9-Building Vegas Portfolio Commands $78M
- Oct 05, 2017
A joint venture between PCCP LLC and The Brookhollow Group acquired Centra Point, a nine-building, Class A office campus in Las Vegas, Nev., from Washington Capital Management Inc. The sale price was $78.3 million and Newmark Knight Frank represented the sellers.
“The appeal was in part the exit flexibility caused by the nine separate buildings,” Kevin Shannon, NKF’s capital markets president, West Coast, told Commercial Property Executive. “The buyer was attracted to the string discount to replacement cost and prior peak pricing which provides a safe basis late cycle.”
Centra Point is located at 8311-8395 W. Sunset Road and 6655 S. Cimarron Road, between the master planned communities of Summerlin to the northwest and Green Valley to the east. The nine properties combined consist of 383,701 square feet and are currently 72 percent occupied. The tenant roster includes Ticor Title, Tropicana Entertainment, Valley Health Systems and Dickinson Wright.
Built between 2004 and 2006, Centra Point is situated on over 25 acres and is composed of seven multi-tenant office buildings, two retail buildings and is served by ample on-site parking. The portfolio was originally acquired by Washington Capital Management in phases between 2007-2009 from Centra Properties.
The new ownership is expected to position the property for long-term, sustained growth through a series of renovations and upgrades.
The most desirable location
According to Shannon, the Las Vegas Southwest submarket is one of the most popular office environments and Centra Point is close to executive and workforce housing, making it the preferred destination for high-growth businesses seeking to locate to this market.
“Las Vegas has a lot of positive leasing momentum.” Shannon said. “The two new professional NFL and NHL teams have increased investor interest in the Vegas market.”
Joining Shannon on the deal were Ken White, NKF’s executive managing director and Brunson Howard, NKF’s senior managing director. The buyers represented themselves.
Photo courtesy of NKF