Dickson Commercial Group | Reno/Sparks CRE sales recap – December 2016
Office picked up slightly from a slow November. The month was fueled mainly by owner-user acquisitions, including the $1,700,000 sale of the 7,900 square foot building located at 10589 Double R ($216 p/sf).
Also the 3,408 square foot office building at 50 Continental in Midtown sold for $550,000 ($161 p/sf). DCG represented the buyer in the transaction.
Industrial sales continued to have an up and down Q4. October was slow, November had a robust month for sales volume, and December was yet again slow. There were only 3 transactions, the largest of which was a 12,000 square foot building at 2570 Wrondel Drive. DCG represented the buyer who paid $521,000 ($44 p/sf) for the flex building.
Retail rebounded in December from a slow November.
The most notable sale was the Century Theatres anchored building in Downtown Reno. The transaction was completed by DCG, who represented the seller, DDR Corp, in the disposition of the 52,224 square foot, NNN leased investment. The building traded for $6,900,000 or roughly a 8.8% cap rate.
Regional Developer Ribeiro sold the Quail Park South neighborhood center at 8040 S. Virginia for $4,100,000 ($279 p/sf). The 14,681 square foot inline building had a reported income of $351,000 which put the cap rate at 8.5% at the close.
Another large retail sale was the 67,564 South Reno Athletic Club at 9393 Gateway Drive in South Reno, which sold for $9,200,000 ($136 p/sf)
Land sales had a decent month with a large residential transaction and a few smaller commercial land deals. In commercial, a retail pad at Damonte Ranch Town Center was purchased by Mountain America Federal Credit Union for $809,761 ($23 p/sf). In subdivision land, DR Horton purchased 54 final mapped lots, and two slightly larger parcels at Wildcreek Estates for $2,326,000. DCG represented the seller of a small multifamily parcel near UNR. The parcel was 1.89 acres and sold for $175,000 or $2.18 p/sf.
Our apartment market continued the trend of a few large transactions every month. December posted a strong month for volume. By far the most notable sale was SmartStop Asset Management’s purchase of the Summit student housing complex on Valley Road near UNR. SmartStop paid $70 million for the 186 unit/709 bed Class A facility.
In Downtown, we saw Ross Manor trade for $7,300,000 ($48,026 p/unit) to the Cerna Group from Northern California, who plans to upgrade the historic property. In smaller multifamily, DCG represented the seller of a 10-unit complex at 625 Manhattan, which traded for $650,000 ($65,000 p/unit) or a 5.5% cap rate.
On April 1, Nevada Gov. Steve Sisolak formally issued a “Stay at Home” directive for Nevadans and extended closures of nonessential businesses, gambling and school closures to April 30.