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MIG Buys Office/Medical Office Complex in Henderson

13 Feb 2014, 10:10 pm

By Alex Girda, Associate Editor

In the latest sign of improvement in the metropolitan Las Vegas office market, MIG Real Estate acquired Sansone Pecos II, an eight-building, Class A office/medical office portfolio in Henderson’s upscale Green Valley. Located near the I-215 and South Pecos Road interchange at 9005-9089 South Pecos Road, the one- and two-story buildings total 122,922 square feet. CBRE Group Inc. represented the seller; neither the identity of the prior owner nor the purchase price was disclosed.

“Sansone Pecos II has strong upside potential, benefiting from the improving real estate fundamentals of Las Vegas and the solid employment base of its Southeast submarket,” said Greg Merage, CEO of Newport Beach, Calif.-based MIG, in a statement. “We will continue to evaluate opportunities within Las Vegas’ growing and economically diverse submarkets.”

Sansone/Pecos II is about one mile from The District, the upscale lifestyle center, four miles from McCarran International Airport and 12 miles from the Las Vegas Strip.

Since 2009, MIG has acquired 20 properties, five of them in the Las Vegas Valley. Focusing on major western markets, the firm has acquired more than $850 million worth of office, retail, hospitality and multifamily assets, according to a company statement.


Rialto Capital, Kismat Investments Pay $10M for N. Las Vegas Strip Mall

6 Feb 2014, 7:00 pm

By Alex Girda, Associate Editor

A joint venture of Rialto Capital and Kismat Investments recently picked up Craig Promenade, an 86,395-square-foot retail center in North Las Vegas, in a $10.1 million deal. Faris Lee Investments represented the seller, an affiliate of San Mateo Calif.-based TNP Strategic Retail Trust Inc.

Located at 525-785 West Craig Road near Craig Ranch Regional Park, the property was constructed in 1985 and was 70 percent occupied when the deal closed last month. National tenants include Big Lots and Metro PCS, as well as local retailers.

“Over the last few quarters the Las Vegas retail market has continued to improve, with expectations that we will continue to see positive momentum as the national and local economies gain traction. We’re now at the front end of this recovery,” Faris Lee president & CEO Rick Chichester said in a statement. Rob Moore, Lisa Brady and Katie Brase of the firm’s Las Vegas office highlighted the Craig Promenade’s leasing and development potential in marketing the property. A long-term exit strategy includes an option to divide the property into four parcels.

Craig Promenade is the third of three retail properties that Faris Lee has sold on behalf of TNP SRT over the past 12 months. Previously, Faris Lee had represented the seller in the disposition of Waianea Town Center, a 171,065-square-foot regional center on the island of Oahu, Hawaii, and Willow Run, a 91,565-square-foot grocery-anchored center in metropolitan Denver.

John Chun and Sebastian Trujillo of HFF arranged $7.3 million financing for the Craig Promenade acquisition. RRA Capital Management provided three-year, floating-rate financing.

Griffis Residential Pays $43M for Luxury M-F Asset in Summerlin

22 Jan 2014, 11:27 pm

By Alex Girda, Associate Editor

On the heels of significant price increases in Las Vegas’ single-family home market, multi-family properties may be gaining further traction with investors. A case in point: Griffis Residential’s recent $43.2 million acquisition of The Wellington, a luxury apartment community in Summerlin’s Lakes area.

Completed in 1998, the property underwent renovation in 2012 and 2013. The Wellington is near the I-215 beltway, as well as the soon-to-be-completed Shops at Summerlin retail district.

The Wellington offers 332 garden-style units ranging in size between 759 and 1,322 square feet, with five floor plans that include one-, two-, and three-bedroom layouts.

Amenities include 24-hour emergency maintenance, a clubhouse, controlled access entry, a heated swimming pool, spa facilities, tennis and basketball courts, and reserved covered parking.

For Denver-based Griffis, the Wellington deal marks its second acquisition of a high-end multi-family property in less than a year. Last May the company bought Quest Apartments, a 310-unit apartment community in nearby Henderson.  

Image courtesy of  thewellington-apartments.com

Residential Market’s Strong Finish Points To More Gains in 2014

16 Jan 2014, 10:26 pm

By Alex Girda, Associate Editor

The Las Vegas housing market kept a year of gains going all the way to the end. According to data released by the Greater Las Vegas Association of Realtors,  the median price of a single-family home rose to $185,000 in December.

That marked a 24 percent increase compared to the fourth quarter of 2012, when the average resale price of homes in the market was $149,000. Moreover, median prices have remained above $180,000 since July. That surge promises further gains and stabilization in 2014.

