Jason Miszuk, one of the listing brokers tells GlobeSt.com theseller was Festival Outdoor Advertising LLC and the buyer wasSpring Mountain Plaza LLC. Both LLCs are based in California. Thebuyer, which was completing an IRS 1031 Exchange acquired a$4.7-million, non recourse loan on the property as part of thedeal.

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"The assumable loan helped the deal," says Miszuk, who wasassisted in the deal by fellow Sun Commercial brokers Cathy Jones,Brad Spies, Paul Miachika and Logan Schrumpf.

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The largest tenant is the grocery store, Mediterranean Market,which occupies about 20% of the space. The next largest is KJ'sChinese Kitchen. There are 13 tenants in total.

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The average triple-net rent in the center is $1.97 per squarefoot and that recent five-year deal at the center was done at $2per square foot, which is as much as $1 per square foot less thanthe lease rates at the nearby newer centers are. The sale priceequates to a 7% cap rate based on a 2009 pro forma NOI that assumes5% vacancy, Miszuk says.

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A new third quarter retail market report from locally basedApplied Analysis found that the average retail lease rate for theentire Las Vegas region was $2.16 per square foot, which is justbelow the second quarter and slightly ahead of the same 2007quarter. The average for neighborhood centers specifically was$1.99 per square foot.

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Market-wide vacancy came in at 6.3%, up 20 basis points from thesecond quarter and up 260 basis points from the third quarter of2007, when vacancy was just 3.7%. The market expanded by 307,000square feet during the quarter while demand came in at 232,000square feet. The current vacancy rate is the highest the market hasseen in "well over a decade," according to the report.

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Despite the rising vacancy rate, an additional 3.1 millionsquare feet of retail was under construction at the end of thequarter. Selected projects under construction include the mixed-useSummerlin Centre in the west submarket; phase two of Lake MeadCrossing Power Center in Henderson anchored by Home Depot; themixed-use Tivoli Village at Queensridge; and The Edge in Mountain'sEdge anchored by Von's.

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