In a significant transaction, NorthPoint Development has acquired a cluster of three fully leased industrial buildings in North Las Vegas for $175 million.
This acquisition is part of a trend in Southern Nevada’s industrial market, which is facing a slowdown as prices decline.
The brokerage firm Colliers International announced the purchase, stating that the combined area of the buildings exceeds 1 million square feet.
Among the prominent tenants is e-commerce giant Amazon, highlighting the strategic importance of these properties.
The buildings are situated on 50 acres along Gowan Road near Pecos Road, adding to NorthPoint’s growing portfolio in the region.
Colliers played a critical role in brokering the sale and arranging the financing but has not disclosed the name of the seller.
According to property records, NorthPoint acquired the buildings from Blackstone or its Link Logistics portfolio company, with the transaction closing in early June.
Based in Kansas City, Missouri, NorthPoint is increasingly active in Southern Nevada’s real estate market.
The company previously initiated a project in 2022, breaking ground on a two-building, approximately 2 million-square-foot warehouse complex within Apex Industrial Park, securing footwear brand Hey Dude as a tenant.
At this time, NorthPoint did not respond to inquiries for comment regarding the recent acquisition.
Blackstone, a major player in the real estate market since the mid-2000s bubble burst, also declined to comment.
Link Logistics, formed by Blackstone in 2019, followed suit with no comment on the sale.
The industrial market in Southern Nevada has witnessed an influx of new construction and tenants in recent years, driven primarily by a surge in e-commerce demand.
However, the pace of new construction has recently slowed, highlighted by an increase in available warehouse space last year due to decreasing pre-leasing activities.
John Stater, the Las Vegas research manager for Colliers, stated that the total industrial space under construction dropped significantly, with only 5.65 million square feet reported in the first quarter, compared to nearly 10.9 million square feet a year earlier.
Moreover, the industrial market’s vacancy rate has risen sharply, from 4.5 percent the previous year to 9.1 percent in the first quarter of this year.
While there has been some improvement in pre-leasing activities, it remains notably lower than the levels seen in the past five years.
Accompanying the decline in construction and leasing activity, industrial sales values are also falling.
As landlords take advantage of lower prices, Southern Nevada’s industrial investment sales reached $620 million in the first quarter, covering 3 million square feet across 46 transactions.
This amount of sales activity is nearly equal to last year’s total.
The average sales price for industrial transactions in the first quarter stood at nearly $204 per square foot, down from $209 per square foot last year and $237 per square foot in 2023, as reported by Stater.
NorthPoint’s recent acquisition translates to approximately $167 per square foot, indicating a strategic investment in the current market climate.
Wakeel Rahman, NorthPoint’s executive vice president of acquisitions, expressed optimism about the long-term value of this property portfolio.
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