Construction underway on south commerce center
Alston Construction has started construction on two industrial buildings totaling 390,000 square feet. The development, known as South Valley Commerce Center, is located between Sandhill Road and Trademark Drive in South Meadows.
Panattoni Development Company acquired the 20.27-acre property for $3,972,933 back in December 2015 from International Game Technology (IGT). IGT put the land up for sale after the company was acquired by GTECH in April 2015.
The land was fully approved for development when Panattoni purchased it. One building will be a total of 209,000 square feet with a clear height of 32 feet and the second building will be a total of 180,792 square feet with a clear height of 30 feet. Both buildings will have LED lighting and higher-level office finishes.
According to Doug Roberts, partner with Panattoni Development Company, the buildings will house six to 10 tenants. While Panattoni does not have any tenants lined up yet, he anticipates that it will be easy to find occupants for the space.
“South Reno is a submarket with less than 3 percent vacancy rate,” Roberts said in a phone interview.
Prior to this development, Panattoni had mostly developed office buildings in South Meadows. However, the low vacancy rates and desirable location drew the company to purchase the land for the premiere industrial park.
“Land constraints, proximity to executive housing and other amenities as well as the submarket’s low vacancy makes this a very desirable business park,” Roberts, said in a press release. “The south Reno market represents 11.6 percent of the overall industrial market and there is very little product available to lease.”
Tectonics Design Group, a Reno-based architecture and engineering firm, is the architect on the project. Total cost for construction of the project is estimated at $15.5 million.
Construction for both buildings is scheduled to be complete in December of this year.
Panattoni also purchased IGT’s 38-acre campus in Las Vegas for $75 million last December. The property is being converted for multi-tenant use.
The new owner of The Crossing at Tahoe Valley is Second Bay Holding Tahoe, LLC, based in Redwood City, Calif. The 46,041-square-foot center was originally constructed in 1973.