Industrial developer, investor executes value-add strategy on 13-building industrial portfolio, generates much-needed multi-tenant assets in Southwest submarket
Newport Beach, Calif. and Las Vegas – March 5, 2020 – CapRock Partners, one of the fastest growing private industrial investment and development firms focused solely on the Western U.S., today announced the disposition of three industrial real estate assets in Las Vegas for an undisclosed amount to Nicola Wealth Real Estate, a Canada-based subsidiary of wealth management firm Nicola Wealth. The sale of the 276,912-square-foot portfolio marks Nicola Wealth’s first venture into the Las Vegas marketplace and underscores CapRock’s ability to unlock value through the strategic execution of a significant renovation plan for the well-located industrial assets via its value-add strategy.
“When we first entered the Las Vegas market in 2017, our goal was to acquire and aggregate underperforming multi-tenant industrial properties in a supply-constrained area,” said Taylor Arnett, first vice president of acquisitions at CapRock Partners. “The sale of this portfolio demonstrates our unique focus on increasing value through the strategic repositioning of assets, and nods to our best-in-class management expertise in generating proven financial results to our investors and partners.”
Acquired in off-market transactions by CapRock Partners in 2017, the sale of the portfolio includes the following properties:
- The Park @ Arville. Originally constructed in 1974, the 160,554-square-foot, multi-tenant business park is comprised of several suites ranging from 1,000 to 10,000 square feet with private outdoor storage yards and 15 to 20-foot clear heights. CapRock acquired The Park @ Arville in 2017 and implemented an extensive renovation plan, which included creating new functional office and warehouse spaces, the introduction of a modernized paint scheme creating private fenced yards, new monument signage, awnings and suite signage and a dramatic enhancement of the property’s curb appeal. The Park @ Arville is located at 4350 Arville Street, proximate to the Las Vegas Strip and I-15, with frontage on Arville Street.
- Valley View Commerce Center. Constructed in 1989, the 73,508-square-foot multi-tenant business park features several suites ranging from 1,776 to 6,528 square feet, with 15- to 17-foot clear heights. CapRock acquired Valley View Commerce Center in 2017 and repositioned the property through an all-encompassing improvement plan to enhance the buildings’ aesthetic, functionality and stabilize the buildings through lease up. The complex is located at 5130, 5160, 5190 and 5230 South Valley View Blvd., with close proximity to the Las Vegas Strip and I-15.
- Valley View Business Park. Built in 1986, the 42,850-square-foot single-story industrial building features several suites ranging from 2,000 to 7,000 square feet. CapRock acquired the property in 2017. CapRock replaced the roofs, upgraded the mechanical systems and leased the property to stabilization. Located at 3021 South Valley View Blvd., Valley View Business Park is minutes from the I-15, provides convenient access to US-95 and McCarran International Airport and offers frontage on Valley View Blvd.
“Our firm sees strong growth potential and dependable returns in industrial real estate, particularly for small – mid bay assets with in-fill locations. Paramount is keeping our investors’ best interests at the forefront of our investment strategy,” said Matthew Shaeffers, Director of Acquisitions at Nicola Wealth Real Estate. “CapRock Partners did a fantastic job creating and repositioning a strong portfolio of industrial assets in key locations in Las Vegas, one of the country’s more robust and expanding economic markets. We are confident in the long-term success of the acquired portfolio, and continue to actively look for similar investment opportunities in select U.S. markets.”
CapRock Partners Secures Foothold in Las Vegas
An active investor and developer in Nevada, CapRock Partners has either acquired, or is in escrow, on approximately 3.6 million square feet of industrial product in Las Vegas alone. Recently, the firm announced the groundbreaking of Interchange Industrial Center, a 683,000-square-foot Class A industrial complex in North Las Vegas, representing CapRock’s first ground-up development outside of California. The firm also is bullish on executing its value-add strategy, with the recent purchase of Walnut Business Park. The Class A multi-tenant business park located in the North Las Vegas submarket features 94,808 square feet of industrial space spread across two buildings. CapRock Partners purchased the property with significant near-term rollover with the intent of renovating the industrial suites to capitalize on the lack of available units in the sub-10,000-square-foot range in the local submarket.
“Investing and developing in Las Vegas continues to be a critical component of CapRock’s growth strategy,” said Nicholas Ilagan, senior vice president of asset management at CapRock Partners. “Las Vegas boasts strong market fundamentals from both a user and investor perspective and is fast emerging as a significant regional industrial and logistics hub for many companies. As our team continues to keep its eye on the horizon, we look forward to pursuing a strategic growth initiative in Nevada, as well as California and Arizona.”
CapRock Partners is continuing to capitalize on its deep transaction pipeline and is actively acquiring high quality industrial assets in prime locations across the Western U.S. Since the firm’s initial acquisition in 2010, CapRock has acquired, developed, or has in its pipeline approximately 17.5 million total square feet valued at $1.9 billion.
Jeff Chiate, Jeffrey Cole, Mike Adey, Ed Hernandez, Brad Brandenburg, and Bryce Aberg from Cushman & Wakefield and Rob Lujan, Jason Simon, Xavier Wasiak from JLL represented CapRock Partners in the sale of the Las Vegas portfolio.
ABOUT CAPROCK PARTNERS
Since its founding in 2009, Newport Beach, Calif.-based CapRock Partners has become one of the fastest-growing private industrial real estate investment and development firms in the Western U.S. The company focuses on middle-market, value-add industrial assets and developing large-scale institutional-quality, Class A industrial warehouse facilities in key locations, serving the needs of corporate America. CapRock Partners is registered with the U.S. Securities and Exchange Commission. The firm is actively acquiring land for development and value-add industrial buildings in California, Nevada and Phoenix. For more information, visit www.caprock-partners.com. Follow the company on Facebook, LinkedIn, Twitter and Instagram.
ABOUT NICOLA WEALTH REAL ESTATE
Nicola Wealth Real Estate (NWRE) is the in-house real estate team of Nicola Wealth, a premier Canadian financial planning and investment firm with $7-billion (CAD) of assets under management. NWRE has an experienced and innovative team that sources and asset manages a growing portfolio of properties in major markets across North America including a diversified range of asset classes including office, retail, industrial, multi-family residential, self-storage, and seniors housing. The current real estate portfolio is $4.0 billion gross asset value.