The Shoppes at Harmon Square, anchored by Kiss Monster Mini Golf, has been sold for $11.5 million, the seller’s broker said.
The 36,265-square foot-retail center on the southwest corner of Paradise Road and Harmon Avenue, across from the Hard Rock Hotel, was looking a little “rundown” until Gaslamp Holdings of San Diego spent more than $1 million on renovations, said Michael Kammerling of Newmark Grubb Knight Frank, who represented Gaslamp Holdings.
The property, zoned H-1 for high-rise and hotel development, previously was owned by the owners of the former St. Tropez hotel just to the west on Harmon. They had planned to combine the properties into a mixed-use development along the lines of Las Ramblas and the W Hotel, high-profile projects planned for the Harmon resort corridor that failed to materialize.
The buyer was HD Harmon Square LLC, formed by a businessman who lives in Las Vegas and New York, Kammerling said.
“He’s a longtime holder and we’ll continue to manage the property,” the broker said. “He envisions land values are going to climb back to where they were. It’s just a matter of how long. Meanwhile he gets 7 percent or 8 percent return.”
Harmon Square is also home to Firkin Pub from Canada, with a new Mongolian beef barbecue restaurant on the way. Three suites are available for lease, ranging in size from 1,100 to 2,388 square feet.
Colliers International brokerage in Las Vegas reported 10.8 percent retail vacancy in the third quarter and average asking rents of $1.37 a square foot.
Frank Gatski, owner-broker of Gatski Commercial, said the Harmon Square sales price of $319 a square foot seems quite high, roughly triple the price of other retail properties in Las Vegas.
“It’s a great location, but there’s got to be more to it,” he said. “I’m seeing more and more sales and people taking advantage of distressed properties. Las Vegas is on sale and people feel we’re at the bottom of the market.”
David Rifkind, who arranged financing on behalf of George Smith Partners, said Harmon Square was an interesting assignment in that he got a lot of interest from lenders from outside Las Vegas. The loan was provided by a private equity fund from Seattle.
“I think this trade marks the beginning of a turnaround in commercial real estate in Las Vegas,” Rifkind said. “This was not a distressed deal. I think we will see quite a few more investor trades like this soon and that is very healthy for the market.”
Contact reporter Hubble Smith at firstname.lastname@example.org or 702-383-0491.