING – NAI Vegas brokers 66,700-square-foot industrial lease.

The brokerage’s Larkin Industrial Group negotiated on behalf of Plus Studios, an event organization and project management company, in the transaction valued at approximately $2.9 million. The tenant will occupy 50 percent of Link Industrial Properties’ building at 140 Cassia Way in Henderson. The single-story, 133,378-square-foot warehouse sits on a 12-acre parcel and was completed in 1997.

3. DEVELOPMENT – North Las Vegas outpatient facility opens doors.

Steinberg Diagnostic Medical Imaging debuted a new, 19,962-square-foot medical office building at 1650 W. Craig Road. The company paid Eastern Real Estate $1.3 million for the 3-acre development site in 2017, public records show. The project broke ground less than 12 months ago, with SR Construction serving as the general contractor and Intuit Architecture designing the facility. The firm’s ninth location will provide radiology services. 

4. LEASING – Weisser Distribution expands operations with new lease.

The company signed a contract for 105,820 square feet in the 392,040-square-foot property at 4900 Engineers Way. NAI Vegas facilitated the transaction, which is valued at $3.6 million. International Union of Operating Engineers owns the asset, according to Yardi Matrix. Located on 19 acres, the single-story warehouse was built in 1999. The property is 2 miles from Interstate 15 and 8 miles northeast of the city center.

The post Las Vegas Commercial Real Estate Wrap-Up – August 2020 appeared first on Commercial Property Executive.

Bellagio Resort & Casino. Image via Pixabay

Media-centric holding company IAC/InterActiveCorp has completed an aggregate investment of about $1 billion in MGM Resorts International. IAC’s stake in MGM Resorts was accumulated over a period of several months and totals about 12 percent.

IAC Chairman and Senior Executive Barry Diller explained in prepared remarks that the attraction of MGM—beyond its market presence in leisure, hospitality and gaming—is the potential of online gaming, which is generating a nearly insignificant portion of MGM’s current revenue. That part of the business has enormous growth possibilities and is a close fit with IAC’s steady focus on interactive businesses, Diller noted.

READ ALSO: Las Vegas Stripped of Appeal as Casinos Suffer

In a letter to IAC shareholders, Diller and CEO Joey Levin called MGM “a ‘once in a decade’ opportunity for IAC to own a meaningful piece of a preeminent brand in a large category with great potential to move online”. And while the COVID-19 outbreak has hit MGM hard, the company is well-positioned to ride the pandemic wave until there’s a vaccine. At that point, Diller and Levin noted, MGM will still have more than a third of the guest rooms on the Las Vegas Strip, along with eight regional properties across the U.S., two in Macau, and possibly a presence in Japan.

Asset-light strategy

Even before the pandemic upended Las Vegas, MGM was facing serious changes, as it executed some big transactions in pursuit of its asset-light strategy.

Last October, the company announced deals to offload its Bellagio and Circus Circus properties. A 95 percent interest in the Bellagio was subsequently sold to Blackstone REIT for $4.3 billion under a leaseback agreement.

The Circus Circus Las Vegas hotel and casino, along with a 37-acre festival site, was sold for $825 million to an affiliate of casino billionaire Phil Ruffin in December. 

Then this January, MGM entered into a $4.6 billion sale-leaseback with Blackstone’s REIT for the MGM Grand and Mandalay Bay.

The post IAC Makes $1B Investment in Casino Giant MGM Resorts appeared first on Commercial Property Executive.

Image via Pixabay

EDF Renewables North America has signed a 22-year power purchase agreement with NV Energy for a 200-megawatt solar photovoltaic project paired with a 180-megawatt, four-hour battery storage system. The solar development, dubbed Chuckwalla Solar and Storage, is estimated to come online by the end of 2023.

The solar plus battery system is located on the Moapa Band of Paiute Indians Reservation, 35 miles northeast of Las Vegas in Clark County, Nev. The development will benefit the Moapa Tribe and local community over its operating life through land lease, tax and other payments, while also providing some 300 temporary construction-related jobs. Upon completion, roughly 45,000 average Nevada households will be powered with the energy produced at the Chuckwalla solar project.  

The PPA strengthens the collaboration between the two companies—which, in June 2019, have agreed to develop and build the Arrow Canyon Solar and Storage project, another 200MW solar development coupled with a 75MW, five-hour battery, also located in Clark County on the Moapa Band of Paiutes Indian Reservation. Solar plus storage installations have been gaining traction across the country as the combined system enables the utility to provide more energy during the summer evening peak hours when demand is highest. Throughout the year, it benefits the utility and its customers by allowing mitigation of demand spikes as they occur.

The post EDF Renewables, NV Energy Strengthen Bond Through 200MW PPA appeared first on Commercial Property Executive.

Las Vegas Strip. Image via Pixabay.com

Although Las Vegas has borne the brunt of the pandemic’s effects, investment activity continued on a steady path. The industrial sector has largely avoided the worst, however, as tenants continued to lease space and developers took advantage of construction being listed as an essential service early on. While the government permitted commercial eviction proceedings to resume at the start of July, state authorities softened the blow by setting aside $20 million in rental assistance for businesses. Here is our July list of Las Vegas must-reads:

1. M&A – Eldorado and Caesars finalize $17.3 billion merger.

Under the Caesars Entertainment Inc. name, the firm became the largest casino and entertainment company in the world. The company owns and operates eight casinos on the Strip, including Caesars Palace, Harrah’s Las Vegas, Paris Las Vegas and Planet Hollywood. Caesars owns more than 55 properties in 16 states and five countries.

2. DEAL – Moonwater Capital pays $33.4 million for office asset.

Dekel Capital arranged a $35 million financing package for the purchase of the 262,000-square-foot NV Energy Pearson Building from Davidson Kempner Capital Management. The debt includes a $23.8 million loan from Washington Federal Bank and joint venture equity. The property previously traded in 2018 as part of a $726 million portfolio sale from Lexington Realty Trust. Located on 13 acres at 6226 W. Sahara Ave., the four-story property was completed in 1983.

3. LEASING – Colliers selected to lease industrial project.

Miltson Consulting chose the firm’s Willmore Industrial Team to oversee marketing and leasing efforts for The Mountain West Industrial Park, a 500,000-square-foot project. The developer broke ground on the first phase of the property on July 17. The property will include four multi-tenant warehouses with 30-foot clear heights, an ESFR sprinkler system and cold storage. Situated at the northeast corner of South Tenaya Way and West Post Road, the site is 9 miles west of McCarran International Airport.

4. SUSTAINABILITY – Joint venture kicks off solar project.

Switch, in partnership with Capital Dynamics, began work at three sites, continuing the development of Rob Roy’s Gigawatt Nevada solar and battery project. The companies will invest $1.3 billion and create more than 1,000 new jobs, according to Governor Sisolak. The sites will use thousands of solar panels produced by First Solar and Tesla Megapack battery storage. Dubbed Gigawatt 1, the project will provide 555 megawatts of solar power and have 800 megawatts of battery storage capacity.

5. LEASING – JLL brings industrial facility to full occupancy.

Jason Simon, Rob Lujan and Xavier Wasiak negotiated three leases totaling 90,518 square feet at Harsch Investment Properties’ Speedway Commerce Center IV, a 168,000-square-foot building. Ampart LLC signed a 45,455-square-foot lease, Draken International will occupy 23,937 square feet and Cascadia Vehicle Tents will take up 21,126 square feet at the property. Delivered earlier this year, the warehouse is located at 6101 N. Hollywood Blvd.

6. DEAL – VanTrust sells Reckitt Benckiser facility for $45.2 million.

The Moulton Co. acquired the 322,560-square-foot industrial property, according to public records. The seller and developer broke ground on the facility in May 2019, delivering it 10 months later. The single-story building is on 18 acres at 4800 E. Tropical Parkway. The warehouse is part of the Northgate Distribution Center, a master planned industrial park spanning 180 acres and encompassing 3.5 million square feet.

The post Las Vegas Commercial Real Estate Wrap-Up – July 2020 appeared first on Commercial Property Executive.

NV Energy Pearson Building. Image courtesy of Dekel Capital

Dekel Capital has orchestrated $35 million in financing for Moonwater Capital’s acquisition of the approximately 262,000-square-foot NV Energy Pearson Building in Las Vegas. Moonwater purchased the Class A corporate headquarters property from Lexington Realty Trust in a transaction valued at roughly $33.4 million, according to the Clark County Assessor’s office.

READ ALSO: Q&A: Tenant Demand to Drive Expansion

Lexington had owned a 20 percent interest in the NV Energy Pearson Building, having sold the remaining stake to Davidson Kempner Capital Management for $60.7 million in 2018 as part of a $726 million office portfolio transaction. Located 4 miles from downtown Las Vegas at 6226 W. Sahara Ave., the four-story property first opened its doors in 1983 as the headquarters of NV Energy and has served solely as the Berkshire Hathaway Energy subsidiary’s home ever since.

Financing for the office destination, acquired as a core-plus asset, took the shape of a two-part package comprising debt and equity. Dekel secured approximately $23.8 million in long-term, fixed-rate, first mortgage debt from a West Coast-based regional bank. The real estate merchant banking firm also rounded up joint venture equity on Moonwater’s behalf, the majority of which came from a private REIT managed by real estate crowdfunding and investment company RealtyMogul.

Both the lending and investment communities took a strong interest in the NV Energy Pearson Building financing opportunity. Dekel notes in a prepared statement that a range of lending sources vied for the chance to provide funds, and on the equity side, investors were drawn in by the property’s low-cost basis and robust cash flow from a large credit tenant.

Bucking the trend

In a report released in May, Cushman & Wakefield made a prediction about commercial real estate financing in the time of COVID-19: “In the case of both the equity and debt markets, activity will continue to be restrained by elevated uncertainty.” Dekel, however, has been successful in reeling in financing amid this time of global upheaval. In late April, as the pandemic strengthened its grip on the economy, Dekel arranged $59 million in construction financing for The Latigo Group’s 142-unit mixed-use apartment community outside Los Angeles in Thousand Oaks, Calif., obtaining the funds from a life insurance company and a publicly traded REIT.

The post Dekel Capital Orchestrates $35M in Financing for Las Vegas Office Asset appeared first on Commercial Property Executive.

Image via Pixabay.com

VanTrust Real Estate has completed the $45.2 million disposition of a newly delivered, 322,560-square-foot industrial building in North Las Vegas, Nev. A private investor acquired the asset, according to Clark County records.

Located on 18 acres at 4800 E. Tropical Parkway, the single-story facility opened  in February 2020 following 10 months of construction. The climate-controlled warehouse was a build-to-suit project for health and cleaning supplies manufacturer Reckitt Benckiser.

The facility is on the northern side of Interstate 15, some 10 miles from downtown Las Vegas and 16 miles from McCarran International Airport. Additionally, the property is part of the Northgate Distribution Center, a 180-acre, master planned industrial complex totaling 3.5 million square feet. The park’s tenant roster includes Amazon, Fanatics and The Honest Co.

In May, VanTrust sold Tropical Distribution Center 1, the largest Amazon-leased building in Nevada for $110 million. Preylock Holdings acquired the 855,000-square-foot asset and financed the purchase with a $68 million loan from Goldman Sachs.

