Las Vegas Shopping Center Sells for $50M
An Albertsons store shadow-anchors the property.
Remington Nevada has sold Mountain’s Edge Marketplace, a 115,000-square-foot neighborhood shopping center in metro Las Vegas, for $50.3 million. CBRE arranged the transaction.
The buyer, an out-of-state investor, also assumed the existing $33 million CMBS note encumbering the property. The 10-year loan, issued by Morgan Stanley Bank in 2022, features interest-only payments at a rate of 4.51 percent for 60 months, followed by a calculated amortization under a 30-year basis, according to CommercialEdge information.
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The sale closed at a 6.3 percent cap rate and a 30-day due diligence period, three weeks after the loan assumption approval. The note’s interest rate, in the low 4 percent range, was one of the better-than-market terms that favored the transaction, CBRE’s Roy Fritz said in prepared remarks. Fritz and Preston Fetrow, both with the firm’s National Retail Investment Partners-West division, represented the seller.
Mountain’s Edge Marketplace, up close
The retail center is at 7975 Blue Diamond Road in Mountain’s Edge, a master-planned community in Enterprise, Nev., an unincorporated town in Clark County, southwest of Las Vegas.
Built in 2016 on about 14.8 acres, Mountain’s Edge Marketplace was 98 percent leased at the time of closing. Its tenant roster includes 40 national and local retailers, among which are Ross, Planet Fitness, Starbucks, Supercuts, The UPS Store, China A Go Go and T-Mobile. The center is shadow-anchored by an Albertsons supermarket, a property that was not included in the sale.
The retail center is some 16 miles from downtown Las Vegas, serving roughly 118,000 residents within a 3-mile radius. Its position on Blue Diamond Road benefits from a daily car traffic of 46,000 vehicles.
Mixed picture for the Las Vegas retail market
The Clark County retail market has been seeing both slower sales activity and decreased deliveries, according to a third-quarter report from CBRE. The latter presumably has helped with pulling average availability down by 10 basis points to 5.1 percent.
Overall absorption was 88,000 square feet in the third quarter, though power centers had 63,000 square feet of negative absorption over the same period, CBRE reported. Meanwhile, total investment sales amounted to $52.3 million.
In one of the quarter’s deals, Aspen Real Estate acquired a 226,000-square-foot foreclosed shopping center in Las Vegas for $24.7 million. The transaction marked Aspen’s second foreclosure purchase from LNR.
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