ODYSSEY REAL ESTATE CAPITAL ACQUIRES CLASS A
SUBURBAN BUILDING AT CITY CENTER WEST
Odyssey Real Estate Capital acquires a 106,000-square-foot Class A suburban office building at City Center West at U.S. Route 95’s Lake Mead exit.
LAS VEGAS (APRIL 04, 2017) – Odyssey Real Estate Capital, a Las Vegas-based real estate investment firm, is pleased to announce its acquisition of 7251 West Lake Mead Boulevard, one of two identical buildings at City Center West.
The 106,000-square-foot Class A suburban office campus, is conveniently located at the U.S. Route 95’S Lake Mead exit in Las Vegas, Nevada.
Odyssey has capitalized this venture with monies to remodel all of the vacant units and the facility’s common areas and completely refurbish essential building mechanical and HVAC systems. “This building has needed capital, focused attention and some TLC since our market hit bottom after our last recession cycle,” says Odyssey Real Estate partner Dave Sundaram. “It’s one of the best-looking office buildings in Las Vegas with a great freeway off-ramp location, but you can’t get office leasing done unless you have money for tenant improvements and a leasing team that can cut a deal quickly.”
City Center West was built in 1998 and leased to 85 percent occupancy within 24 months of opening. The office market in Summerlin reached its bottom in 2010 with a 70 percent occupancy rate but has recovered substantially to its 87 percent occupancy rate today. Most recently, the South building at City Center West was sold for $29 million in 2005 and the north building for $35 million in 2006.
“This is exactly the kind of value-add opportunity we are targeting,” said Odyssey Real Estate partner Greg Johnson. “Office rents are rising, vacancy is falling steadily, and there is no new speculative office supply planned or under construction. We believe we bought this at the right time in our market cycle.” Odyssey owns and operates 27 commercial properties in Las Vegas and Kansas City.
Leasing efforts will be handled by Patti Dillon, Taber Thill, and Ryan Martin of Colliers International, providing an exciting partnership and expected rapid growth in tenant occupancy. Scheduled improvements include bringing interior finish level to a standard commensurate with Class A offices in Summerlin, including turn-key units with new finishes and a modern office layout. “Our team is extremely excited to be working with Odyssey. We have engaged the best space planning and construction cost consultants in town to speed the leasing process. Odyssey will deliver move-in ready suites in August of this year,” said Ms. Dillon.
Odyssey has purchased one of the two office buildings on the City Center West campus. Both of these buildings went into receivership in the 2013 timeframe. During a receivership, a lender’s trustee is responsible for leasing, designing and building suites for new tenants and for building maintenance. Without access to capital for these purposes, both buildings suffered during this receivership period and competed poorly for new tenants. Odyssey’s acquisition and investment in this property solve this problem.