X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-EastGroup Properties of Jackson, MS, last week paid Denver-based ProLogis $11.05 million for a two-building, 142,000-square-foot distribution center here that is 12 years old and 77% leased. Both companies are publicly traded industrial REITs. EastGroup is new to the market.

The buildings are located at 5530 S. Arville St. and 5580 S. Arville St., which sits off the Russell Road exit from Interstate 15, east of McCarran International Airport. One of the buildings is much larger than the other. ProLogis acquired the development upon its completion in 1998 for $9.78 million.

The buildings are currently occupied by eight tenants including Border Construction Specialties and Lennox Industries. One building is much smaller than the other. Two spaces are currently available, both in larger 5530 building, one 21,000 square feet and the other 12,000 square feet.

EastGroup describes the building as an infill property in a supply constrained submarket. The company is projecting the building will generate an annualized 8.2% yield at its current occupancy.

“It’s a highly desirable asset in one of the best submarkets,” EastGroup SVP Bill Petsis tells GlobeSt.com.

The complex is located in the 37-million-square-foot southwest industrial submarket, just a mile or two east of McCarran International Airport. While overall vacancy in the submarket was 9.7% at the end of March, according Voit Commercial, the 12 million square feet of distribution space there is only 3.7% vacant.

EastGroup president David Hoster says he hopes to grow the company’s local portfolio to one million square feet over the next 12- to 24 months. The purchase was funded through the company’s continuous equity program, which to-date has sold approximately 519,000 shares with net proceeds to EastGroup of approximately $17.4 million. EastGroup’s portfolio currently total approximately 27 million square feet.

ProLogis owns several other developments in Las Vegas, including ProLogis Park North and West One Business Center. ProLogis did not immediately respond to a request for comment. As of January the company owned 2.06 million square feet in 17 Las Vegas-area buildings that were 92% occupied and encumbered with only $10 million of debt, and 68 acres of developable land. As of March the company had more than $600 million of asset sales under contract or LOI worldwide. Donna Alderson and Greg Tassie with CBRE brokered the transaction with EastGroup.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.