LAS VEGAS-Cirque du Soleil has renewed its office lease at Hughes Airport Center in a deal valued at more than $6 million, according to CIP Real Estate, which owns 1.8 million square feet within the 3.3 million-square-foot mixed-use park in partnership with an investment fund sponsored by Buchanan Street Partners. Irvine, CA-based CIP says it has inked 20 new and renewal leases worth $17-million in the past 90 days.
Cirque du Soleil was the largest of the signed deals by deal value. The well-known entertainment group renewed and expanded its lease to 31,049 square feet of office space at 980 Kelly Johnson Drive. Based on a reported deal value of “more than $6.6 million,” the length of the commitment is believed to be at least seven years, which would equate to a lease rate of $2.53 per square-foot per month. CIP tells GlobeSt.com Cirque’s existing lease has not yet expired. The expansion, along with improvements to Cirque’s existing leasehold, will reportedly begin in the next couple of months.
The CIP-Buchanan partnership was represented in-house by CIP senior vice president Scott Flemer. Patric Ouelett of Devencore Itee in Montréal represented Cirque du Soleil, which will open a new Elvis-themed show at the new 18-million-square-foot CityCenter development, which opens in December. Neither broker was immediately available Friday for comment.
Hughes Airport Center covers 420 acres immediately south of McCarran International Airport and includes office, industrial, and R&D properties. CIP and Buchanan acquired the bulk of their 1.8 million square-foot portfolio within the park in two pieces. In January 2005, it paid $145 million for 51 acres holding 18 buildings totaling 892,000 square feet. In May 2007, the partnership acquired several buildings totaling 420,811 square feet of office and industrial space on 22 acres as part of a larger, 600,000 square foot acquisition valued at $115.25 million that included buildings at Hughes Cheyenne Center in North Las Vegas.
CIP’s website lists approximately 300,000 square feet as currently available, which would equate to a vacancy rate of approximately 16.5%. Two years ago, its portfolio was virtually fully leased.
CIP says activity in the past 90 days includes six new leases, two expansions and 12 lease renewals totaling 350,000 square feet, or approximately 20% of its space within the park. CIP tells GlobeSt.com that all of the leases will commence within the next 60 days if they have not already, and all have a minimum term of 3 years.In addition to the Cirque du Soleil deal, recently signed leases at CIP’s properties within Hughes Airport Center include: