Greystone Office Park
Las Vegas, NV
Capitalizing on a failed assignment.
Greystone Office Park is a 220,000 SF, 73-percent occupied, 5-building office park in Las Vegas, NV. Clark County occupies over 45% of the project. The deal was under contract twice, at approximately $22M but ultimately did not transact either time.
We took over the assignment in late December 2018 and closed escrow in July 2019 at $27M – over $5M more than the highest offer secured during any previous marketing effort. Moreover, the buyer ended up being the anchor-tenant: Clark County, who had not been previously engaged during the prior rounds of marketing. Clark County as a tenant had an above-market rent that was scheduled to drop significantly in 2022 per a new lease agreement. Given that the county accounted for such a large percentage of the income, it was important for us to point out this fact in our underwriting and marketing at the outset.
Clark County required a very extensive due diligence process spanning more than 120 days and in excess of 75 site visits from a myriad of vendors. In addition, securing ultimate approval to purchase and close escrow would require multiple rounds of committee meetings, hearings, and votes. The seller was very apprehensive about selecting Clark County as the buyer and they were contemplating taking a lesser offer with a perceived higher surety of closing. Through interviews, careful research and evaluation of the seller’s most important objectives, we were confident that despite the extensive due diligence period, Clark County was the best buyer at the table. We were ultimately successful in guiding the seller to the best buyer. We accomplished this by very carefully managing timing expectations from the beginning and working diligently to communicate clearly between all parties in order to successfully navigate the complicated process of selling to a government entity.
The Greystone Office Park sale perfectly illustrates a situation where we were successful in disposing of an asset that had been an extremely challenging assignment, and as a result, had not transacted on the market previously. This success was accomplished by a combination of educating the market properly on the asset and engaging buyers missed out by the previous marketing efforts.
total sqft: 220,000 SF
location: Las Vegas, NV