(Read more on the industrial market.)

RENO, NV-Two industrial developers have picked up chunks of the Tahoe-Reno Industrial Center, which sits along I-80 east of the Reno-Sparks area. In the larger of the two deals, a joint venture of McShane Corp. and MetLife acquired 56 acres and is now grading for a 1.2-million-sf cross-dock industrial center.

The McShane-MetLife development will be called Eagle Valley Industrial Center and located near the USA Parkway interchange. Construction of the first 566,000-sf building is set to begin this month and be complete in June 2008. CB Richard Ellis has the leasing assignment.

McShane Corp. is the real estate development and investment arm of the Chicago-based McShane Cos. McShane Corp. VP John Dobrott tells GlobeSt.com that the land was acquired for $2.25 per sf and that the triple-net asking rent for space in the first building is $0.33 per sf per month.

The buildings, to be delivered with lighting, heaters and fiber optic service, will have 148 dock-high doors, 32-foot clear height and 90 trailer parking spaces. In addition, Dobrott says the center as a whole sits within a Foreign Trade Zone.

“We would like to find a single tenant [for the first building] but also have plans for multi-tenant leasing,” Dobrott says. “Our minimum will be 125,000 sf.”

Vacancy in the Reno industrial market was in the single digits at mid-year. While there are other large-box industrial projects under development in the immediate area, Dobrott says the market has a history of strong net absorption because it is a strategic point for distributors to access the Western states, not to mention its lower costs of doing business and regulation-friendly business environment.

In the other land acquisition, Dermody Properties acquired 50 acres with no immediate plans to develop the property, though it is open to build-to-suit deals. Currently in the Reno area, the company is building a 535,000-sf building at its LogistiCourt at Silver Lake property near the Reno-Stead Airport.

Company principal Michael Dermody tells GlobeSt.com the Tahoe-Reno Industrial Center purchase was a “long-term land acquisition” and that it was acquired at “favorable pricing” because the acquisition stems from a purchase option obtained when development of the center began eight years ago.

“We were one of the original developers of the park,” he says. “Our price was from the original pricing formula created when the park was started eight years ago, which will allow us to be very competitive on price.”

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