A single-tenant, 9.5k sf property fully occupied by Miller’s Ale House restaurant in Henderson, NV traded hands in a $5.25 mil ground lease sale. Located at 594 Stephanie St on just over two acres, the property is newly built.
The restaurant opened its doors in 2014, offering the buyer a new corporate-guaranteed NNN ground lease with 14 years remaining. Miller’s Ale house is a successful casual-dining restaurant chain that has grown steadily since 1988 to include more than 70 restaurants in 10 states.
Rob Moore, senior managing director in the Las Vegas office of Faris Lee Investments, represented the seller, Sunstone Arroyo LLC. The buyer, FL Grandland LLC, was repped by StreetView Realty. The transaction closed at a 6.3 percent cap rate, the lowest to be recorded for any Miller’s Ale House-occupied property to date.
“Restaurant-occupied investment property in a densely populated area of the Las Vegas market is extremely hard to come by,” noted Moore. “This location is irreplaceable and offered the buyer a passive and stable return in a new construction asset. All the fundamentals were present in this asset and we secured a strong price-per-square-foot of more than $550.”
Miller’s Ale House is situated at the busy intersection of N. Stephanie St and W. Sunset Rd, and features a large monument sign and excellent street visibility. As an outparcel to the Sunset Station Hotel & Casino, the property garners a strong amount of cross traffic generated by the hotel’s multiscreen IMAX Regal Cinemas; 72-lane bowling alley, 457 hotel rooms; and more than 110,000 square feet of gaming space.
The Miller’s Ale House property is within a greater Las Vegas retail corridor which boasts the highest concentration of retail in the market outside of the Las Vegas Strip. It is adjacent to Galleria Commons Shopping Center which is anchored by Old Navy, Michaels, Nordstrom Rack, Sprouts, and others. It is also across the street from the Galleria at Sunset mall with more than 1 msf of retail space that is anchored by JCPenney, Macy’s, Kohl’s and Dillard’s. The property is within a densely populated area with more than 285,000 residents and more than 135,000 employees within a five-mile radius and is a 10-minute drive to McCarran International Airport and the Las Vegas strip.