Embed Size (px)
Citation preview
Henderson, NV
A PREMIER, VALUE-ADD OFFICE CAMPUS IN A HIGH-GROWTH MARKETPLACE
EXECUTIVE SUMMARY | MARCH 2019
EXECUTIVE SUMMARYNewmark Knight Frank (NKF), as the exclusive advisor to the owner, is pleased to present the opportunity to acquire, the fee simple interest in Pecos Plaza (the Property), located at 9005–9089 South Pecos Road in Henderson, Nevada.
Pecos Plaza is a premier, eight-building, multi-tenant campus accommodating both medical and office tenancy. The Property totals approximately 123,970 rentable square feet and is served by ample onsite parking—offering both covered and uncovered stalls with a combined 4.0/1,000 square feet parking ratio.
Pecos Plaza is situated on 7.62 acres and strategically located in the highly sought-after South Las Vegas office market. Pecos Plaza is located directly on the frontage of the 215 freeway, providing tenants excellent accessibility to the surrounding areas and major thoroughfares, as well as high-exposure signage opportunities. Additionally, both McCarran International Airport and the world-renowned Las Vegas Strip are both just minutes away.
The Property is currently 84% leased providing consistent cash flows and a substantial value creation opportunity to reset below-market rents to market.
This premier, multi-tenant office campus represents a rare opportunity to acquire institutional-quality real estate with scale, irreplaceable freeway visibility and unparalleled access to the greater Las Vegas marketplace.
OFFICE & MEDICALProperty Type
8Buildings
2006Year of Completion
123,970Rentable Square Feet
7.62Acres
84%Occupancy
492*Parking Spaces
4.0*/1,000 RSFParking Ratio*includes additional parking from REA
Property Snapshot INVESTMENT HIGHLIGHTSCONSISTENT CASH FLOWS WITH UPSIDE OPPORTUNITY
The Property is currently 84% occupied, providing stable, contractual in-place cash flows and a committed tenant base. Additionally, the existing vacancy offers investors the opportunity to execute an aggressive leasing strategy leveraging the rapidly improving Las Vegas market to substantially boost NOI and enhance exit pricing.
UNMATCHED LOCATION & ACCESS
Pecos Plaza is closely located to both Interstate 11 as well as Interstate 15 and is just minutes from both McCarran International Airport and the world-renowned Las Vegas Strip. Additionally, the Property benefits from its proximity to both executive and work force housing as well as St. Rose Hospital. Further differentiated from its competitors by the prime frontage location on Interstate 215, Pecos Plaza offers visibility to over 120,000 cars daily. This location offers unfettered signage opportunities in addition to unparalleled accessibility to and from the project as well as to the rest of the Las Vegas market.
FLEXIBLE PROJECT DESIGN & OPTIONALITY
Pecos Plaza offers a multitude of potential leasing strategies as the campus is able to accommodate tenants ranging in size from 1,000 square feet up to 18,000 square feet. Additionally, the campus can accommodate a wide variety of uses as well, including medical tenancy. The project lays out exceedingly well for co-tenancy of office and medical uses given the low-rise profile of the campus and the ability to offer tenants drive-up access and, in many cases, a proprietary entry for clients.
OPTIONALITY & STREAMLINED MARKETING CAMPAIGN FOR INDIVIDUAL ASSET DISPOSITION (SEE ARTICLE 1)
A buyer can start marketing individual buildings for sale at a higher per square foot. The Property’s eight buildings currently resides on one parcel, but the Seller recently completed a draft survey (the Survey) that allows for that one parcel to be split into nine lots so each building can be sold separately. The Seller also prepared a draft Reciprocal Easement and Maintenance Agreement Summary (the Summary) and NKF has prepared sale flyers to market each building. A buyer just needs to record the Survey, finalize the Summary and begin the marketing campaign.
$300
$250
$200
$150
2007 2009 2011 2013 2015 2017
Avg. $PSF Medical Office
Avg. $PSF Office
MEDICAL OFFICE OPPORTUNITY
Pecos Plaza is home to a multitude of medical tenants with approximately 38% of the current tenancy comprised of medical and medical associated users. Over the past five years, medical office pricing on a per square foot basis has increased 50%, greatly outpacing traditional office assets. This potential for specialization, paired with the current in place medical tenancy offers investors a unique opportunity to increase retention ratios and rents across the tenant roster, ultimately resulting in substantial value creation and enhanced exit pricing.
INVESTMENT HIGHLIGHTSSTRONG MARKET DYNAMICS
The Las Vegas market continued to improve in the first quarter of 2019, with private-sector employment gains outpacing the national average. In the South Las Vegas market, vacancy rates—currently at 11.7%—are well below historical averages and 40 bps lower than the greater Las Vegas MSA. Additionally, annual rent growth reached 5.5%—pushed by very strong tenant demand. Despite vacancy continuing to trend down and tenant concessions being rolled back, the South Las Vegas market continues to perform well.
DIVERSIFIED ECONOMY & STEADY SUSTAINABLE GROWTH
Nevada’s pro-commerce climate is driving sustained population growth and a burgeoning new economy. With the current unemployment rate at just 4.4%, Nevada’s ever diversifying economy is benefiting from growth in sectors beyond gaming and entertainment, including technology, health care and the sports industry.
STEADY, STRONG PRICE PERFORMANCE WITH LESS VOLATILITY
215
SOUTH PECOS ROAD
PROPERTY SNAPSHOT9005–9089 SOUTH PECOS ROAD HENDERSON, NV
MACDONALD HIGHLANDS
GREEN VALLEY RANCH RESORT & CASINO
GREEN VALLEY SOUTH
907790419017 9089
9065905390299005
INVESTMENT CONTACTS DEBT CONTACTS
LEASING CONTACT
MARCH 2019 Corporate License #01355491
KEN WHITEExecutive Managing Director 310.491.2006 [email protected] Lic. #01788506
NICHOLAS BARBERSenior Vice President, JLL 702.360.4972 [email protected]
DAVID MILESTONEVice [email protected]
BRETT GREENSenior Managing [email protected]
MICHAEL MATCHETTAssociate [email protected]
The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
