The firm’s West Industrial Capital Markets Team brokered the consecutive sales of ±493k SF of prime real estate.
Las Vegas, NV. September 18, 2024—Colliers is pleased to announce the dual acquisitions of a two-parcel Infill Logistics Portfolio spanning the Las Vegas and Henderson markets. Vice Chair Michael Kendall and Senior Vice President Gian Bruno of the firm’s West Industrial Capital Markets Team exclusively marketed the portfolio and led the disposition and acquisition processes for all involved parties. In partnership with Kendall and Bruno, Vice Chairs Dan Doherty and Paul Sweetland, Executive Vice Presidents Jerry Doty, Chris Lane, Brian Riffel, and Associate Vice President Tyler Jones provided local market expertise.
The Seller, a private institutional investment firm, sold the entire portfolio in a split sale, in which BKM Capital Partners and an Ares Management Real Estate fund (“Ares”) each acquired one project.
“We are thrilled to have completed both transactions consecutively, securing such high-caliber property investments for the BKM and Ares teams,” said Kendall. “The swift and successful execution demonstrates the strength of core industrial assets across Nevada and highlights our team’s ability to execute complex transactions efficiently.”
The first project, Airparc Heights, is a six-building Class A business park at 3225-3255 Sunridge Pkwy. and 1065-1085 Alper Center Dr., Henderson, NV 89052. Ares acquired the park, and it will be managed by the Ares Industrial Management team, a leading owner and operator of logistics facilities. Spanning 339,214 square feet, the project was delivered in 2022 and gained full occupancy within one month of delivery, highlighting the strength of the emerging West Henderson submarket.
“Ares has conviction in the Las Vegas market and is bullish on the long-term Industrial fundamentals that we believe will lead to continued growth in the region,” said Gregg Boehm, Managing Director at Ares. “The Airparc Heights opportunity allowed us to purchase functional Class A real estate and increase our footprint in a high barrier to entry location with demonstrated industrial tenant demand.”
The second project, a two-building, 153,368-square-foot property located at 6620 Escondido St., Las Vegas, NV 89119, was acquired by BKM Capital Partners. Constructed in 1995, the property has maintained stable occupancy throughout its history, averaging 98 percent in the last nine years. Located just south of the Harry Reid International Airport, the property is now fully leased to two tenants, reflecting strong demand in the Las Vegas industrial market. BKM plans to implement a $4.4 million capital improvement program to execute both structural and cosmetic improvements to the property, as well as speculative tenant improvements to turn the two large units into nine warehouses ranging from 7,000 to 31,000 square feet each.
“The Las Vegas region has seen substantial population growth in recent years, leading to tremendous demand for industrial space to serve the market. While the Airport submarket serves as the area’s primary premier location, there is a significant shortage of small-bay industrial space—vacancy rates for spaces under 30,000 square feet are just 2.7%, compared to 5% in the broader market,” said Brett Turner, Senior Managing Director, Acquisitions & Dispositions | BKM Capital Partners. “Our enhancements to Escondido will introduce modern, functional products to this undersupplied sector.”
For further information, please contact:
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About Colliers
Colliers is a leading diversified professional services and investment management company. With operations in 68 countries, our 22,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 29 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of more than $4.4 billion and $96 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.
About Ares Management
Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2024, Ares Management Corporation’s global platform had over $447 billion of assets under management, with more than 2,950 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
About BKM Capital Partners
BKM Capital Partners is a proven real estate fund manager and operator focused exclusively on investing in small and mid-bay light industrial properties in the Western United States. Headquartered in Newport Beach, CA, with over 90 employees in 13 offices, BKM Capital Partners implements a value-add strategy targeting under-managed and under-capitalized assets. The team has invested over $3.6 billion in over 100 small and mid-bay light industrial properties since 2013. Its approach includes the acquisition, refurbishment, repositioning, and active management of these industrial properties to drive NOI growth and generate a strong IRR and multiple on invested equity. BKM’s foundation is built upon Focus, Operational Excellence, Technology, and Client Service. Additional information is available at bkmcp.com.
