CBRE announced the sale of a 14,680-square-foot medical office building at 3041 East Flamingo Road in Las Vegas to Inter-Cal Real Estate, a Northern California property management and leasing company, for $4.55 million, or $310 per square foot.
Tyler Ecklund, James Griffis and Doug Mack with CBRE represented the seller, PacVentures, Inc., a San Diego-based commercial real estate investment firm that focuses on value-add investments throughout the Southwestern United States.
The single-story, freestanding medical office building sits on 1.72 acres at the corner of East Flamingo Road and McLeod Drive, across the street from a Walgreens. The two-tenant building is leased to CareMore Health Systems, a national health care provider for Medicare and Medicaid patients, and Gentle Dental, a dental organization that provides comprehensive care including general dentistry, orthodontics, periodontics, endodontics, pedodontics, prosthodontics and oral surgery.
The property is located near Desert Spring Hospital Medical Center and is less than four miles from the Las Vegas Strip and Allegiant Stadium, home of the Las Vegas Raiders. It is surrounded by numerous restaurants, drugstores, banks and other retailers, and offers excellent ingress/egress and proximity to the I-95 and 1-15 freeways and McCarran Airport. The property features a parking ratio of 7.1 spaces per every 1,000 square feet.
“With strong property fundamentals, medical-anchored assets are one of the most sought-after products in any market. They provide a level of income certainty and capital protection from on-going macroeconomic challenges,” said Mr. Ecklund.
“With its favorable tax incentives, Nevada is attracting an increasing number of tenants and investors from California. Net-leased properties with strong tenancy and term have seen incredible demand since the start of the pandemic,” added Mr. Griffis.
According to CBRE Research, tenant demand for highly parked medical office buildings (over 6.5/1,000 square feet) between 6,000 and 25,000 square feet continues to be one of the strongest segments in the Las Vegas market. The vacancy rate for properties of this size and parking ratio within a 15-mile radius of the property sits at 4.1 percent as of June 2020.
In 2020 Las Vegas ranked among the top 15 investment markets in the Americas among investors, according to CBRE’s Americas Investor Intentions Survey. Strong employment growth and in-migration have driven strong absorption and tightened vacancies.