Median prices of condos and townhomes also recorded significant growth in 2014 .On the strength of a 26.3 increase during the year, prices reached $96,000 by the end of last month.   

Encouraging as those gains are, they are not universal in the state’s housing market. The Las Vegas Review-Journal notes that Nevada still leads the country in underwater homes. According to the publication, approximately 38 percent of homeowners in Nevada are currently unable to pay off their mortgages, while Florida and Illinois follow with 34 percent and 32 percent respectively.

KRE, Dune Acquire 5 M-F Assets for $237M; South Blvd. Apartments Fetches $42M

11 Jan 2014, 9:06 pm

By Alex Girda, Associate Editor, and Paul Rosta, Senior Editor

Las Vegas’ residential market ended 2013 with a flurry of high-profile multi-family transactions. In a $237 million deal, KRE Capital and Dune Real Estate Partners teamed up to acquire five residential properties comprising 1,435 rental and condominium units, VegasINC.com reports.

The seller, ST Residential, was formed by private equity investors who bought construction loans on the properties from the Federal Deposit Insurance Corp., Bloomberg News reported. FDIC, in turn, had assumed the notes when it closed Corus Bank in 2009.

According to information on ST Residential’s website, the portfolio includes:

  • The Juhl, 353 E. Bonneville Ave., 341 units
  • Loft 5, 2715 West Pebble Rd., 272 units
  • One Las Vegas, 359 units (address not listed)
  • Spanish Palms Condominiums, 5250 S. Rainbow Boulevard, 188 units
  • The Ogden, 150 Las Vegas Blvd. N., 275 units

Of note, the Ogden is the home of Tony Hsieh, the entrepreneur and leader of the Downtown Project. ST Residential originally listed the assets in early 2013 as part of a 13-property, eight-state portfolio with a $1 billion asking price.

Also in late December, The Praedium Group acquired South Blvd. Apartments (pictured above) from Nevada West Development for $41.9 million. Located at 10200 Giles St., the 320-unit complex was completed in 2012. CBRE Group Inc. arranged financing for the deal, while Hendricks-Berkadia represented the seller.

South Blvd. Apartments comprises 29 two-story buildings, large layouts, nine-foot high ceilings, granite countertops, stainless steel appliances and washer/dryer units. Community amenities include a state-of-the-art clubhouse and health center, a resort-style pool, a common barbecue area, a movie theater with stadium seating, and gated garage parking. The complex was 93 percent occupied at closing.

Henderson’s $1.6B Union Village Wins Hospital Commitment from Valley Health

19 Dec 2013, 7:32 pm

By Alex Girda, Associate Editor

In a major step for Union Village, the $1.6 billion healthcare-centered project in Henderson, Valley Health System is nearing an agreement to build the acute-care hospital that will anchor for the 220-acre development.

Valley Health’s commitment would allow the city to approve the sale of the 30-acre site designated for the facility. Union Village L.L.C., the project’s master developer, would pay about $11.6 million for the site, according to The Las Vegas Review-Journal .

Touted as the world’s first integrated health village, the project would include retail, senior care, cultural and residential components.

Union Village’s backers say that the project will generate an economic boost in the form of tax increment revenue worth around $158 million. By the time it is completed in 2022, the development will create an estimated 17,000 new jobs.

Image courtesy of unionvillage.net

Juno Plans Fall 2014 Opening for Bazaar-Flavored Retail Project on the Strip

12 Dec 2013, 6:27 pm

By Alex Girda, Associate Editor

With office investment and leasing showing new life and the residential market enjoying its strongest year since the recession, innovative projects are likewise infusing new energy into Las Vegas’ retail scene. One of the largest of those projects, the Grand Bazaar Shops, is betting on a vibrant new concept that will be located at the entrance to Bally’s Las Vegas.

Developed by a team including Juno Property Group, Perella Weinberg Partners, Glincher Capital Group and Caesars Entertainment, the 55,000-square-foot project will accommodate about 150 shops when it opens next fall.

Most stores will range in size from 150 to 300 square feet; a few larger venues will offer spaces in the 1500- to 2000-square-foot range. The lineup of retailers will emphasize lifestyle products like apparel, footwear, eyewear, health and beauty, electronics and entertainment.  

