|The majority, 393.9k sf, portion of Tropicana Beltway Shopping Center, was purchased for $59 mil by affiliates of The Krausz Companies, a privately held Investment, Development and Management Company, headquartered in San Francisco. Tropicana Beltway Shopping Center is a 617.8k sf, dual grocery-anchored community retail center in Las Vegas. The asset was sold by Weingarten Realty.
Tropicana Beltway Center is anchored by a Walmart Supercenter, Lowe’s, Ross Dress for Less, PetSmart, Office Depot, 99 Cents Only (features a grocery department) and Pier 1 Imports. Walmart, which featured a full size grocery department, and totaled 223.9k sf, together with Lowe’s, were not a part of the sale.
The blue-chip tenant roster also included Applebee’s, Bank of America, IHOP, Panera Bread, Chase Bank, Pacific Dental Services, Chipotle, Del Taco, Leslie’s Pool Supplies, Panda Express, T-Mobile, Club Pilates, Cricket Wireless, Sally Beauty Supply, Starbucks, metroPCS, Subway, The UPS Store, GNC, GameStop, Sport Clips and The Joint Chiropractic. The property is 99.68% leased, and 92.8% of the leased GLA is occupied by regional and national tenants.
Tropicana Beltway Center is situated in immediate proximity to Summerlin, which is among the most affluent communities in Nevada, with an average annual household income of nearly $150,000. Within a one-mile radius of the property, the average household income is $83,326 and within a three-mile radius the population is 134,983.
“It’s an institutional-quality center; one of the most dominant and successful centers within the entire MSA with a blue chip tenant roster, an infill location, and high barriers of entry,” noted Mark Lucescu, President of Lucescu Realty, who represented the seller and procured the buyer in the deal. “Weingarten did a great job of developing, managing and leasing the center and the Buyer should continue that success”.
According to Lucescu in discussing the latest market trends, "We expect Shopping Centers posting strong retail sales to continue to garner very high investor demand due to the dearth of available inventory and the surplus of capital pursuing these types of offerings. In addition to urban areas in gateway cities we also anticipate properties with similar fundamentals throughout the western U.S. to continue to be highly sought after as well.”