A Chicago real estate giant has acquired a Southern Nevada retail complex.
Jones Lang LaSalle Income Property Trust purchased Silverado Square, a roughly 48,500-square-foot retail center in the southern Las Vegas Valley, spokesman Scott Sutton confirmed Thursday.
The $24.4 million sale, by project developer Scott Godino, closed June 1, property records show.
Godino also is the CEO of Las Vegas real estate brokerage SVN The Equity Group, which announced the sale of the Sprouts-anchored plaza on its website.
Silverado Square, at Silverado Ranch Boulevard and Maryland Parkway, is near plenty of other retail outlets. Two other plazas with supermarkets — an Albertsons and a Smith’s — are at the same intersection.
Still, Godino said Sprouts generates strong foot traffic and indicated his retail center was almost fully occupied with tenants.
“Everybody was pretty happy at the end of the day,” he said of the transaction.
The new landlord’s portfolio included 120 properties across 27 states by the end of last year, comprising more than 17.4 million square feet of commercial real estate and nearly 9,700 residential units, according to a JLL Income annual report.
It is no stranger to Las Vegas, either, having acquired a Smith’s-anchored, 190,000-square-foot strip mall in the northwest valley in 2017 for about $63.5 million.
Southern Nevada logged a rising tally of shopping-center purchases early this year, with investors acquiring 18 in the first quarter at an average price of around $381 per square foot, compared with 37 sales in all of 2021 at an average price of about $244 per square foot, brokerage Colliers International reported.
Rising interest rates have sparked a recent slide in home sales and could also impact the commercial real estate industry, as investors may face higher borrowing costs.
Higher rates have already caused some commercial deals to fall through, including the $855 million purchase of a Manhattan office tower, The Wall Street Journal reported earlier this month.
SVN The Equity Group Managing Director Nolan Julseth-White, who worked on the Silverado Square deal, said there are a lot of cash buyers, but rising interest rates are “pricing some people out.”
As Godino sees it, cash buyers will have more opportunity as they face less competition.