RENO, NV-Privately held AIG Baker of Birmingham, AL is looking to sell Sparks Crossing, its newly developed regional shopping center here by the end of the year. The 335,875-sf regional shopping center opened earlier this year in the City of Sparks, an eastern suburb of Reno. Faris Lee Investments has the disposition assignment.

Located at the intersection of Los Altos Parkway and Pyramid Lake Scenic Byway, the retail center has 220,000 sf for larger retailers and 115,000 sf of small shop space. The center is anchored by Best Buy; Bed, Bath & Beyond; PetSmart; Cost Plus World Market; Old Navy; Ross; Michaels; Shoe Pavilion and Office Max. Additional national tenants include Chili's, Famous Footwear, Subway and Panda Express.

Rents at the development range from $27 per sf to $38 per sf per year for the smaller shop spaces and from $12 per sf to $15 per sf for the larger tenants. The center is not yet stabilized. Faris Lee's Don MacLellan declined to estimate the property's retail value but says the seller is looking to close a deal by year's end that includes a future earn out based on the occupancy at that time.

The seller's motivation is to book earnings before the end of the year. Though the property's location in Sparks precludes interest from a few institutional funds that only acquire in major MSMAs, MacLellan expects significant interest. “There's still a lot of institutional and private sector capital out there and this is an institutional-quality asset in a growing region,” he says.

Sparks, the fifth largest city in Nevada, has been recognized as one of the top five places in the nation to retire, due in part to its proximity to Lake Tahoe. A number of retail developments are underway or proposed in the city. The closest new project to Sparks Crossing is Sparks Galleria, a 133-acre development that includes a retail center anchored by Gold's Gym, Long's Drugs, Home Depot and Costco, as well as professional office and medium-density residential uses.