Switch buys 7.3 acres in southwest Las Vegas valley, records show

Switch has picked up some land in the Las Vegas suburbs not far from its data centers.

The Las Vegas-based company acquired 7.3 acres just south of the 215 Beltway between Jones and Decatur boulevards, in the southwest valley, for $7.6 million, property records show.

It acquired the vacant tracts from two different groups of sellers, and the deals closed Oct. 2 and 3, records show.

It’s unclear what it will do with the property. But the sales raise the possibility of an expansion for the company, which became publicly traded last month and boasts a stock-market value of more than $4.6 billion.

Switch’s executive vice president of strategy, Adam Kramer, who heads corporate communications, declined to comment.

Real estate brokerage Colliers International announced the land sales late last month without naming Switch, saying its broker Brian Fike represented the buyer.

The entity that took title to the parcels is managed at least partly by Switch, and the entity’s mailing address, 7135 S. Decatur Blvd., is the same as Switch’s corporate headquarters, records show.

Fike, a vice president in the investment retail sales division at Colliers, did not respond to requests for comment this week.

No development plans have been filed recently for the parcels, according to Clark County government spokesman Dan Kulin.

The purchase amounts to more than $1 million an acre. By comparison, investors paid an average of around $483,400 per acre for land in Southern Nevada in the second quarter, according to Colliers.

CBRE Group land broker Keith Spencer, who represented one of the groups of sellers, said he wasn’t aware of the property’s ultimate user but that he assumes the site could have a corporate headquarters of some type.

The land is narrow but has “great exposure” along the Beltway, and he figures it’s in “too high-profile” of a spot to build another data center.

One real estate executive, however, said the sale “is a nothing story.”

Rick Myers, president of Thomas & Mack Development Group, said there is “no story there” and that a reporter should “leave it alone” and not “spend any time on it.”

Switch, led by founder Rob Roy, has said that it has more than 800 customers, including tech, financial and telecommunications companies. Among other areas of operation, it has data-storage facilities along Warm Springs Road between Jones and Decatur, south of the Beltway.

Switch will report third-quarter financial results on Monday.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.