LAS VEGAS-An affiliate of New York City-based investment firm KTR Capital Partners has closed on the acquisition of a 1.6 million square foot portfolio of shallow bay distribution space. The deal included a 1.1 million-square-foot class A business park in Las Vegas and five assets totaling 475,000 square feet in Southern California.
Financial terms of the deal were not disclosed, but industry sources peg the deal at about $115 million. The sale was negotiated by vice chairman Darla Longo of the Ontario office of CB Richard Ellis, who represented both the buyer and the seller, who was undisclosed.
The portfolio, which is approximately 85% occupied, attracted multiple offers. Longo noted that it is KTR’s first acquisition in Las Vegas. She cited the “uniqueness of the opportunity to buy such a large property in Vegas, a market with historically very little investment sales activity due to long-term existing ownership.”
Brian Gagne, SVP of investments at KTR, also noted that this is the company’s first acquisition in Las Vegas, which he described as “a supply-constrained market we have been looking to enter at the right basis.”
Gagne added, “This is a premier business park within minutes of the Las Vegas Strip that we were able to acquire for well below replacement cost. Las Vegas is an extremely competitive market with high barriers to entry and we are excited to now own such a high-quality collection of buildings in the heart of the Airport submarket. This portfolio has substantial capital appreciation potential over the long-term."
The 1.1-million-square-foot Las Vegas portion of the portfolio consists of a 15-building multi-tenant park known as Arrowhead Commerce Center, where the buildings range from 33,000 square feet to 158,000 square feet. KTR’s announcement regarding the acquisition notes that the park is located approximately one mile east of McCarran International Airport, four miles from the Las Vegas Strip and within two miles of the I-15, I-215, and I-515.
The five assets in Southern California comprise six buildings and range from 70,000 square feet to 121,000 square feet. Three of the buildings are located near the Ontario International Airport at 4355 East Brickell Ave., 4422 Airport Dr. and 302 Rockefeller Ave. Two buildings are located at 12622 & 12642 Monarch Street in Garden Grove; and the last property is located at 2 Goodyear Ave. in Irvine.
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