Las Vegas-area warehouse complex sells for $175M

A warehouse developer bought a cluster of buildings in North Las Vegas for $175 million, as buyers ink more deals at sliding prices in Southern Nevada’s otherwise slowing industrial market.

NorthPoint Development purchased three fully leased industrial buildings that span more than 1 million square feet combined, brokerage firm Colliers International announced this month.

The tenant roster includes e-commerce giant Amazon, said Colliers, which noted that the buildings, located along Gowan Road near Pecos Road, occupy 50 acres of land.

Colliers said it brokered the sale and arranged financing for the acquisition, but it did not announce the purchase price or the seller.

Property records show that NorthPoint bought the buildings for $175 million total from investment giant Blackstone or its Link Logistics portfolio company. The sale closed in early June.

NorthPoint, based in Kansas City, Missouri, is no stranger to Southern Nevada. It broke ground in 2022 on a two-building, roughly 2 million-square-foot warehouse complex in North Las Vegas’ Apex Industrial Park and landed footwear brand Hey Dude as a tenant.

The developer did not respond to a request for comment.

New York-based Blackstone, which kicked off a real estate buying spree in Southern Nevada after the mid-2000s bubble burst, declined to comment.

Link, which was formed by Blackstone in 2019, did not comment.

Market slowdown

Overall, warehouse developers packed the Las Vegas Valley, especially North Las Vegas, with new projects over the past several years and signed waves of tenants, as the rapid growth of e-commerce sparked more demand for distribution space.

But the pace of construction has dropped in the region, and a sharp jump in empty warehouse space last year was fueled by a slowdown in pre-leasing for new projects, according to John Stater, Las Vegas research manager for Colliers.

A total of 5.65 million square feet of industrial space was under construction in the first quarter, down from nearly 10.9 million square feet a year earlier.

The industrial market’s vacancy rate in the first quarter was 9.1 percent, up from 4.5 percent in the same period last year, Stater found.

He reported that pre-leasing on new projects has improved lately but remains “well below” the levels seen over the past five years.

Sales rise as prices fall

Alongside the pullback in construction and leasing activity, sales values have also tumbled. And lately, landlords have bought more buildings amid lower prices.

Southern Nevada had $620 million worth of industrial investment sales in the first quarter, totaling 3 million square feet among 46 transactions, Stater reported.

This was nearly as much sales activity in all of last year, he found.

All told, the average sales price in the first quarter was nearly $204 per square foot, according to Stater.

Last year, the average sales price for industrial investment deals was about $209 per square foot, down from about $237 per square foot in 2023, Stater previously reported.

NorthPoint’s purchase, based on the square footage provided in Colliers’ news release, amounted to $167 per square foot.

Wakeel Rahman, executive vice president of acquisitions at NorthPoint, said in the release that the company was “excited about the long-term value of this portfolio.”

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342.