Pacific Business Center, a 13-building, 898.4k sf light multi-tenant industrial property in Henderson, NV, traded hands in a recent transaction worth $111.25 mil ($124/sf). The property was purchased by BKM Capital Partners in the Newport Beach-based firm’s largest acquisition to-date.
Constructed from 1996 to 1998, Pacific Business Center is an institutional-grade asset that has received over $12.4 mil in capital improvements since 2010, which include high quality HVAC and EVAP systems, LED lighting, upgraded office finishes and new exterior paint. Additionally, the asset offers top of the line industrial features such as 24’-28’ clear heights, ESFR sprinkler systems and new TPO roofs.
Pacific Business Center is located at: 1045-1175 American Pacific Dr, 160-194 Gallagher Crest Rd and 1060-1110 Mary Crest Rd. It is currently 85% occupied with a diverse mix of high-quality tenants. According to BKM, in-place rents are projected to be 20% below market rate, giving the company an opportunity for immediate value creation.
“It is rare to find a property of this scale and caliber in the Las Vegas metro area,” says Brett Turner, Managing Director of Acquisitions at BKM Capital Partners. “Based on a lack of developable land and rising construction costs, there is a significant lack of industrial supply in the Henderson market, making this a strategic acquisition that will benefit from strong tenant demand for many years ahead.”
“At the close of 2018, overall vacancy in the Las Vegas metro was 2.6%,” noted Turner. “This represents an approximate 15% annual increase in occupancy since 2014. We expect this trend to continue as more companies migrate to Nevada based on its low cost of labor compared to surrounding states such as California and Arizona.”
The Las Vegas metro’s continued economic growth and declining industrial vacancy is expected to further drive tenant demand for the asset. BKM represented itself in the acquisition. The seller was represented by CBRE.