Nevada

Reno-Sparks Industrial Market is Stable, Despite 2023 Headwinds

by Jeff Shaw November 17, 2023

— By Nick Knecht, Vice President, DCG Industrial — The industrial real estate market in Northern Nevada demonstrated stability over the first three quarters of 2023. Sales performance year to date through the third quarter was steady, with industrial sales volume reaching $116 million. This represents a 42 percent increase compared to the same period in 2022. This should keep the market on track for a decent year, despite falling slightly short of its historical averages. Notably, the shift in buyer dynamics caused by the rise in interest rates, which have soared as high as 8 percent, has investors sticking to a more conservative approach to their underwriting. Owner-users have emerged as the primary drivers of sale activity, and were the buyers of all four closed sales in September. Prices are beginning to soften, and price reductions are occurring more frequently, which is expected to improve buying opportunities for investors over the next 12 to 18 months. Leasing activity has been concentrated in the 10,000- to 50,000-square-foot range, which captured 44 percent of the third quarter’s lease transactions, and similarly 38 percent in the 5,000- to 10,000-square-foot range. Lease rates have remained relatively stable since the first quarter, with Class A …

November 17, 2023

Acquisitions Industrial Nevada Western

Westcore Acquires 632,130 SF Distribution Facility in Tahoe-Reno Industrial Center for $82.5M

by Amy Works November 14, 2023

RENO, NEV. — Westcore has purchased a distribution facility within the Tahoe-Reno Industrial Center in Reno from an undisclosed seller for $82.5 million. Situated on 34 acres at 700 Milan Drive, the cross-loaded property features 632,130 square feet of distribution space, more than 200 trailer stalls, LEED Gold certification, ESFR sprinklers, energy-efficient lighting and recycled steel. At the time of sale, the facility was fully leased. The property offers one-day truck service to seven states and proximity to Reno Tahoe International Airport and Union Pacific Intermodal Hub. The asset is adjacent to Gigafactory Nevada, Tesla’s $6.2 billion electric vehicle plant in the area.

November 14, 2023

Market Reports Multifamily Nevada Western Western Market Reports

Higher-Wage Job Growth Buoys Rent Growth, Continued Development in Reno

by Jeff Shaw November 10, 2023

— By Aiman Noursoultanova, Senior Vice President, CBRE’s Reno Investment Properties Group — Reno’s multifamily sector has performed exceptionally well over the past decade due, in part, to strong, sustained job growth. Nevada continues to lead the nation in employment growth at 3.8 percent over the past year, according to July data from the Bureau of Labor Statistics. While Reno’s job growth over the past decade has focused more on diversification, recent growth can best be characterized by higher-wage industries like healthcare, technology, manufacturing and aerospace/aviation. As a result, the market has seen an influx of new Class A, well-amenitized construction that appeals to this new tenant demographic. Notable company relocations and expansions thus far in 2023 include OMEC Medical, a life sciences instrument manufacturer; Edgecore, a wholesale data center developer, owner and operator; Generac, a leading global designer, manufacturer and provider of energy technology solutions; and Stellar Aviation, a fixed-base private airplane operator catering to private planes and jets. Companies investing in Reno most commonly appreciate the region’s attractive regulatory environment, low cost of doing business, access to regional transportation corridors and a high quality of life for its employees. Regarding rent growth over the past decade, several submarkets have performed …

November 10, 2023

Acquisitions Arizona California Industrial Loans Nevada Self-Storage Western

Rosewood Property Receives $31.9M Acquisition Loan for Self-Storage Portfolio in the West

by Amy Works November 9, 2023

VISTA, CALIF.; TEMPE, ARIZ.; AND LAS VEGAS — Talonvest Capital has arranged a $31.9 million loan for the acquisition of a three-property self-storage portfolio in Vista, Tempe and Las Vegas. The borrower is Rosewood Property CO. The portfolio offers 2,010 units, including 238 climate-controlled units, 1,772 non-climate-controlled units and 90 parking spaces. Kim Bishop, Tom Sherlock, Philippe Castillo and Lauren Maehler of Talonvest secured the 10-year loan that provides seven years of interest-only payments with the ability for full-term interest-only payments.

