March 2019 Sales Recap OFFICE The Office submarket had several notable sales in March. The largest transaction was 5580 S. Kietzke Lane in Mountain View Corporate Centre in the Meadowood submarket. The 14,670-square foot office building sold for $4,450,000 ($303 p/sf) with a 7.2% cap rate. The property has a new 5-year lease in place with single tenant Carrington College. In another Meadowood submarket sale, DCG represented the seller at 825 Maestro, a 4,312-square foot, fully-leased office building, which traded for $855,000 ($198 p/sf) and a 7.00% cap rate. In Midtown, DCG represented the seller of 551-555 S Center Street, which consists of two parcels, a two-story 8,803-square foot office building and off-street parking that sold for $1,250,000 ($142 p/sf). DCG also represented the buyer of a 4,338-square foot building at 3725 Lakeside, which was acquired for $1,122,500 ($259 p/sf). In another sale, DCG represented the seller of 460 E Plumb Lane, a vacant 6,214-square foot office building, which was purchased for $850,000 ($137 p/sf) by an owner-user, who will occupy 50% of the property as True Real Estate. INDUSTRIAL Industrial sales continued to be slow in March. The most notable transaction was the investment deal at 2401 E. 5th Street with a 1031-exchange buyer. The 13,400-square foot industrial truck terminal building was purchased for $3,150,000 ($235 p/sf) with a 6.97% cap rate and is fully leased to tenant Central Freight Lines, who has occupied the space for over 25 years. In another sale, a 22,208-square foot chemical/oil refinery building leased to Sierra Chemical Company at 2302 Larkin Circle in Sparks sold for $4,919,000 ($22.15 p/sf). The portfolio sale included the adjacent 1.697 acre vacant parcel, which sold for $715,000 ($9.67 p/sf). Lastly, 790 Louise Street near Mill Street with 6,358 square feet sold for $895,000 ($140.77 p/sf). RETAIL The only notable retail sale in March was 55/75 W. Arroyo Street in Midtown where long-term tenants Dunseath Key Co. and El Adobe Restaurant are located. The owners of El Adobe purchased the 6,629-square foot retail building for $1,050,000 ($158 p/sf). LAND Land had several sales in March. The largest deal was RanchHarrah Holdings’ disposition of two parcels totaling 17.08 acres on Talbot Lane to Toll South Reno LLC for $11,000,000 ($14.78 p/sf). S3 Development also had a couple of sizable land acquisitions in March. They acquired five parcels on W. 5th and W. 6th Streets near downtown Reno totaling 10.444 acres for a combined purchase price of $7,676,580 ($16.87 p/sf). One of the parcels has a 16,344-square foot retail building. They have plans for a mixed-use project. In Sparks, S3 Development also purchased 386.87 acres zoned C2 on Highland Pkwy for $8,969,211 ($0.53 p/sf). In Sparks, Avenue 55, a developer from Seattle, Washington, purchased 39.53 acres at 447 Ingenuity Avenue for $4,774,916 ($2.77 p/sf). In North Valleys, three parcels at Mt. Anderson and Mt. Bismark totaling 3.73 acres zoned Neighborhood Commercial (NC) sold for $900,000 ($5.54 p/sf). There were no curb, gutter or utilities to the property. In another sale, three parcels at Highway 395, Lemmon Drive, and Sky Vista Parkway totaling 13.80 acres, zoned Arterial Commercial (AC), traded for $1,650,000 ($2.74 p/sf). In the South Meadows submarket, Scandia Realty Group continued its acquisition of properties with the purchase of 1.62 acres at 9722 S. Virginia Street, zoned Mixed-Use (MU), for $740,000 ($10.49 p/sf). In Midtown, a 0.321-acre multifamily parcel at 441 Cheney Street sold for $305,000 ($69 p/sf). Finally, two parcels with a total of 0.35 acres where Mr. Bubble Car Wash is located at 221 Keystone Avenue traded for $375,000 ($24.60 p/sf). MULTIFAMILY Multifamily sales were slow in March. The only notable sale was the Western Sun Apartments with 48 units at 1090 Rock Blvd in Sparks, which traded for $5,450,000 ($113,542/unit).