|By Marketwired .||
|August 14, 2014 12:40 PM EDT||
LAS VEGAS, NV and IRVINE, CA -- (Marketwired) -- 08/14/14 -- CIP Real Estate, an Irvine, California-based commercial real estate investment and management company, is announcing its sale of Escondido Industrial Park in Las Vegas for $7.3 million. The 153,000-square-foot distribution and warehouse facility is located immediately south of McCarran International Airport and has a marquee tenant list that includes Konami Gaming, G-Tech and Absolute Exhibits.
CIP Real Estate, in a joint venture with Chicago-based institutional investor Blue Vista Capital Management, purchased the property in 2012 for $4.2 million from a private trust and immediately implemented a major renovation program, including installation of ESFR sprinkler systems and cosmetic upgrades.
"This project was a classic turnaround story," said Eric Smyth, principal of CIP Real Estate. "We look for industrial and office properties that have 'good bones,' but require physical renovation and have leasing challenges. Opportunities like this are harder to find in Las Vegas as fewer projects trade hands and more out-of-state capital is searching for value-added deals in the valley."
The buyer, a private partnership, was represented by Las Vegas Realty, and CIP Real Estate was represented by Brian Riffel of Colliers International in the transaction.
CIP Real Estate has been very active in Las Vegas with acquisitions totaling more than $115 million in three separate transactions with Oaktree Capital Management since December 2013. The acquisitions included six office assets, 14 flex and industrial buildings, and a 4.2-acre land parcel, all located in the Hughes Airport Center, adjacent to McCarran International Airport. This premier portfolio of nearly 1,000,000 square feet is home to some of the iconic names in Las Vegas, including Sitel, Bally's, Cirque du Soleil, and MGM Resorts International. MGM recently leased 165,000 square feet of office space in the project on a long-term basis, after vacating its former buildings that were demolished to make way for the new $350 million MGM-AEG arena.
"We are very pleased with our acquisition activity in 2013/14 and plan to remain an aggressive buyer in Las Vegas," said Smyth. "Our recent leasing activity in Hughes Airport Center has been very positive and reaffirms our commitment to Las Vegas on a long-term basis."
CIP Real Estate is a full-service real estate investment and management company focused on the acquisition, development, repositioning and management of office, business and industrial parks. Founded in 1995, CIP Real Estate owns and manages more than five million square feet of quality real estate throughout California, Nevada and North Carolina, and has completed more than $1 billion in acquisitions and dispositions since its inception. www.ciprealestate.com