Intersection Equities Completes Sale of Arville Industrial Park Near the Las Vegas Strip for $8.4M
SAN DIEGO--(BUSINESS WIRE)--Dec 29, 2022--
Intersection announces the sale of 4375 and 4355 W Reno Avenue, a 31,000-square-foot, two building industrial park in Las Vegas, Nevada. The asset sold for $8,400,000 ($269 per square foot). Erik Sexton and Camila Rosales of NAI Vegas represented the seller, Intersection. The undisclosed buyer was represented by Brian Riffel of Colliers.
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The property was acquired off-market by Intersection 1 in October 2021 as part of its value-add industrial investment acquisition strategy, headlined by near-term tenant rollover and below-market rents. In 14 months, Intersection completed a full exterior renovation that included exterior paint, a new parking lot and a new signage program. As a result of the implementation of exterior improvements and an aggressive leasing program led by local leasing team Erik Sexton and Camila Rosales at NAI Vegas, Intersection increased NOI by 68% during its first year of ownership. Once stabilized, the property was placed on the market and sold to a private investor looking for long term cash flow and appreciation.
4355 and 4375 W. Reno Avenue is situated in the southwest Las Vegas Submarket, less than two miles from the Las Vegas Strip, I-15, Allegiant Stadium and T-Mobile Arena.
Prior to Intersection’s acquisition of the property, the average rent at the Arville Business Center was $1.03 gross per month/sf, well below-market rents. Through the implementation of strategic property improvements, 77% of the tenant base was raised to an average rental rate to $1.32 NNN per month/sf within twelve months. The asset previously maintained an average of 100% occupancy over the past 5 years (according to CoStar) and retained several legacy tenants, ranging from general automotive services, custom apparel printing, and metal refining services.
“We immediately saw opportunity in this asset when it was brought to our attention by our broker. The market had seen significant leasing momentum with new construction in the area and the project itself had many value-add opportunities that allowed us to leverage our vertically integrated platform and execute on a plan that delivered triple-digit deal level returns,” said Anton Myskiw, Associate with Intersection. Erik Sexton, leasing broker on the project from NAI Vegas added, “It has been a pleasure working with the team at Intersection. They moved quickly on the property improvements that helped us drive a leasing effort that ultimately resulted in a win for both Seller and Buyer.”
Intersection CRE, Inc. (“Intersection”), maintains a geographically diverse portfolio of 31 assets totaling 1.1M SF across seven states in the Western United States. Intersection operates offices in San Diego, Carlsbad and Salt Lake City. To learn more, visit intersectioncre.com.
1 RenoAvenue, LLC, Intersection Equities, LLC
View source version on businesswire.com:https://www.businesswire.com/news/home/20221222005561/en/
CONTACT: Natalie Baylon
KEYWORD: CALIFORNIA NEVADA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES COMMERCIAL BUILDING & REAL ESTATE FINANCE CONSTRUCTION & PROPERTY ASSET MANAGEMENT REIT
SOURCE: Intersection CRE, Inc.
Copyright Business Wire 2022.
PUB: 12/29/2022 08:00 AM/DISC: 12/29/2022 08:02 AM