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4/12/18
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Marnell Corporate Center 4 (MCC 4), a 93.7k sf Class A office building in Las Vegas, was purchased by Nidnats Corp for $30.75 mil, or $328/sf, in what we’re told is a record for the highest price per square foot paid for a multi-tenant non-medical office building in Las Vegas.
At the time of the sale, MCC4 was 88% leased. Tenants include GSA/TSA; internet gaming and technology company Machine Zone, America Family Mutual Insurance, and HDR Engineering Inc.
The property was sold by Dornin Investment group, who acquired the asset in 2014 as part of a $39 mil, three-building portfolio containing 177k sf in the Marnell Corporate Center, a 493k sf, master-planned office campus, adjacent to the McCarran International Airport. The sale of MCC 4 marks Dornin’s successful stabilization of the building, which had suffered from high vacancy and long-term leases at below market rates.
“We remain bullish on the Las Vegas office market,” said Dornin founder and CEO Chris Dornin, whose firm recently acquired 129k sf of office space on Las Vegas Boulevard, south of the strip. “Las Vegas will always be the gaming capital of the world, but there is much more to the city than just the casinos. Demand for quality office space is being driven by growth in technology and healthcare industries.”
Logic Commercial Real Estate (Logic) represented the seller in the transaction. According to Brendan Keating, CEO of Logic, now that there are four to five comps of this type above $300 psf, they are seeing developers starting to underwrite speculative office development.
The record sales price of approximately $328 psf paid for MCC 4 is more than 50% higher than the average for the market, according to seller’s attorney Mark Nicoletti of the Los Angeles-based law firm Sklar Kirsh.
“The sales price is indicative of the investment community recognizing the changes that are taking place in Las Vegas, not the least of which is the economic impact of an NFL team and the construction of a new $1.8 billion football stadium,” said Nicoletti. “The combination of those market forces and our clients’ ability to create value with such an irreplaceable asset resulted in a very attractive sales price.”
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