(Read more on the industrial market.)
LAS VEGAS-Nine office and industrial buildings here totaling 600,000 sf have changed hands for $115.25 million (not including the transfer tax), according to Clark County property records. The new owner is a joint venture of CIP Real Estate and Buchanan Street Partners. The seller was a joint venture of GoldenTree InSite Partners and Stoltz Real Estate Partners.
Seven buildings are located at Hughes Airport Center, where Irvine, CA-based CIP already owns 1.3 million sf that is virtually full. The other two buildings are located at Hughes Cheyenne Center in North Las Vegas. "This acquisition was a very important strategic addition to our office and industrial portfolio in Las Vegas," CIP Real Estate principal Eric Smyth tells GlobeSt.com. "We are optimistic about the business growth in greater Las Vegas and these buildings are exceptionally well-located in Hughes Airport Center and in the prime Cheyenne sub-market in North Las Vegas."
The GoldenTree-Stoltz partnership acquired the portfolio in March 2006 in a deal that included several development parcels. Over the past year it has raised occupancy in the portfolio to 95% from 80%. Tenants include MGM Grand, GES Exposition Services, Cirque Du Soleil, Upper Deck and Clark County.
"We are bullish on the office market demand trends in Las Vegas and we are looking forward to working with GoldenTree InSite on more development in the park," says GoldenTree chief investment officer Robert Vahradian.
Last month, GoldenTree and Stoltz announced plans for two class A office buildings in Hughes Airport Center called Sunset Pilot Plaza. The partnership also has plans to develop a retail center in North Las Vegas.
Also in April, CIP sold a fully leased single-tenant building within Hughes Airport Center for $10 million. The building, a 44,631-sf building at 821 Grier, is leased to JT3, a specialized defense firm jointly owned by Raytheon and EG&G. CIP's broker for the transaction, Mike Hefner of Voit Co., tells GlobeSt.com that JT3 recently signed a five-year lease for the property, making it a secure investment for the buyer. Hefner, who is based in Anaheim, was assisted in the transaction by Kevin Higgins and Garrett Toft of Voit Co.'s Las Vegas office.
The new owner is a joint venture of two local investors, one of which was satisfying an exchange requirement. The buying entities were 821 Grier LLC and Rains 821 Grier Investment LLC, according to documents filed with Clark County, the entities are controlled by Joel Laub and Robert O. Rains Jr., respectively. The buyers were represented by Michael Marrone of Joel Laub & Assoc.
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