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2/17/17
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MCA Realty recently acquired two assets totaling 175.5k sf in the Las Vegas market in deals worth a combined $18.3 mil. The acquisitions were for the Harmon Warehouse Center, a 145.5k sf, multi-tenant industrial building in Southwest Las Vegas, as well as the Gibson Tech Center, a 30k sf office building in Henderson, NV.
“In comparison to other markets across the West, Las Vegas continues to offer value and pricing levels that are still well below former peak levels,” says Tyler Mattox, Principal at MCA Realty. “The local industrial market is in its 17th consecutive quarter of positive net absorption, and vacancy in this market dropped to 4.1 percent at the end of last year - the lowest in Southern Nevada since 2006.”
Mattox notes that the office market in Las Vegas and its Henderson submarket is also performing well, posting five consecutive years of healthy net absorption with steadily increasing lease rates.
“We acquired each of these assets well below their replacement cost, giving us the opportunity to increase value over time,” he says. “The attraction of the Gibson Tech Center asset, in particular, was the freestanding nature of the building with an 8:1,000 square feet surface parking ratio, which will allow us to attract tenants with higher parking needs than those that a traditional office building can accommodate.”
MCA Realty acquired Harmon Warehouse Center from an institutional investor for $15.15 mil, or $104/sf. The prior owner of Harmon Warehouse Center implemented a $1.2 mil renovation program in 2016. Even as a renovated asset, the property is currently operating at rents that are 18% below market value.
Harmon Warehouse Center is located at 4301 and 4325 Valley View Blvd, approximately one mile from the Las Vegas Strip. The buyer and seller were represented by Kevin Higgins, Garrett Toft, Zac Zaher, Sean Zaher and Jake Higgins of CBRE.
MCA’s other other acquisition, Gibson Tech Center, is a 30k sf, vacant office building in Henderson that was acquired at a significant discount to replacement cost at $3.15 mil ($105/sf). The property was formerly an ITT facility that has functionally obsolete improvements. The company plans to reposition the building to appeal to call center and other tenants with significant parking requirements.
Gibson Tech Center is located at 168 North Gibson Rd, less than a mile from the 215 beltway, less than two miles from the US-95 freeway, and 10 miles east of McCarran Airport and the Las Vegas Strip. MCA was represented by Ryan Martin, Taber Thill, and Patti Dillon of Colliers International.
In addition to its recent acquisitions, MCA Realty also recently completed three dispositions in the Las Vegas market, including:
• Whitney Ranch, a 57k sf, multi-tenant industrial/auto business park in Henderson, NV. MCA acquired the asset in 2013 and sold it recently for $5.05 mil.
• Lamb Technology Center - MCA Realty sold two condo units totaling 12.7k sf at this 116.3k sf, mixed-use property for a total of $908k.
• Wigwam Jones Industrial Park - MCA Realty sold one of the units totaling 9.7k sf in this 85.5k sf industrial park for $1.2 mil. Wigwam Jones has two remaining industrial condominiums from the 11 that MCA acquired in 2014.
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