The single-story office/flex buildings are located within the 420-acre, 3.3-million-sf Hughes Airport Center business park. Michael Hefner of Voit Commercial in Anaheim, CA, and Kevin Higgins of Voit Commercial in Las Vegas represented the buyers, Kraemer II Glendale LLC and FKC Glendale LLC, and the seller.
The buildings, one which comprises 57,802 sf on 4.2 acres and one that boasts 40,288 sf on 3.5 acres, are fully occupied by Credit One Bank N.A. and reside along Pilot Road near McCarran International Airport, the Las Vegas Strip, Interstate 15 and the 215 Beltway.
According to a report by Applied Analysis, this area's vacancy rates have been tightly tied to product type. Class B offices posted an approximate 14% vacancy rate in the third quarter, while class A vacancy remained at 8%. Average asking rents were maintained at about $2.36 per sf, and average cap rates hovered at 6.8%.
Along with the buildings, the buyers also received two billboards, which are currently leased to Clear Channel and reside in front of the airport connector that feeds McCarran Airport. These are unique additions to the buildings, as Clark County does not allow any new billboard sign installation in the area.
The buildings' sale follows the joint venture's recent sale of a $115.5-million, nine-building industrial, flex and office portfolio. The portfolio featured 601,691 sf of class A space on more than 31 acres in Las Vegas that closed in late spring. Eric Smyth, a principal with CIP, notes that these recent sales are the result of an ownership strategy to unload buildings that do not: meet the company's portfolio requirements; capitalize on the market's favorable conditions; or provide equity that can be used for future prospects.
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