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CapRock Partners Acquires 707,010-Square-Foot Industrial Warehouse In Reno, Nev.

CapRock Partners Acquires 707,010-Square-Foot Industrial Warehouse In Reno, Nev.

Industrial real estate firm deepens established portfolio with first asset in Northern Nevada; property represents rare acquisition opportunity in key Western U.S. regional logistics hub; signals ongoing demand for modern, efficient distribution warehouse space

RENO, Nev. – July 8, 2024 Leading Western and Central U.S. industrial real estate investor, developer and asset manager, CapRock Partners, today announced its acquisition of 3200 USA Parkway, a 707,010-square-foot cross-dock industrial warehouse in Sparks, Nev. The Class A distribution building is within the Tahoe-Reno Industrial Center (“TRIC”), a premier industrial park within the land-constrained Reno industrial real estate market.

CapRock acquired the 48-acre property from an institutional investor in an off-market transaction. While CapRock is one of the more active investors and developers in Las Vegas, 3200 USA Parkway is CapRock’s first acquisition in northern Nevada, marking a milestone in the firm’s ongoing strategic portfolio expansion.

“CapRock Partners is excited to acquire 3200 USA Parkway, a high-quality industrial facility well-positioned within Reno’s TRIC business park for efficient distribution throughout the Western U.S.,” said Chad Ridenour, senior associate, acquisitions at CapRock Partners. “3200 USA Parkway is ideal for companies looking to leverage Reno’s advantageous business climate, wide distribution reach, and readily available utilities, including power. After monitoring the region for some time, we are pleased to have secured a unique opportunity to purchase this high-quality, institutional investment-level asset and expand our portfolio.”

TRIC is one of the largest industrial parks globally, serving as a significant center for industrial manufacturing and distribution operations. The park is notably home to Tesla Gigafactory 1, a critical facility for Tesla’s electric vehicle production and energy storage products. TRIC has attracted prominent institutional investors and owners, including Prologis, Blackstone/Link, Majestic Realty, and GIC. Major tenants such as Tesla, Walmart, Tire Rack, Home Depot, and Panasonic also operate within the park.

3200 USA Parkway is approximately three miles to Interstate 80, a major east-west highway that connects key cities such as San Francisco and Sacramento to Salt Lake City. The property is approximately 16 miles east of downtown Reno and Reno-Tahoe International Airport.

The property’s location offers easy access to the California/Nevada state line, enhancing its appeal for businesses that operate across state boundaries and require efficient interstate logistics. TRIC tenants are able to reach the eight most Western states within one-to-two days, covering a market of more than 60 million people. Additionally, Reno businesses benefit from competitive utility rates, approximately 50% lower than California’s, providing significant operational cost savings.

Similar to Nevada’s Las Vegas industrial market, Reno is extremely land-constrained due to the U.S. government’s broad land ownership and the region’s challenging natural topography. These constraints limit opportunities for new large-scale industrial warehouse development, driving up demand and subsequent rent growth.

“CapRock is continuing its strategic growth, and our acquisition of 3200 USA Parkway is a deliberate step in expanding into key markets in the Western and Central U.S.,” said Jon Pharris, co-founder and president of CapRock Partners. “Reno has been a consistent national leader in industrial rent growth in recent years, supported by its business-friendly environment, favorable regulations, pro-business tax climate, and strategic location. We look forward to pursuing more opportunities in this market in the future.”

Built in 2014, 3200 USA Parkway is a Class A cross-dock warehouse featuring 36-foot clear height, up to 131 dock-high doors, three grade-level doors, and 14,890 square feet of office space, as well as ESFR sprinklers, ample power, and LED lighting and 435 skylights. The property includes a 190-foot truck courts and secured wrap around truck courts with multiple dedicated truck access points.

Brian Armon with NAI Alliance represented CapRock Partners in the 320 USA Parkway purchase transaction. He and his team are leading the building’s leasing efforts.

CapRock began investing and developing in Nevada in 2017. The addition of 3200 USA Parkway brings the firm’s portfolio within the state to approximately 5.0 million square feet of industrial space, acquired or developed. Today, CapRock is aggressively pursuing more strategic value-add industrial properties and land sites for new industrial development.

 

ABOUT CAPROCK PARTNERS
Founded in 2009 in Newport Beach, Calif., CapRock Partners is a privately owned investor and developer of industrial real estate in the Western and Central United States. 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. The firm is actively acquiring land for development and middle market value-add assets across the Western and Central U.S. Since inception, its total investment and development pipeline exceeds 30 million square feet of industrial real estate. Follow the company on Facebook, LinkedIn, X and Instagram.