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3/02/17
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In a notable retail investment buy out of Las Vegas, a NoCal-based private investor paid $17.5 mil for Flamingo Maryland Shopping Center, a 57.7k sf, Target-anchored retail center near the Las Vegas Strip in Las Vegas. The asset was sold by Los Angeles-based Decron Properties in a deal that worked out to a price of just over $300/sf.
Built in 1987, the property is located at 3945 – 4055 Maryland Pkwy, at the intersection with Flamingo, a few blocks east of the Strip. Other tenants include Dollar Tree, Raising Cane and T-Mobile.
The disposition is part of Decron’s strategy to reduce the size of its commercial portfolio in favor of multifamily assets, which are generating higher rental income growth. In the past 24 months, Decron has sold six office and retail assets for more than $300 mil, using the disposition proceeds, along with newly raised capital, to acquire seven multifamily communities, totaling 1,630 units, for approximately $500 mil.
“The last two years have been the most active in Decron’s 60-year history from a transactional standpoint,” said Decron CEO David Nagel. “Completing almost $800 mil in capital transactions has right-sized our portfolio. Previously 40% of our assets were in the office or retail sector. With technology and e-commerce disrupting how we ‘work and shop’ we committed to our investors that we would reduce our commercial exposure and emphasize more investments into the multifamily sector. During the Great Recession we saw tremendous volatility in our commercial portfolio but very little in our residential portfolio. Successfully executing this strategy puts us in a more stable position to continue to grow for the next 60 years.”
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