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LAS VEGAS-A new and well-located pad building here has changed hands for $680 per sf, which is believed to be a record high for a non-strip retail property. The 7,683-sf, fully leased building sits out in front of a Wal-Mart grocery store that anchors the Silverado Ranch Shopping Center. The $5.22-million purchase price equates to a sub-6% cap rate.

Silverado Ranch Shopping Center is located at the corner of East Silverado Ranch Boulevard and Bermuda Road, which is located east of Interstate 15, between Las Vegas Boulevard South and South Eastern Avenue. The development is part of the new master-planned community of Silverado Ranch, which includes new homes and condominiums, as well as extensive amenities that is expected to create an increasing traffic flow for the center as the area is developed.

The pad building is leased to Wells Fargo Bank, El Pollo Loco and Red Persimmon, a full-service salon. The property generated eight offers and sold at a 5.8% cap rate. The seller’s broker, Faris Lee Investments’ Dennis Vaccaro tells GlobeSt.com the per-sf price is the highest ever paid for a non-strip retail property. “The market for retail investments is still extremely strong,” he says.

The seller was the developer, Orange County, CA-based Silverado Wellington LLC. The buyer was a private family from Agoura Hills, CA, that was concluding an IRS 1031 exchange, Vaccaro says.

Vaccaro began marketing the project for sale after it was fully leased but still two months prior to its completion. “In a competitive retail market with little available inventory, the pre-sale strategy is beneficial to both the buyer and the seller,” says Faris Lee president Richard Walter. “Investors with the agility to conduct a pre-sale transaction can secure a high-quality property before it is built. Likewise, developers can lock in a buyer at a fairly close cap rate to the current market. This benefits the developer due to potential risks in the marketplace, including the possibility of cap rates moving up by the time construction is complete.”

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