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A California real estate company and Chicago management firm have acquired a four-year-old shopping center in southwest Las Vegas.
LBG Realty Advisors in partnership with Blue Vista Sponsor Equity Fund, an affiliate of Blue Vista Capital Management, purchased the Southwest Marketplace, a grocery-anchored center at South Rainbow Boulevard and Windmill Lane, for $16.5 million from Windmill Retail LLC, which was developed by Trident Development.
The center measures 118,284 square feet and includes a 64,400-square-foot Smith’s Food and Drug Store and a Smith’s Gas.
The center is 85 percent leased to 18 tenants, said Leslie Lundin, managing partner of LBG Realty Advisors of Santa Monica. The firm specializes in the acquisition and development of commercial real estate.
The 17-acre property has two completed building pads, which can accommodate an additional 68,000 square feet of future development, Lundin said. The trade area is only 65 percent built out with a population of more than 16,000 within a one-mile radius of the property, she said.
“This is a perfect opportunistic buy,” Lundin said. “This is a class A grocery-anchored property, which includes the dominant grocer in the trade area. It’s in an established and growing neighborhood and is being purchased at the bottom of the market. It has tremendous growth potential through lease up and development of the remaining building pads.”
LBG will be leasing the property and is negotiating with prospective anchor tenants for the large development pad and for the smaller space, Lundin said. The development is projected to be completed in 2013.
By having Smith’s in place under a long-term lease agreement, that limits the risk to the acquisition, said Chris Winnen, vice president of Chicago-based Blue Vista Capital Management, a real estate investment management firm.
The center has a Dotty’s, Jack In the Box, UPS Store, Blockbuster, State Farm agent and Patty’s Closet.