MVP REIT Buys Las Vegas Medical and Professional Office

LAS VEGAS-MVP REIT Inc. has acquired a 47,501-square-foot medical and professional office building at 8930 W. Sunset Road

The $15 million acquisition is part of a five-property, $48.6 million portfolio being acquired by the REIT. The acquisition closed on July 31.
Located on 3.18 acres, the three-story building was built in 2008 and is 90% occupied by a mix of medical and professional tenants. Each of the tenants is subject to a triple net lease with a five- to ten-year remaining term, under which they are responsible for the majority of the costs associated with maintaining the building.
"Central to MVP REIT's investment strategy is the identification and acquisition of income-producing commercial real estate assets that can provide our stockholders with potential upside valuation opportunities," explained Mike Shustek, chairman and CEO of MVP REIT. "This property is well-located in a rebounding metropolitan region. In addition, we are able to acquire this asset through the issuance of our stock and the assumption of existing debt, allowing us to use our capital to pursue additional investments."
MVP REIT financed the acquisition through the assumption of $10.8 million in existing debt and the transfer of 473,805 shares of MVP REIT common stock to the seller at $8.775 per share.

In addition to the acquisition of the property, as part of the purchase agreement, MVP REIT has agreed to acquire four additional buildings located in the same office park - one of which houses the REIT's corporate headquarters. The four additional buildings will be purchased for $33.6 million through a combination of MVP REIT's common stock and the assumption of debt of approximately $20.9 million.
In addition on July 31, MVP REIT terminated the purchase agreement related to the acquisition of the property located at 1236 E. Airport Drive, Ontario, California and the seller retained the $50,000 non-refundable deposit.
MVP REIT intends to operate as a publicly registered, non-traded hybrid real estate investment trust. It is currently conducting a public offering of up to 55,555,556 shares of its common stock at $9.00 per share and up to an additional 5,555,556 shares of its common stock for issuance under its distribution reinvestment plan at $8.73 per share.