The post VanTrust Trades Las Vegas Facility for $45M appeared first on Commercial Property Executive.

Mobile home community part of Saratoga’s Fund IV. Image courtesy of Saratoga Group

Saratoga Group has closed on its latest opportunity zones fund, Fund IV, having raised more than the initial target of $15 million. Including one final acquisition, which awaits completion, the fund will include 14 mobile housing communities and more than 1,000 sites.

The properties are located in Bloomington, Ind.; Rockdale, Texas; Greenville, N.C.; Daytona Beach and Lakeland, Fla.; Albany, Ga. and Las Vegas. Saratoga has already paved four of them, with three other communities scheduled for repaving by the end of the summer. Other upcoming upgrades include solar street lighting, office renovations, children’s playgrounds, soccer fields and barbeque pavilions.  

The portfolio has an average of 62 percent occupancy—with March, April and May being the highest months for move-ins, according to Sam Hales, Saratoga Group’s CEO. Hales also noted that rent collection has been strong during the pandemic.

The company expects to operate a total of 5,000 manufactured housing sites by the end of the year. In the first quarter of 2021, Saratoga Group plans to launch a third opportunity zones fund.

The post Saratoga Group Closes Opportunity Zones Fund appeared first on Commercial Property Executive.

Las Vegas Strip. Image by PatternPictures via Pixabay.com

With most of its casinos reopened on June 4, Las Vegas has slowly come back to life. Although crowded gaming venues may be a risky play during a pandemic, Nevada was quick to mandate face coverings for all residents and visitors in public spaces. As the metro continues to adjust to the new normal, its commercial real estate markets have kept moderately active. At the end of June, the state announced a multi-phase plan to end its commercial eviction moratorium, in place since late March. Read our June selection of Las Vegas must-knows: 

1. M&A – FTC approves $17.3 billion Eldorado-Caesars merger.

The two casino and hotel owners received the green light to form the largest gaming company in the U.S., a move Eldorado announced in June 2019. For the transaction to be finalized, state gaming regulators in Indiana, Nevada, and New Jersey need to give their approvals as well. Once complete, the companies will together own 60 properties across the country, including a number of notable Vegas casinos such as Caesars Palace, The LINQ and Harrah’s Las Vegas, with a 51-49 split of outstanding shares.

2. DEAL – Dermody Properties acquires 120,000-square-foot facility.

Truck manufacturer PACCAR finalized its $13.4 million disposition of a North Las Vegas warehouse located on 13 acres at 4141 Distribution Circle. The single-story building was completed in 1995 and features 13 truck wells, four grade-level doors and two loading docks, according to Yardi Matrix. The site is 2 miles from Interstate 15 and 11 miles north of McCarran International Airport.

3. PEOPLE – CBRE hires new managing director.

The company named Cassie Catania-Hsu as market leader for its Las Vegas office. She will oversee the firm’s advisory departments in the region, including capital markets, leasing and property management. Before joining the firm, Catania-Hsu served as president & corporate broker at Sun Commercial Real Estate. Previously, she was a leasing director with International Market Centers.

4. DEAL – Grocery-anchored property changes hands.

Net Gain Properties LLC purchased the 50,388-square-foot Smith’s store from a private investor for $6.1 million. Rock Canyon Bank provided financing for the deal, Clark County records show. The building last sold in 2001 for $6.5 million. Opened in 1995, the property is on a 5-acre parcel at 1421 N. Jones Blvd., 2 miles from the West Lake Mead Boulevard retail corridor.

5. LEASING – NAI Vegas inks expansion for medical manufacturer.

Imatrex Medical Solutions has extended its footprint at the Las Vegas Technology Center II with an 18,290-square-foot sublease from a financial services company. Associate Leslie Houston assisted the tenant in the lease, valued at nearly $1.4 million. Located at 2500 N. Buffalo Drive, the 2002-built, two-story building is 10 miles northwest of the city center.

The post Las Vegas Commercial Real Estate Wrap-Up – June 2020 appeared first on Commercial Property Executive.

1421 N. Jones Blvd. Image via Google Maps

A Smith’s-anchored, 50,388-square-foot retail property in Las Vegas has sold for $6.1 million. Net Gain Properties LLC acquired the asset from a private investor, according to Clark County records. Rock Canyon Bank provided acquisition financing. The asset last traded in 2001 for $6.5 million.

Located on 5 acres at 1421 N. Jones Blvd., the single-story building opened in 1995. In addition to the grocery anchor, the property is also home to a PostNet print shop. Within the Santa Fe Plaza retail center, the building is adjacent to a number of other shops and restaurants, including Popeyes and Papa John’s. Several residential communities are in the area: Yardi Matrix shows nearly 3,600 units within 1 mile of the asset.

With more and more retail destinations reopening after the lockdown period, foot traffic has begun to swing in the opposite direction, with grocery stores and pharmacies returning to a normal influx of clients, according to a Marcus & Millichap report. However, given new social distancing restrictions and sanitation requirements in place, many retailers may choose to remain closed for the near future. 

The post West Las Vegas Grocery-Anchored Asset Sells appeared first on Commercial Property Executive.

4141 Distribution Circle. Image via Google Maps

Dermody Properties has finalized the $13.4 million acquisition of a 120,000-square-foot industrial property near Las Vegas. Truck manufacturer PACCAR sold the asset, according to public records.

Located on a 13-acre parcel at 4141 Distribution Circle in North Las Vegas, the single story warehouse was built in 1995. The property has 13 truck wells, four grade-level doors, two loading docks and a 175-foot truck court, Yardi Matrix shows.

The distribution center is 2 miles from Interstate 15 and 11 miles north of McCarran International Airport. The property is 3 miles from Prologis Las Vegas Corporate Center, a 10-building industrial park totaling 2.4 million square feet. The I-15 industrial corridor is home to a number of major facilities, including an Amazon fulfillment center, a CDW warehouse and LogistiCenter at Speedway, a recently delivered, 251,800-square-foot property from Dermody.

Earlier this month, a partnership between Dermody and PCCP sold LogistiCenter at 33, a 475,800-square-foot industrial building in Easton, Pa., for $62.5 million. CBRE brokered the sale on behalf of the joint venture.

The post Dermody Properties Grows Las Vegas Industrial Portfolio appeared first on Commercial Property Executive.

Adam Malan, Director, LOGIC. Image courtesy of LOGIC

Healthy economic fundamentals and substantial population growth signaled a strong year for Las Vegas. The novel coronavirus, however, has turned the metro’s strengths into woes. According to Yardi Matrix data, Las Vegas currently has the highest percentage nationwide of jobs in at-risk sectors such as leisure and hospitality, retail and construction, with the pandemic pushing the metro’s unemployment rate to historic highs. 

To get a sense of the current retail landscape in Las Vegas and what to expect, Commercial Property Executive reached out to LOGIC Commercial Real Estate Vice President Deana Marcello and Director Adam Malan, who revealed how landlords and tenants across Nevada are adjusting to the new economic climate.

READ ALSO: As Stores Reopen, How Quickly Will Retail Recover?

The retail sector has been hit by widespread store closures and major retailers have filed for bankruptcy. How has this current affected Las Vegas?

Marcello: Retail has absolutely been impacted by the stay-at-home orders put in place. However, many of the companies we hear about closing have been on the watchlist for quite some time, including J.C. Penney Co. and Pier 1. Most landlords who have these companies as tenants have been preparing for this announcement.

Stand-alone businesses in Las Vegas had the option to reopen on May 15, though with strict safety guidelines and a preference for curbside pick-up or delivery. How quick were retailers to adjust to the new situation?

Marcello: Unfortunately, the announcement came with less than 48 hours’ notice, which left retailers scrambling a bit, but most of them seemed quite resilient in finding creative ways to service their customers. Utilizing existing delivery apps and announcing their curbside options via social media allowed businesses that embrace technology to have a quicker turnaround in complying with the new restrictions.

Deana Marcello, Vice President, LOGIC. Image courtesy of LOGIC

LOGIC Commercial Real Estate manages more than two million square feet of retail space. What are some of the measures you’ve implemented to ensure a safer environment?

Malan: Our property management division did an excellent job of educating every tenant and landlord on best practices outlined by the Centers for Disease Control and Prevention, by providing them with a detailed letter about prevention, including informative links to official health websites. They also provided all tenants with two information sheets that can be posted throughout their suite/business and restrooms to remind everyone of proper procedures and actions to take to lessen the spread of the illness. All tenants were directed to reach out to LOGIC management if there was a confirmed case, so that we could implement remediation and notification if needed. Luckily, no such cases have occurred thus far.

Employees of LOGIC are required to follow CDC guidelines when conducting tenant or vendor meetings, including wearing masks and gloves. More specific or comprehensive changes to cleaning and safety protocols, however, have been directed by individual landlords, as they would need to approve and assume the cost.

Have retail tenants paid their rents in the past few months? 

Malan: Retail landlords in Las Vegas have been dealing with an unprecedented amount of rent abatement and deferral negotiations, much like the rest of the country, with most landlords reporting average rent collections during April and May ranging from 40 to 70 percent. With the Las Vegas unemployment rate nearing 33 percent, compared to the national average of 14.7 percent, we expect occupancy rates in certain submarkets to match or exceed the national average.

READ ALSO: Macy’s Starts Reopening Amid Department Store Woes

What can you tell us about the investor sentiment in Las Vegas? 

Malan: The retail investment market was off to a strong start this year, with around $190 million sold throughout the first four months, at an average cap rate of 5.6 percent, with an average discount from asking to sale price of 3.1 percent.

Debt availability and transaction volume for multi-tenant retail have all but vanished since the early stages of the pandemic. However, the single-tenant net-leased sector has remained relatively active, with 1031 exchange investors focused on well-located assets with long-term leases and corporate guarantees, highlighted by the recent sale of a newly constructed El Pollo Loco. Our team brokered this transaction on May 15, at a record low cap rate of 4.36 percent.

Southern Nevada started the second phase of reopening on Friday, May 29, while hotel/casinos on the world-famous Las Vegas Strip reopened on June 4. We remain optimistic for a swift recovery and feel confident in the resiliency of the great companies and the hardworking residents that call southern Nevada home.

What type of retailers have better prospects for a quick recovery?

Marcello: Restaurant retailers seemed to be the most buoyant in the recovery process by quickly adapting to delivery, to-go and curbside pickup. It seems big-box retailers, who were not considered essential and did not implement successful online strategies, struggled to adapt.

What are your predictions for the Las Vegas retail sector? 

Malan: Retail is one of the most essential parts of commercial real estate and having it disappear is unrealistic, but there will be an evolution of retail and tenants’ needs will continue to shift as they become comfortable with the current environment. Many restaurant tenants might only seek drive-through options going forward or big-box stores might shrink footprints with more satellite stores for curbside pick-up and focus on additional distribution warehouse for delivery. As far as impact on Las Vegas, we believe Las Vegas is resilient and will bounce back strongly.

The post Las Vegas Retail: What’s Happening, What to Expect appeared first on Commercial Property Executive.

