There are no guarantees in commercial real estate. For commercial real estate owners, developers and investors, however, betting on the continued strength of the Las Vegas marketplace has been as close to a sure thing as it gets in recent years. The Vegas commercial market is as strong as it’s ever been as we head into 2020. Delivery on new projects is up 800,000 square feet over 2018. About 1.2 million square feet of retail space will have been added to the market by year’s end, while retail rental rates are up 4.6 percent in 2019. What’s really exciting isn’t just the top-line numbers, but the evolving nature of a market that is becoming more diverse. Las Vegas is preserving its gaming and entertainment dynamism while introducing more robust retail and mixed-use elements that expand well beyond the iconic Strip. Consequently, Vegas market performance isn’t just strong, it’s sustainable. A market overview reveals some of those reasons for optimism, as well as a deeper understanding of what’s driving that commercial real estate evolution. It never hurts to be the entertainment capital of the world, and there’s no doubt that gaming, hospitality and entertainment remain the foundation of the city’s appeal. …
LAS VEGAS — JLL has negotiated the sale of an office building situated on 4.5 acres at 1551 Hillshire Drive in Las Vegas. A private capital investor acquired the property from Las Vegas-based Moonwater Capital for $18.3 million. Shift4, a payment processing and technology company, occupies the single-tenant, 66,780-square-foot property on a triple-net lease basis. Completed in 1993, the office building recently underwent a complete renovation between 2018 and 2019. The property serves as a mission-critical location for the tenant, which merged with Lighthouse Network in 2018 and expanded its Las Vegas presence. Tivon Moffitt, Peter Bauman and Bret Davis of JLL Capital Markets represented the seller in the deal.
SPARKS, NEV. — San Diego-based MG Properties Group has acquired Marina Village Apartments in Sparks. San Diego-based Sunroad Multifamily sold the apartment community for an undisclosed price. Fannie Mae provided acquisition financing, which Brian Eisendrath and Cameron Chalfant of CBRE arranged. Built in 2005, Marina Village features 240 apartments and proximity to Interstate 80 with convenient access to the Tahoe-Reno Industrial Park. Additionally, the property is located adjacent to The Sparks Marina Park, a 77-acre lake and recreation center. MG Properties plans to invest capital to upgrade the community’s common areas and unit interiors.
LAS VEGAS — MCA Realty has completed the disposition of Walnut Business Park, a two-building, multi-tenant industrial park in Las Vegas. CapRock Partners acquired the asset for $7.8 million. Located at 3020-3060 N. Walnut Road, Walnut Business Park features 94,808 square feet of industrial space spread across two buildings. MCA Realty originally purchased the asset in 2016 for $5.1 million and implemented a repositioning plan that allowed the company to stabilize and sell the property for an approximate 52.4 percent increase three years later. Interior and exterior renovations included new exterior paint, upgrades to the parking lot, new signage and deferred maintenance repairs. Additionally, MCA individually subdivided the property into 16 units, averaging 5,700 square feet, that can be sold off separately as individual condominiums. Dan Doherty, Chris Lane, Paul Sweetland, Mike Kendall and Jerry Doty of Colliers International represented the seller in the deal.
Once a bedroom community largely overshadowed by its Las Vegas neighbor, the City of Henderson is thriving. With a population of more than 300,000, Henderson recently surpassed Reno to become the second-largest city in Nevada. Henderson’s employment rates have been steadily rising, according to the city’s latest economic update. The city’s employment was at 144,000 last year and has risen to 153,800 in 2019. Henderson accounted for about 11 percent of all jobs in the Las Vegas Valley in 2018, according to labor market analytics company Emsi. Company leaders are also seeing the competitive advantage of growing a presence in Henderson. This has spurred relocations and start-ups in the area. Vinotemp, a leading wine storage solutions and appliance provider, recently relocated its Southern California headquarters to Henderson. The company’s new headquarters is more than 118,000 square feet, making Vinotemp the largest wine cabinet and cooling solutions provider in the nation. A major element in the high cost of doing business in California is the cost of operating in an office space. There is a stark contrast in the price per square foot for office spaces when comparing Southern California and Henderson. For example, the average per square foot for office …
LAS VEGAS — Marcus & Millichap has arranged the sale of a medical office property located at 8678 Spring Mountain Road. A limited liability company sold the property to an undisclosed buyer for $1.6 million. Southwest Neck & Back Clinic occupies the 9,672-square-foot building. Ray Germain and Austin Lee of Marcus & Millichap’s Las Vegas office represented the seller in the deal.
LAS VEGAS — Los Angeles-based Compass Acquisition Partners, a private real estate investment company, has purchased Sandpiper Apartments, a multifamily property at 4650 W. Oakey Blvd. in Las Vegas. Apple Management sold the property for $66 million in an off-market transaction. Situated on 20 acres, the property features 61 two-story buildings offering a total of 488 apartments in a mix of one- and two-bedroom units, with an average unit size of 950 square feet. Built in 1988, Sandpiper Apartments offers three resort-style pools, tennis courts, a clubhouse and fitness center. Compass plans to invest approximately $7.5 million in an extensive program of capital improvements, including completion of the unit renovations, as well as common area and exterior renovations. The buyer plans to upgrade the clubhouse and fitness center, refresh the pool areas, paint and implement new signage. Additionally, Compass plans to add dog parks, a multi-sport court and an outdoor community space with barbecues, outdoor kitchen and seating.
NORTH LAS VEGAS — Oatey Co., a plumbing manufacturer since 1916, has opened a new distribution center in North Las Vegas. The 148,000-square-foot facility features high efficiency LED lighting and HVLS fans, and meets LEED Silver requirements. The distribution center will stock thousands of residential and commercial plumbing products across the company’s 23 categories and sold under the Oatey family of brands. The new facility will further enhance Oatey’s ability to service its customers in the West.
Northern Nevada’s industrial market remains strong with more than 3.2 million square feet of new speculative space under construction and slated for delivery in 2020. These new projects will push the market well above the 90-million-square-footmark. The vacancy rate is a low 5.56 percent and continues to trend slightly upward. There have been some significant lease transactions in the market. Prologis is building a 598,901-square-foot facility for Makita Tools; Scannell just finished a 200,200-square-foot built-to-suit facility for OnTrac; and 1A Auto recently leased 149,196 square feet at 9175 Moya Blvd. All of these transactions occurred in the North Valleys submarket. The new 270,975-square-foot Longley Commerce Center by Panattoni leased up a majority of its space in the third quarter. This project is a mix of flex and bulk spaces, and is the last viable industrial development in the South Meadows submarket. Polaris completed its 514,555-square-foot BTS in Fernley in the second quarter, while a confidential user just leased 266,000 square feet in the I-80 East submarket. There have also been some significant portfolio sales to institutional buyers. The 1.4-million-square-foot Lear Industrial Center is slated to trade hands in the fourth quarter. Northwestern Mutual sold its 1,776,805-square-foot portfolio to Link Industrial …
LAS VEGAS — NAI Vegas has arranged the purchase of Las Vegas Grand Apartments, a multifamily complex in Las Vegas. 3D Investments acquired the property from 818 Flamingo Co. for $47.6 million, or $224,528 per unit. Located at 818 E. Flamingo Road, Las Vegas Grand Apartments features 212 units. Patrick Sauter, Art Carll-Tangora and Steve Nosrat of the Sauter Multifamily Advisors at NAI Vegas represented the buyer in the deal.