Matter Real Estate Group’s $70M Bet on Las Vegas
- Aug 07, 2019
Matter Real Estate Group has begun construction of its latest Las Vegas-area industrial/warehouse project—a $70 million master-planned industrial property that will have five buildings ranging in size from 11,000 to 478,000 square feet. Matter Logistics Center @ West Cheyenne will be built on a site of more than 41 acres and is slated for completion in February 2020. It will be one of more than $500 million in development projects the San Diego-based company has underway in Las Vegas and other select Western markets.
Located in the growing North Las Vegas submarket, the light distribution project will address the need for small and mid-bay product, said Jim Stuart, Matter Real Estate partner. The site has immediate proximity to both Interstate 15 and US 95 and is only a few miles to the Las Vegas Strip.
The five buildings totaling 725,000 square feet will offer warehouse, distribution, office and showroom space. They will feature ample dock and at-grade loading with clear heights reaching 36 feet and can be built to tenants’ specifications. The units will be available for sale, lease or build-to-suit. The site also has ample parking and trailer storage.
Earlier this year, Matter unveiled a new mixed-use project that will have business, retail, entertainment and food. The company recently broke ground on UnCommons at Durango Drive and Interstate 215. It also began Phase One of Matter Park @ West Henderson, a 475,000-square-foot light industrial office and warehouse project in Henderson, Nev. Matter is also nearing completion of Matter Park @ Warm Springs that will have 135,000 square feet.
Busy industrial market
Matter is just one of numerous firms active in the Las Vegas area industrial area. Late last month, BKM Capital Partners paid $111.3 million to acquire Pacific Business Center, an 898,389-square-foot, 13-building industrial property in Henderson, Nev. It was the largest acquisition to date for the Newport Beach, Calif.,-institutional fund manager. The firm now has more than $1 billion in assets under management in a portfolio that has more than 8 million square feet across the Western U.S.
Earlier in July, Harsch Investment Properties broke ground on Speedway Commerce Center IV, a 167,444-square-foot industrial project in Las Vegas. It is expected to be completed by next spring and will add to the existing 2.7 million square feet of space the company has in the area. Located less than 10 miles from the city center and within 1 mile of I-15, the 9.4-acre site is also in the North Las Vegas submarket, which is home to more than one-third of the market’s total stock. The area had the highest absorption rate in the first half of the year, according to a recent report from Colliers International. Harsch has also recently completed Speedway Commerce Center III, which comprises two buildings totaling 723,704 square feet.
There were 89 industrial sales totaling 6.4 million square feet and $661.7 million in 2018, up from 66 properties sold in 2017, with a total of 3.2 million square feet for $316.2 million, according to Colliers’ first-quarter report for 2019. Colliers noted there were 16 sales totaling $101 million and 845,000 square feet. Colliers expects strong demand for industrial space to continue in 2019 in the Las Vegas market, where the vacancy rate has been dropping over the past year from 5.4 percent in the first quarter of 2018 to 3.6 percent in the fourth quarter of 2018 and 3.2 percent in the first quarter of 2019.