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8/07/14
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Escondido Industrial Park, a 153k sf industrial property in Las Vegas, recently sold for $7.3 mil ($48/sf). The distribution and warehouse facility, located immediately south of McCarran International Airport, was purchased by a private investor from OC-based CIP Real Estate. Current tenants include Konami Gaming, G-Tech and Absolute Exhibits.
CIP, in a joint venture with Chicago-based institutional investor Blue Vista Capital Management, purchased the property in 2012 for $4.2 mil from a private trust and immediately implemented a major renovation program, including installation of ESFR sprinkler systems and cosmetic upgrades.
“This project was a classic turnaround story,” said Eric Smyth, principal of CIP Real Estate. “We look for industrial and office properties that have ‘good bones,’ but require physical renovation and have leasing challenges. Opportunities like this are harder to find in Las Vegas as fewer projects trade hands and more out-of-state capital is searching for value-added deals in the valley.”
The buyer was represented by Las Vegas Realty. CIP Real Estate was repped by Brian Riffel of Colliers International in the transaction.
CIP Real Estate has been very active in Las Vegas with acquisitions totaling more than
$115 mil in three separate transactions with Oaktree Capital Management since December 2013. The acquisitions included six office assets, 14 flex and industrial buildings, and a 4.2-acre land parcel, all located in the Hughes Airport Center, adjacent to McCarran International Airport. This premier portfolio of nearly 1 msf is home to some of the iconic names in Las Vegas, including Sitel, Bally’s, Cirque du Soleil, and MGM Resorts International. MGM recently leased 165k sf of office space in the project on a long-term basis, after vacating its former buildings that were demolished to make way for the new $350 mil MGM-AEG arena.
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