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LAS VEGAS—“Quality product is becoming increasingly limited in Las Vegas as the market recovers. This dynamic is making the market increasingly competitive for today's investors.” So says Tyler Mattox, a principal at MCA Realty.
GlobeSt.com exclusively learned that the Orange County, CA-based firm recently acquired three properties in the Las Vegas market, including a 114,782-square-foot multi-tenant industrial business park; a 27,227-square-foot multi-tenant industrial business park; and a 20,000-square-foot single-tenant office building; bringing its Las Vegas portfolio to nearly half a million square feet.
“In order to compete, buyers need to be strategic, work quickly, and build strong brokerage partnerships to secure the most valuable investment opportunities,” Mattox explains, adding that brokerage relationships are essential in increasing the value of each investment property.
Those relationships, he says, “ensure the continued velocity of opportunities… We have been fortunate to achieve high occupancy rates in our current portfolio through strong leasing activity, and we continue to work with our brokerage partners to seek available properties with strong income characteristics.”
MCA Realty's three recent acquisitions include:
Lamb Technology Center, Las Vegas
MCA Realty recently acquired Lamb Technology Center, a 114,782-square-foot multi-tenant industrial property, for a total consideration of $4.9 million. The property, which was 54% occupied when acquired, consists of 16 freestanding industrial buildings designed in a duplex fashion. Each duplex is comprised of two 6,252-square-foot industrial units.
In addition to the 16 industrial buildings, the property includes a freestanding 14,750-square-foot commercial/retail building. This structure, which is situated at the front of the project, was designed to take advantage of the visibility on Lamb Avenue, which is a heavily traveled north/south thoroughfare.
According to Mattox, MCA Realty plans to lease the remaining vacant space in the near term. MCA Realty plans to then sell the property to an investor once stabilized, or sell off the property fractionally to owner users.
“Our disposition strategy on this property is aligned with the increased demand from buyers in the market,” notes Mattox. “Based on steady market improvement and the continued availability of SBA financing, owner-users are increasingly making the decision to acquire their facilities. We will be able to meet this demand by selling each of these industrial units individually.”
Kevin Higgins and Garrett Toft of Voit Commercial Brokerage and Brian Riffel of CBRE assisted MCA Realty in the transaction. The property is located at 2725-2797 N. Lamb Blvd. in Las Vegas.
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Cheyenne West Business Center, North Las Vegas
MCA Realty also acquired a 27,227-square-foot incubator multi-tenant industrial business park located at 2475 W. Cheyenne Ave. in North Las Vegas for a total consideration of $1.1 million.
Comprised of 13 individual units, the property is currently 75% occupied. One tenant, a non-profit operated by legendary boxing referee Richard Steele, occupies three units, or approximately 23% of the property. Of the 13 total units, three remain vacant.
“We plan to immediately renovate the vacant units and market them for lease,” says Mattox, who explains that as the property's current leases expire in 2014 and 2015, MCA Realty plans to transition the rent roll to market level rents.
“Vacancy across the valley is dropping considerably, and there is no new construction of this product type planned for the foreseeable future,” Mattox says. “Based on these characteristics, we are confident that we will be able to stabilize and add value to the project in the coming years.” MCA Realty was represented by Chris Beets of Newmark Grubb Knight Frank in the acquisition. The seller was a Texas-based lender.
Patrick Business Center, Las Vegas
MCA Realty recently acquired a 20,000-square-foot, single-tenant office building located at 3915 E. Patrick Ln. in the McCarran Airport submarket of Las Vegas for a total consideration of $1.3 million. The property, known as the Patrick Business Center, was acquired via bankruptcy auction.
“We were fortunate that one of our brokerage relationships brought us this opportunity early in the disposition process, allowing us to establish ourselves as a stalking horse bidder for the auction,” explains Mattox. “Based on that position, we were successful in demonstrating our capability as a competitive buyer for the property.”
After closing on the acquisition, MCA Realty was able to secure a five-year lease with the current tenant - an automotive finance company that will occupy 100% of the property.
MCA Realty was represented by Danielle Steffen and Amy Ogden of Cushman & Wakefield Commerce in the transaction.
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