When Panattoni began searching for a larger property to relocate Weyerhaeuser Company's Sparks lumber distribution facility, the search focused on raw land.
But that didn't pan out, says Jason Quintel, a partner with Sacramento, Calif.-based Panattoni Development.
Cost of raw land was prohibitive.Add to that the cost of construction, and the quest for a new, larger, raw site for Washington-based Weyerhaeuser's Nevada facility was facing some big obstacles.
Panattoni turned to existing buildings, purchasing the 72,000-square-foot space on 10 acres at 600 Spice Island for $4 million, says Quintel.
The purchase just over two miles from Weyerhaeuser's existing, leased Sparks property met the lumber company's rail and trucking needs.
A rail spur runs on the property.
Panattoni purchased the property from a consortium of medical doctors, adds J.
Michael Hoeck, vice president of Colliers International - Industrial Properties Group, the broker on the deal.
The medical group bought the property about six years ago and spent millions outfitting it into a sports center,Hoeck says.
The facility includes an ice-skating rink suitable for hockey and figure skating.
Panattoni will disassemble the rink, says Quintel, so it can be reassembled.
Then it will hold the lease on the property.
As land and construction costs skyrocket, says Quintel, Panattoni is doing more searches for older properties.