Located on a heavily traveled two-acre site at the intersection of Flamingo Road and Las Vegas Boulevard, Grand Bazaar Shops will count Caesars Palace, Flamingo Las Vegas and Paris Las Vegas among its neighbors. According to its developer, the retail center will rely on the appeal of smaller, more interactive shops, as well as its bold and colorful design features, in order to attract as many of the 20 million visitors that cross the area every year.

International marketplaces inspired Juno Property Group Chairman Larry Siegel to create the concept, which will evoke traditional sights, sounds and smells of bazaars around the world. Signature design elements include a Swarovski Crystal Starburst and rooftop mosaic-like rooftop drawings.


MVP Wraps $55M Office Acquisition as Market Shows Signs of Reversing Decline

5 Dec 2013, 10:59 pm

By Alex Girda, Associate Editor

MVP Real Estate Investment Trust Inc. has closed on the last of six office buildings in a $55.1 million acquisition at an office park on West Post Road.  The REIT said that it paid $6.1 million for the 22,000-square-foot, two-story building, which is 89 percent leased.

“The addition of these properties adds greater diversification to our growing portfolio with well-located, multi-story commercial office buildings that enjoy a mix of tenants primarily under triple net leases,” said  MVP REIT chairman & CEO Mike Shustek.

Built in 2008, the most recently acquired building is situated at 8945 W. Post Road, directly off of Interstate 215 and offers convenient access to  McCarran International Airport and the Las Vegas Strip. Each of the six buildings was at least 89 percent occupied at the time of acquisition, significantly outperforming Greater Las Vegas’ office market.

Despite the metro office market’s long struggles, several major indicators are trending in the right direction. Vacancy has now fallen for the second consecutive year in 2013 and prices are on the rise. After a 4 percent decline in 2012, asking rents will reverse course and edge into positive territory by the end of the year, predicts Marcus & Millichap Real Estate Investment Services Inc.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com

CITRA Wins City Approval, Incentives for $71M Downtown Healthcare/Assisted Living Complex

29 Nov 2013, 10:37 pm

By Alex Girda, Associate Editor

As the Downtown Project led by Tony Hsieh gathers momentum, a major healthcare and residential project has reached a major milestone. The Las Vegas City Council recently approved an agreement with developer CITRA Real Estate Capital for Symphony Park, a $71 million skilled nursing and assisted living facility.

Located on the site of a former rail yard at 394 S. City Parkway, the mixed-use project would mainly consist of the skilled nursing building and the assisted living facility, but will also include a parking structure, garage, ground floor retail and dining spots. The linchpin of the deal is the council’s decision to sell the project’s 3.3-acre site for $3.5 million, a substantial discount from the parcel’s estimated $11.5 million market value.

According to The Las Vegas Review-Journal, the company will develop a six or seven-story skilled nursing center with a capacity of about 150 beds. Services will include physical therapy, speech and occupational programs. The eight-story assisted living facility will offer some 140 residential units, and the parking structure will accommodate around 464 vehicles.

Potential job creation persuaded the Las Vegas City Council to provide the financial incentive. Symphony Park would attract around 892 positions, which translates into a $37.6 million annual payroll. Although the city will get a below-market price for the land, returning the parcel to property tax rolls will generate $781,000 in revenue annually, LVRJ reports.

CIM Launches Downtown3rd Entertainment District After Makeover

22 Nov 2013, 11:32 pm

By Alex Girda, Associate Editor

Notwithstanding the struggles experienced by the Las Vegas residential market in recent years, the area is getting repeated reminders that its entertainment, hospitality and gaming sectors are bouncing back nicely. A recent case in point is the makeover of Downtown Grand Las Vegas. Renovated and re-branded Downtown3rd by its developer, CIM Group, the mixed-use entertainment district is positioned as a boutique-style experience in its hotel, casino and entertainment components.

Image courtesy of cimgroup.com

Located on a 6.3-acre site at 3rd Street and East Ogden Avenue, Downtown3rd offers 634 guest rooms in the 25-story Grand Tower and the 18-story Casino Tower. Downtown3rd has 25,000 square feet of casino space leased to Fifth Street Gaming.

The property offers 35,000 square feet of retail as well as a variety of dining options. PICNIC, a rooftop retreat with an infinity pool, private cabanas, a fire pit, and full-service restaurant and bar, is expected to be a major draw.

The debut of Downtown3rd is an example of a resurgence sparked in large measure by the Fremont Street Experience. Further contributing to the growing appeal of the district are attractions like the nearby Mob Museum and the commitment shown by Zappos in establishing its corporate headquarters. CIM’s acquisition and redevelopment of the Downtown Grand signals the developer’s strategy to get a footing in a market on the rise.

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