Reno’s Southwest Commerce Center sold
AEW Capital Management, a global real estate management company based in Boston, has purchased the Southwest Commerce Center in south Reno for $93.2 million.
The Southwest Commerce Center is a fully occupied portfolio of six industrial buildings totaling 1,029,700 square feet, located at 875 and 895 E. Patriot Blvd., 450 Maestro Drive, 7525 Colbert Drive, 3450 Airway Drive and 5555 Quail Manor Court. The six single and multi-tenant buildings were built in four phases between 1997 and 2001 and the overall project is situated on more than 50 acres.
NKF Capital Markets President, West Coast Kevin Shannon, Vice Chairman Steve Golubchik and Executive Managing Director Bret Hardy represented the seller, Barings Real Estate Advisers on behalf of an institutional investor. AEW Capital Management was self-represented.
“Southwest Commerce Center was a rare opportunity for an investor to acquire a critical mass of core, Class-A industrial assets, within the best submarket in Reno,” said Hardy. “South Reno boasts a vacancy rate of just over one percent and SWCC represents some of the best product in this high barrier to entry market. With major corporations like Tesla, Apple, Google and Amazon making huge investments in Reno, we foresee this market continuing its ascent in tenant demand and industrial asset values.”
“Barings purchased this industrial project in 2014 for $63 million on behalf of an institutional investor after recognizing the region’s growth potential and the disconnect in the capital markets when comparing pricing in Reno to major industrial markets across the country,” stated Chris Black, a Managing Director for Barings.
Jacob Warwick, CEO of Discover Podium, says the company that launched only a year ago in Reno recently surpassed $1 million in revenue and has big plans for growth in the coming months.