Western Real Estate Business

MAY 2017

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

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www.REBusinessOnline.com Western Real Estate Business • May 2017 • 51 While certain sections of Henderson and Reno have picked up steam in the healthcare sector, Las Vegas seems to have slowed down a bit — at least compared to a few years ago. CBRE's Las Vegas office was hard at work on a flurry of new leases and acquisi- tions in the valley in September 2015. This included three leases for Coast Dental; the $26.7 million sale of the 35,000-square-foot Veterans Adminis- tration Building at 3968 Rancho Drive in Las Vegas; and the $710,000 sale of three MOBs near St. Rose De Lima Hospital in Henderson. CBRE's Marlene Fujita Winkel, who participated in all three of these transactions alongside other team members, noted that opportunity was scarce even back then for valley-wide healthcare real estate. "There are very few trades of medi- cal office buildings in our market as investors realize the more stable in- vestment of owning medical office when compared with other product types," she says. "Tenants spend sig- nificantly more dollars per square foot on tenant improvements, their pa- tients don't like change and changing locations becomes a true disruption to a doctor's business. The returns on medical office buildings may not be as high as office or retail, but the risk tends to be worth the price." Building a Healthy Future Tellefson also notes that some inves- tors can shy away from assets in areas like Pahrump or other cities on the outskirts of Nevada's larger metros as they assume the demand is not there or the deal will be too complex. This can be faulty logic, however. "Projects in smaller, less-populated areas can be slightly more challenging to work on," he admits. "However, healthcare services are required by ev- eryone — no matter the geography — so these tertiary market assets are typ- ically not a problem to finance. We've seen and worked on several assets in Nevada, which has more unpopulat- ed and undeveloped areas." Case in point is Post Acute Medical (PAM) LLC's recent groundbreaking on the 45-bed PAM Rehabilitation of Centennial Hills, about 15 miles north of Las Vegas. While the area is one of the valley's last populated regions be- fore heading out of town, its need for conveniently located services has re- sulted in the Centennial Hills Center, a 24.3-acre mixed-use development offering medical and professional of- fices. The center is just three-quarters of a mile from the 190-bed Centen- nial Hills Hospital. It was developed by Sina Companies LLC and IREPLV LLC. Centennial Hills Center will house the build-to-suit rehab hospital, which will be the first PAM facility in Nevada. The center's other notable medical tenants include Humana, Healthcare Partners of Nevada, Retina Consultants of Nevada, Canyon Oral and Facial Surgery and Advanced EyeCare. A growing population also means certain existing specialized facilities, such as the Blind Center of Nevada, can quickly outgrow its space as more people need its services. That's why it recently received a $3 million grant from the Engelstad Family Founda- tion to build a new 36,000-square-foot building at 1001 N. Bruce in Las Vegas. The $7 million facility will also allow the company to utilize the new space for weddings, concerts and plays as it focuses on the personal development, social interaction and prudent living arrangements for the valley's blind or visually impaired community. The project broke ground in late April and is scheduled for comple- tion this September. It is being built by Alston Construction Company. The building will replace the current 8,000-square-foot employment build- ing constructed in 1960. Getting health-, wellness- and assis- tance-related projects off the ground in Nevada not only benefits investors, developers and project participants, but the larger community as a whole. And we all know a healthy commu- nity is a key component to a healthy, successful market. "The community has shown great support for this incredible project," the organization notes. "Future en- deavors made possible by a new building will include event planning, catering, audio engineering, a call cen- ter and America's first culinary arts academy for people who are blind. This is the vision for a great future for those without sight in Nevada." n InterFace Retail Investment & Finance is a national information and networking conference bringing together the leading buyers and sellers of retail real estate as well as the capital sources, lenders and intermediaries financing the transactions. This one-day event will take place October 4th in New York City and attract institutional, opportunity fund, REIT, private capital and overseas owners, investors and developers, leading investment sales professionals, top commercial banks, credit companies, LICs and mortgage banks. For sponsorship information, contact Scott France: (404) 832-8262 • scott@francemediainc.com For speaking information, contact Richard Kelley: (914) 468-0818 • rkelley@francemediainc.com For registration information, contact Alicia Lewis: (404) 832-8262 • alewis@francemediainc.com www.interfaceconferencegroup.com Presents... October 4th • New York City Bar Association • New York InterFace RETAIL INVESTMENT & FINANCE Early Bird Registration Rate of $495 Available Until August 18th If you invest or finance retail real estate, this will be a can't miss event!

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