LogistiCenter at Speedway. Image courtesy of Dermody Properties

In May, Las Vegas’ commercial real estate took some steps forward. Although the city’s casinos are slated to open June 4, the metro’s hospitality industry will likely face challenges for quite some time. Despite myriad challenges, the city continued to grow in importance as a regional distribution hub, breathing life into its industrial sector, both in terms of development and sales. Here’s our May list of Las Vegas must-reads:

1. DEAL – Amazon Fulfillment Center sells for $110 million.

Preylock Holdings purchased the 855,000-square-foot Tropical Distribution Center 1, the largest Amazon-leased facility in Nevada, from VanTrust Real Estate. Goldman Sachs provided $68 million in acquisition financing for this transaction, according to Commercial Observer. The building—Las Vegas’ largest industrial completion of 2019—delivered in May at 6001 E. Tropical Parkway.

2. DEAL – West Las Vegas office building changes hands.

Real Estate Services Group sold Rainbow Corporate Center, an 87,771-square-foot property. A private investor bought the Class B asset for $15 million. Located on 3.4 acres at 500 N. Rainbow Blvd., the three-story building delivered in 1997. The property has a parking ratio of 6 spaces per 1,000 square feet and also includes a number of electric vehicle-charging stations.

3. DEVELOPMENT – NDL Group Inc. completes Henderson aviation facility.

The company delivered the 105,000-square-foot All in Aviation training campus in partnership with Lone Mountain Aviation. The property, located at Henderson Executive Airport, has a 37,516-square-foot main office and maintenance hangar, 16 “T” hangars for small personal aircraft and nine box hangars for mid-size business jets. Building features include a two-story lobby, training rooms and a library.

4. PEOPLE – SRS Real Estate names head of new Vegas office.

Managing Principal Frank Volk has more than 15 years of experience in the local market, specializing in retail within the city’s tourist areas, including the Strip. He joined SRS from Newmark Knight Frank, via the RKF acquisition. During his 14-year tenure with RKF, he worked on many notable projects including the marketing and leasing of the 1.8 million-square-foot Town Square.

5. DEVELOPMENT – Dermody Properties delivers North Las Vegas warehouse.

The 251,800-square-foot LogistiCenter at Speedway occupies 14 acres at 6565 Nascar St. in the center of the Interstate 15 corridor. Built under the guidance of general contractor United Construction Co., the structure has 32-foot clear heights, 52 loading docks and eight grade-level doors. Dermody plans to break ground on a 150,000-square-foot industrial project near McCarran Airport in July.

The post Las Vegas Commercial Real Estate Wrap-Up – May 2020 appeared first on Commercial Property Executive.

Tropical Distribution Center 1

Preylock Holdings has paid VanTrust Real Estate $110 million for the 855,000-square-foot Tropical Distribution Center 1 in Las Vegas, the largest Amazon-leased facility in Nevada, according to public records. Goldman Sachs provided financing for the acquisition.

The property came online in May 2019, making it the largest industrial delivery in Las Vegas last year. VanTrust financed the build-to-suit project with a $64.1 million construction loan from JPMorgan Chase, according to a source familiar with the transaction.

Located at 6001 E. Tropical Parkway, the building has 122 loading docks with bumpers and levelers in addition to three drive-in doors. The property features clear heights up to 41 feet, expansive truck courts and 400 stalls for trailers. Car parking is available at a ratio of 2.75 spaces per 1,000 square feet. Amazon has equipped the structure with two conveyor belt mezzanine floors and four robotic storage platforms, bringing the interior floor area to some 2.3 million square feet.

Although most investment in Las Vegas’ commercial real estate had dropped sharply as a result of the COVID-19 pandemic, the metro’s industrial sales increased more than twofold following the Nevada governor’s shutdown of the state’s non-essential businesses in March. As the city gains increasing importance as a regional distribution hub, this trend appears likely to continue.

The post Las Vegas Amazon Fulfillment Center Sells for $110M appeared first on Commercial Property Executive.

LogistiCenter at Speedway. Image courtesy of Dermody Properties

Dermody Properties continues to deliver premier industrial assets under its trademarked LogistiCenter brand to hungry markets across the U.S., with the completion of LogistiCenter at Speedway in North Las Vegas. The 251,800-square-foot distribution center, constructed under the guidance of general contractor United Construction Co., is already 30 percent leased.

READ ALSO: Pandemic Unlikely to End Construction in 2020

Carrying the address 6565 Nascar St., LogistiCenter occupies a 14-acre site in the center of the Interstate 15 corridor. Qualfon Inc.’s Dialog Direct, a full-service marketing solutions provider, committed to the state-of-the-art property, inking a lease with Dermody for approximately 76,800 square feet for its new West Coast fulfillment center. CBRE is spearheading leasing activity at LogistiCenter, where 176,000 square feet are now available for occupancy. Market fundamentals bode well for the lease-up of the remaining space. According to a first quarter 2020 report by CBRE, the Las Vegas industrial market recorded a 72 percent quarter-over-quarter increase in overall net absorption to 1.6 million square feet, with transactions in the North Las Vegas submarket accounting for 1.4 million square feet of the total. The strong numbers follow a year when metropolitan Las Vegas saw its top five industrial projects deliver in North Las Vegas.

“For Las Vegas—like many other markets, even with the recent economic fallout and spike in unemployment claims from the coronavirus pandemic—industry analysts and brokers believe demand for industrial space will remain consistent during the outbreak as users take a ‘wait and see’ attitude about where demand is once we return to normal,” John Ramous, partner with Dermody Properties, told Commercial Property Executive. “As a company, we are optimistic that the industrial real estate market will come out of this well and likely stronger than most other product types.”

Dermody’s confidence in the metropolitan Las Vegas market is evidenced by its current plans. In addition to having several area projects in the early stages, the company plans to break ground on LogistiCenter at Sunset, a 150,000-square-foot industrial building near McCarran Airport, within the next 60 days. “We expect the project to attract e-commerce and last-mile logistic tenants in the 25,000 to 150,000 square-foot range,” said Ramous.

Getting back to normal

Ramous anticipates that given current conditions, the U.S. industrial sector will not return to “business as usual” for the foreseeable future. He expects it will take 12 to 24 months minimum to navigate through the recovery period. According to Ramous, “Once we move past that phase, we will likely see a large acceleration in the e-commerce evolution. In the long term, the fundamentals will come back and there will be a potential increase in the need for onshoring and nearshoring, which bodes well for the industrial real estate industry.”

Dermody’s delivery of LogistiCenter at Speedway and news of the upcoming groundbreaking on LogistiCenter at Sunset come on the heels of the company’s completion of LogistiCenter at Louisville Airport, a 352,800-square-foot facility that opened in the Louisville, Ky., market in April 2020, fully leased to a global services company. And the company closed 2019 with the December completion of the 304,000-square-foot LogistiCenter at Midway South in Bethel Township, Pa., roughly 25 miles east of Philadelphia.

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Las Vegas. Image via Pixabay.com

April was a relatively quiet month for Las Vegas’ commercial real estate, as the novel coronavirus left a mark on the metro’s economy. Although investment faded for most property types, demand for industrial assets drove a healthy deal volume. The city’s infrastructure also got a boost with federal financing approved for Brightline’s high-speed rail project. Here’s our April selection of Las Vegas must-reads:

1. DEAL – Lincoln Property makes $72 million industrial buy.

Brookfield Properties sold six industrial buildings totaling 425,700 square feet within the 3.3 million-square-foot Hughes Airport Center, Yardi Matrix shows. Developed between 1987 and 1991, the assets are located within an Opportunity Zone on more than 25 acres at 890 and 950 Pilot Road, 1151 Grier Drive and 1181 Grier Drive. The business park is near Interstate 215, some 3 miles south of McCarran International Airport.

2. FINANCING – DesertXpress scores federal funding.

Brightline’s high-speed rail project between Las Vegas and Los Angeles received approval for tax-exempt bonds, according to The Real Deal. With financing in place, the company intends to break ground on the 270-mile line by the end of this year, citing no anticipated delays due to the COVID-19 pandemic. DesertXpress is slated for completion in 2023.

3. DEAL – BKM Capital Partners sells airport-area warehouse.

The company traded the 17,047-square-foot asset for $16 million. The buyer, a private investor, received acquisition financing from the seller. The property is located at 1856 E. Pama Lane within the Spencer Airport Center and represents the eastern half of a larger, 31,231-square-foot structure. BKM remains the owner of the western component.

4. DEAL – Clarion Partners buys industrial facility.

Western Devcon sold the 83,125-square-foot asset for $12.1 million, according to Yardi Matrix information. Situated on 3.6 acres at 845 E. Pilot Road, the Class A property delivered in two phases in 1991 and 1997. The building has nine dock-high loading doors and a single drive-in door. McCarran International Airport is less than 3 miles north of the facility.

5. DEAL – Berg Advisory Group arranges retail center sale.

Parkview Plaza, a 25,120-square-foot multi-tenant property anchored by PT’s Pub, traded for $6.5 million, according to CRE Confidential Las Vegas. The buyer assumed an existing CMBS loan from the seller which matures in 2025. Located 10 miles southwest of downtown Las Vegas at 3935-3955 S. Durango Drive, the retail center was 89 percent occupied at the time of sale.

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Rainbow Corporate Center

A private investor has paid $15 million for Rainbow Corporate Center, an 87,771-square-foot Class B office property in Las Vegas, according to Clark County records. The seller, Real Estate Services Group, had acquired the asset from U.S. Bank in a $6.9 million deal in late 2013, Yardi Matrix shows.

Rainbow Corporate Center is located on 3.4 acres in a primarily residential area at 500 N. Rainbow Blvd., adjacent to the intersection of Summerlin Parkway and U.S. Highway 95. The property is some 7 miles west of downtown Las Vegas.

The three-story building was delivered in 1997 and is home to a mix of tenants, including traditional office users like Fidelity National Title, medical practices and a Regus shared space. The property boasts a parking ratio of 6 spaces per 1,000 square feet, housed in an adjacent structure with electric vehicle-charging stations.

Las Vegas took a massive hit from the COVID-19 pandemic early on and overall investment in the metro’s real estate has dropped sharply. However, parts of Nevada’s economy may be poised to reopen as soon as mid-May, under guidelines announced by Governor Steve Sisolak last week.

The post West Las Vegas Office Building Sells for $15M appeared first on Commercial Property Executive.

Image via Pixabay.com

A month and a half after the historic closure of Nevada’s nonessential businesses, Governor Sisolak outlined a recovery plan for the state on April 30. While many businesses could begin opening in phases as soon as mid-May, the fate of Las Vegas’ 440 licensed casinos remains in the hands of the Nevada Gaming Control Board.

While Vegas’ casinos had actually closed before—for one full day following the JFK assassination, for example—the March order truly was unprecedented, both in terms of scale and scope. Shopping malls, conference centers and recreation facilities shuttered, and the city’s restaurants were forced to shift to carry-out or delivery options only, similar to what has, by now, become commonplace across the country.

Image via Pixabay.com

These hurdles have the power to unmake many of the gains made by Las Vegas’ diverse commercial real estate sectors throughout the past decade. For example, while Yardi Matrix data has long noted the metro’s multifamily rent growth as far outpacing the national average, skyrocketing unemployment could make rent collection a real issue. The retail sector faces similar issues, as stores remain closed and rents come due. In the office sector, as millions of Americans have shifted to working from home, demand for new, high-end space has fallen off a cliff, leaving developers and value-add investors holding the proverbial bag.

