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9/29/15
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MCA Realty recently acquired four industrial properties in Las Vegas. With these latest deals, the firm’s portfolio now encompasses a total of 14 properties and well over 600k sf in the region.
“The Las Vegas market has demonstrated significant growth over the past 24 months,” says Tyler Mattox, a Principal at MCA Realty. “Our firm began acquiring industrial assets in this market in 2011. At that time, value-add industrial product was plentiful, whereas today, an influx of capital has caused prices to increase and made opportunities more difficult to uncover.”
Mattox explains that investor demand has grown, and that tenant demand has strengthened meaningfully, particularly in smaller spaces under 30k sf. “The recovery in Las Vegas, like in much of the nation, was top down, with larger corporations emerging from the recession first. Smaller companies have just recently joined in the recovery and this is manifest in a reduction in vacancy and an increase in rents across the incubator and mid-bay industrial sector,” he says.
In one of the recent acquisitions, MCA and joint venture partner Saunders Property Company (SPC) purchased Aabacus Industrial Center, a two-building industrial complex totaling 58.2k sf, at a price of $68 per sf. They plan to make a series of interior and exterior improvements to the property, and have subdivided the property into two distinct freestanding industrial buildings. The industrial complex is located at 3200 and 3280 West Sunset Rd in Las Vegas, Nevada.
Academy Bank provided financing for the transaction. MCA Realty was represented by Dan Doherty, Chris Lane, Jerry Doty, and Susan Borst of Colliers International. The seller, a special servicer, was repped by Chris Beets and Ben Mills of Newmark Knight Grubb Frank.
MCA Realty also acquired a 31k sf multi-tenant industrial building in a growing Northern Las Vegas industrial park for $55 per sf. The property is located in the same industrial park as the Cheyenne West Business Center, which is also owned by MCA Realty. At the time of the acquisition, the building was less than 50 percent occupied, providing strong lease-up and value-add potential.
The building is located at 2750 W. Brooks Avenue in North Las Vegas, Nevada. Rob Lujan of JLL assisted MCA Realty in this transaction.
In another deal, MCA bought a 26k sf, single-tenant industrial property near McCarran International Airport in Las Vegas for $85 per sf in a bankruptcy sale. During escrow, MCA Realty was successful in securing a ten-year lease extension with the existing tenant in the property.
The building is located at 6335 Sunset Corporate Drive. MCA was repped by Dan Doherty and Dean Willmore of Colliers International in the deal.
In the fourth deal, MCA Realty and joint venture partner Saunders Property Company acquired a 21.8k sf, single-tenant industrial building at 2020 Pama Lane, in close proximity to the Las Vegas airport, for $85 per sf. The property is currently occupied by a manufacturer and distributer of a natural sweetener, and was purchased from a lender through a court ordered bankruptcy sale.
MCA was able to secure a ten-year lease with the existing tenant in this asset as well, resulting in an attractive ‘in place’ yield at close of escrow. The company plans to supervise an interior and exterior renovation to the property that will be performed by the tenant.
MCA Realty was represented by Danielle Steffen and Amy Ogden at Cushman & Wakefield.
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