November 9, 2023

Market Reports Nevada Office Western Western Market Reports

Reno’s Household Growth Boosts its Office Sector

by Jeff Shaw November 3, 2023

— By Daniel A. Kapic, Vice President, Regional Manager, Marcus & Millichap — Reno continues to be one of the nation’s fastest-growing smaller markets, underpinning tenant demand in the office sector. While remote and hybrid work have impacted office use in the metro, market-wide vacancies have kept in decent shape. Entering July 2023, Reno’s 15.1 percent vacancy rate was below the pre-2017 average. Rapid household growth has backstopped space needs, with law, financial and health service providers executing expansions to capture share in a growing market. The local household count increased 2.2 percent year over year in September, which was the second fastest among metros with fewer than 600,000 households. South Reno is spearheading this growth with 14 consecutive quarters of positive apartment net absorption through June 2023, drawing consumer-facing office tenants to the highly developed Meadowood neighborhood. The Reno VA Medical Center — which serves patients as far as Alturas, Calif. — recently announced its relocation to the area, which should also elevate long-term needs for nearby medical office space. While household growth has shored up space demand, Reno’s office market is still recalibrating to a 20-year-high supply injection. Overall inventory expanded 2 percent in the first half of …

November 3, 2023

Acquisitions Nevada Retail Western

Brixton Capital Sells Decatur 215 Shopping Center in Las Vegas

by Amy Works October 30, 2023

LAS VEGAS — Brixton Capital has completed the disposition of Decatur 215, a grocery-anchored retail center in Las Vegas. Decatur Palm Plaza LLC acquired the asset for an undisclosed sum. Situated at the southeast corner of North Decatur Boulevard and West Tropical Parkway, the 126,678-square-foot property was fully leased at the time of sale. Current tenants include Petco, Hobby Lobby, Ulta Beauty, Sprouts Farmers Market, Sleep Number and Blaze Pizza. During its five-year ownership, Brixton Capital repaved and restriped the parking areas. Brixton Capital was self-represented, while Lucescu Realty represented the buyer in the deal.

October 30, 2023

Industrial Loans Nevada Western

Gantry Arranges $17M Refinancing for Silverado Commerce Center in Southwest Las Vegas

by Amy Works October 23, 2023

LAS VEGAS — Gantry has secured a $17 million fixed-rate refinancing for the first phase of Silverado Commerce Center, an industrial property in southwest Las Vegas. The borrower is a private real estate investor, which developed the property. Proceeds of the loan will pay off the developer’s construction loan. Chris Funai of Gantry arranged the 10-year loan, which features a fixed rate and a 30-year amortization schedule. One of Gantry’s correspondent life company lenders provided the funds. The property features two industrial buildings totaling 141,000 square feet. At time of financing, the asset was fully occupied by multiple tenants.

October 23, 2023

Acquisitions Nevada Retail Western

Newcastle Properties Buys Whole Foods-Anchored Shopping Center in Las Vegas

by Amy Works October 23, 2023

LAS VEGAS — Chicago-based Newcastle Properties has purchased a retail center located at the northeast corner of Lake Mead Boulevard and Tenaya Way in Las Vegas’ Summerlin area. Terms of the transaction were not released. Whole Foods Market, Five Guys Burgers and Fries, Blaze Pizza, Firehouse Subs and FedEx Office are tenants at the 90,373-square-foot shopping center.

October 23, 2023

Acquisitions Multifamily Nevada Western

Avison Young Brokers $15.4M Sale of Madison at Green Valley Apartments in Henderson, Nevada

by Amy Works October 13, 2023

HENDERSON, NEV. — Avison Young has arranged the sale of Madison at Green Valley, an apartment community in the Las Vegas suburb of Henderson. Brisas GD LLC acquired the asset from Pacifica Henderson LLC for $15.4 million, or $175,000 per unit. Constructed in 1992 on four acres, Madison at Green Valley features 88 one- and two-bedroom apartments, with an average unit size of 942 square feet. The community is located near the Sunset Station Hotel and Casino and Galleria at Sunset. Patrick Sauter, Art Carll-Tangora and Steve Nosrat of Avison Young’s Sauter Multifamily Group facilitated the transaction for both the buyer and seller.

October 13, 2023

CapRock-Highlander-Logistics-Center-North-Las-Vegas-NV

Development Industrial Nevada Western

CapRock Partners Buys Site for 1.5 MSF Industrial Project in North Las Vegas

by Amy Works September 28, 2023

NORTH LAS VEGAS, NEV. — CapRock Partners has purchased 85 acres of unimproved land in North Las Vegas for the development of CapRock Highlander Logistics Center. The Class A complex will feature two freestanding warehouse buildings totaling approximately 1.5 million square feet. CapRock entitled the site during a prolonged escrow and then acquired the property off-market from a private seller. Terms of the deal were not released. Construction is scheduled to begin in 2024, with completion slated for 2025. Upon completion, CapRock Highlander Logistics Center will feature a 1 million-square-foot facility with 164 dock-high doors, four ground-level doors and speculative office space, and a 460,800-square-foot building with 82 dock-high doors, four ground-level doors and speculative office space. The buildings will offer 40-foot clear heights, excess land for an outsized number of trailer and parking stalls, drive-around capability and private concrete yards and truck courts. Donna Alderson, Greg Tassi and Nick Abraham of Cushman & Wakefield represented CapRock in the acquisition. Will Strong and Kirk Kuller of Cushman & Wakefield’s National Industrial Advisory Group – Mountain West represented CapRock in the asset’s equity financing.

September 28, 2023

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