Dalfen America Corp (DAC) has sold Decatur Bell Commerce Center, Hacienda Crossing and Pace Commerce Center located in Las Vegas, Nevada.
With a combined square footage of 172,236 square feet, the properties, held through DAC’s Ashrei I Opportunistic Industrial Fund, were sold to FJM Vegas Holdings for a combined purchase price of over USD14 million.
“We will continue to actively acquire properties throughout the Las Vegas market, through both our core plus and opportunistic industrial investment platforms. Some people say Vegas is coming back, we believe that it’s been back for some time and will only continue to grow,” says Sean Dalfen, DAC’s managing principal and chief investment officer.
In 2011, DAC acquired the non-performing notes on Decatur Bell Commerce Center and Pace Commerce Center for USD4.2 million and took ownership of these properties through deed in lieu a few months later. DAC’s subsequent focus was on creating value through significant capital investments, improving the assets, market presence and raising the 13 per cent occupancy rate to 88 per cent at time of sale.
In late 2012 DAC purchased Hacienda Crossing from special servicer C3, who had taken ownership of the property through foreclosure. Through two years of hands on management and proactive leasing the occupancy of the overall project increased from the initial 26 per cent to 90 per cent at the time of sale.
“Having acquired the defaulted loans on what were neglected and virtually vacant buildings, our asset management team did an outstanding job of transforming the properties. Through proactive leasing and capital improvements, we were able to sell what had become a fully occupied, high quality and exceptionally well located portfolio,” Dalfen says.