And then, of course, there’s Las Vegas’ critically important hospitality industry. In addition to casino closures, grounded flights and canceled conferences have gutted the sector in a matter of weeks. In April, RevPAR had already fallen, on average, more than 75 percent nationwide, and figures specific to Las Vegas are likely even more severe.

While the governor’s phased approach to reopening the state’s businesses is a positive step, Las Vegas’ real estate is still affected. With unemployment continuing to spike, consumer confidence and spending habits will take much longer to recover, leaving the future of many of the metro’s primary economic drivers up in the air.

Deals drop off

What has this meant in terms of the metro’s investment volume? Public records filed with the Clark County paint a bleak—albeit uneven—picture. Looking at the weekly volume of recorded Las Vegas property sales, a clear downward trend emerges. Transactions of less than $5 million were excluded from this analysis.

Source: Clark County Recorder’s Office

In the four weeks following the March emergency order, $141.6 million in property transactions closed in the county, nearly a third less than the $210.6 million from the previous four-week period. Though it comes with a caveat that deals may still be closing with greater delays due to increasingly overburdened county record offices, the sheer drop-off in volume offers a compelling narrative that investors are taking a “wait-and-see” approach to acquisitions. While the graph above excludes land sales, these too have fallen in a similar way, falling 46.8 percent from $69 million to $36.7 million between the same two timeframes.

So, what’s selling?

The breakdown between asset types involved in the deals—both before and after the government order—also provides us with some perspective on which sectors are feeling more pressure than others:

Following the shutdown, the majority of closed transactions involved industrial assets, while all other property types saw a significantly reduced share of the overall volume. Transaction volumes for nearly all asset classes fell significantly in the four weeks after the shutdown commenced. Retail and office volume fell by a respective 33.8 and 34.6 percent, and the “other” category—consisting mostly of education and entertainment facilities—dropped similarly, showing a 36.3 percent contraction in closed deals.

However, it’s not all bad: Distribution and logistics centers have become more important now than ever before, as e-commerce becomes the mainstay of the transformed shopping landscape. This is particularly true in Las Vegas, and the metro’s place as a growing regional distribution hub made it a prime spot for investment. As a result, industrial transactions increased by a staggering 210 percent, jumping from $34.1 million to $105.9 million.

What’s next?

While commercial real estate, both locally and at the national and global stages, remains in flux, good news may be on the horizon. With states like Nevada taking meaningful steps to flatten the curve, some optimistic estimates suggest the economy could recover to pre-coronavirus levels by the end of the year.

So many unknowns surround the pandemic and its impacts, however, and not just in epidemiological terms. Important questions persist about how businesses can effectively withstand drastic near-term revenue losses, levels of any future government assistance and how much forbearance lenders will be able to offer.

The post Las Vegas Stripped of Appeal as Casinos Suffer appeared first on Commercial Property Executive.

1856 E. Pama Lane. Image via Google Maps

BKM Capital Partners has sold a 17,047-square-foot warehouse near McCarran International Airport in Las Vegas to a private investor for $16 million, according to public records. The buyer received acquisition financing from the previous owner.

The property, located within the Spencer Airport Center at 1856 E. Pama Lane, comprises the eastern half of a larger, 31,231-square-foot structure. The building has a single dock-high loading door and a drive-in door. BKM remains the owner of the western component and the industrial park’s six other buildings.

Las Vegas’ industrial market had been making steady gains toward the end of 2019, as the city grew in importance as a regional distribution hub. Industrial developers added close to 5 million square feet of new product to the metro last year, accounting for more than 6 percent of the market’s inventory.

While Las Vegas has been hard hit by the novel coronavirus, its presence as a regional industrial player could soften the overall blow on Sin City’s economy. Demand from many industrial users—particularly e-commerce tenants—is likely to remain strong, as consumer behavior continues to shift away from brick-and-mortar retail.

The post Las Vegas Airport Warehouse Trades for $16M appeared first on Commercial Property Executive.

Wynn Las Vegas and Encore. Image via Pixabay.com

The strongest initial impacts of the new coronavirus hit Las Vegas, with travel restrictions and social distancing rules causing multiple hotels and casinos to shutter until further notice. At the same time, the hospitality sector did not remain quiet: The Tropicana changed hands for nearly $338 million in a large leaseback deal intended to provide the casino operator liquidity during the crisis. Read our March list of Las Vegas must-reads: 

1. DEVELOPMENT – Construction on Raiders’ Allegiant Stadium continues.

Work on the $1.9 billion development continued, even after a worker at the site tested positive for COVID-19, according to Silver & Black Today. The roof framing and some of the signage are at or near completion. Work also started on the stadium’s 27,600-square-foot video board, which will be the largest of its kind in the city. The site is located at 3333 Al Davis Way.

2. DEAL – Cushman & Wakefield arranges sale of office asset.

Winner Cos. acquired the 37,730-square-foot asset for $3.9 million from Hardy Cos., according to public records. The brokerage team that represented the seller included Charles Moore, Marlene Fujita and Hunter Bradshaw. Located on 2 acres at 6425 W. Sahara Ave., the two-story property was built in 1995.

3. DEAL – Gaming & Leisure Properties to acquire Tropicana Las Vegas.

The company reached a leaseback agreement with owner Penn National Gaming to purchase the Tropicana Las Vegas Casino Hotel Resort in exchange for a $337.5 million rent credit. Penn National will continue to manage the asset, located at 3801 S. Las Vegas Blvd., which it acquired for $360 million in 2015. The deal includes a ground lease for a planned casino project in Morgantown, Pa., and grants Penn the option to acquire the operations of GLPI’s Hollywood Casino in Perryville, Md.

4. OPERATIONS – All Vegas casinos shutter amid coronavirus concerns.

Following a statewide closure order effective March 17, MGM Resorts International closed its casinos and hotels, with Wynn Resorts also suspending operations at Wynn Las Vegas and Encore. Other closed hospitality assets include Las Vegas Sands’ Venetian and Palazzo resorts. Companies in the sector suspended activity for a minimum of two weeks.

The post Las Vegas Commercial Real Estate Wrap-Up – March 2020 appeared first on Commercial Property Executive.

Tropicana Las Vegas. Image via Google Street View

Gaming & Leisure Properties Inc. has entered into an agreement with its landlord, Penn National Gaming Inc., to acquire the real estate assets of Tropicana Las Vegas Casino Hotel Resort in return for an aggregate non-cash rent payment of $337.5 million. Penn National purchased the property in 2015 for $360 million and will continue to operate it.

The deal also includes a ground lease for a planned casino development in  Morgantown, Pa., which is expected to generate $3 million of initial annual cash rent for the REIT. The agreement also provides Penn the option to acquire the operations of GLPI’s Hollywood Casino in Perryville, Md., at a future date.

READ ALSO: How Can Hotels Prepare for an Optimized Recovery?

Located at 3801 S. Las Vegas Blvd. on 35 acres, Tropicana is roughly 2.5 miles from McCarran International Airport, on the southern end of the Las Vegas Strip. Tropicana Las Vegas includes a 1,467-key hotel, 100,000 square feet of convention and exhibit space, as well as 50,000 square feet of gaming space.

The parties plan to consummate the transaction by the end of April, subject to negotiation of definitive agreements in the coming weeks and receipt of necessary approvals. The leaseback deal is meant to provide Penn National Gaming with more liquidity as all its properties across the country remain closed due to the coronavirus pandemic.

Uncertainty ahead

The hotel industry in the U.S. supported approximately 8.3 million direct and indirect jobs prior to the coronavirus crisis, according to the American Hotel and Lodging Association.

Experts expect the hospitality industry to be among the hardest hit by the ongoing COVID-19 spread. In mid-March, Nevada Governor Steve Sisolak ordered the closure of all non-essential businesses in the state for 30 days, which includes casinos. In this context, Penn National Gaming also announced last week it would furlough 26,000 employees beginning April 1.

The post Tropicana Las Vegas to Sell in $338M Leaseback Deal appeared first on Commercial Property Executive.

Of the metro’s submarkets with the largest inventories of industrial properties, North Las Vegas stood out in 2019, boasting more than two-thirds of the year’s completions in terms of square footage. The table below, based on data from Yardi Matrix, highlights the five largest industrial completions in Las Vegas in 2019. 

5. 70-78 W. Craig Road

A joint venture between Huntington Industrial Partners and Polk Street Industrial delivery of 70-78 W. Craig Road in North Las Vegas marked the fifth-largest completion of 2019. Work began on the project in late 2018 and finished in the second half of 2019. Texas Capital Bank financed the development and later provided an $18.2 million refinancing bridge loan in November.

The 343,820-square-foot property has three individual structures, each with 190-foot truck courts and clear heights between 30 and 32 feet. The largest has 38 loading doors in a cross-dock configuration, while the remaining two are rear-load buildings.

4. Prologis I-15 Speedway Logistics Center 4

Prologis I-15 Speedway Logistics Center 4

The fourth building at Prologis’ I-15 Speedway Logistics Center delivered in the second half of 2019, adding 367,060 square feet to the North Las Vegas submarket. The property features 36-foot clear heights, 49 loading docks and two, 12- by 14-foot drive-in doors.

Located at 5245 N. Sloan Lane, the distribution center is on the northern side of the Nellis Air Force Base. The building’s tenants include carpet and home accessory manufacturer Nourison Industries and plumbing supplier Oatey.

3. Prologis I-15 Speedway Logistics Center 3

Next door at 5265 N. Sloan Lane, the third building of the I-15 Speedway Logistics Center marks Las Vegas’ third-largest delivery of 2019. The 632,324-square-foot development completed near the end of the year. Prologis plans to build three additional structures, bringing the park to 3.5 million square feet upon completion.

The third structure has 98 loading doors in a cross-dock configuration, with 30 equipped with levelers and bumpers. The building’s interior includes 56- by 60-foot bay spacing and clear heights up to 36 feet, while the exterior of the property has fenced, 190-foot truck courts and 134 trailer parking stalls. In addition to its warehouse component, the building has 3,212 square feet of office space.

2. Sunpoint Crossing

Sunpoint Crossing

A joint venture between SunCap Property Group and Colony Capital delivered Sunpoint Crossing, a three-building, 752,384-square-foot project in the second half of 2019. Lee & Sakahara Architects designed the development, with OS Construction Services acting as general contractor. 

CBRE’s Jeremy Green and Tyler Ecklund are overseeing leasing efforts for the three buildings, located at 3702 and 3732 N. Las Vegas Blvd. and 3450 N. Lamb Blvd. The property’s tenant mix includes kitchen and bath accessory seller The Distribution Point and exhibit design and manufacturing firm Structure Exhibits.

1. Tropical Distribution Center 1

Las Vegas’ largest delivery in 2019 was VanTrust Real Estate’s May completion of the 855,000-square-foot Tropical Distribution Center 1 building. Work on the 71-acre development site began in early 2018, with UMB Bank providing $24.5 million in construction financing.

Located a short distance from the Bruce Woodbury Beltway’s intersection with Interstate 15 at 6001 E. Tropical Parkway, the property was developed as a build-to-suit facility for Amazon. The structure has 66 loading docks in addition to three grade-level doors, 36-foot clear heights and truck courts of up to 245 feet. The building has a total interior floor area of approximately 2.1 million square feet, which includes four robotic storage platforms and two levels of conveyer systems.

