Dickson Commercial Group CRE sales recap
September continued to show investor demand for the office market, although the number of overall transactions was slightly down at 5 sales. The 40,336 square foot building at 1005 Terminal Way sold for $2,850,000 ($70 p/sf). The building was 63% occupied at the time of sale. Also the 4,338 sf medical office building at 3725 Lakeside Drive sold for $1,025,000 ($236 p/sf). The building was a single tenant building occupied by a dental practice. DCG represented the seller in the transaction. Lastly the 9,712 sf freestanding building at 5060 Meadowood Mall Circle sold for $1,100,000 ($113 p/sf). The building was bank owned.
Industrial saw another increase over August with 9 sales in September. Also the investment market shined in September with 3 large investment transactions. GLP sold two different sets of buildings. The largest was 1,250,084 square feet of buildings on Vista and Lillard for $55,300,000 to Franmar Corporation. The second sale was two buildings totaling 70,200 sf in the Airport submarket to McKenzie Properties of Reno. These two buildings traded for $3,299,000 ($47 p/sf) A final notable investment sale was 213,190 sf of buildings located at 4900-4904 Ampere Drive in the Airport Submarket. These buildings were 100% occupied by 4 tenants and sold for $8,150,000 ($38 p/sf).
The Retail market continued to see investment demand in the month of June.
Retail saw another good month and posted 11 sales transactions in August. There were multiple neighborhood shopping centers sell including the buildings at 960-980 S. McCarran in Sparks which traded for $4,275,000 ($284 p/sf) to a buyer out of San Ramon, CA. Tenant’s included Woody’s Restaurant, Subway, and First Independent Bank. The other neighborhood center to trade hands was 3000-3009 Mill Street on the corner of Mill and Terminal. The 39,000 square foot buildings sold for 2,731,000 ($70 p/sf).
There were also multiple freestanding retail buildings that sold including the former Butcher Boy building on S. Virginia, which was partially occupied at the time of sale and sold for $3,149,929 to the Greer Group who purchased the office portfolio from Ribeiro. Also, the former Reno Gallery of Furniture building on Kietzke Lane sold for 1,300,000 ($67 p/sf) and the former Marie Callender’s on Kietzke and McCarran sold for $2,000,000 ($364 p/sf) and is planned for a new Chic-Fil-A location.
Land had one of the most notable months of the year in September. The largest and most interesting sale was the 45.41 acre former Park Lane mall site that Reno Land Development purchased from real estate investment company Merlon Geier Partners. Reno Land Development paid $26,923,683 $13.61 p/sf for the land. They have announced plans including 725 residential units, 110,000 sf of retail, and 100,000 square feet of office. They estimate total construction cost for the project will be $500 million. In residential, DCG represented the seller of 20 acres on Pan American Drive in North Valleys. The buyer has plans for residential at the property and paid $1,800,000 ($2.05 p/sf). In multifamily land, there was 5.5 acres of land adjacent to the Walmart in South Reno that sold to a senior housing developer. The land traded for $1,460,000 ($6.15 p/sf) and the developer has already broken ground. DCG represented the buyer and seller in this transaction. Lastly 10.2 acres of mixed use land on Marina Parkway in Sparks sold for $3,000,000 ($8 p/sf). In industrial land, the largest sale was 2.4 acres on Watson Way that sold for $850,000 ($8 p/sf)
Multifamily had an increase in sales and volume in September. The largest sale was the 200 unit Marina Gardens in Sparks which sold for $14,250,000 ($71,250 p/unit). The property had a mix of 60 one beds, 100 two beds, and 40 three bed units. The new owner plans on putting significant capital expenditures into the property. The next largest sale was a 16 unit complex at 2025 Wedekind Road in Northeast Reno that traded for $715,0000 ($44,687 p/unit). The reported cap rate was 6.60%.
Concerned that a spate of COVID-19-related lawsuits could bankrupt businesses, members of the Las Vegas Metro Chamber of Commerce implored the state’s congressional delegation during the chamber’s annual D.C. retreat to pass a federal liability protection measure.