Capital Square Realty Advisors’ (CSRA) Delaware Statutory Trust (DST) investment offering, which encompasses a CVS Pharmacy-occupied location on the Las Vegas Strip, is now fully subscribed by investors. The purchase of the 15,000 square-foot facility was announced by CSRA in early April of this year.
The unit, 100% net leased to CVS, is positioned on the ground floor of a 45-story luxury condo development, Sky Las Vegas.
“This retail facility is 100 percent net leased to a CVS entity and benefits from its location on the north end of the Las Vegas Strip, presenting the store with high car and foot traffic,” said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors.
In addition to foot traffic from the Sky Las Vegas residents, this location will benefit from future visitors from neighboring developments underway. For example, the SLS Las Vegas, a 1,600-room boutique resort, is scheduled to open sometime in 2014.
Vegas, an area avoided by real estate investors after the market crashed, now benefits from renewed interest. Just recently, Blackstone, the world’s largest alternatives investor, agreed to purchase the two tower Cosmopolitan complex on the strip for $1.73 billion.
In a statement to Bloomberg, Charles Moore, property broker with CBRE Group Inc, commented that Blackstone’s purchase is “a big signal” and that “It raises eyebrows and awareness that Las Vegas is back.” Blackstone already owns single family rental units and an office complex in the gambling capital of the world.
The Clark County Recorder’s office shows that the property leased by CVS was sold by Sky Las Vegas Condominiums, Inc. and has a value of $33,275,000.
With CSRA announcing last week the closing of their seventh DST offering, today’s announcement indicates investors have an appetite for this type of investment structure.
“There is growing demand from investors seeking to benefit from ownership of investment-grade real estate through the DST structure. Capital Square looks forward to continuing to provide investors with high quality investment options such as this CVS facility,” added Rogers.