The post Top 5 Las Vegas Industrial Completions of 2019 appeared first on Commercial Property Executive.

5051 Las Vegas Blvd. Image courtesy of Lily Funds

The Las Vegas market has seen its share of headline-grabbing commercial real estate activity in the past month, particularly on the development side. Projects making the news included a diverse mix of asset classes, from hotels to infrastructure. Here’s Commercial Property Executive‘s wrap-up of Las Vegas’ must-knows for February: 

1. DEAL – The Raiders cashes in on $191 million headquarters sale.

The NFL team sold the 323,000-square-foot Henderson development to Mesirow Financial in a leaseback transaction, according to Las Vegas Review-Journal. The Intermountain Healthcare Performance Center broke ground at 1475 Executive Airport Drive in January 2019, and completion is slated for June 2020. The project includes both office and training facilities. The initial lease is for 29 years with extension options.

2. DEVELOPMENT – Luxury hotel in the works for Strip Opportunity Zone plot.

Shopoff Realty Investments and Contour Real Estate plan to develop a 450-key hotel at 5051 Las Vegas Blvd. after recently purchasing the 5.3-acre parcel for $21 million from Lily Funds. The project is slated to break ground in early 2021 and will include 56,000 square feet of food and beverage space, 12,000 square feet of ballroom and meeting space as well as a spa, fitness center and dedicated parking.

3. DEVELOPMENT – Harsch Investment completes another building at North Las Vegas industrial park.

The developer has wrapped up construction work at its fourth, 168,000-square-foot building within its 2.7 million-square-foot Speedway Commerce Center. Located at 6101 N. Hollywood Blvd., the warehouse features 32-foot minimum clear heights, ESFR sprinklers, 60-foot speed bays and energy-efficient evaporative coolers. The project broke ground in July 2019.

4. DEVELOPMENT – Construction kicks off at future Colliers HQ.

LaPour Partners and G2 Capital Development started work on Narrative, a 100,184-square-foot Class A office building, according to Nevada Business. Located along the 215 Beltway near South Durango Drive, the four-story property at 6795 Narrative Way will serve as the headquarters for Colliers International | Las Vegas upon completion, expected by the end of this year.

5. DEVELOPMENT – Downtown Grand Hotel & Casino reaches expansion milestone.

CIM Group has topped off the new eight-story tower addition to its downtown property at 206 N. Third St. The 250,000-square-foot building will add 495 guestrooms to the 629-key hotel. The new component will offer direct access to the hotel’s pool deck, casino, and dining and entertainment options. Completion is slated for late summer.

6. DEVELOPMENT – Excavation complete on The Boring Co.’s first tunnel.

After four months of drilling, Elon Musk’s company reached the excavation limit for the 1-mile underground tunnel part of the Las Vegas Convention Center Loop, with work on the second tunnel scheduled to begin immediately. The high-speed people mover service is scheduled to begin operations in January 2021, with an estimated capacity of up to 4,400 people per hour. 

The post Las Vegas Monthly CRE Wrap-Up (Feb. 2020) appeared first on Commercial Property Executive.

Speedway Commerce Center IV. Image courtesy of Harsch Investment Properties

Harsch Investment Properties has wrapped up construction at Speedway Commerce Center IV, a 168,000-square-foot industrial property in North Las Vegas, Nev. The project broke ground in July 2019 and will add to the roughly 2.7 million-square-foot Speedway Commerce Center. 

The new property features 32-foot minimum warehouse clear heights, 50-foot concrete aprons, grade level loading, ESFR sprinklers, 60-foot speed bays and energy-efficient evaporative coolers. The facility has a parking ratio of 1.4 spaces per 1,000 square feet.

Located at 6101 N. Hollywood Blvd., the building is just off Interstate 15 and close to the Bruce Woodbury Beltway. The completed project is also 13 miles from North Las Vegas Airport and within 20 miles of McCarran International Airport.

JLL has already arranged three leases at Speedway Commerce Center IV, totaling 76,926 square feet. Q Corp., Proslat and Vogue Tyres have brought the property’s occupancy to 46 percent. Senior Vice President Xavier Wasiak and Vice Presidents Jason Simon and Rob Lujan are overseeing leasing at the facility.

The post Harsch Investment Completes Vegas Industrial Development appeared first on Commercial Property Executive.

Once this deal closes by late March and MGM Resorts also redeems about $1.4 billion in operating partnership units, MGM Resorts is expected to have $8.2 billion in cash from its recent sales spree. The MGM Grand and Mandalay Bay definitive agreement comes about two weeks after MGM Resorts closed on the sale of the Circus Circus Las Vegas hotel and casino and a 37-acre site to an affiliate of billionaire Phil Ruffin for $825 million and more than a month after MGM Resorts sold the Bellagio in a sale-leaseback deal with Blackstone Real Estate Income Trust for $4.25 billion. In that deal, MGM Resorts took a 5 percent stake in BREIT and leased the property back from the joint venture to continue managing it.

READ ALSO: MGM Resorts Sells Circus Circus for $825M

The new joint venture agreement between BREIT and MGP calls for BREIT to purchase $150 million in MGP Class A shares. MGP will own 50.1 percent of the JV and BREIT will own 49.9 percent. MGM Resorts split off MGP as a REIT in April 2016. Mandalay Bay is one of 11 properties MGP currently owns. Under the joint venture, BREIT will also acquire the real estate assets of Mandalay Bay from MGP and lease both properties to MGM Resorts for an initial rent of $292 million, according to MGM Resorts. The deal values the real estate assets of the MGM Grand at about $2.5 billion. MGM Grand, the largest of the MGM Resorts assets by square footage, and Mandalay Bay have a combined 9,743 rooms; approximately 3 million square feet of meeting space and 300,000 square feet of casino space across 226 acres on the Las Vegas Strip.

Growing Businesses

James Stewart, MGM Growth Properties CEO, said in a prepared statement the partnership with BREIT shows the numerous opportunities to grow its business and emphasizes the strong institutional demand for gaming real estate assets.

Tyler Henritze, head of U.S. acquisitions for Blackstone Real Estate, said in prepared remarks the new deal was similar to the Bellagio transaction. He added that the long-term leases for two premier Las Vegas assets will provide stable cash flow and excellent downside protection for BREIT investors.

Jim Murren, chairman & CEO of MGM Resorts, said in a prepared statement the MGM Grand and Mandalay Bay deal represents a key milestone in executing the company’s asset light strategy. He said the transaction will enable the company to have a fortress balance sheet and strong free cash flow to provide MGM Resorts with strategic flexibility to create continued shareholder value. Murren also noted the cash received for its Las Vegas real estate assets will enable it to pursue growth opportunities like sports betting and a resort in Japan.

Alan Tantleff, a senior managing director for FTI Consulting based in New York, told Commercial Property Executive the asset-light strategy was adopted many years ago by hotel companies. “While this is nothing new to the hospitality industry, it is a somewhat new phenomenon in gaming whereby the old model was to own and operate your real estate,” Tantleff told CPE.

Advisement Teams

PJT Partners and J.P. Morgan are serving as financial advisors to MGM Resorts and the Real Estate Committee of the Board of Directors of MGM Resorts. Weil, Gotshal & Manges LLP is serving as MGM Resorts’ legal counsel.

Morgan Stanley & Co. LLC and Evercore served as financial advisors and Hogan Lovells US LLP served as legal counsel to MGP. Rockefeller Capital Management acted as financial advisor and Potter Anderson & Corroon LLP served as legal counsel to the conflicts committee of the MGP Board of Directors. Citigroup Global Markets Inc. served as financial advisor to BREIT. Citigroup Global Markets Inc., Barclays Capital Real Estate Inc., Deutsche Bank AG and Societe General served as BREIT’s financing advisors. Simpson Thacher & Bartlett LLP served as legal counsel to BREIT.

The post Blackstone Makes $4.6B Deal in Las Vegas appeared first on Commercial Property Executive.

The Doctors Pavillion at Sunrise

Corrigan Cos. has sold The Doctors Pavillion at Sunrise, an 86,272-square-foot Class B medical office building in Las Vegas, to HCA Healthcare for $22 million, according to public records. The deal marks the first sale in the property’s history, per Yardi Matrix data.

Built in 1996, Doctors Pavillion is home to a mix of tenants, including the Women’s Cancer Center of Nevada and HealthCare Partners, according to Yardi Matrix. The building has a load factor of 14 percent and a parking ratio of 4.5 spaces per 1,000 square feet.

Located at 3131 La Canada St., the two-story building is on the eastern edge of the Sunrise Hospital and Medical Center campus, which HCA also owns. Less than 3 miles east of the Las Vegas Strip, the asset is connected to the larger metro via two local bus routes.

Health-care real estate in Las Vegas has largely held stable in recent years, according to a third-quarter report from Colliers International. Across the country, investment in medical office properties is anticipated to increase, thanks to escalated demand from an aging population and steadily rising rents.

The post HCA Pays $22M for Las Vegas MOB appeared first on Commercial Property Executive.

Circus Circus hotel and casino. Image via Pixabay

Citing its commitment to an asset-light strategy, MGM Resorts International has closed on the sale of the Circus Circus Las Vegas hotel and casino and a 37-acre festival site to an affiliate of billionaire Phil Ruffin for $825 million. The purchase price is comprised of $662.5 million in cash and a $162.5 million note due in 2024.

The transaction comes about a month after MGM Resorts sold the Bellagio in a sale-leaseback deal with Blackstone Real Estate Income Trust for $4.25 billion. MGM Resorts, which took a 5 percent stake in BREIT, leased the property back from the joint venture and will continue to manage the property. The Bellagio and Circus Circus deals were both announced on Oct. 15.

Circus Circus, which opened in 1968 on the north end of the Las Vegas Strip, has 2,300 employees and is home to the Adventuredome, a 5-acre indoor amusement park; a 10-acre RV park and 37-acre festival grounds.

READ ALSO: Ground Breaks on $150M Live! Casino Near Pittsburgh

MGM Resorts had owned the asset since 2005, when it was acquired through the Mandalay Resort Group merger. Various Las Vegas media outlets are reporting that MGM Resorts is also considering selling Mandalay Bay and possibly doing a sale-leaseback deal for its MGM Grand property.

Ruffin’s Plans

Ruffin owns Treasure Island Hotel and Casino on the Las Vegas Strip, a stake in the Trump International Hotel in Las Vegas and Casino Miami in Florida. He told the NGC that he plans to replace the Circus Circus RV Park with a sand and beach pool with a wave machine and build a 2,000-seat theater that could possibly house a Cirque du Soleil show, “The Illusionists,” according to the Las Vegas Review-Journal. He also plans to update the casino. The Adventuredome and a popular steakhouse will remain and nearly all the current employees are expected to be rehired. The name of the property will not be changed following the deal.

