Disposition of recently completed 100% leased core industrial asset represents sustained investment demand in burgeoning market Facility provides solution for mid-sized tenant users
LAS VEGAS – [February 12, 2024] – Ares Management Corporation (NYSE: ARES) (“Ares”), a leading global alternative investment manager, and CapRock Partners (“CapRock”), a leading Western and Central U.S. industrial real estate investor, developer and asset manager, today announced the sale of Spanish Ridge Industrial Park to EastGroup Properties, Inc. (NYSE: EGP), a publicly traded real estate investment trust (REIT). The state-of-the-art Class A facility was a joint venture between CapRock and Ares Management Real Estate funds.
Recently developed and completed, Spanish Ridge Industrial Park consists of three single- and multi-tenant buildings totaling 230,899 square feet in the Southwest Las Vegas submarket. The property was 100% leased to five investment-grade credit tenants at the time of sale.
“Spanish Ridge Industrial Park is a best-in-class mid-sized Las Vegas industrial asset and CapRock Partners is proud to see the successful execution of its business plan with the completed sale transaction,” said Taylor Arnett, Senior Vice President of Acquisitions at CapRock Partners. “CapRock is committed to providing quality facilities that contribute to Las Vegas’ sustained economic growth and community enhancement. From the project’s beginning, we worked closely with the surrounding neighborhood to create a highly efficient facility with an elevated design to provide cohesiveness with the adjacent office and residential uses.”
Spanish Ridge Industrial Park is located at 5425 and 5365 S. Riley Street and 8875 W. Hacienda Avenue. It is within a block to the Las Vegas Beltway (CC-215) and less than seven miles from the I-15 freeway, providing convenient access to major local and regional transportation routes and the region’s skilled labor pool.
“The growing needs of an increasingly complex supply chain and distribution network continue to support strong demand for high-quality industrial assets,” said Jay Glaubach, Partner and Ares’ Co-Head of U.S. Real Estate Investments. “The completion and sale of Spanish Ridge exemplifies Ares’ and CapRock’s ability to deliver on these needs for tenants in the Las Vegas market.”
Spanish Ridge Industrial Park’s three buildings are 133,075 square feet, 75,836 square feet and 21,988 square feet. They feature a clear height of 24 feet to 30 feet, ESFR sprinklers, warehouse evaporative coolers, ample power, 128-foot to 180-foot 100% concrete truck courts, and a combined 50 dock-high doors and 11 grade-level doors, in addition to five office spaces approximately 2,000 square feet in size.
According to JLL, the Las Vegas industrial real estate market has experienced strong positive absorption from a diverse set of occupiers from a range of industries, many of whom continue to expand operations in the region.
Newmark Executive Managing Directors Andrew Briner and Bret Hardy represented the sellers in the transaction, a joint venture between CapRock and Ares Management Real Estate funds, with support from Managing Directors Rob Lujan and Jason Simon in JLL’s Industrial Las Vegas office. Terms of the deal are not disclosed.
CapRock is one of the most active developers of state-of-the-art industrial property in Southern Nevada. The firm has completed eleven buildings totaling approximately 2.6 million square feet of distribution and logistics space within the Las Vegas MSA since 2021. The firm is currently underway developing CapRock Highlander Logistics Center, a new Class A, LEED-certified logistics complex comprised of two freestanding warehouse buildings totaling approximately 1.48 million square feet in North Las Vegas.
CapRock continues to pursue opportunities for ground-up development and investment in Southern Nevada and throughout the Western and Central U.S. that meet its criteria.
ABOUT CAPROCK PARTNERS
CapRock Partners is a privately owned investor and developer of industrial real estate in the Western and Central United States. Founded in 2009 in Newport Beach, Calif., CapRock has acquired or developed more than 30 million square feet of industrial real estate through over 70 transactions in the last 15 years. Today, CapRock has more than 50 professionals across three offices and owns more than 17 million square feet of industrial assets with approximately $3 billion of assets under management or advisement. CapRock manages a series of institutional funds exclusively focused on industrial real estate that invest across the risk spectrum including value-add, development and opportunistic.
ABOUT ARES MANAGEMENT CORPORATION
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2023, Ares Management Corporation’s global platform had approximately $419 billion of assets under management, with approximately 2,850 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. EastGroup’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). Its strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup’s portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 59 million square feet.