Acquisition commences second phase of 1.5 million-square-foot industrial development, strengthening firmâ€™s foothold in key southwest logistics market
NEWPORT BEACH, Calif. and NORTH LAS VEGAS â€“Â July 27, 2021 â€“Â CapRock Partners, a leading industrial real estate investment, development and third-party asset management firm, has closed on a 10-parcel land acquisition assemblage totaling 20.7 acres for the development of three state-of-the-art industrial buildings totaling 441,554-square-feet in North Las Vegas. CapRock acquired the land for the to-be-built Class A project in unimproved condition from nine individual sellers. Development is underway and groundbreaking is planned for Q1 2022. Project completion is anticipated in Q4 2022.
The new project, named CapRock Tropical Logistics Phase II, is the second phase of the adjacent CapRock Tropical Logistics, a two-building 1.1 million-square-foot logistics complex currently finishing construction. Collectively, the two phases total 105 acres, or 34 legal parcels, acquired via assemblage from 22 unrelated sellers. Phase I is currently 100% pre-leased and scheduled for completion in Q3 2021.
â€œAs CapRockâ€™s third ground-up industrial project in North Las Vegas, our team is excited to commence development of CapRock Tropical Logistics Phase II,â€ said Taylor Arnett, first vice president of acquisitions at CapRock Partners. â€œCapRock worked closely with each parcelâ€™s seller and leveraged its understanding of the areaâ€™s local infrastructure, civil planning and market dynamics to assemble and rezone the project site. The assemblage is exemplary of CapRockâ€™s tenacity and vision, which is what guides our team in creating value in some of the most competitive industrial real estate markets in North America.â€
At completion, CapRock Tropical Logistics Phase II will include three individual buildings all with 32-foot clear height, large truck courts and approximately 362 parking stalls.
- Building 1 will be approximately 248,391 square feet and include over 300 linear feet of I-15 freeway frontage, 32 dock-high doors, a 185-foot truck court and 57 trailer stalls.
- Building 2 will be approximately 101,825 square feet and include 15 dock-high doors and 180 feet of shared truck courts.
- Building 3 will be approximately 91,338 square feet and include 15 dock-high doors and 180 feet of shared truck courts.
CapRock Tropical Logistics Phase II is located within the North Las Vegas Speedway submarket, along the south side of the I-15 freeway, north of East Tropical Parkway. The location provides prime freeway frontage and visibility and is accessible via both Madge Lane and Beesley Drive.
North Las Vegas Speedway has transformed in recent years with new industrial development. The submarket plays a critical role in U.S. ecommerce and distribution due to its location at the northeastern edge of Metro Las Vegas, along the I-15 freeway. The logistical hub is within a one-day drive to more than 40 million consumers and five major U.S. ports serving the Pacific Rim. Nearly every state west of the Mississippi River is accessible for two-day delivery.
â€œCapRock Tropical Logistics will provide North Las Vegas Speedway with the modern and efficient warehouse space it greatly needs,â€ said Nicholas Ilagan, senior vice president of asset management at CapRock Partners. â€œThe most sought after and active deal size for new industrial space in North Las Vegas is currently between 50,000 and 250,000 square feet. Including this project, CapRock Partners will have developed nearly 2.4 million square feet of industrial space in this submarket in the last 12 months. CapRock continues to aggressively pursue investment opportunities for new industrial development and value- add industrial acquisitions to meet the ongoing demand.â€
Rob Lujan of Jones Lang LaSalle represented CapRock in the CapRock Tropical Logistics Phase II assemblage transactions. His team of Jason Simon and Xavier Wasiak are actively leasing both projects.
Since 2017, CapRock has purchased, developed or entitled approximately 3.0 million total square feet in the Las Vegas metropolitan statistical area (MSA). In January 2021, the firm completed the construction of a 686,000-square-foot, two-building Class A development that is currently 80% leased.
CapRock is one of the most active developers of industrial real estate in the Southwest. The firm has approximately 8 million square feet of industrial space currently under construction or recently completed, with another 7 million square feet slated for construction this year. CapRock is also actively acquiring middle market, value-add industrial properties, typically between $20 million to $50 million per acquisition. The firm recently announced the final close of its oversubscribed CapRock Partners Industrial Value-Add Fund III and is looking to acquire upwards of $1 billion of industrial assets across the Western U.S.
ABOUT CAPROCK PARTNERS
Founded in 2009, Newport Beach, California-based CapRock Partners is one of the leading private industrial real estate investment and development firms in the Western U.S. The company specializes in acquiring middle-market value-add industrial assets, developing large-scale institutional-quality Class A industrial warehouse facilities in key locations, and providing third-party asset management services for institutional investors. CapRock Partners is registered with the U.S. Securities and Exchange Commission. The firm is actively acquiring land for development across the Western U.S. Since inception, its total investment and development pipeline exceeds 25 million square feet of industrial real estate. Follow the company on Facebook, LinkedIn, Twitter and Instagram.