A California company is ready to begin sprucing up a 12-building industrial complex on Glendale Avenue just east of McCarran after acquiring the buildings for $8.8 million.
The transaction, believed to the region's largest commercial estate deal of the young year, reflects the new owner's belief that Reno and other Western markets are ready to rebound fast as the recession loosens its grip.
"We like markets that are out of favor," said Rusty Turner of Turner Development Corp. "We think these communities are going to come roaring back."
Turner Development Corp., headquartered at Newport Beach, plans to market the project as industrial condominium spaces ranging from 6,000 to 31,000 square feet.
That's a strategy the company has followed successfully in Southern California markets such as San Juan Capistrano, Anaheim and Chino.
It acquired the 252,000-square-foot property known as Glendale East Business Park from New York's Sentinel Real Estate Corp., which had owned it for about 25 years. Dan Buhrmann, Eric Bennett and Gordon Zack of CB Richard Ellis represented Sentinel in the sale.
The property was acquired by Turner Opportunity Fund, a limited partnership created by Turner Development in mid-2009 to acquire distressed real estate assets in California, Nevada and Arizona.
About 30 percent of the space in the project at Glendale and Dunn Circle is vacant.
Turner said CB Richard Ellis pitched the project in Sparks to his company, and executives liked what they saw when they came for a visit.
"We saw a vibrant business community," he said. "There were a lot of things about the business community we liked. There was a high quotient of entrepreneurs who have followed the lifestyle."
Entrepreneurs are particularly important to Turner's plans for the Glendale Avenue project because the company believes that entrepreneurs who want to take advantage of low interest rates to purchase their own buildings will be a key market for the industrial condominiums.
Along with sales of the units, Turner said the company expects to offer lease-option arrangements.
Having represented the seller in the initial transaction, the industrial team of CB Richard Ellis in Reno now will represent Turner in marketing the industrial condos.
Turner Development plans new roofs, new landscaping, new signage and other improvements to the property. It also may rename the project as part of an effort to create a new brand identity.
Budget for the renovation is about $2.5 million.
Turner said the company is shopping for other properties in northern Nevada.