MCA Realty Expands Las Vegas Portfolio
- Feb 20, 2017
Las Vegas—MCA Realty has acquired two assets in the Las Vegas market for a combined $18.3 million. The portfolio includes the Harmon Warehouse Center, a 145,491-square-foot multi-tenant industrial building in Southwest Las Vegas and the Gibson Tech Center, a 29,988-square-foot office building in Henderson.
Harmon Warehouse Center was acquired from an institutional investor for $15.1 million and the transaction was arranged by Kevin Higgins, Garrett Toft, Zac Zaher, Sean Zaher and Jake Higgins of CBRE. Located at 4301 and 4325 Valley View Blvd., the asset is composed of two multi-tenant buildings, situated approximately 1 mile from the Las Vegas Strip and in close proximity to Interstate 15. The asset features skylights, clear heights in the warehouse between 18 and 24 feet, fire sprinkler system, dock-high and grade-level loading doors. The seller invested $1.2 million in renovations in 2016, but the property is currently operating at rents that are 18 percent below market level. MCA Realty intends to increase net operating incomes by bringing rents up to market levels, given the central location of the property.
Gibson Tech Center was acquired for a price tag of $3.2 million from an undisclosed seller. Ryan Martin, Taber Thill and Patti Dillon of Colliers International represented MCA Realty in this transaction. The Class B office asset is located at 168 North Gibson Road in Henderson in close proximity to Interstate 215, US Route 95 and approximately 10 miles from McCarran Airport and the Las Vegas Strip. The new owner plans to lease the former ITT building and increase the property value by removing interior walls and creating a space that would appeal to call center and other tenants with significant parking requirements.
“In comparison to other markets across the West, Las Vegas continues to offer value and pricing levels that are still well below former peak levels,” said Tyler Mattox, principal at MCA Realty, in a prepared statement. “The local industrial market is in its 17th consecutive quarter of positive net absorption, and vacancy in this market dropped to 4.1 percent at the end of last year—the lowest in Southern Nevada since 2006.”
“We acquired each of these assets well below their replacement cost, giving us the opportunity to increase value over time,” Mattox added. “The attraction of the Gibson Tech Center asset, in particular, was the freestanding nature of the building with an 8:1,000 square feet surface parking ratio, which will allow us to attract tenants with higher parking needs than those that a traditional office building can accommodate.”
Image courtesy of MCA Realty