Real Estate Business Online reported that TNP Strategic Retail Trust has acquired a North Las Vegas retail center for $12.8 million. According to REBO, the property was purchased from an undisclosed seller at a 44 percent discount from the property's original loan balance, but it appears that an affiliate of CW Capital, the special servicer on the loan, was the seller.
REBO also said that the purchase price equated to an 8.09 percent capitalization rate, but it was not clear whether the 8.09% cap rate was a going forward "pro-forma" cap rate, or an 8.09% cap rate on in place numbers. If the 8.09% cap rate was on in place numbers, and if the purchase price included all of TNP's acquisition costs and fees, then this would clearly be an accretive acquisition for the REIT. If not, then more of the same...
Craig Promenade was constructed in 2005 and is located in the city's Craig Road corridor. The property was 77.5 percent "leased" at the time of closing, according to a statement issued by Thompson National properties today. By using the term "leased" rather than "occupied" (assuming that term was used deliberately rather than by mistake) the statement implies that there is a tenant on the way in, or a tenant on the way out. However, based on the available space reported on the Craig Promenade Sales Flyer, which is undated, it's hard to determine which. The property was reportedly 73% occupied in April, 2008.
Craig Promenade is currently anchored by Big Lots!, as discount retailer, under a triple net lease with approximately five years remaining. Additional tenants include Party Pro, Carl's Jr., MetroPCS and Popeye's Louisiana Kitchen. Craig Promenade consists of one 91,750-square-foot building, along with 17,500 square feet of raw land that could be sold, ground leased or developed in the future. Right on!
This is TNP REIT's fifth acquisition. Thompson National Properties already has retail holdings in the Las Vegas market including Buffalo Square, a 176,508-square-foot center located at 7500 W. Washington Ave, and it owns several industrial, office and multifamily buildings.