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LAS VEGAS-Panattoni Development Co. last week closed escrow on the short-sale acquisition of a partially developed 19-acre office and industrial project in the Southwest submarket. Panattoni paid $7.23 million for the property, which includes 12 small buildings on eight acres and 11 acres of fully-improved land. The seller is listed as Buffalo 215 Nevada LLC. Pat Marsh of Colliers International brokered the sale and has the listing for the new owner.

The development site sits near Buffalo and Post roads, approximately one-half mile north of the I-215 and in the Southwest submarket of Las Vegas. The built environment includes eight industrial buildings totaling approximately 72,656 square feet and four office buildings totaling approximately 25,896 square feet. The office buildings range from 6,150- to 7,446 square feet.

One of the office buildings is already in escrow and negotiations are reportedly underway for four of the industrial buildings. In addition, Panattoni has put out multiple build-to-suit proposals in response to RFPs. “We’ve had great activity,” Marsh tells GlobeSt.com.

The activity is no doubt due to the new pricing. The buildings are being offered for sale at half of the price the previous owner was asking, and the land for less than that.

The industrial and office buildings, previously on the market at $205 and $220 per square foot, respectively, now are available from Panattoni for approximately $100 per square foot. The land, divisible to 2.5 acres and previously marketed at $28 per square foot, now is being offered at $11 per square foot.

Brian Gordon, a principal at Applied Analysis, a locally based business research and advisory firm that tracks land prices among other things, tells GlobeSt.com that such pricing could be quite attractive for the right user. If someone is leasing a building for which the owner recently paid $200 per square foot and can instead acquire something at $100 per square foot, that makes a whole lot of sense, he says. The pricing also makes a whole lot of sense for Panattoni, he adds, because even at $100 per square foot a fairly quick sell-out of the existing buildings would more than cover its acquisition and carry costs.

Panattoni’s local principal Doug Roberts did not return phone calls seeking comment. In a prepared statement he said the submarket has “a minimum of competition for these small industrial buildings” and that the land “can be held for future BTS or speculative construction or sold outright.”

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