Investors Are Capitalizing on Nevada’s Improving Market Conditions

Nevada is rapidly evolving, and early investors in the market are reaping the rewards. American Nevada Co. is among them. The firm has completed the disposition of a 1.2 million-square-foot office and industrial portfolio in the market for approximately $234 million. The final three properties—located at 2475, 2485 and 2495 Village View Dr. in the Green Valley Corporate Center in Henderson—traded hands to San Francisco-based JMA Ventures for $34 million.

“American Nevada Company did a great job in stabilizing the assets and had a desire to capitalize on improving market conditions and the amount of new capital wanting to invest in southern Nevada,” Brad Tecca, executive director at Cushman & Wakefield, tells GlobeSt.com about the sale. “ANC remains active in the search for investment opportunities.” Tecca represented ANC in the disposition of the portfolio.

Tecca could not comment on the returns that ANC received against its initial capital investment in these assets, but the sale attracted healthy interest from institutional capital sources, which illustrates the changing market conditions. “The portfolio included multiple assets and various investment profiles, which attracted a wide variety of investors, including a combination of larger institutional investors and private high net worth capital,” says Tecca. “Given the relative discount to other West Coast markets, improving local market fundamentals and the overall quality of the real estate, we received a significant amount of interest.” In addition to the improving local economy, investors were also attracted to the quality of the assets, according to Tecca. “ANC has a strong reputation for building best in class workplace environments,” he explains. “ANC developed each and every asset like they were to own it forever and as result did not cut any corners, delivering exceptional, high quality product. The portfolio was always well leased because of their client-first approach. These factors also enhanced investor interest.”

Mostly, this sale is a great illustration of the growth in the Las Vegas market—both in the strong pricing that ANC was able to secure for these assets as well as the interest from institutional capital sources. “The greater Las Vegas market has changed significantly during this real estate cycle,” says Tecca. “The overall industry make-up is more diverse than ever and goes well beyond the gaming and hospitality industries. Financial services, insurance, healthcare and technology have all contributed to the overall success of the market and the improvement in leasing velocity.  The growth has been both organic as well as a result of relocations and expansions from outside the Las Vegas market.”

In addition to these three assets, JMA also purchased five other Green Valley Corporate Center buildings in ANC’s portfolio for $51.8 million. “Having acquired other assets that were part of the greater ANC portfolio, JMA now has a critical mass of quality class-A and -B real estate in Green Valley Corporate Center,” adds Tecca. “The Village View Drive assets provide a nice value add opportunity with strong in-place income that compliments their other real estate holdings.”