Aspen Real Estate Buys Las Vegas Shopping Center out of Foreclosure

Aspen Real Estate has purchased Renaissance III, a 226,000-square-foot foreclosed shopping center in Las Vegas, for $24.7 million. Special servicer LNR Property LLC—representing the CMBS bond group—sold the underperforming asset. The deal marks Aspen’s second foreclosure purchase from LNR.

Logic Commercial Real Estate brokered the transaction. Going further, the firm will also serve as the retail center’s exclusive leasing agent. The property was only 40 percent leased at the time of sale.

Aspen intends to rebrand and renovate the property, planning to demolish two buildings to create space for quick-serve drive-thru restaurants. The new owner allocated $7 million for renovations and tenant improvements, Principal Philip Proetto said in prepared remarks.

Completed in 1987, Renaissance III encompasses eight buildings on some 23 acres, according to CommercialEdge information. Its tenant roster includes a diverse mix of retailers such as Planet Fitness, America First Credit Union, Nevada Department of Health and Human Services, Panda Express, Meineke and Chaga Root, among others.

Located at 3300 E. Flamingo Road, in the Paradise-South Las Vegas submarket, the shopping center is in an area where the daily traffic count reaches 62,000 vehicles, according to Aspen. Renaissance III is within 2 miles from the University of Nevada-Las Vegas and serves approximately 465,000 residents and 182,541 households within a 5-mile radius.

Las Vegas’ shopping center investment

The shopping center investment sales were down in Las Vegas quarter-over-quarter and year-over-year, according to a Colliers first-quarter 2024 report. The metro recorded a sales volume of $31.8 million totaling 164,534 square feet at an average $193.38 per square foot in the first three months of the year.

Meanwhile, the vacancy rate dropped to 4.2 percent, down by 10 basis points over the quarter. In terms of supply, the metro saw 72,480 square feet of retail completions in Q1, marking the second consecutive quarter of inventory expansion.