The development site was on the market for three years before Anderson snapped it up at the end of 2004 for just shy of $2.2 million or about $462,000 per acre. Land prices have since skyrocketed.
As of the end of the 2006, the average price per acre, excluding resort properties, was $782,300, according to Applied Analysis. Anderson reportedly spent an additional $8 million or so developing Red Rock Plaza.
Located on 4.7 acres at 5191 W. Charleston Blvd., near Decatur Blvd., the center consists of a 42,300-sf shopping strip and a 6,200-sf office building. The property is well leased, as are most all retail centers in the region. Retail vacancy in the Las Vegas Valley as of the end of the first quarter was 2.5%, according to locally based advisory Applied Analysis.
The demand for Red Rock Plaza was in part created by Weingarten Realty's four-year-old redevelopment of Westland Fair at Charleston and Decatur into Charleston Fair. As part of the redevelopment, the old buildings were torn down, parcels were sold off for a Wal-Mart Supercenter and Lowes Home Improvement Warehouse, and additional space was developed and occupied by Michael's, PetSmart, Radio Shack, Macayo's Mexican restaurant, Office Depot, Smart & Final, T Mobile and Quiznos.
According to local brokers, the demand for newer space on Charleston was so high that many tenants that wanted to be at Charleston Fair could not get in. Many of those tenants are now at Red Rock Plaza and Charleston Festival, a slightly larger retail development that followed Red Rock Plaza and opened earlier this year. Like Red Rock, Charleston Festival was largely leased up before it was completed.
Tenants at Red Rock Plaza include the Academy of Hair Design, Starbucks, Verizon Wireless, Bimbo Bakeries and Carpet Extreme. All tenants are on triple-net leases. The listing broker, Chris Cunning, could not be reached Wednesday for comment.
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