After a developer filled the project with tenants during the pandemic, they cashed in on an industrial complex in North Las Vegas and sold it for more than $ 130 million.
Matter Real Estate Group announced that it has sold the Matter Logistics Center @ West Cheyenne, a five-building business park near North Las Vegas Airport. The San Diego-based company broke ground in the summer of 2019 and, according to a press release, leased “the majority” of the project after the coronavirus outbreak turned daily life upside down.
The $ 135 million sale to investment firm Ares Management Corp. from Los Angeles closed in late July, real estate records show.
Developers have been culling southern Nevada, often north Las Vegas, for years, and after all, the industrial sector has held up well in the valley since the pandemic struck the economy last year.
Investors have pushed new industrial projects in the Las Vegas area amid the pandemic and are still buying buildings, as demonstrated by the Ares deal.
The Matter Logistics Center on Cheyenne Avenue between Decatur Boulevard and Simmons Street occupies 41 acres and covers an area of more than 727,900 square feet. It is fully let to around 20 tenants.
Matter – whose other projects include the 40-acre mixed-use UnCommons project being built in the south-west of the valley – completed construction of the Cheyenne industrial park around the same time the pandemic started, said Tom van Betten, who Company Vice President for Strategic Partnerships.
“It was really scary,” he said, but added that the company ended up being “surprised by the amount of demand and activity.”
The park’s tenants include a beanbag maker, clothing and accessories company, carpet company, pool chemical company and volleyball facility, van Betten said.
Gregg Boehm, Managing Director of Ares Real Estate Group, said the company enjoyed the opportunity to acquire a high quality business park fully rented to a diverse mix of tenants in different unit sizes.
He said the purchase increases Ares’ real estate holdings in the Las Vegas area to just under 3 million square feet, all of which are industrial land, and that warehouses will be absorbed across the valley.
“We are very strong given the continued growth of the market,” said Boehm.
In 2018, Matter bought most of the project site from cell phone giant Qualcomm, which acquired the land in 2005 and unveiled plans for a “high-security facility” that would help track and protect “high-risk, high-value cargo.”
In a press release at the time, Qualcomm stated that it provides cellular and location services for carriers who carry “ammunition and other fragile cargoes”.
The project was not built.
When Matter announced the groundbreaking for the Cheyenne facility in August 2019, the developer described it as a $ 70 million project.
Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.
