MCA Realty a full service real estate investment and management company, has acquired two assets in the Las Vegas market, including the Harmon Warehouse Center, a 145,491 square-foot multi-tenant industrial building in Southwest Las Vegas, as well as the Gibson Tech Center, a 29,988 square-foot office building in Henderson, Nevada, for a combined total of $18.3 million.
“In comparison to other markets across the West, Las Vegas continues to offer value and pricing levels that are still well below former peak levels,” says Tyler Mattox, Principal at MCA Realty. “The local industrial market is in its 17th consecutive quarter of positive net absorption, and vacancy in this market dropped to 4.1 percent at the end of last year – the lowest in Southern Nevada since 2006.”
Mattox notes that the office market in Las Vegas and its Henderson submarket is also performing well, posting five consecutive years of healthy net absorption with steadily increasing lease rates.
“We acquired each of these assets well below their replacement cost, giving us the opportunity to increase value over time,” he says. “The attraction of the Gibson Tech Center asset, in particular, was the freestanding nature of the building with an 8:1,000 square feet surface parking ratio, which will allow us to attract tenants with higher parking needs than those that a traditional office building can accommodate.”
MCA Realty now owns 18 assets encompassing nearly one million square feet in Las Vegas. The firm continues to seek out industrial and office acquisitions in the $2 million to $25 million range.
MCA’s two recent acquisitions include:
Acquisition #1: Harmon Warehouse Center
MCA Realty acquired Harmon Warehouse Center, a 145,491 square-foot multi-tenant industrial building, from an institutional investor for $15.15 million.
“This is an asset we have been watching carefully for many months,” says Mattox. “With no new development of multi-tenant industrial product underway in the market, we anticipate strong tenant demand for this property over the next several years.”
The prior owner of Harmon Warehouse Center implemented a $1.2 million renovation program in 2016. Even as a renovated asset, the property is currently operating at rents that are 18-percent below market value.
“We will immediately increase net operating income by bringing rents up to market levels as leases roll,” says Mattox. “Moving forward, we plan to hold the asset and to capitalize on continued growth and rent appreciation given its superior location and adjacency to the Strip.
Harmon Warehouse Center is located at 4301 and 4325 Valley View Boulevard in Las Vegas, Nevada, approximately one mile from the Las Vegas Strip. The buyer and seller were represented by Kevin Higgins, Garrett Toft, Zac Zaher, Sean Zaher and Jake Higgins of CBRE.
Acquisition #2: Gibson Tech Center
MCA Realty has also acquired Gibson Tech Center, a 29,988 square-foot vacant office building in Henderson, Nevada. The property was acquired at a significant discount to replacement cost at $3.15 million.
“This building was a former ITT facility that had functionally obsolete improvements,” says Mattox. “Our business plan is to “whitebox” and reposition the building to appeal to call center and other tenants with significant parking requirements.”
According to the Las Vegas Review Journal, the call center industry is flourishing in Southern Nevada, due in large part to the region’s strong population of multi-lingual residents.
“By removing interior walls and creating a space tailored to this growing industry, we plan to lease the property and increase value,” explains Mattox.
Gibson Tech Center is located at 168 North Gibson Road in Henderson, Nevada less than a mile from the 215 beltway, less than two miles from the US-95 freeway, and 10 miles east of McCarran Airport and the Las Vegas Strip.
MCA was represented by Ryan Martin, Taber Thill, and Patti Dillon of Colliers International.
MCA Completes Three Dispositions in Las Vegas Market
In addition to its recent acquisitions, MCA Realty also recently completed three dispositions in the Las Vegas market, including:
- Whitney Ranch, a 57,000 square-foot multi-tenant industrial/auto business park in Henderson, Nevada. MCA acquired the asset in 2013 and sold it recently for $5.05 million.
- Lamb Technology Center - MCA Realty sold two condo units totaling 12,694 square feet at this 116,302 square-foot mixed-use property for a total of $908,000.
- Wigwam Jones Industrial Park - MCA Realty sold one of the units totaling 9,652 square feet in this 85,466 square foot industrial park for $1.2 million. Wigwam Jones has two remaining industrial condominiums from the 11 that MCA acquired in 2014.