UFC-occupied buildings in Las Vegas sell for $23.6M
Two buildings on West Sunset Road, which are 70 percent occupied by the Ultimate Fighting Championship, have sold to a California-based investor for $23.6 million, according to Clark County property records.
Sunset 215 West, a two-building industrial portfolio built for corporate office and industrial warehouse use, has sold to Southern California-based GF Properties, said Colliers West Industrial Capital, which represented both the buyer and seller in deal.
The seller was Dallas-based Dalfen Industrial, according to property records.
Colliers West Industrial Capital Markets Vice Chair Michael Kendall said the transaction is part of a growing movement within the industry.
“The buyer, who was in a 1031 exchange, is representative of a wave of California-based investors seeking to place capital out of state,” said Kendall in a news release on the sale. “With strong leasing fundamentals and a favorable legislative environment towards industrial businesses, Las Vegas has been a highly targeted location for investors interested in diversifying their portfolio.”
A 1031 exchange is a swap of one real estate investment property for another that allows capital gains taxes to be deferred.
According to Colliers, Sunset 215 West was completed in 2017 and spans approximately 80,000 square feet. Building one is 35,000 square feet and 100 percent leased by a single tenant and the second building is comprised of 45,000 square feet and fully leased to two tenants. Colliers said the UFC occupies about 70 percent of the complex.
The southwest submarket is one of the fastest-growing areas in the entire valley as a wave of commercial, residential and multifamily projects have either been recently completed, broken ground or are expected to be completed within the next few years.
“While the vacancy rate across the entirety of the Las Vegas industrial market sits at 7.0 percent, the vacancy rate in the southwest submarket, where Sunset 215 West is located, currently stands at 2.3 percent,” Colliers said in the release. “The submarket has enjoyed over one million square feet of positive net absorption through Q3 of 2024 and benefits from proximity to major transportation infrastructure such as the I-215 freeway and Harry Reid International Airport.”
A previous version of this story included the incorrect buyer’s name.
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.