Industrial developer leverages land entitlement expertise to assemble 83-acre parcel, deliver class A buildings in land-constrained submarket
Las Vegas â€“ November 9, 2020 â€“ CapRock Partners, a leading industrial real estate investment and development firm, today announced it has commenced construction on Tropical Logistics, a two-building 1.1 million-square-foot logistics complex in North Las Vegas.
Located at 5802 and 5902 E. Tropical Parkway, CapRock Tropical Logistics is developed on an 83-acre site that CapRock Partners assembled through the acquisition of 24 parcels from 13 owners in Q1 2020. In 2019, the firm successfully petitioned the rezoning of several of the parcels for industrial development. CapRock Tropical Logistics will comprise two class A buildings totaling 857,060 and 271,262-square-foot and is slated for delivery in Q3 2021.
â€œIn the last few years, the North Las Vegas submarket has quickly evolved to be one of the most sought-after industrial markets in the Southwest U.S., evidenced by the recent developments, major leases, and record-breaking investment sales,â€ said Taylor Arnett, first vice president, acquisitions at CapRock Partners. â€œThe demand for warehouse space has been largely fueled by consumer online shopping preferences, and the magnitude of this project reflects our confidence in both this market and our project teamâ€™s ability to deliver a class A product that attracts high-quality tenants.â€
The largest building is build-to-suit and will be occupied by an undisclosed e-commerce retailer who signed a long-term lease. The tenant also will benefit from approximately 17 acres of excess land south of the building, which CapRock Partners reconfigured to meet the tenantâ€™s exact specifications, including providing additional parking.
The second building totaling 271,262 square feet is a high visibility spec development with over 1,000 linear feet of I-15 frontage and was thoughtfully designed to accommodate either a single tenant or multiple tenants. Key features include:
- 32-foot minimum clear heights
- 100% concrete truck court with 185-foot depth
- Above-standard trailer and automobile parking with 194 parking spaces and up to 57 trailer parking spaces
- 54 9-foot by 10-foot dock high loading doors and two 12-foot by 14-foot drive-in doors
- ESFR sprinkler system
- 3,000 amps 277/480V, 3-phase power
A key consideration in the selection of the site was its prime location in the North Las Vegas speedway submarket, less than a mile from both Tropical Parkway and Speedway Blvd on/off-ramps to the I-15 freeway. CapRock Tropical Logistics will be less than 15 minutes from the Las Vegas Strip and McCarran International Airport and a one-day turnaround to the Long Beach and Los Angeles ports. The property is surrounded by other nearby logistics and distribution facilities, including CapRock Partnersâ€™ Interchange Industrial Center, a two building 683,000-square-foot Class A industrial complex currently under construction that is expected to be completed in Q4 2020. Other nearby high-quality industrial tenants include Amazon, UPS, Bed Bath & Beyond, Sephora, Fanatics, Loweâ€™s Home Improvement, Niagara Bottling, Honest Company, TJ Maxx, Paccar and Dr. Pepper Snapple Group.
CapRock Partners Continues Strategic Expansion into Nevada
An active investor and developer in Nevada, CapRock Partners has acquired, sold, or entitled nearly 3 million square feet of industrial product across various submarkets of Las Vegas since entering the market in 2017. CapRock Partners currently is under construction on multiple projects totaling 1.8 million square feet throughout the Las Vegas Basin. Concurrently, the firm also is actively pursuing its value-add strategy through its third value-add fund, which is on track to reach a final closing by year-end at its hard cap of $250 million. CapRock Partners Industrial Value-Add Fund III focuses solely on the acquisition of middle market, value-add industrial properties, generally valued between $20 million to $50 million across the Western U.S.
Earlier this year, CapRock Partners announced the disposition of a 13-building, 276,912-square-foot industrial portfolio in the Southwest Las Vegas submarket. The firm also recently entitled and acquired an approximately 5-acre land site in the North Las Vegas submarket which will be home to CapRock Point @ Cheyenne, a freestanding, 101,332-square-foot, Class A industrial building. The project sits next to its Walnut Business Park value-add asset. CapRock Partners also is in escrow to acquire a 13-acre land site for a future three-building, high-image multi-tenant industrial park totaling 230,261 square feet in the Southwest Las Vegas submarket.
â€œAfter a brief pause in the wake of the coronavirus outbreak, the demand for big box industrial has bounced back in North Las Vegas and throughout the Western US, fueled by Â demand from a broad base of tenants including large distribution users who are riding the e-commerce wave as well as traditional third-party logistics, manufacturers, Â cold storage companies, and a multitude of other businesses who have experienced growth,â€ said Jon Pharris, president of CapRock Partners. â€œCapRock remains confident in the greater Las Vegas industrial and logistics marketâ€™s ability to attract industrial users, thanks in part to its prime central location in the Western U.S. and pro-business climate.â€
Rob Lujan, Xavier Wasiak, and Jason Simon at JLL represented CapRock Partners in the acquisition of the land and have been retained as the leasing brokers. Architects Lee & Sakahara and HPA Architecture, general contractors Martin Harris Construction and Layton Construction, and civil engineer Kimley Horn are the firmâ€™s project partners.
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 and developing large-scale institutional-quality Class A industrial warehouse facilities in key locations and provides 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 23 million square feet of industrial real estate. Follow the company on Facebook, LinkedIn, Twitter and Instagram.