Las Vegas Commercial Real Estate

Last week, the Echelon Place officially got under way. Located south of Circus Circus, the 87-acre development is expected to hold approximately 5,000 hotel rooms, 750,000 sf of convention and meeting space, 300,000 sf of retail, two live entertainment venues, 30 dining and nightlife venues and a 140,000-sf casino.

The total estimated development cost is $4.8 billion, up from a previous estimate of $4.4 billion. Initial completion for 65 of the 87 acres is slated for the third quarter 2010.

Earlier this month, Building 3 and Building 5, in the Siena Office Park changed hands. The transaction price involving more that 101,000 square feet of space between the two buildings was approximately $42 million. Major tenants located in the two buildings include HQ Global Workplaces Inc., National University and Countrywide Home Loan. Overall occupancy is currently 91%.

GlobeSt.com is reporting that Triple Net Properties acquired the two low-rise buildings on behalf of tenant-in-common investors. Initially, Triple Net took a significant position in the properties but has since sold additional stakes in the assets to additional 1031 exchange investors.

Last week, the City Council approved plans for an 85-acre development along the West side of Main Street. The project would include more than 9,000 hotel, timeshare and condo units, 3.5 million sf of permanent exhibition space, 1.2 million sf of commercial/retail space, a 22,000-seat sports arena and 300,000 sf of gaming area.

The developer, Real Estate Interests Group has the property under contract to close later this year. The group has also secured senior debt financing and expects to start moving dirt next year for the first phase of the project.

While the land cost has not been disclosed, the estimated construction budget is projected to be $8.5 million. The project’s total value upon completion is estimated at $9.5 billion.

AIM Development has sold its strip center at 1725 E. Warm Springs Road to California-based Russ Properties LLC. The center was acquired by AIM in 2004 for approximately $3.8M. It was sold to Russ Properties for $7.49M, or approximately $307 per square foot.

The 24,366-square-foot center was built in 1992 and sits on 1.78 acres. Among the current tenants are Chris’s Place Food and Freedom Medical Supply and Equipment.

Crossroads Malcai LLC has sold the Crossroads Plaza located at 9435 W. Tropicana Ave. The buyer, Birkleland Family LLC I and IV purchased the retail shopping center for $37 million, or approximately $320 per square foot at a 6.3% cap rate.

The neighborhood retail center totals 115,723 square feet and sits on 11.87 acres. It was built in 2002.