DLA Piper Team

DLA Piper represented Ruffin in the transaction. Jeff Diener, a partner in the San Francisco office, led the firm’s deal team. Along with Diener, the team included partners Sandra Kellman (Chicago), Casey Sobhani (Los Angeles), Ryan Girnun (Miami), Harriet Lipkin and Rita Patel (both of Washington, D.C.), Craig Anderson (Dallas); of counsels Lucien White (New York), Damon Lewis, (Washington, D.C.), and Adam Baas (San Francisco). Associates on the team were Adam Long (Chicago), Vicente Reyes (San Francisco), Ryan King (Los Angeles) and Andy Zollinger (Dallas).

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Hillshire Business Center

Moonwater Capital has sold the 66,780-square-foot Hillshire Business Center in Las Vegas to a private investor for $18.3 million. Washington Federal Bank provided the buyer with acquisition financing, according to public records. JLL represented the seller.

The two-story building, completed in 1993, is fully occupied by payment processing firm Shift4 under a long-term, triple-net lease. Moonwater renovated the asset between 2018 and 2019 to suit the tenant’s needs.

Located at 1551 Hillshire Drive on 4.5 acres, the building is in the Summerlin submarket, less than 3 miles from the Bruce Woodbury Beltway. The local area has a selection of retail options, including the Trails Village Center half a mile away. Additionally, a wide variety of parks, trails and golf courses are within walking distance.

The JLL team representing the seller was led by Senior Vice Presidents Tivon Moffitt and Peter Bauman, along with Executive Vice President Bret Davis. In June, the same team represented Moonwater in the $20 million sale of an office property a mile from Hillshire Business Center.

The post Las Vegas Office Building Trades for $18M appeared first on Commercial Property Executive.

Walnut Business Park. Image courtesy of MCA Realty

MCA Realty continues to be active in the Las Vegas metro. After acquiring a 358,000-square-foot business park for $42 million in August, the firm has sold Walnut Business Park, a 94,808-square-foot industrial complex in the northern part of the city. Colliers worked on behalf of the company and closed the $7.9 million deal with CapRock Partners. The property previously changed hands in 2016, when MCA acquired it for $5.2 million.

Located at 3020-3060 N. Walnut Road, the multi-tenant asset is adjacent to East Cheyenne Avenue and roughly 3 miles from Interstate 15. McCarran International Airport is approximately 10 miles away. 

Built in 2008, the property was renovated and repositioned by MCA. Improvements included new signage and color, parking lot upgrades and others. The former owner also divided the asset into 16 units that average 5,700 square feet and can be sold separately as individual “air-space” condos. The two buildings feature 24-foot minimum clear height and each unit contains mezzanine space.

The post MCA Realty Sells Recently Renovated Las Vegas Industrial Asset appeared first on Commercial Property Executive.

2200 Paseo Verde. Image courtesy of Cushman & Wakefield.

Cushman & Wakefield has arranged the sale of a Class A 60,499-square-foot office building in Henderson, Nev., on behalf of the seller, Pacific Oak SOR II. The property was acquired for nearly $19.5 million by PREH Paseo Verde LLC. The buyer obtained a $14.4 million loan from Wells Fargo Bank to finance the purchase, according to Yardi Matrix.

The three-story asset is located at 2200 Paseo Verde Parkway, at the entrance of The District at Green Valley Ranch, a 400,000-square-foot mixed-use property that provides food, beverage and entertainment options. Additionally, the office building offers 24-hour access, a courtyard, a balcony and onsite management.

The standalone asset was built in 2004 as part of the first phase of The District and is currently 94 percent leased. Some of its tenants include Berkadia Real Estate Advisors, Ford & Friedman, Umpqua Bank and Ticor Title. The office building last traded in 2015 for $13.4 million, Yardi Matrix data shows. 

Cushman & Wakefield’s team of Charles Moore, Marlene Fujita and Hunter Bradshaw brokered the sale. The firm also handled the leasing and property management for the building.

The post Las Vegas Office Building Trades for $19.5M appeared first on Commercial Property Executive.

Westland Fair. Image via Google Maps

Weingarten Realty Investors has sold Westland Fair, an approximately 220,000-square-foot community shopping center in Las Vegas, to Cannon Commercial for $43.5 million, according to Clark County records. The buyer secured acquisition financing through Goldman Sachs and additionally assumed a previous loan taken by the seller. 

The property is located on 23.3 acres at 1251 to 1291 S. Decatur Blvd. and 4437 to 4471 W. Charleston Blvd., approximately 4 miles northwest of the Las Vegas Strip. A public bus route runs along the north side of the retail center, linking the neighborhood to the wider metro area. Interstate 15 is within 3 miles of the asset.

Westland Fair was built in 1971. A Smart & Final grocery store anchors the property, with a mix of other tenants including Michaels, PetSmart, WSS and Cicis Pizza. Included in Cannon’s buy is a 3,600-square-foot outbuilding, home to Dotty’s Gaming & Spirits. Another nine small, independently owned structures—mostly occupied by restaurants—are on the northern side of the shopping center. Walmart and Lowe’s shadow anchor the property with stores on the southern edge of the area.

While the retail sector in the metro is strong, the hospitality industry remains the backbone of Las Vegas’ economy. In October, Blackstone paid $4.3 billion for the famous Bellagio, one of the city’s most iconic casinos.

The post Cannon Commercial Buys Las Vegas Shopping Center for $44M appeared first on Commercial Property Executive.

920 Pilot Road

WG Group has acquired an 86,515-square-foot Class B office building at the Hughes Airport Center in Las Vegas for $10.5 million from Tierra Management, according to Yardi Matrix. A private lender provided the buyer with $7.4 million in acquisition financing. The seller had purchased the asset in early 2002 for $10 million from Western Devcon.

Located at 920 Pilot Road, the building is within 10 miles of downtown Las Vegas in a heavily industrial district south of McCarran International Airport. The property, accessible via a nearby public bus route, is less than 3 miles from the intersection of interstates 15 and 215. At the beginning of October, a 222,000-square-foot office portfolio on the other side of the airport changed hands for $27 million.

Constructed in 2001, the two-story building is fully leased to Pololu Robotics and Electronics. The asset contains 73,538 square feet of office and 12,977 square feet of industrial space. The property has parking at a ratio of three spaces per 1,000 square feet.

The post Tierra Management Sells Las Vegas Office Building appeared first on Commercial Property Executive.

Image via Pixabay

Service Properties Trust, formerly known as Hospitality Properties Trust, has sold 1505 South Pavilion Center in Las Vegas, a 138,558-square-foot office property, for $57 million, or approximately $411 per square foot. The sale is part of the company’s previously announced disposition plan to sell up to $500 million of none-core assets following its recent $2.4 billion acquisition of a net lease service retail portfolio from Spirit MTA REIT.

READ ALSO: Blackstone Bets $4.3B on Bellagio

John Murray, president & CEO of the Newton, Mass.-based REIT, said in a prepared statement the sale of the Las Vegas office building was the first step in executing its strategy following the Sept. 20 closing of the SMTA transaction. He said the disposition proceeds represent a 6.4 percent capitalization rate and will be used to reduce the company’s leverage. Murray also noted the sales price was a record per-square-foot price for the Las Vegas office market.

Still known as HPT, the REIT announced in June it was purchasing a 774-property net lease portfolio for $2.4 billion in cash from SMTA. The 12 million-square-foot portfolio consisted of properties in 43 states across the U.S. and represented a wide range of industries and brands, including quick service and casual dining restaurants, movie theaters, health and fitness, specialty retail, auto parts and services and other service-oriented businesses. The deal more than doubled HPT’s assets, going from 506 properties to 1,280 properties. Service Properties Trust’s portfolio, which also includes hotels, is now operating under long-term management or lease agreements in 45 states, Washington, D.C., Puerto Rico and Canada. The company has about $12.6 billion in assets under management.

Service Properties Trust changed its name to better represent the service-oriented assets acquired in the deal. On Sept. 25, it began trading under the ticker symbol SVC on the Nasdaq, instead of HPT. The firm is managed by the operating subsidiary of The RMR Group Inc., an alternative asset management company headquartered in Newton.

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Golden Triangle. Rendering courtesy of Trammell Crow

Trammell Crow Co. has begun construction on Golden Triangle, a 2.7 million-square-foot speculative industrial development in North Las Vegas. The first phase includes approximately 1 million square feet of Class A logistics space. The developer of the 127-acre project is working with Washington Capital, who is the advisor to the owner, while CBRE’s Kevin Higgins and Donna Alderson in the Vegas office will be the leasing agents for the upcoming property. 

READ ALSO: Industrial Investors Shift Strategies: Report 

Located at 3325 E. Washburn Road, Golden Triangle provides direct access to Interstate 15 via Craig Road. The main focus of the first phase includes building a 350,500-square-foot rear-loader building and a 652,000-square-foot cross-dock building. Both structures will feature 37-foot clear heights with ESFR fire sprinklers, 7-inch floor slabs, 185-foot secured concrete truck courts as well as dock-high loading and parking.

Besides building, Trammell Crow will also conduct rough grading for a 675,400-square-foot cross-dock building that will be built during the second phase. Completion of the first phase is expected in September 2020, with the second phase anticipated to start in late 2020. Plans also call for a third development phase, but Trammell Crow has yet to determine a timeline for it and the remaining 51 acres.

Ingrained in the industrial sector

Tom Bak, senior managing director of Trammell Crow’s SoCal-Newport Beach office, told Commercial Property Executive that the developers see potential in the Vegas industrial market, especially because of the area’s robust population and job growth. “Since 2015, over half of the approximately 25 million square feet of net absorption has occurred in North Las Vegas,” Bak said. “This activity has been driven by sophisticated logistics, 3PLs and e-commerce companies, which we are targeting for Golden Triangle.”

According to Trammell Crow, this is the firm’s second active project with Washington Capital, but they’ve also completed seven other projects together. In August, the companies sold Columbia Business Center, a 1 million-square-foot Class A speculative industrial building in the Inland Empire, for $123.8 million.

Trammell Crow has also been working on other large industrial parks in the U.S., like Park 183 in Austin, Texas, where they recently began the project’s second phase with Clarion Partners. The facility will encompass a 85,000 square feet. 

The post Trammell Crow Starts Work on 2.7 MSF Las Vegas Logistics Project appeared first on Commercial Property Executive.

Bellagio. Image by Ryan Lind via Pixabay

Blackstone Real Estate Income Trust and MGM Resorts International have entered into an agreement to acquire the Bellagio in Las Vegas through a $4.3 billion sale-leaseback deal. BREIT will hold a 95 percent stake in the joint venture, while MGM Resorts will retain 5 percent of equity interest and will continue to manage the property and handle all aspects of day-to-day operations. The transaction is expected to close in the fourth quarter of 2019.

READ ALSO: Blackstone Strikes $2.9B Deal for Great Wolf Resorts

The joint venture is anticipated to collect an initial annual rent of $245 million. The lease is set to feature an initial 30-year term with two 10-year extension options for MGM. The purchase price represents 17.3 times the rent, with the acquisition to be funded through a combination of cash and $3 billion in new property-level debt. The fixed-rate loan carries a 10-year term, according to an SEC report released by BREIT.

The Bellagio takes up 77 acres at the center of the Las Vegas strip and features a total of 3,933 keys, 200,000 square feet of meeting and ballroom space, a roughly 155,000-square-foot gaming floor and 94,000 square feet of retail space. The property was part of a portfolio awarded with Four Green Globes certifications in 2017.

