EQT Pays $140M for 1.1 MSF Nevada Campus

September 25, 2024

Industrial Featured Investment NewsMoreWest

The property came online in 2007.

Exterior shot of USA Parkway Distribution Center in Sparks, Nev. — The 1.1 million-square-foot campus comprises two cross-dock buildings across more than 46 acres. Image courtesy of CBRE

EQT Exeter has acquired USA Parkway Distribution Center, a two-building, 1.1 million-square-foot industrial campus in Sparks, Nev., a Reno submarket. Altus Group sold the asset for $140 million, according to Storey County public records.

CBRE National Partners brokered the deal on behalf of the seller. The park was fully leased at the time to five tenants, including Tesla and The Tire Rack, which occupy 70 percent of the property.

The asset previously traded in December 2007, when Clarion Partners sold it for $51.6 million, according to CommercialEdge information.

The Class A campus is LEED-certified and came online in 2007. The two facilities have a total of 135 dock-high loading doors, nine drive-in doors, 60-foot dock aprons, as well as 120- to 130-foot truck courts.

The two buildings are at 201 Ireland Drive & 3300 Waltham Way, providing easy access to Highway 439. Downtown Reno is 21 miles away, while the Reno-Tahoe International Airport is within 23 miles southwest.

CBRE National Partners Vice Chairs Brett Hartzell and Rebecca Perlmutter, along with Executive Vice President Paige Morgan represented the seller in the deal, while Vice President Eric Bennett served as local market expert.

Large deals are still happening, despite increased vacancy

In July, CapRock Partners acquires 3200 USA Parkway, a 707,010-square-foot industrial facility for $81.5 million. Manulife Investment Management sold the Sparks, Nev., asset that came online in 2014.

Another notable deal included Clarion Partners’ purchase of 500 Denmark Drive, a 322,400-square-foot warehouse in McCarran, Nev. Pure Development sold the recently completed asset for $41.7 million.

Reno’s industrial vacancy rate clocked in at 9.8 percent at the end of the second quarter, up 110 basis points quarter-over-quarter, according to a Kidder Mathews industrial report. The metro registered a negative absorption of roughly 1.2 million square feet.