DCG Sales Report: January 2016

Industrial Sales Summary

The largest industrial sale in January was the three building portfolio sale of 905-1485 Southern Way.  The sale was comprised of three leased industrial buildings totaling 631,115 square feet that sold for $25,820,000 ($41 p/sf).  The buildings were built in the mid 1970’s and were purchased by the Bendetti Company out of Irvine, California. The next largest sale was the 33,000 square foot warehouse at 1675 Crane Way purchased by an owner user for $2 million, or $61 p/sf. DCG represented the buyer in the transaction. Outside of those sales, there were three smaller flex buildings sell in the Airport and South Meadows Submarket. All three of the buildings sale prices were over $100 p/sf.

Retail Sales Summary

Keeping up with most of the year, we continued to see investment transactions in the month of January. There were two STNL properties sell at Legends in Sparks. The first was the Popeye’s Restaurant which sold on 1/11/16 for $2 million ($750 p/sf). The second STNL at Legends was the adjacent Taco Bell which sold for $2,550,000. Two freestanding buildings also sold in January. Renown Health purchased the closed Lowe’s on Oddie Boulevard for $36 p/sf and the 11,641 square foot retail store at 1090 Kietzke sold for $1,397,925 ($120 p/sf). The building is fully occupied by Carpenter’s Music World and the NOI at the time of sale was reported to be $111,840 yielding an actual cap rate of 8%.

Land Sales Summary

Land had a relatively quite month for sales, there was a few different types of land that sold to buyers, which is a good sign for new development. The largest commercial land sale was a multifamily zoned parcel bought by local apartment owner and developer Grady Kromer. Kromer Investments purchased 21.02 acres of multifamily land approved for 416 units for $4.2 million ($4.59 p/sf). There was a 5-acre mixed use parcel sale on S. Virginia. The parcel was purchased by the owners of the adjacent Lexus dealership for $1,250,000 (5.62 p/sf). There is a drainage ditch through the middle of the parcel which likely makes some of the parcel unusable. Lastly, a 6.690 acre, mixed use parcel on N. Virginia sold for $750,000 ($2.57 p/sf). The buyer appears to be a self-storage company out of California. 

Office Sales Summary

Office had a slow month with only five total sales. The largest was the purchase of the single user building at 590 Double Eagle Court. The South Meadows building was purchased by the buildings tenant, Pasha Group, for $2.4 million ($178 p/sf). The other notable sale was the 18,883 square foot building located in Downtown at 10 State Street. The 4 story building was on the market for most of last year and sold to a local buyer for $1,380,000 ($73 p/sf). Lastly, there was a newly constructed owner user building on Vista Boulevard that was completed and sold to the owner a recorded sales price of $970,000.

Multifamily Sales Summary

Apartments had a slower month with only a few sales. Most of the sales were in the 6% cap rate range. The largest sale was the mixed use buildings at 480 Sierra Street sold for $2.6 million. The sale featured a small commercial building with an office component and the Bibo Coffee company, and 28 units of multifamily. There were 17 studios and 11 1bd/1ba units. The next largest sale was the 7th Street Apartments in Northwest Reno which sold on 1/22/16 for $1,780,000 ($55,625 p/unit). The property is comprised of 10 1bd/1ba and 22 2bd/1ba. The NOI was reported to be $111,072 at the time of the sale, yielding a 6.24% cap rate. The last notable sale a 12 unit building in Downtown located at 567 Holcomb. Local investment company Marmot Properties sold the building for $1,425,000 ($118,750 p/unit). The sale was estimated at a 6% cap rate. 

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