WCM's Cory Carlson told GlobeSt.com in an earlier interview that the other two buildings at Centra Point office park had a different lender and "had to be dealt with differently." The one Centra Point asset WCM will not acquire was sold to another party late last year.
When adding in those remaining buildings, Centra Properties will bring in some $130 million for the office park. Located at the northeast corner of Durango Drive and the I-215 Beltway, the class A office development includes two- and three-story, concrete-and-glass buildings with very little vacancy, a market-leading rental rate of $2.10 per sf per month, and a high-profile list of tenants.
In a separate deal in the Las Vegas market, Birtcher Anderson acquired the five-building, 86,113-sf Charleston Valley View business park. The exact amount was undisclosed, but brokers associated with the deal say it sold for more than $220 per sf at a 7.4% cap rate. "Despite uncertainty in the credit markets, fundamentals remain strong, particularly in the Las Vegas market," says Michael Ross, senior vice president of Colliers International's Downtown Los Angeles Office.
Ross adds that deals are turning in the area with properties getting interest from "investors who wish to both enter the market and expand their presence in both Las Vegas and the West Coast as a whole."
As for Centra Point, the site is situated on 26 acres southwest of Las Vegas, roughly 10 miles from McCarran Airport and the Las Vegas Strip. The project was developed in phases from 2004-06. The office property is 98.6% leased.
Ross, Fred Córdova and Steve Nanino of Colliers International's Downtown Los Angeles office, Thomas Powers of Colliers International's Cincinnati office and Thomas Stilley of Colliers International's Las Vegas office represented Centra Properties. Bob Watson and Geoff Cantello of R.M. Watson Co. represented WCM. For the Charleston Valley View sale, Cordova, Ross, Nanino and Stilley represented both buyer and the seller, Charleston Valley View Partnership.
According to a Colliers Q2 report on the Las Vegas office market, net absorption averaged 768,458 sf per quarter for the first half of the year, a 27% increase from the same period a year ago. New completions stood at more than 1.1 million sf at the end of Q2. That level of supply was a 78% increase. In addition, office employment saw its first decline in 13 months, with the market losing 1,100 jobs between March and May of this year. Taking Q3's rocky job outlook into the equation, that supply-demand imbalance is only set to spread.
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