CBRE brokered the sale and arranged $15.7 million in debt financing for the recent acquisition of Westbay Office Park in Las Vegas, NV.
Bob Ybarra, Bruce Francis, Dana Summers, Shaun Moothart and Doug Birrell of CBRE’s Debt and Structured finance team arranged the l0-year loan (with 3-years of interest only) on behalf of the buying partnership, Krausz Companies and WG Group, LLC.
Located at 3010-3016 W. Charleston Boulevard, the 107,931 square-foot office complex benefits from its location in the Las Vegas Medical District within minutes of University Medical Center, Valley Hospital and the UNLV School of Medicine. The property boasts strong credit tenancy with 65% of the rentable area occupied by the Nevada Department of Transportation, Nevada Department of Employment, UNLV (School of Medicine Administration Office) and Stantec Engineering Company. At time of funding, the building was 97% occupied.
“The lack of available developable land within this area has resulted in a tremendous barrier to entry for new construction and an opportunity for redevelopment plays, especially centered around the UMC and Valley Hospitals,” said Bob Ybarra. “Expect to see a further decline in vacancies and an increase in lease rates in the area, making this property a great investment.”
The Medical District is a defined area by the city of Las Vegas and includes both professional and medical buildings totaling nearly 1.85 million square feet. As demand for the area grows, the average occupancy for comparable buildings with more than 40,000 square feet has increased.
The seller, Omninet Westbay, LP, was represented by CBRE’s Charles Moore and Marlene Fujita-Winkel in the transaction for total consideration of $20,500,000.
“This transaction is a testament to the full-service capabilities and collaborative nature of CBRE,” said Fujita-Winkel. “The debt and structured finance team worked seamlessly with the buyer to provide competitive financing during a volatile time in the treasury bond market.”
The buyers were WG Group and The Krausz Companies, Inc. WG Group focuses on the acquisition and repositioning of all types of real estate, including distressed and underutilized properties. The Krausz Companies specializes in the acquisition, development and management of high quality, well-located retail, office, industrial and mixed-use properties throughout the United States.
Having purchased the property in 2011, Michael Danielpour, a partner with the seller, Omninet Capital, was pleased with the result. “This was a homerun for our team,” said Danielpour. “We accomplished our investment strategy on this asset by acquiring it at the right basis, upgrading the property’s common areas and addressing deferred maintenance, ultimately increasing occupancy from roughly 50% to 97%.”
CBRE Debt and Structured Finance is on track to originate more than $ 1 billion in 2018, making this its third year in a row of more than $1 billion in loan originations in Nevada.