Transaction completes three-property portfolio sale totaling $51 million
LAS VEGAS, NV – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the $10.1 million sale of Craig Promenade, an 86,395-square-foot shopping center located at 525-785 W. Craig Road in North Las Vegas. Built in 1985 and situated on nearly 11 acres, the property was 70 percent occupied at the close of escrow with national tenants including Big Lots and Metro PCS along with a number of neighborhood retailers.
Faris Lee marketed the property on behalf of the seller, San Mateo, Calif.-based TNP SRT Craig Promenade, LLC. The buyer, RREF II-KI Promenade LLC, a joint venture between Rialto Capital and Kismat Investments, represented itself. The transaction closed at a 7.3 percent cap rate.
“This is the third multi-tenant retail property that we’ve sold over the past 11 months on behalf of this seller, including retail properties in Hawaii and Colorado. The total scope of our work on these assets underscores the discipline, intellect and creativity of our team and the depth of our national database in effectively positioning these properties to maximize value,” said Rick Chichester, president and CEO of Faris Lee Investments.
Chichester added, “In the case of Craig Promenade, the team positioned both the Las Vegas market and the property as value-add opportunities. Over the last few quarters the Las Vegas retail market has continued to improve, with expectations that we will continue to see positive momentum as the national and local economies gain traction. We’re now at the front end of this recovery. This momentum bodes well for the asset due to its infill location and long term potential for more development due to existing vacant land parcels.”
Craig Promenade is located in a dense, infill location, across from a 170-acre now under construction park, and includes two vacant land parcels along Craig Road between Revere Street and Kings Hill Road. Senior managing director Rob Moore, managing director Lisa Brady, and director Katie Brase, based in Faris Lee’s Las Vegas office, positioned Craig Promenade’s new development and leasing potential along with a creative long-term exit strategy that includes the option to break up the asset into four separate parcels.
“Retail property vacancy in North Las Vegas now stands at 12.2 percent while the greater Las Vegas market has dropped to about 10 percent. Although recovery has been slow, all signs show that it’s imminent,” Moore said. “For this reason retail investment sales activity, especially for this multi-tenant property type, is expected to be strong through 2014 as cap rates and pricing continue to improve. Moreover, West Coast buyers are starting to notice. The Las Vegas market is experiencing some of the strongest interest from California buyers based on the area’s long-term growth potential.”
Craig Promenade is the final property of a three-property portfolio totaling more than $51 million that Faris Lee marketed and sold on behalf of TNP SRT over the past 12 months. The other properties include Waianea Town Center, a 171,065-square-foot regional shopping center in Waianae, HI, on the island of Oahu, and Willow Run, a 91,565-square-foot grocery-anchored retail center in the Denver, CO area.