Sunday, December 16, 2007

Station Casinos Completes $70.3 Million Sale Leaseback of Las Vegas HQ

Las Vegas Business Press - December 14, 2007

The Cole Cos. recently acquired Station Casinos' corporate headquarters in a purchase-leaseback transaction. The Phoenix-based firm paid $70.3 million, or $507 per square foot, for the three-level Class A office building at 1011 S. Pavilion Center Dr. in Summerlin. The 138,558 square-foot structure, designed by Gensler of Nevada, rests on three acres adjacent to the Red Rock Casino Resort.

Station Casinos signed a 20-year, triple-net lease to occupy the building. Rental rates were not disclosed. The new glass, steel and stone structure cost $64.2 million to construct earlier this year, with occupancy starting in September. The sale gives the locals gaming company a much needed cash infusion after going private in an $8.9 billion transaction last month.

Las Vegas employers are on track to add 11,200 positions this year for a 1.2 percent overall job growth. Class A space, meanwhile, had the lowest vacancy rate of all local office products in the third quarter, reports Applied Analysis, a local economic advisory firm. It also commanded the highest rents at $2.86 per square-foot or 48 cents more than valley-wide average.

"The valley's west submarket had only seven Class A office buildings in the third quarter, totaling less than a million square feet," said Brian Gordon, principal of Applied Analysis. "It has created a pent-up demand for that area resulting in a low 4.1 vacancy rate." Sphere: Related Content

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