November 5, 2019— CapRock Partners, one of the fastest growing private industrial investment and development firms focused solely on the Western U.S., announced today that it has broken ground on Interchange Industrial Center, a 683,000-square-foot Class A industrial complex in North Las Vegas. The industrial development, which was purchased from a private investor in July 2019 is situated on a 33-acre parcel located at the intersection of the I-15 and I-215. Interchange Industrial Center is CapRock’s first ground-up development outside of California and underscores the firm’s strategic growth initiative into key Western markets beyond California, including Nevada and Arizona.
“Las Vegas is growing to become a significant regional industrial and logistics hub in the U.S. supported by the area’s skyrocketing population growth and lower cost of living for warehouse laborers, in addition to the well-established transport infrastructure connecting to the ports of Long Beach and Los Angeles in California,” said Taylor Arnett, vice president of acquisitions at CapRock Partners. “We’ve specifically zeroed in on the North Las Vegas submarket due to the area’s strong leasing velocity from credit tenants over the last three years, the amount of institutional investors established in the area, and the lack of available sizeable parcels compatible with big box development in an area that is relatively land-constrained.”
Designed with the highest industrial standards, Interchange Industrial Center will consist of two class-A industrial buildings, including an approximately 509,000-square-foot, cross-dock warehouse designed for a Fortune 1000-caliber tenant and an approximately 173,000-square-foot warehouse that can accommodate a single tenant or be demised for up to four tenants. Other state-of-the-art features include 32- to 36-foot clear building heights, ESFR sprinklers, 115 trailer parking stalls and 100% concrete 185-foot secured truck courts. Construction is expected to be completed by late summer 2020 and CapRock is currently exploring a variety of lease and sale options with potential tenants.
Interchange Industrial Center benefits from prime visibility from the I-15 freeway and is less than a quarter mile from the Tropical Parkway on/off-ramp. The property is minutes from the Las Vegas Strip and McCarran International Airport and within a single day’s truck turnaround to the Long Beach and Los Angeles Ports. It is surrounded by other logistics and distribution facilities occupied by high-quality tenants such as Amazon, Bed Bath & Beyond, Sephora, Fanatics, Honest Company, TJ Maxx, Paccar, and Dr. Pepper Snapple.
“CapRock Partners is bullish on the Las Vegas Valley region and sees it as a critical component to our overall growth strategy,” says Jon Pharris, CapRock’s co-founder and president. “Our team is excited to expand its reach and flex its development capabilities beyond Southern California. This groundbreaking not only marks the beginning of CapRock’s investment in the Las Vegas market, but also an opportunity for the company to bring a new modern, institutional-grade large-scale industrial facility to the region.”
As part of its value-add strategy, CapRock recently purchased Walnut Business Park, a 94,000-square-foot Class A multi-tenant business park also in the North Las Vegas submarket. Previously, the firm acquired a portfolio of three business parks totaling 275,000 square feet in the premier Southwest Las Vegas submarket. After purchasing the portfolio in 2017, CapRock repositioned the business parks through an all-encompassing improvement plan to enhance the buildings’ aesthetic and functionality, stabilized the buildings through lease up, and recently put them back on the market for sale.
Since its initial acquisition in 2010, CapRock has acquired, developed, or has in its pipeline approximately 17.5 million total square feet valued at $1.9 billion.