450 Sutro Street/1250 E. 6th Street, Reno, NV (Sutro Industrial Center)
Value-Add and Infill Industrial
Acquired in February 2019

28,520 SF warehouse (2 buildings) on 59,242 SF (1.36 acres) of land; 48% coverage
Located on a prime corner a few blocks from I-80 on/offramps and minutes from I-580 and downtown Reno.

Property was vacant and in very poor condition at purchase. Complete renovation included new roof, modernized interior with new restrooms, sprinklers, lighting, paint and asphalt.

Signed a single tenant to lease both buildings on the day after the close of escrow. This allowed for a conventional mortgage, a quick payoff of Seller financing, and a meaningful initial distribution. After five years of occupancy, tenant renewed for an additional five years. Rent was increased to a level near (but below) market rates, leading to a significant increase in cash flow.

Reno is experiencing strong population and job growth due to its location in general (I-80/Tahoe) as well as tax, business climate and cost of living advantages. Tied to this is a relatively recent surge in demand for space from technology companies (and entities servicing them) combined with a supply constrained industrial market and with minimal land to develop warehouse space in close-in locations surrounding the airport and downtown.