Office
Dental office sales were the theme in January. There were 8 total office buildings that traded hands in January, three of which were dental offices. The Largest sale was a 6,911-square foot building at 757 W. 7th Street in Northwest Reno that sold for $925,000 ($134 p/sf), the second largest was a 6,678-square foot building located at 850 I Street in Sparks that sold for $840,000 ($126 p/sf), and the last was a 2,079-square foot building at 465 W. Peckham in Central Reno that sold for $525,000 ($253 p/sf).
In professional office, the largest sale was a 4,144-square foot office building at 410 California Ave near the Arlington intersection that sold for $675,000 ($161 p/sf).
Industrial
Industrial had 5 sales in the month of January. All but one were investment deals. The largest warehouse deal was the building at 325 E. Nugget Drive in the Sparks Submarket. The building traded for $8,400,000 ($52 p/sf), the main tenant is the beverage company, New West Distributing. Also, a two-building flex property sold to an investor from Chico, CA. The buildings were located at 5475 Reno Corporate Drive in the Airport Submarket. This was a sale/leaseback transaction of 5,672 square feet, that closed escrow at a reported 7% cap rate or $1,548,150 ($273 p/sf).
Also, there were two self-storage facilities that traded hands. The largest was Panther Storage in North Valleys that sold for $11,031,155 and had just under 800 units. The second was Stor-It in Sun Valleys that sold for $2,394,041.
Retail
Retail had a very average month with 7 sales, and only two sales over the $1,000,000 mark. The largest sale was a 9,301-square foot Dollar General Store in Sun Valley that traded for a 6.24% cap rate or $2,500,000 ($269 p/sf).The deal was purchased by ISC Real Estate and the tenant has11 years of term remaining.
A few redevelopment/value-add deals were also completed; Vince Griffith of Reno Engineering bought the former Oakman's Furniture Store on the corner of Ryland and Wells for $900,000 ($72 p/sf) and the former Skyline Market traded hands to a local group preparing to do a restaurant/bar concept at the building. The paid $485,000 ($56 p/sf). The last notable sale was the Nevada Co-Op building at 240 Court Street which sold in an off-market transaction for $1,450,000 ($178 p/sf).
Land
Our land market did not slowdown in January, which is a good sign for continued development. DR Horton made a couple notable acquisitions in January, including the purchase of 181 acres in East Verdi at the base of Peavine Mountain. The national home builder paid $11,493,973 for the raw, rolling land located in the unincorporated area of Washoe County. There were no utilities to the site. The proposed use for the land is single-family development, including approximately 320 homes in different sizes andprice ranges. Also, DR Horton bought 105 final mapped lots $3,000,000 ($28,571)in the Ladera Ranch Development just north of TMCC.
Also, local builder/developer Desert Winds bought 3 parcels totaling 5 acres along S. Virginia and Sierra Manor. The zoning is Low Density Suburban and Mixed Use and the purchase price was
$1,300,000 ($6 p/sf)
Multifamily
Multifamily had a slower month with only a handful of sales. The largest sale was brokered by DCG and was a portfolio of student housing across from UNR. The sale consisted of 24 units that traded for $2,995,545 ($124,814 p/unit). And the Cap Rate was 5.25%. DCG represented the seller in the transaction. The only other notable sale was a 16-unit building at 460 E. Grove Street. The building traded for $960,000 ($60,000), which was reported as an 8.52% cap rate on the existing income.
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