Vestar Buys Out in Vegas Suburb
- Jul 20, 2015
Vestar has completed a buyout of The District at Green Valley Ranch, a 37-acre, 384,107-square-foot landmark retail property in Henderson, Nev., from its former joint venture partner, Rockwood Capital, for $120 million.
“Vestar is committed to the success of The District and is proud of what we have accomplished with the property thus far,” Jeff Axtell, Vestar’s executive vice president, said in a company statement. “Rockwood Capital has been an exemplary capital partner for us and has realized a significant return on its investment. We look forward to working with them on future ventures.”
The District at Green Valley Ranch was built in phases with the first totaling 212,600 square feet of retail and office space on Green Valley Parkway, plus 88 luxury condo units. Phase two totals 171,500 square feet of retail and office on a 16-acre parcel.
The original joint venture acquired the property in late 2011 for $79 million. At the time, the property was just 84 percent occupied. In March of last year, the joint venture invested significant capital to reposition the asset.
Currently, the property is stabilized with 95 percent occupancy and a more than 20 percent increase in tenant sales. Tenants include Whole Foods, West Elm, REI, William-Sonoma, Pottery Barn, White House | Black Market, Anthropologie and many other quality retailers.
The District is located within Green Valley Ranch, a leading master-planned community located in the Black Mountain foothills, about 10 miles southeast of the Las Vegas Strip.
According to Colliers International’s 2015 Second Quarter Las Vegas Market Report, Southern Nevada’s retail market continued to bounce back from its very weak showing in the fourth quarter of 2015, with net absorption totaling 166,145 square feet, bringing mid-year net absorption to 348,085 square feet. The asking rental rate for retail space increased to $1.28 per square foot on a triple-net basis.
As for the office market in the area, Colliers reports net absorption in the second quarter was 92,463 square feet, a marked drop from the 664,773 square feet absorbed in the first quarter of 2015, and lower than the 552,246 square feet absorbed in the second quarter of 2014. Office vacancy fell to 18.5 percent, with 16,052 square feet of new completions of office space in the second quarter.
Vestar now owns and manages 24 million square feet of retail assets in the western U.S.