Las Vegas – CBRE arranged a $13 million refinance for a 287,500-square foot industrial property located in Las Vegas.
Bob Ybarra, Shaun Moothart, Bruce Francis, Dana Summers and Doug Birrell of CBRE’s Debt and Structured Finance team arranged the loan on behalf of Pacifica Real Estate Group, a Santa Barbara and Newport Beach-based real estate investment and management firm.
The property, Building 5 of Blue Diamond Industrial Center, is a multi-tenant warehouse distribution facility located at 4120 W. Windmill Lane. It is part of a 110-acre master-planned industrial park and in proximity to the I-15 and I-215 Beltway via Blue Diamond Road, McCarran International Airport, and the Las Vegas Strip.
The property is encumbered by a ground lease with Clark County that will expire July 2055.
“There are complex challenges inherent in any leasehold financing,” said Moothart. “Our team conducted a thorough marketing and bid process, which resulted in extremely competitive pricing and terms with one of the largest life insurance companies in the world.”
Added Ybarra, “We were also pleased with the timing of our execution as we were able to take advantage of the declining interest rate environment. We have seen an increase in refinance and acquisition activity since the beginning of the year with the almost 100 basis point drop in the 10-Year U.S. Treasury Yield.”
The Las Vegas industrial market continued to report strong positive net absorption, with 1.7 million square feet in the second quarter and 3.9 million square feet year-to-date, according to CBRE research. With nearly 7 million square feet of projects under construction and 7.9 million square feet of announced planned development on the horizon, the amount of available space is set to increase in the coming quarters and will provide companies considering Las Vegas for relocation or expansion with more options in the future. However, until new properties are delivered, overall vacancy rates will remain low, pushing asking lease rates higher, according to CBRE research.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.