Las Vegas' Summerlinsubmarket just landed the lowest single-tenant office cap rate inthe market. Moonwater Capital sold the formerHines-owned office building at a 5.69% cap rate and a sales priceof $19.9 million to a California-based buyer. The sale generatedinterest from more than 100 investors, and the brokers on the dealsay that other office properties in the market could capturesimilar pricing.

“We received tremendous interest in the project from foreigncapital; direct investors; private capital,” TivonMoffitt, SVP at JLL, tells GlobeSt.com.“There is significant interest in the Summerlin market becausethere is zero income tax, great growth and a lot of deployment. Wereceived a very aggressive cap rate with the project.” Moffittrepresented Moonwater in the deal along with JLL SVP PeterBauman and EVP Bret Davis.

The brokerage team expected strong pricing, but the final tagexceeded even their expectations. “This was on the emotionalpricing side of where we were in our valuation,” Bauman tellsGlobeSt.com. “It actually outperformed where we thought it wouldbe, and that was driven by a significant amount of interest. We seethat other assets could trade in this aggressive pricingrange.”