MVP Wraps $55M Office Acquisition as Market Shows Signs of Reversing Decline
- Dec 05, 2013
MVP Real Estate Investment Trust Inc. has closed on the last of six office buildings in a $55.1 million acquisition at an office park on West Post Road. The REIT said that it paid $6.1 million for the 22,000-square-foot, two-story building, which is 89 percent leased.
“The addition of these properties adds greater diversification to our growing portfolio with well-located, multi-story commercial office buildings that enjoy a mix of tenants primarily under triple net leases,” said MVP REIT chairman & CEO Mike Shustek.
Built in 2008, the most recently acquired building is situated at 8945 W. Post Road, directly off of Interstate 215 and offers convenient access to McCarran International Airport and the Las Vegas Strip. Each of the six buildings was at least 89 percent occupied at the time of acquisition, significantly outperforming Greater Las Vegas’ office market.
Despite the metro office market’s long struggles, several major indicators are trending in the right direction. Vacancy has now fallen for the second consecutive year in 2013 and prices are on the rise. After a 4 percent decline in 2012, asking rents will reverse course and edge into positive territory by the end of the year, predicts Marcus & Millichap Real Estate Investment Services Inc.
Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com