Attractive fundamentals 

BREIT’s decision to invest in the iconic resort was partly due to the metro’s strong market fundamentals—in 2018, population growth in Las Vegas was four times the U.S. average, while the number of inbound air-travelers was up 3 percent and revenue per available room on the strip increased by 5 percent year-over-year through July, also per the SEC report. Additionally, hotel and casino development has been limited since 2010.

In another deal that emphasizes Las Vegas’ healthy market, MGM Resorts entered into an agreement to sell Circus Circus Las Vegas for $825 million to real estate mogul Phil Ruffian. The deal is also expected to close in late 2019, with the purchase price to comprise $662.5 million in cash and a $162.5 million note due in 2024.

The casino opened in 1968 and features a 5-acre indoor amusement park dubbed Adventuredome, 37 acres of festival grounds and a 10-acre RV park. MGM Resorts has owned the asset since 2005, when it was added to the company’s portfolio through the Mandalay Resort Group merger.

The post Blackstone Bets $4.3B on Bellagio appeared first on Commercial Property Executive.

Greystone Office Park. Image courtesy of Institutional Property Advisors

Institutional Property Advisors of Marcus & Millichap has arranged the sale of Greystone Office Park, an office portfolio encompassing 222,000 square feet in Las Vegas, Nev. Farmers Insurance traded the portfolio to Clark County for $27 million or $121 per square foot. IPA represented the seller and procured the buyer in the transaction.

Greystone Office Park spans across 13 acres at 1800-2030 E. Flamingo Road, near interstates 515, 215 and 15, roughly 2 miles from McCarran International Airport. Additionally, the office park is situated within 9 miles of downtown Las Vegas.

Constructed in 1982 and 1986, the low-rise buildings feature floorplates of approximately 30,000 square feet. Property amenities include controlled access and a combined 800 parking spaces. Clark County already occupies space within the office park and will continue to utilize and further expand into the complex, which provides convenient access to the entire downtown area of the city.

In August, IPA worked on behalf of the seller in the disposition of a 103,951-square-foot industrial facility in Deerfield Beach, Fla. 

The post Las Vegas Office Park Sells for $27M appeared first on Commercial Property Executive.

UnCommons. Image courtesy of Matter Real Estate Group

Matter Real Estate Group has secured a $150 million construction loan from Mosaic Real Estate Investors for the first phase of its $400 million mixed-use development in southwest Las Vegas and expects to break ground in spring. When completed, UnCommons will have about 500,000 square feet of office space, nearly 100,000 square of retail space and 800 apartments at the southeast corner of Durango Drive and the 215 Beltway. 

READ ALSO: Sector-by-Sector Real Estate Review

The first phase, expected to be delivered by fall 2021, will have nearly 200,000 square feet of office space, a variety of new eateries and a food hall. Lifestyle and entertainment uses will include fitness studios, a luxury movie theater and 382 apartments with approximately 1,200 parking spaces located in two onsite parking structures. Other features on the 40-acre site will include a pedestrian trail, multi-purpose conference center and inspirational art. The project is being designed by Gensler. 

“We are in negotiations with numerous tenants in both the office and food and beverage space and expect to be making announcements in quarter four of this year,” Matter Real Estate Partner Jim Stuart told Commercial Property Executive. CBRE is handling the office leasing and RKF, a Newmark company, is the retail leasing broker.

High-profile project

Stuart noted that when Gov. Steve Sisolak was serving as chair of the Clark County Commission, prior to becoming governor, he designated UnCommons as a high-impact project, a recognition reserved for projects that will create economic diversification for the state. Other similar projects include the $2 billion Allegiant Stadium⁠—which will be the new home of the Las Vegas Raiders and UNLV football teams when it opens in August 2020⁠—and the $1 billion MSG Sphere at the Venetian, a music and entertainment venue that is set for completion in 2021.

READ ALSO: Las Vegas 644 KSF Site Changes Hands

Phase two of the project is anticipated to be completed approximately 12 to 18 months after the first phase is done, Stuart added. A start date for the second phase of development has not been set. UnCommons is expected to house 3,000 employees and more than 2,000 residents.

Matter moves

Since forming in early 2018, Matter Real Estate has emerged as a leading developer with more than 1.5 million square feet of commercial and industrial projects underway, including several in Las Vegas totaling about $500 million in value. In August, Matter began construction of a $70 million master-planned industrial property located a few miles away from the Las Vegas Strip that will have five buildings ranging from 11,000 to 478,000 square feet. Known as Matter Logistics Center @ West Cheyenne, it is being built on a site of more than 41 acres and is slated for completion in February 2020.

Earlier this year, Matter also began the first phase of Matter Park @ West Henderson, a 475,000-square-foot light industrial office and warehouse project in Henderson, Nev. The company is also nearing completion of Matter Park @ Warm Springs that will have 135,000 square feet.

The post Las Vegas Mixed-Use Moves Ahead With $150M Loan appeared first on Commercial Property Executive.

Rio All-Suite Hotel & Casino. Image via Wikimedia Commons

Caesars Entertainment Corp. has agreed to sell the Rio All-Suite Hotel & Casino for $516.3 million to an affiliate of Imperial Cos. The deal, expected to close in the fourth quarter, comes on the heels of another major casino transaction closing: On Sep. 20, VICI Properties and Hard Rock International finalized their $745 million acquisition of the JACK Cincinnati Casino.

The agreement to sell the Rio allows Caesars to continue to operate the hotel and casino for a minimum of two years, pursuant to a lease, and pay annual rent of $45 million. Imperial Cos. has the option to pay Caesars $7 million to extend the lease under similar terms for an additional year. Caesars also has the option to continue managing the Rio at the end of the lease, if the buyer allows it, or it can provide transition services to Imperial Cos.

Both Caesars and Imperial Cos. did not respond to a request for comment on the deal.

READ ALSO: Las Vegas’ $7.5B Project Aims to Redefine the Smart City

Caesars Entertainment Corp. is a publicly owned gaming hotel and casino company that owns and operates more than 50 properties worldwide. In 2015, Caesars Entertainment Operating Corp. (CEOC), a subsidiary of Caesars Entertainment Corp., filed for Chapter 11 bankruptcy. VICI Properties was formed in 2017 as a spinoff of Caesars. The REIT owns a total of 24 casinos, hotels and racetracks, as well as four golf courses throughout the U.S. In 2018, VICI purchased the Octavius Tower at Caesars Palace in Las Vegas from Caesars Entertainment Corp. in a $507.5 million leaseback agreement.

Caesars Entertainment CEO Tony Rodio said in a press release that the deal proceeds will allow the company to “strengthen” its existing properties on the Las Vegas Strip. Those properties include Caesars Palace, Bally’s Las Vegas, Harrah’s Las Vegas, The Cromwell Las Vegas, Flamingo Las Vegas, The Linq, Paris Las Vegas and Planet Hollywood Las Vegas.

The post The Rio Sells for $516M appeared first on Commercial Property Executive.

Left to right: Samantha Rupert, Property Manager, and Diana Cerda, Senior Assistant Property Manager, Cushman & Wakefield. Images courtesy of Cushman & Wakefield

Cushman & Wakefield has added two new members to its asset services team in Las Vegas: Property Manager Samantha Rupert and Senior Assistant Property Manager Diana Cerda. Rupert will oversee the daily operations of the company’s distribution and flex facilities throughout the metro while Cerda will work on the office and retail assets. Both have a deep knowledge of the local market, having previously held key property management roles with a number of companies including Newmark Knight Frank.

Rupert began her career as a property manager for Taylor Realty Advisors and between 2016 and 2019 she held similar positions with Gatski Commercial, Newmark Knight Frank and Avison Young. Throughout her career, Rupert worked with institutional clients such as Stockbridge Capital Group, C-III Asset Management, CapRock Partners and Link Industrial. She is a graduate of UCLA.

Prior to joining Cushman & Wakefield, Cerda worked as a property assistant for Newmark Knight Frank. During her two years spent with the company, she assisted in the management of approximately 300,000 square feet of office, retail and industrial properties.

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Bleutech Park Las Vegas. Image courtesy of Bleutech Park Properties Inc.

Bleutech Park Properties Inc. has unveiled a number of new technologies it will incorporate into Bleutech Park Las Vegas, the REIT’s $7.5 billion development slated to become the first net-zero, smart, connected and safe city in the world.

Bleutech Park Properties announced plans for Bleutech Park at the end of July 2019, outlining what will be a digital infrastructure city featuring residential offerings ranging from workforce housing to ultra-luxury residential options; office space; retail square footage; entertainment space; and hotel accommodations. Bleutech Park will be off the grid, creating its own energy powered by the sun, wind and footsteps.

“We hope Bleutech Park Las Vegas’ commitment on sustainability becomes a model for future infrastructure development around the world,” Tom Letizia, spokesperson for Bleutech Park Las Vegas, told Commercial Property Executive.

READ ALSO: Las Vegas’ $7.5B Project Aims to Redefine the Smart City

Presenting the technologies during a recent event, the REIT presented a handful of its key technology partners—representatives from Cisco, Knightscope, Patriot One Technologies, Pavegen and Onyx Solar—who demonstrated how their respective contributions will help create a mixed-use enclave centered on cutting-edge sustainability and operated with state-of-the-art technology. Bleutech held the event in Las Vegas on August 28, with project designer KME Architects commencing the program with the presentation of new renderings.

Knightscope and Patriot One, with technologies powered by Cisco, will integrate a smart security ecosystem at Bleutech Park. The comprehensive security plan is set to include such features as AI-powered autonomous robots and technologies providing threat detection and counter-terrorism solutions. Patriot One, for example, will install its PATSCAN Multi-Sensor Covert Weapon Detection Platform, a multi-sensor tool for detecting concealed threats and disturbances.

Pavegen presented its kinetic flooring, which Bleutech Park Properties will position throughout Bleutech Park, covering every square foot of walkable space. Pavegen’s technology converts footfall into off-grid power and data, generating energy for such tasks as operating lighting as well as providing environmental monitoring.

Onyx Solar will bring its transparent photovoltaic glass to the project, cladding every building in a material that serves as an energy-generating device through the capturing and transformation of sunlight into energy. Bleutech Park’s PV glass sheathing will allow each building to serve as its own full-surface solar panel. 

The big green picture

Bleutech Park Properties is looking beyond the big-ticket price tags that can initially come with the newest of green innovations and focusing on the long-term impact—and not just the impact on Bleutech Park’s residents, workers and visitors.

“We hope to inspire other developers to commit to sustainability in a whole new way for our future and to put benefits ahead of costs,” Letizia said.

Martin-Harris Construction is serving as general contractor for Bleutech Park and is on track to commence construction of the gargantuan project in December 2019. While Bleutech Park Properties shared new renderings of the project at the recent event, it has not yet divulged the specific square footage or acreage involved in the undertaking, nor has it revealed the location. However, the REIT expects to complete the development within six years.

The post New Details Revealed for $7.5B Las Vegas Smart City Project appeared first on Commercial Property Executive.

Equus Business Center. Image courtesy of MCA Realty

MCA Realty has acquired Equus Business Center, a 357,608-square-foot, multi-tenant industrial property in Las Vegas, in an off-market deal with a private investor for $42 million. The Irvine, Calif.-based firm plans to rebrand the seven-building industrial asset as Central Seven Commerce Center.

