The purchase came in two pieces. In September, WCM paid $97 million for six of the buildings. The pension advisor paid $29 million for the remaining two buildings this month, according to Michael Ross, an SVP of Colliers International's Downtown Los Angeles office and a broker on the deal.
Ross says the office park is located in an expanding area within the Las Vegas Valley. The "project has been met with great demand with tenants ranging from Subway to Pulte Homes," Ross adds.
The area's office market has held up reasonably well, considering the hit some property types have taken of late. According to Colliers International's Las Vegas third-quarter market report, the office market experienced a 1% dip in vacancy rates and a slight increase in rental rates.
Centra Point, with a 98.6% vacancy rate at the time of sale, is indicative of the bullish office market in the region. Tenants at the park include State Farm Insurance, Stewart Title, Wells Fargo Home Mortgage and Pulte Homes.
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 and a market-leading rental rate of $2.10 per sf per month.
Ross and Thomas Stilley of Colliers International's Las Vegas office represented the seller, Las Vegas-based developer Centra Properties. Other brokers representing the seller were Fred Cordova and Steve Nanino of Colliers International's Downtown Los Angeles office and Thomas Powers of Colliers International's Cincinnati office. Bob Watson and Geoff Cantello of R.M. Watson Co. represented WCM.
In an article last month, Ross said that despite "uncertainty in the credit markets, fundamentals remain strong, particularly in the Las Vegas market." Ross added 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."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
