Dornin Investment Group (“DIG”) is thrilled to announce its latest strategic acquisition of two multi-tenant light industrial buildings in the thriving industrial market of Reno (Sparks), Nevada. The properties, comprising 42,727 SF, are located at 385-395 Freeport Boulevard, Sparks, NV 89431. The Project presents a rare opportunity to acquire a true off-market value-add light industrial asset in the supply constrained, dynamic Sparks submarket. DIG intends to take advantage of the high drive-around visibility at the corner property and apply mostly cosmetic updates to position the asset for the next 20 years. Renovating existing infrastructure and refreshing the exterior is projected to give additional tailwinds to the tight market fundamentals including 6.3% annual submarket rent growth over the last 10 years and an existing 3% vacancy for unit size. Michael Keating, SIOR of LOGIC Commercial Real Estate, who represented the seller said, “I appreciate working with the Dornin Investment Group on the successful close of transaction. Freeport was an off market opportunity presented to the buyers, and a great example of collaboration. I’d like to thank DIG for working with us on this and looking forward to future transactions." The 33-unit and 33 ground loading roll-up door project is effectively 100% leased to 27 tenants at rents that are on average 40% below market. All leases will roll within three years. The largest tenant comprises 11% of the net rentable area and has been there for more than 10 years. Clear heights are 14’ and office exposure is estimated at 5% for 385 and 10% for 395. The acquisition represents another addition to DIG's growing industrial portfolio and exemplifies the company's commitment to investing in prime real estate opportunities across the Southwest. DIG is on track to complete its goal of acquiring $300M of light industrial assets over a 24 month period. This acquisition represents DIG’s third light industrial investment this year with JV Partner, Sundance Bay. DIG is pursuing several other off-market and listed opportunities and has a robust pipeline heading into 2024. Philip R Smith, Director of Acquisitions, remarked, “We are excited about the opportunity to enter greater Reno’s industrial market. The market is shaped by solid fundamentals and could benefit from the institutional value-add experience we bring to the table.” Lance Frame headed up the acquisition team with Sundance Bay. John Marshall at JLL arranged the joint venture equity partnership. Bill Simpson arranged attractive debt financing with East West Bank. Mark Nicoletti, Maxwell Shapiro, and Julia Lewitt of Allen Matkins provided legal expertise. Devon Victoria at Chicago Title Insurance Company - National Commercial Services | Chicago provided title and escrow services. www.dorningroup.com www.sundancebay.com DIG Acquisitions Team: Chris Dornin Philip R Smith Tyson Bryan #DIG #CRE #realestate #industrial #nevada #sparks #reno #sold