Dan Doherty of Colliers International and Gabe Telles and Ali Roesener of Gatski Commercial represented MCA in the transaction. Frank Gatski of Gatski Commercial represented the seller.

Located just over a mile from the Las Vegas Strip, the business center—which takes up a full block—is 89 percent occupied by a diverse mix of more than 170  tenants. Addresses at Equus include 3400 W. Desert Inn, 3110-3230 Polaris Ave. and 3401 W. Sirius Ave.

Tyler Mattox, MCA principal, said in a prepared statement that the firm plans to stabilize the rent roll and bring current rents up to market rate. He noted the net operating income on the property has already increased by more than $200,000. MCA also plans interior and exterior renovations, including new paint, landscaping and signage.

Mattox pointed to the property’s close proximity to the Strip as a benefit for the many tenants who service businesses there. He added that future developments in the region will boost growth, including the new $1.9 billion Raiders Stadium that is being built for the NFL team relocating from Oakland, Calif.

Buying and selling in Vegas

MCA has been active in the Las Vegas market since the recession, buying more than 20 properties, with a focus on multi-tenant assets. The firm currently owns more than 1.25 million square feet in the region.

The company has also been selling parts of its portfolio. Most recently, MCA sold 5945-2 W. Wigwam Ave., the final unit in its Wigwam Jones Industrial Park in the Southwest submarket of Las Vegas, for $1.1 million. The 7,182-square-foot property was one of 11 condominium units MCA acquired in 2014 for $6.4 million. With this disposition, MCA has sold the entire asset for $10.48 million.

Doherty and two Colliers International colleagues, Chris Lane and Jerry Doty, represented MCA in the transaction. Marc Magliarditi of LOGIC Commercial Real Estate also worked on the deal.

More portfolio adjustments

In February 2018, MCA sold six assets in Las Vegas for a total of $5.4 million. Five of those buildings were located in the Lamb Technology Center at 2725-2797 N. Lamb Blvd. and were sold for 2.5 million. The sixth property at 2020 Pama Lane was sold to a local manufacturer for $2.9 million after the lessee defaulted on its arrangement with MCA.

In the same month, MCA announced that the 29,988-square-foot Gibson Tech Center, a Henderson, Nev., office building acquired a year earlier, had been fully leased by PRA Group. Gibson Tech Center was one of two assets MCA had purchased in February 2017 for a total of $18.3 million. The second was Harmon Warehouse Center, a 145,491-square-foot multi-tenant industrial building in Southwest Las Vegas.

More recently, in December, MCA expanded its Southern California presence with the acquisition of a two-building multi-tenant industrial property in Escondido for $5.9 million.

The post MCA Realty Makes $42M Industrial Buy in Las Vegas appeared first on Commercial Property Executive.

Matter Logistics Center @ West Cheyenne. Image courtesy of Matter Real Estate Group

Matter Real Estate Group has begun construction of its latest Las Vegas-area industrial/warehouse project—a $70 million master-planned industrial property that will have five buildings ranging in size from 11,000 to 478,000 square feet. Matter Logistics Center @ West Cheyenne will be built on a site of more than 41 acres and is slated for completion in February 2020. It will be one of more than $500 million in development projects the San Diego-based company has underway in Las Vegas and other select Western markets.

READ ALSO: Industrial Vacancy to Stay Near Historic Lows

Located in the growing North Las Vegas submarket, the light distribution project will address the need for small and mid-bay product, said Jim Stuart, Matter Real Estate partner. The site has immediate proximity to both Interstate 15 and US 95 and is only a few miles to the Las Vegas Strip.

The five buildings totaling 725,000 square feet will offer warehouse, distribution, office and showroom space. They will feature ample dock and at-grade loading with clear heights reaching 36 feet and can be built to tenants’ specifications. The units will be available for sale, lease or build-to-suit. The site also has ample parking and trailer storage.

Earlier this year, Matter unveiled a new mixed-use project that will have business, retail, entertainment and food. The company recently broke ground on UnCommons at Durango Drive and Interstate 215. It also began Phase One of Matter Park @ West Henderson, a 475,000-square-foot light industrial office and warehouse project in Henderson, Nev. Matter is also nearing completion of Matter Park @ Warm Springs that will have 135,000 square feet.

Busy industrial market

Matter is just one of numerous firms active in the Las Vegas area industrial area. Late last month, BKM Capital Partners paid $111.3 million to acquire Pacific Business Center, an 898,389-square-foot, 13-building industrial property in Henderson, Nev. It was the largest acquisition to date for the Newport Beach, Calif.,-institutional fund manager. The firm now has more than $1 billion in assets under management in a portfolio that has more than 8 million square feet across the Western U.S.

Earlier in July, Harsch Investment Properties broke ground on Speedway Commerce Center IV, a 167,444-square-foot industrial project in Las Vegas. It is expected to be completed by next spring and will add to the existing 2.7 million square feet of space the company has in the area. Located less than 10 miles from the city center and within 1 mile of I-15, the 9.4-acre site is also in the North Las Vegas submarket, which is home to more than one-third of the market’s total stock. The area had the highest absorption rate in the first half of the year, according to a recent report from Colliers International. Harsch has also recently completed Speedway Commerce Center III, which comprises two buildings totaling 723,704 square feet.

There were 89 industrial sales totaling 6.4 million square feet and $661.7 million in 2018, up from 66 properties sold in 2017, with a total of 3.2 million square feet for $316.2 million, according to Colliers’ first-quarter report for 2019. Colliers noted there were 16 sales totaling $101 million and 845,000 square feet. Colliers expects strong demand for industrial space to continue in 2019 in the Las Vegas market, where the vacancy rate has been dropping over the past year from 5.4 percent in the first quarter of 2018 to 3.6 percent in the fourth quarter of 2018 and 3.2 percent in the first quarter of 2019.

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Bleutech Park Las Vegas. Rendering courtesy of Bleutech Park Properties

Bleutech Park Las Vegas, a $7.5 billion project aimed at creating a mixed-use mini-city with net-zero buildings that will feature renewable energy, artificial intelligence, augmented reality, Internet of Things, robotics, autonomous transportation and self-healing concrete structures, is scheduled to break ground in December. The smart city is expected to take six years to build out.

READ ALSO: Grappling With Cyber Threats in a Smart Building Era

The ambitious digital infrastructure city, the first of its kind in the world, is sponsored by Bleutech Park Properties, a REIT that is supported by institutional investors and private equity investments. Strategic partners include technology leader Cisco and contractor Martin-Harris Construction. Melvin Green, principal at KME Architects, is the local architect of record. Las Vegas developer Khusrow Roohani has been a driving force in bringing the project to the city. Bleutech Park Las Vegas is expected to create more than 25,000 jobs and provide on-the-job training programs for workers to learn state-of-the-art technology and construction techniques. 

The mixed-use project will feature workforce housing, office and retail space, luxury residential, hotel and entertainment venues while also showcasing energy generation and storage, waste-heat recovery, water purification, on-site waste treatment and localized air cleaning. Bleutech says the development will use new technologies that will alter the future of construction design.

Flooring within the complex will capture and reuse the energy of human movement throughout the spaces, including common areas and parking structures. Photovoltaic glass will be standard in all the structures, turning the building exteriors into single solar panels. Resources for heating, cooling, lighting and electricity will be harvested on-site, while robotics will provide security through biometrics and other technologies.

Smart project in Spokane

On a much smaller scale, Spokane, Wash., is also getting a net-zero-energy project. Last month, a joint venture of McKinstry Co. and Avista Corp. unveiled a $100 million development for two neighboring buildings in Spokane’s University District that will also use state-of-the-art strategies for energy operations and construction materials.

The project consists of two structures at the South Landing of the new Gateway Pedestrian Bridge. Catalyst, a five-story, 159,000-square-foot building will have offices, classrooms and dry labs for Eastern Washington University. The Hub, a 40,000-square-foot building with a restaurant, offices and a generating plant that will power both buildings, will be constructed across the street from Catalyst. They are slated for completion in mid-2020.

Cross-laminated timber, an alternative to conventional concrete and steel framing, will be used. Other sustainable features will include rainwater recovery for a gray water system, low-flow plumbing fixtures to conserve energy and a smart building management system maximize energy efficiency that will utilize IoT, machine learning and AI.

The post Las Vegas’ $7.5B Project Aims to Redefine the Smart City appeared first on Commercial Property Executive.

Pacific Business Center. Image via Google Street View

BKM Capital Partners has acquired Pacific Business Center, an 898,389-square-foot, 13-building industrial property in Henderson, Nev., for $111.3 million—the firm’s largest to date. The Newport Beach, Calif.-based institutional fund manager now has more than $1 billion in assets under management in a portfolio that spans more than 8 million square feet in the Western U.S. BKM represented itself in the acquisition, while CBRE represented the seller, identified as an institutional owner.

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The multi-tenant properties are located at 1045-1175 American Pacific Drive, 160-194 Gallagher Crest Road and 1060-111 Mary Crest Road. Constructed between 1996 and 1998, the institutional-grade assets have had more than $12.4 million in capital improvements since 2010. Projects included installing high-quality HVAC and EVAP systems and LED lighting, upgrading office finishes and painting building exteriors. Other features include 24- to 28-foot clear heights, ESFR sprinkler systems and new TPO roofs. BKM plans to further renovate the facilities.

Pacific Business Center was 85 percent occupied at the time of sale. In-place rents are projected to be 20 percent below market rate, giving BKM an opportunity for immediate value creation, according to Brett Turner, managing director of acquisitions at BKM. Turner noted that it was rare to find a property of the size and caliber of Pacific Business Center in the Las Vegas metro area because of the lack of developable land and rising construction costs.

No slowdown for industrial

The Las Vegas industrial market has been growing in recent years. There were 89 industrial sales totaling 6.4 million square feet and $661.7 million in 2018, up from 66 properties sold in 2017 with a total of 3.2 million square feet for $316.2 million, according to a Colliers International first-quarter report for 2019. Colliers noted that there were 16 sales totaling $101 million encompassing 845,000 square feet.

The vacancy rate has been dropping over the past year from 5.4 percent in the first quarter of 2018 to 3.6 percent in the fourth quarter of 2018 and 3.2 percent in the first quarter of 2019. Net absorption in the first quarter of 2019 was 1.1 million square feet compared to 832,583 square feet in the same interval in 2018. The report stated that industrial developments in the West Henderson area should boost net absorption numbers in the Henderson submarket this year. Colliers expects strong demand for industrial space to continue in the Las Vegas market in 2019.

BKM background

BKM, which focuses exclusively on multi-tenant industrial in the Western U.S., closed on BKM Industrial Fund II in May. The fund, the firm’s second institutional fund, had $382 million in equity commitments from a mix of sources including U.S. endowments and pension funds, family offices and insurance companies.

The buyer’s recent deals include the acquisition of a Denver industrial property for $24 million from Mount West Industrial Properties. The 203,231-square-foot complex has five buildings that are 100 percent occupied by tenants such as FedEx and Black & Decker. Late last year, BKM purchased a San Diego industrial portfolio and a Los Angeles-area business park.

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