Dornin Investment Group Acquires 20 building Northern NV Industrial Portfolio for approximately $70MM
BISWIRE/April 19, 2024 — Dornin Investment Group (“DIG”) is pleased to announce the acquisition of a 20 building 413,172 SF portfolio of light industrial properties in Reno/Sparks, Nevada and select retail and medical office assets in Northwest Reno, Nevada.
The comprehensive 20-building portfolio totaling 413,172 square feet was sourced off-market after purchasing two adjacent light industrial buildings in December 2024 and came to fruition through a long-standing relationship with The Ribeiro Companies as a tenant over a decade ago.
DIG CEO, Chris Dornin remarks, “Mr. Ribeiro and his team have set a remarkably high standard of how to carry properties from development to multiple decades of stewardship. The Ribeiro Companies has an incredible reputation throughout Nevada and it’s evident in the condition of the buildings, the quality of the rent roll, and the team’s professionalism throughout the transaction. We look forward to carrying on the Quail’s legacy in the region.”
The majority of buildings were constructed between 1977 and 1991, with retail assets built in 2005-2006. The portfolio collectively has over 180 total tenants with a median unit size of 1,640 SF. The office buildout of the warehouse units is 21.7%. The industrial building clear heights range 12-16 feet. Given the diversity of unit sizes, building proximity, and thoughtful ownership, the portfolio has helped tenants to “grow” in the buildings as their businesses expand, enabling tenants to take on additional space and combine spaces as circumstances permit. The average tenancy has been in place since 2019 with some tenants in place since 1994. At acquisition, rents were on average 30.5% below market rates and had a WALT of approximately one year.
The Reno/Sparks industrial submarket is underpinned by robust market fundamentals, including a mere 3% vacancy rate for the sub 5,000 SF spaces and a remarkable 6.6% annual rent growth over the past decade.
DIG’s business plan focuses on rolling rents to market, addressing specific capital improvement items, and implementing targeted cosmetic upgrades. The properties, despite their age, have been well maintained with limited deferred maintenance. DIG overcame varying obstacles inclusive of transactions with 10 distinct entities, 20 buildings across product types and varying unit sizes; a ground lease, seller carry debt structure, minor environmental exposure, and multiple rolling leases through closing. DIG capitalized the transaction with seller financing and bridged high net worth capital with equity from Prime Finance.
Commenting on the acquisition, Philip Smith, Director of Acquisitions at Dornin Investment Group, stated, "We are thrilled to add this portfolio to our expanding real estate investment portfolio. The acquisition aligns with our strategic vision of acquiring well-located industrial assets with strong upside potential in dynamic markets. Ed Yuill and Autumn Gardner with The Ribeiro Companies helped make a smooth transition on this complex transaction.”
Mark Nicoletti, Maxwell Shapiro, and Julia Lewitt of Allen Matkins provided legal expertise and were instrumental throughout the complicated transaction.
Addresses of Properties Purchased:
745/755 E Greg Street, Sparks, NV 89431
50/150 Freeport Boulevard, Sparks, NV 89431
240/260 Freeport Boulevard, Sparks, NV 89431
340/360 Freeport Boulevard, Sparks, NV 89431
1320/1350 Freeport Boulevard, Sparks, NV 89431
250 Cal Lane, Sparks, NV 89431
1080 Linda Way, Sparks, NV 89431
5325 Louie Lane, Reno, NV 89511
5401 Longley Lane, Reno, NV 89511
5301 Longley Lane, Building E, Reno, NV 89511
1575/1595 Robb Drive, Reno, NV 89523
6300 Mae Anne Avenue, Reno, NV 89523
6120 Mae Anne Avenue, Reno, NV 89523
About Dornin Investment Group
Dornin Investment Group (“DIG”) is a fully integrated real estate private equity investment firm with offices in Laguna Beach, CA and Las Vegas, NV. DIG specializes in distressed, opportunistic, value-add and core plus real estate related investments. The firm invests throughout the capital stack including equity, performing, sub and non-performing debt across all major property types. The company offers a full-service investment platform providing asset and property management, leasing, design services, construction management and capital markets advisory services through its wholly owned subsidiary Dornin Realty Advisors. Since inception the company has acquired, developed, and sold nearly $1.7 billion of real estate related investments including fee title and debt investments in multi-family, office, flex, industrial, retail and hospitality properties throughout the United States. For more information, visit www.dorningroup.com.
