Chicago-based General Growth Properties entered into a joint venture with TIAA Global Asset Management on GGP’s Fashion Show Mall property on the Las Vegas Strip.
“Fashion Show is a one-of-a-kind asset,” GGP CEO Sandeep Mathrani said on a recent earnings call, GlobeSt.com reported. “Over the past several years the GGP team has successfully re-tenanted several anchor boxes, bringing in Macy’s Men’s, Urban Outfitters and Dick’s Sporting Goods. We brought to life the boulevard entrance bringing a number of new dining and leisure options.”
TIAA will own a 50 percent stake in the property assessed at approximately $2.5 billion, of which it paid $1.25 billion, as reported on crenews.com.
TIAA has nearly $24 billion in assets under management. In 2013, the group purchased a nearly 50 percent stake in the Grand Canal Shoppes inside The Venetian and Palazzo, according to a release by GGP.
“We have a longstanding relationship with GGP in terms of both debt and equity investments,” said Mike Fisk, senior director of TIAA, who spearheaded the transaction, reported GlobeSt.com.
Fashion Show Mall was developed in 1981 and has gone through several renovations. It contains 1.87 million square feet of space on 48 acres, according to GlobeSt.
Fisk said he sees a lot of potential in the Fashion Show holding.
“With multiple new development projects immediately planned for the area north of the property, thousands of additional hotel rooms and new casinos will further increase traffic flow,” Fisk said.
Another industrial building for North Las Vegas
Reno-based Dermody Properties, a developer and owner-operator of industrial real estate, in August announced the start of construction on its 550,000-square-foot LogistiCenter at Las Vegas Boulevard project in North Las Vegas.
“We are pleased to be starting construction on another facility in Las Vegas,” said George Condon, a partner in Dermody Properties’ west region office. “It is a highly desired market, particularly for Internet fulfillment centers and e-commerce companies, and we expect LogistiCenter at Las Vegas Boulevard will be fully leased shortly after construction is complete.”
The LogistiCenter project will feature a 36-foot clear height and above-standard auto and trailer parking.
The construction start follows the completion of Dermody’s 381,804-square-foot, fully leased LogistiCenter at Cheyenne, which it completed this year.
LogistiCenter at Las Vegas Boulevard is being represented by Dan Doherty, executive vice president, and Susan Borst, senior vice president at Colliers International Las Vegas’ industrial division.
Bakery plans commercial operation in Henderson
Berwyn, Illinois-based Turano Baking Co. purchased just over 32 acres at Volunteer Boulevard and Bermuda Road in Henderson to build a 125,000-square-foot wholesale commercial bakery.
According to CoStar.com, Turano, which has produced artisan-style breads for more than five decades, purchased the parcel for $6 million, or about $185,758 per acre, from the city of Henderson in recent months.
The bakery has plans for expansion across several phases, the report said.
Real estate investment trust purchases storage facility
Ladera Ranch, California-based SmartStop Asset Management LLC, sponsor of Strategic Storage Trust II Inc., a real estate investment trust, in early August announced the purchase of a self-storage facility at 590 E. Silverado Blvd. in Las Vegas.
“This facility is located in a densely populated market with excellent access,” said H. Michael Schwartz, chairman and chief executive of Strategic Storage Trust II. “We look forward to providing class A service to our tenants and customers.”
The facility contains 90,000 square feet of space and 745 units. The four-building facility is situated on 3.45 acres and is 85 percent occupied, according to a release from Strategic Storage.
Nonresidential construction prices remain stable
Nonresidential construction input prices remained unchanged in July on a month-to-month basis, but fell 2.3 percent from the same period in 2015, according to an analysis of the Bureau of Labor Statistics Producer Price Index by Associated Builders and Contractors.
“ABC has been predicting relative stability in input prices, and that is precisely what July’s report delivered,” said ABC Chief Economist Anirban Basu. “A weak and disappointing global economy has not been able to drag prices higher.”
Basu said, “Persistently low prices have placed a lid on the quantity supplied in many input categories, which has helped prevent widespread materials price declines recently. The result has been that many input prices have remained within a tight range after a period of remarkable volatility.”
Of 11 key inputs used in the delivery of construction services in the U.S., only crude petroleum experienced a loss, decreasing by 6.1 percent from June to July. Crude petroleum was also down more than 14 percent in July over the same period in 2015.