Revenue-producing valley assets become prime targets for investors

Correction
Story corrected on 3/18/2013 A real estate column in the March 18 edition of the Las Vegas Business Press should have stated that Lucca Real Property sold only the land and buildings for two PT’s Pub taverns. PT’s Pub is still owned by the Sartini family.

Las Vegas is attracting national interest from investors looking for quality real estate assets that are already producing income, Gatski Commercial broker Chris Beets said.

He recently sold a 57,000-square-foot industrial building on 2.3 acres in Henderson to NCA Real Estate, a Newport Beach, Calif.-based investment firm that has closed escrow on several properties in Las Vegas. The building is 85 percent occupied with automotive tenants, he said.

“There’s definitely a shift in the market for these quality assets and somewhat more of a meeting of the minds between buyers and sellers on what values are,” Beets said.

Investors from Miami and New York are purchasing commercial mortgage-backed notes that are delinquent and foreclosing on the debt, then selling the property for a decent return, he said.

Charles Connors, investment specialist for Marcus & Millichap in Las Vegas, said investment in single-tenant, triple-net assets is a “flee to safety” because the tenant pays all operating costs.

He represents Quality Commercial, a Las Vegas limited liability company, in acquiring the land and buildings for two PT's Pub taverns for $5.6 million. The PT’s at 3770 S. Hualapai Way sold for $3.14 million; the one at 812 W. Ann Road went for $2.46 million. The seller was Lucca Real Property.

Marcus & Millichap also announced the sale of Carberry Square, a 14,400-square-foot retail property in Pahrump that has a local tavern and gaming establishment as primary tenant. The seller was a bank and the price was not disclosed.

Carberry Square consists of three one-story buildings on 2.17 acres, along with an undeveloped half-acre parcel of land. It is in a low-density residential area with limited commercial retail uses.

VACANT HOMES

An estimated 40,481 detached single-family homes are sitting vacant in the greater Las Vegas metropolitan area, or 8.4 percent of the total 482,272 units, a fourth-quarter report from the Lied Institute for Real Estate Studies shows.

Of the 15,204 single-family homes listed for sale in the valley, 5,794, or 38.1 percent, are vacant. The median list price of those homes was $145,000 in December, up from $139,900 in July.

More than 20 percent of the 80,369 condominium units in Las Vegas are vacant, or 80,369 units.

Calculations of total units and vacant units are based on Clark County data and meter counts from NV Energy, Lied Institute data analyst Luis Lopez said.

WEDDING CHAPEL

Forte Specialty Contractors started construction in January on a new wedding chapel at Aria on the Strip. The 2,500-square-foot chapel will seat about 60 people and includes a VIP “green room” for the bride and bridesmaids, and a game room for the groom and his crew. Completion is scheduled for mid-April. Estimated construction cost is $1.7 million.

NEW-HOME MARKET

Homebuilders captured market share in 2012 for the first time since 2005, accounting for just over 7 percent of all home sales, said Rick Palacios Jr., manager of Irvine, Calif.-based John Burns Real Estate Consulting.

He believes increased market share may come in 2013. Over the last 20 years, new homes comprised 13 percent of total home sales.

New-home sales increased 20 percent year over year, more than double the 9 percent growth in the resale market.

“This recovery is playing out very differently from that of the 2001-2005 upturn, where new and resale sales growth moved almost in lockstep,” Palacios said.

Several factors are holding back the resale market, including quality of homes (median age 39 years), negative equity (10.7 million homeowners under water) and low supply (less than one month in many markets).

Also, public builders have captured significant market share because their access to capital has been much better than that of private builders, Palacios said. Public builders can raise low-cost, unsecured debt that matures many years from now, while most private builders can borrow from banks only short-term.

COMMERCIAL TRANSACTIONS

Dan Doherty and Chris Lane of Colliers International represented the landlord, JMAC Industries, in the 120-month lease of an 80,677-square-foot industrial property at 7201 W. Post Road to Mercy Inc. Total transaction value was $7.6 million.

Doherty, Lane and Spencer Pinter represented City National Bank in the sale of Red Mountain Business Park, a 13,368-square-foot industrial project in Boulder City, to John B. Irving and Jon D. Irving for $670,000.

David Grant of Colliers International represented Rialto Capital in the sale of a former restaurant building to Egg Works Holding Co. The 5,581-square-foot building and 40,000-square-foot land parcel are at 10839 S. Eastern Ave. The sales price was $820,000.

Gatski Commercial’s Rob Lujan and Jason Simon represented 3121 Sahara Partnership in a land sale of 0.51 acre to BLV Holdings. The land is at 3121 W. Sahara Ave. The sale price was $240,000.

Lujan and Simon also represented CVPropCo. in a 60-month lease of a 9,760-square-foot industrial space with 2.06 acres of land at 3611 W. Tompkins Ave. in Las Vegas for $365,024.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.

 

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