LAS VEGAS, April 2, 2014 (GLOBE NEWSWIRE) -- Capital Square Realty Advisors, LLC announced today that an affiliate of the company has purchased a 14,378-square-foot CVS retail facility on the Las Vegas Strip.
Located at 2700 S. Las Vegas Blvd., the retail facility is situated on the ground floor of Sky Las Vegas, a 45-story high-rise luxury condominium development on the north end of the Las Vegas Strip.
"This retail facility is 100 percent net leased on a long-term basis to a CVS entity and guaranteed by CVS Caremark Corporation, the largest provider of prescriptions and related healthcare services in the U.S. with an annual revenue base approaching $100 billion per year. The facility also benefits from a strategic location on the rapidly-developing north end of the Las Vegas Strip," said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors.
The property is surrounded by new development activity, including the SLS Las Vegas currently under construction on the site of the former Sahara Hotel & Casino. This 1,600-room boutique resort with an estimated $300 million in construction costs is scheduled to open in 2014. The property is also near Resorts World Las Vegas, currently under construction at the previous site of the Stardust Hotel and Casino. The project is estimated to cost between $2 and $7 billion and is scheduled to open in 2016.
Yogi Singh, vice president of acquisitions, added, "Capital Square placed highly accretive debt on the property based on the credit of the tenant, CVS Caremark Corporation."
"Financing a CVS on the Las Vegas strip provided a unique opportunity for a lender that understands not only the valuation methodology of a credit tenant lease but also the condominium structure," said Adam Levinson, managing director of BGC Capital Partners, who procured the senior debt for Capital Square. "This deal combined both certainty of cash flow from an investment grade tenant and upside from billions of dollars of new development activity in the area."
About Capital Square Realty Advisors LLC
Capital Square Realty Advisors, LLC specializes in the creation and management of commercial real estate investment programs for Section 1031 exchange investors and discretionary (non-1031) investors using the Delaware Statutory Trust structure. Louis J. Rogers, founder and chief executive officer of Capital Square Realty Advisors, has been involved in the creation and management of more than 100 investment offerings totaling over $3 billion, including DST, tenant-in-common, numerous real estate funds, and multiple publicly registered non-traded real estate investment trusts.