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LAS VEGAS-The Koll Co. of Newport Beach, CA, a new entrant to the Vegas market, has made its second investment here, acquiring East Sahara Commerce Center. The two-building, 72,548-sf industrial incubator property was built in 1991 and is currently 90% leased.
The 43-unit property was purchased from SVN Nobbs East Sahara LLC, a partnership controlled by SVN Equities of Irvine, CA. The sale price was $6.85 million, or $94.42 per sf rentable.
Koll acquired its first Las Vegas property in January when it purchased Brookhollow Business Park, a four-building, 99,325-sf light industrial complex for $12.65 million. The 29-unit business park sits on 6.86 acres at the corner of Smoke Ranch Road and Tenaya Way in the Las Vegas Technology Center. It was 78% leased at the time of purchase.
East Sahara Commerce Center is located on 3.67 acres at 4405-4425 East Sahara Ave., one mile east of Interstate 515. The two tilt-up concrete buildings have an interior clear height of approximately 16 feet and the units within average 1,678 sf. Aimed at small businesses serving the area, the front-loading units offer build-outs of 10 to 15%.
In explaining the purchase, Koll managing principal Alan Airth says the occupancy rate for the northwest submarket is approximately 98% with no new construction planned. "The result of these tight market conditions--combined with the increasing redevelopment of existing industrial properties into mixed and residential uses near The Strip--is strong demand to lease space in projects like East Sahara Commerce Center," he says.
Koll currently owns and manages some 3.1 million sf of existing multi-tenant, light industrial and suburban/garden office space concentrated in the Western US. In addition, the company has a large joint venture acquisition pending.
As part of its 16-month-old joint venture with the Public Employee Retirement System of Idaho, it is acquiring a portfolio of 12 office properties in Arizona, Colorado and Texas totaling approximately 1.74 million sf. The portfolio is being purchased for $273 million from AmeriVest Properties Inc., the Denver-based real estate investment trust that approved a plan of liquidation in May. The deal includes the assumption of $126 million in debt.
The portfolio transaction is expected to close on a property-by-property basis beginning in mid-August as AmeriVest receives approvals from its mortgage lenders. When the property sales close, the Koll/Per venture will have invested equity capital of more than $200 million and hold total assets of approximately $500 million.
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