Vegas Office Commands Record Price
- Apr 12, 2018
Dornin Investment Group has offloaded one of its Las Vegas Class A office assets to Nidnats Corp. for $30.8 million. The sale of Marnell Corporate Center 4, which contains 93,650 square feet, sets a record as the highest per-square-foot sale of a multi-tenant non-medical office building in the metro area, according to Dornin. The seller acquired the property in 2014 from Odyssey Real Estate Capital as part of a $39.4 million portfolio transaction, which included buildings 3 and 6 on the campus, per data from Yardi Matrix.
Located at 6750 Via Austi Parkway in Las Vegas’ Airport submarket, the four-story structure is positioned between the McCarran International Airport and Interstate 215. The larger Marnell Corporate Center is a 493,000-square-foot master-planned office campus consisting of five additional buildings, each owned by Marnell Properties, TA Associates or Dornin, according to Yardi Matrix.
Stabilized asset in a growing market
The property’s tenants include the Transport Security Administration, Machine Zone, American Family Mutual Insurance and HDR Engineering. The asset was 88 percent leased at the time of the transaction.
Logic Commercial Real Estate acted on behalf of Dornin in the transaction.
“We see a trend developing where out-of-state investors are pleased to purchase a stabilized class A asset, at a fraction above replacement cost, especially when comparing the investment to alternative options in their home state,” said Brendan Keating, CEO of Logic, in a prepared statement. “Now that we can point to four to five comps above $300 per square foot, we are seeing developers starting to underwrite speculative office development.”
Image courtesy of Dornin Investment Group