(To read more on the industrial market, click here.)
LAS VEGAS-LaPour Partners is developing a 114,000-sf flex-office development in the Southwest submarket here, a submarket that has been kind to the locally based developer. Earlier this year, it sold a mid-bay distribution center there for twice as much as it cost to develop in 2002.
The new project, phase three of Decatur Crossing, will be a two-building, two-story hybrid product totaling 114,000 sf on six acres at Decatur Boulevard and Sunset Road. The buildings will have a combined 69,500 sf of flex space with grade-level loading capabilities and 13-foot clear heights on the first floor and 42,200 sf of office space on the second floor for which there will be extensive glass, individual exterior entrances and common-area restrooms. Units will be divisible to 3,000 sf on the first level and to 1,000 sf on the second level.
Decatur Crossing is a 40-acre, 600,000-sf master planned business park located at the confluence of I-215 and South Decatur Boulevard. LaPour is developing Phase 3 with $14.1 million in construction financing from Key Bank Real Estate Capital. KKE/HFTA Architects is the architect of record; TWC Construction is the contractor. Michael DeLew and Greg Pancirov of Colliers International are the project's listing agents.
The cost of the Phase 3 land, asking lease rates and the expected delivery date were not immediately available. Neither LaPour principal Jeff LaPour nor the brokers were available Monday for comment.
In 2002, LaPour developed the 143,000-sf WesTech Business Center II in the Southwest submarket at a cost of $9 million including the cost of the land, which cost $5.75 per sf at the time and is now valued at closer to $15 per sf. Three months ago, it sold the fully leased building to Cable Capital Ventures for $18.5 million. The cap rate on the deal was approximately 6.15%. In 2005, the average cap rate for industrial deals was 7.7%, according to Applied Analysis, a Las Vegas-based business advisory firm.
Company principal Jeffrey LaPour told GlobeSt.com at the time that WesTech is the first asset he has sold since forming LaPour Partners in 2002. "I am a portfolio builder and generally do not sell but I received an offer too good to refuse," he said.
While busy in Vegas, LaPour is even busier building a portfolio in Phoenix. Earlier this month, GlobeSt.com reported that the company has gained control of 110 acres there in two unrelated transactions. The plots of land in the Deer Valley submarket and Avondale will be developed into business parks, with the all-in development cost estimated at $100 million.
The Deer Valley property, situated at the intersection of 7th Avenue and Rose Garden Lane, was picked up through a 65-year land lease with the state. The 200,000-sf first phase is slated for delivery in 10 months. In Avondale, at the intersection of 119th Avenue and Interstate 10, LaPour closed on the first 30 acres of a planned 80-acre acquisition from Phoenix-based Marwest Enterprises Inc. In the coming months and throughout 2007, LaPour will focus on acquiring the balance of the land and readying the development plan. Construction is slated for 2008.
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