Stoltz and Goldentree Acquire Land and Office Portfolio

LAS VEGAS-A portfolio of office/flex buildings and unused land was sold to a joint venture of Stoltz Real Estate Partners and GoldenTree InSite from another joint venture between Urdang Advisors and Stoltz Real Estate Partners. Financial terms of the deal were not disclosed, but the companies estimate that the value of the land and subsequent cost of development is in the $200 million range.”The acquisition of this portfolio gives us an excellent opportunity to further expand our presence in the marketplace,” says Stoltz’s Wes Jenson, senior vice president of the Las Vegas office.The deal represents the 16th asset acquired by Pennsylvania-based Stoltz Real Estate Fund over the last 30 months. Andrew Silberstein, executive vice president and chief investment officer at Stoltz notes that the dynamics of the Las Vegas commercial real estate market are changing.”Tenant demand is also being driven by a discernible business shift as gaming and hospitality companies are moving office and administrative functions out of the hotels and casinos in order to utilize that real estate in a more productive manner,” he says.The portfolio’s nine buildings total 600,000 sf of office/flex space, which is currently 80% occupied. Seven of the buildings and four of the development parcels are located in the Hughes Airport Center, while the remaining two buildings and two parcels are located in Hughes Cheyenne Center.The six parcels of land total 26 acres where 500,000 sf of additional office space will eventually be developed. A plan for construction is underway for a nine-acre site on Sunset Road.”We are bullish on the market and believe that the strong demographics bode well for office occupancy levels and rental growth,” says Josh Pristaw, managing director for New York City-based GoldenTree InSite Partners.