DEAL WATCH: California developer builds commercial project in Mountain’s Edge

CALIFORNIA DEVELOPER BUYS 1.9 ACRES IN MOUNTAIN’S EDGE

Contour, a leading privately held real estate and development company based in Southern California, has announced it closed on 1.9 acres of land in Mountain’s Edge, a master-planned community in southwest Las Vegas. The site will be used for commercial development and is at 8575 Blue Diamond Road on the southeast intersection of South Durango Drive.

The project, which will consist of three retail pads and approximately 6,400 square feet of in-line space, is currently 70 percent pre-leased.

“Our team has been working diligently to identify the right retail partners to occupy this new site,” said Contour’s Executive Vice President of Net Lease Investments, David Bonanni. “When the project reaches completion in the third quarter of this year, the development will welcome three new businesses to the area, including Express Car Wash, Scooter’s Coffee and Pacific Dental.” Bonanni said. “We’re confident this new build-out will serve the community of Mountain’s Edge and surrounding areas well.”

The new development will connect with a neighboring retail center that includes a Circle K c-store and gas station, an Arby’s fast-food restaurant, and a family-owned preschool and child care facility.

“This project is located at a great intersection and will serve as a nice retail addition for the residents of Mountains Edge,” said Contour’s Chief Executive Officer, David Daneshforooz. “As a native to Las Vegas, it feels good to make a positive contribution to the local job market and economy.”

AYA APARTMENTS SELLS FOR $105.9M

Sauter Multifamily Group, of Avison Young, has announced the closing of the $105.9 million sale ($190,126 per unit) of AYA Apartments, a 557-unit property located at 3600 University Center Drive.

Avison Young principals, Patrick Sauter, Art Carll-Tangora and Steve Nosrat represented the seller. The current seller had acquired the asset in 2019. The Sauter Multifamily Group was also involved in that sale.

Built in 1973 and renovated in 2019, the property features a mix of studio, one-, two- and three-bedroom apartments in a two-story garden style layout across 42 buildings and 171,692 SF GBA.square feet. AYA is located near University of Nevada Las Vegas. The name of the street was recently changed from Swenson to University Parkway as part of new campaign to enhance the neighborhood. The city of Las Vegas is investing money and resources into this submarket because it is adjacent to the Convention Center.

NORTH LAS VEGAS APARTMENT COMPLEX SELLS FOR $77M

Davlyn Investments, a California-based multifamily investment firm, recently closed escrow on the $77,000,000 purchase of Sonata, a 312-unit, Class A, multifamily community in North Las Vegas, which was constructed in 2009. This marks Davlyn’s first acquisition in Las Vegas. Debt was arranged through Eric Flyckt of Northmarq Capital.

Aaron Pacillio, Davlyn’s chief investment officer, described the investment: “Sonata presented an opportunity to acquire off-market, directly from the seller, a recent-vintage, multifamily asset in a very strong submarket. In addition to the amenity package one would expect at a newer community, this property features unit offerings that distinguish it in the submarket, such as open floor plans, expansive kitchen islands and bay windows. It has a great unit mix and offers large unit sizes, averaging 904 square feet. These excellent characteristics, paired with attractive common area amenities, should help maintain strong demand for this property. Further, its vintage protects against major capital expenditures through the hold period.

“Due to these factors,” Aaron added, “our rents should remain attainable to the average metro-area resident, thus exemplifying the ‘missing middle’ product sought by residents and investors alike.”

Jon Williams, CEO of Davlyn Investments, stated: “Due to increasing business and living costs in other Western markets, North Las Vegas, along with the greater Las Vegas, has benefited from natural migration toward markets that offer high-quality lifestyles that are more affordable than those found on the West Coast. Its 19.9 percent population growth since 2010 exemplifies this fact. In addition, largely due to a lack of new construction in the submarket, we expect a supply imbalance in North Las Vegas for the foreseeable future. Finally, Sonata is accessible to the region’s primary employment corridors through its proximity to Interstate 15 and its location on Craig Road, the north valley’s primary east-west corridor. Accordingly, this acquisition is consistent with our long-term investment strategy to acquire well-located, quality apartment communities throughout the Las Vegas Valley.”

Sonata follows Davlyn’s $114,385,000 acquisition last month of Trevi, a luxury apartment community in Chandler, Arizona. Davlyn Investments is a San Diego-based owner/operator of apartment communities located throughout California, Arizona and Nevada. Since its founding in 1993, the firm has acquired over $1.6 billion in real estate assets. The company is headed by Jon Williams and Paul Kerr.

WORK CONTINUES ON QUEENSRIDGE MEDICAL CENTER

When complete, Queensridge Medical Center will be a three-story, 70,000-square-foot state-of-the-art medical office building located less than 1 mile from Summerlin Hospital.

Anchor tenant Crovetti Orthopaedics, will offer a surgery center with four operating rooms, a cardiac catheterization lab and overnight recovery suites. Other tenant offerings coming to the center include physical therapy, primary care, dental care, ophthalmology, radiology, imaging and other medical offerings.

The developer is Scott Goldstein of Prospect Street. The anchor tenant is Dr. Crovetti of Crovetti Orthopaedics.

COMPLETED SALES TRANSACTIONS

• Kevin Higgins, SIOR, and Garrett Toft, SIOR, of CBRE, Inc. represented the seller in the investment sale of 635,903 square feet of industrial space located at 4141 Distribution Circle, 2628 E. Lone Mountain Road, 6565 Nascar St. and 1385 Pama Lane to AXA Real Estate Investment Managers US, LLC for $118,027,370.

• Garrett Toft, SIOR, of CBRE, Inc. represented the buyer, Clarion Partners Acquisitions, LLC, in the purchase of 8.34 acres of vacant industrial land at E. Alexander Road and North Bruce St. for $7,477,454.

• Sean Zaher of CBRE Inc. represented the seller in the sale of 9.71 acres of vacant industrial land at N. Nellis Boulevard E. Carey Avenue to PDC/Reno/LV/PHX LFIV, LLC, represented by Garrett Toft, SIOR, of CBRE, for $5,710,066.

• Sean Zaher of CBRE, Inc. represented the seller in the sale of a 9,763-square-foot industrial unit located at 12600 Chaparral Road to Avela Properties, LLC for $1,903,785.

• Kevin Higgins, SIOR, of CBRE Inc. represented the buyer, MI Land, LLC, in the purchase of 6.32 acres of vacant industrial land located at 12365 Apex Great Basin Way for $775.000.

COMPLETED LEASE TRANSACTIONS

• Aristocrat Technologies, Inc. leased approximately 265,240 square feet of industrial space in LogistiCenter at Interstate 15 South located at 3571 Volunteer Blvd. Kevin Higgins, SIOR, of CBRE represented the tenant.

• PTAC Crew, LLC, leased approximately 10,017 square feet of industrial space in Cheyenne Distribution Center located at 2875 N. Lamb Blvd. Sean Zaher of CBRE represented the landlord.

• Trinity Resort Services, LLC leased approximately 3,679 square feet of industrial space in Hughes Airport Center located at 815 Pilot Road. Jake Higgins of CBRE represented the landlord.