Leading industrial real estate investor and developer heads into second quarter with completion and lease up of marquee assets
LAS VEGAS – [March 29, 2023] – CapRock Partners, a leading industrial real estate investor, developer and asset manager in the Western U.S., today announced the completion of two new Class A industrial warehouse distribution facilities in Las Vegas totaling nearly 700,000 square feet. Tropical Logistics Phase II consists of three single-tenant buildings totaling 442,780 square feet in the North Las Vegas submarket, 100% pre-leased to high-quality tenants. Spanish Ridge Industrial Park consists of three single- and multi-tenant buildings totaling 230,899 square feet in the Southwest Las Vegas submarket, partially pre-leased to investment-grade credit tenants. Both assets are well-located state-of-the-art institutional investment-level properties.
These completed industrial developments add to CapRock’s robust development portfolio, which includes approximately 16 million square feet of Class A logistics facilities throughout the Western and Central U.S. that the company recently completed, is currently developing or is about to commence.
“CapRock Partners is pleased to see the construction completion and near full lease up of Spanish Ridge Industrial Park and Tropical Logistics Phase II, two institutional investment-level industrial facilities in one of the fastest growing metropolitan areas in the U.S.,” said Taylor Arnett, first vice president of acquisitions at CapRock Partners. “The Las Vegas industrial market continues to experience tremendous demand for new construction of modern and efficient industrial space. As a thoughtful industrial developer, CapRock is committed to bringing more well-located Class A product to the market to meet the ongoing tenant demand.”
Tropical Logistics Phase II is a 21.9-acre complex that was fully pre-leased prior to its construction completion. All three undisclosed tenants took occupancy of their own freestanding buildings in Q1.
Tropical Logistics Phase II is in a premier North Las Vegas location at 6325 – 6185 N. Beesley Drive. Adjacent to I-15 N., the site offers prime visibility and is easily accessible to the I-15 / NV-215 freeway interchange via E. Tropical Parkway.
Tropical Logistics Phase II buildings range from 249,085 square feet to 91,591 square feet in size. Each building features 32-foot clear height, ESFR sprinklers, 185-foot to 202-foot 100% concrete truck courts and ample power. They also provide a combined 10,969 square feet of well-appointed office space, 62 dock-high doors and six grade-level doors.
The property is adjacent to Tropical Logistics Phase I, a core industrial logistics facility consisting of two Class A warehouse buildings totaling 1.1 million square feet that CapRock completed and sold in Q2 2022. The two buildings were 100% leased to three investment-grade credit tenants, including a Fortune 100 ecommerce company, at the time of its sale.
Spanish Ridge Industrial Park is a state-of the art industrial complex equipped with move-in ready improvements as CapRock welcomes its new tenants, which will take occupancy in Q2. CapRock is currently in negotiations with multiple potential tenants for the property’s remaining space.
Strategically located at 5425 and 5365 S. Riley Street and 8875 W. Hacienda Avenue, Spanish Ridge Industrial Park is less than 1,000 feet from the NV-215 freeway and less than seven miles from the I-15 freeway, providing convenient access to major local and regional transportation routes.
On a 12.95-acre site, Spanish Ridge Industrial Park’s three buildings are 133,075 square feet, 75,836 square feet and 21,988 square feet. They feature 24-foot to 30-foot clear height, ESFR sprinklers, 180-foot shared 100% concrete truck courts, ample power, and a combined 50 dock-high doors and 11 grade-level doors. CapRock delivered the project complete with five speculative offices approximately 2,000 square feet in size and with warehouse evaporative coolers in each building.
“Newly completed, well-located projects such as Tropical Logistics Center Phase II and Spanish Ridge Industrial Park are benefiting from Las Vegas’ limited supply of new industrial development and the continued high demand from occupiers,” said Jon Pharris, co-founder and president of CapRock Partners. “Las Vegas is an important logistics hub east of Southern California’s port markets, supported by the city’s strategic positioning in the Western U.S. supply chain and ability to service approximately 20% of the U.S. population within a day’s drive. CapRock remains bullish on this market and is committed to building new strategic best-in-class industrial warehouse facilities that support the advancement of Western U.S. logistics.”
Southern Nevada offers significant barriers to entry for new “big box” industrial real estate development due to its limited availability of industrial-zoned land sites greater than five acres. In addition to the mountain ranges on the west, east, and north sides of the Las Vegas Valley, over 80% of the state’s land is under the control of the Bureau of Land Management, making it challenging for developers to find suitable sites for new construction.
The Las Vegas industrial market continues to perform with demand outpacing supply for the second year in a row. With more than 8 million square feet of leasing activity and a 30% year-over-year increase in average asking rents in 2022, according to JLL, the MSA is one of the strongest and fastest-growing markets in the country. As of Q4 2022, the overall Las Vegas vacancy was 2.6% and the North Las Vegas submarket vacancy rate was 2.3%.
Rob Lujan, Xavier Wasiak and Jason Simon with JLL represented CapRock Partners in the leasing of Spanish Ridge Industrial Park and Tropical Logistics Phase II.
CapRock is actively acquiring middle market, value-add industrial assets, typically between $20 million and $100 million per acquisition and land for development opportunities throughout the Western and Central U.S.
ABOUT CAPROCK PARTNERS
Founded in 2009, Newport Beach, California-based CapRock Partners is a fully integrated real estate private equity firm focused on acquiring and developing logistics assets in the Western U.S. and Texas. The firm specializes in acquiring middle-market, value-add industrial assets and developing large-scale, institutional-quality, Class A industrial warehouse facilities in high-growth markets across California, Arizona, Nevada, Utah and Texas. Since inception, CapRock has acquired, developed or entitled more than 30 million square feet of logistics assets. CapRock manages a series of private real estate funds and has raised approximately $1.5 billion of equity commitments across multiple partnerships. CapRock is registered with the U.S. Securities and Exchange Commission. Follow the company on Facebook, LinkedIn, Twitter and Instagram.