The property is prominently located within the Sunset Plaza Shopping Center at 1030 W. Sunset Road, near Interstate 515, and contains approximately 102,370 square feet of building area on 9.07 acres. Built in 1992, the property is surrounded by many leading national retailers, which provides a strong consumer draw to the intersection. These include a Walmart Supercenter, Kohl’s, and Forest City’s highly successful Galleria at Sunset super-regional mall.
LBG acquired the Home Depot-leased property in December of 2012. The plan going into the purchase was to extend the base lease term of the Home Depot. LBG was able to perform a “blend and extend” to stabilize the asset for the long-term and add value to the property.
LBG is led by principals’ Douglas Beiswenger, David Goldman, and Leslie Lundin.
Commenting on the property, Lundin said, “Knowing that Home Depot would not vacate the property based on LBG’s knowledge of the Henderson retail market and available developable land in the submarket that would be suitable for Home Depot, this acquisition provided a unique opportunity for LBG to acquire a strong single-tenant property on a short-term below-market-rent lease and do a ‘blend and extend’ to create value.”
Goldman added, “In late 2012, the retail market in Las Vegas was turning up and we knew that this prime property and core market would only continue to improve in the years to come. We also believed that the building in this A+ location could be easily re-tenanted, potentially under even more favorable economics, if Home Depot decided to vacate in five years.”
“In 2012, we saw improvements in the Las Vegas market but remained very concerned about its housing market crash,” said Russ Bates, head of the Americas of the Global Indirect Real Estate team of Aviva Investors.”Through our joint venture program, which allows us to partner with best-in-class operators, we partnered with LBG to acquire a mismanaged retail asset with an outstanding tenant and located in an excellent, mature retail market. This combination of purchasing at a deep value, earning solid cash flow and strong management by our partner led to great results.”
LBG Real Estate Companies, LLC is a privately-held real estate company that specializes in the acquisition, investment and development of commercial real estate in the United States with a focus on opportunistic retail investments. LBG’s key objective is to generate superior risk adjusted returns through value creation and income appreciation while minimizing risk. Each principal has over 20 years’ experience in commercial real estate, specializing in retail throughout their careers. Experienced with all major property types and geographic regions, LBG’s principals have executed on over 100 transactions, all opportunistic.