New warehouse project in North Las Vegas sells for $271.5 million

One of two industrial buildings recently sold by developer CapRock at 5802 East Tropical Parkwa ...

A new warehouse project in North Las Vegas has sold for more than $270 million as Southern Nevada’s industrial market keeps heating up.

Developer CapRock Partners announced that it sold two warehouses spanning 1.1 million square feet along Tropical Parkway off Interstate 15, near Las Vegas Motor Speedway.

The buildings, which comprise the first phase of the CapRock Tropical Logistics complex, are fully leased. The larger of the two buildings, at 857,000 square feet, is occupied by e-commerce giant Amazon.

CapRock did not announce the sales price or the buyer, though property records indicate that Boston investment firm Eaton Vance acquired the two buildings in mid-April for $271.5 million.

A spokeswoman for Eaton Vance did not respond to requests for comment.

The seller also said it is under construction on the second phase of the logistics complex, comprising three buildings that will span 443,000 square feet total.

Taylor Arnett, first vice president of acquisitions at Newport Beach, California-based CapRock, said the firm is seeing strong leasing activity with the new portion.

“We’ve got active proposals on every building,” he told the Review-Journal.

Southern Nevada’s industrial market has ramped up after the coronavirus pandemic sparked an accelerated shift to online shopping that has fueled demand for distribution space. Developers have pushed ahead with numerous new projects, landlords have bought more buildings, and companies have been taking more space.

More than 8 million square feet of industrial space was under construction in the Las Vegas area in the first quarter, up from 5.45 million during the same period last year, and the market’s vacancy rate fell to a record-low 1.7 percent, brokerage Colliers International reported.

Among the valley’s submarkets, North Las Vegas’ vacancy rate was just 0.4 percent, according to Colliers.

“Demand is for sure outstripping supply,” Arnett said.

He said pricing, including for land and buildings, is “a little bit frothy,” but there is “no sign” of tenant demand slowing down, and investor appetite for industrial buildings is “as strong as it’s ever been.”

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.