CapRock continues buying spree in Northern Nevada

CapRock Partners continued its industrial buying spree in Northern Nevada with the recent acquisition of a 117,000-square-foot building at 55 Vista Blvd. in Sparks.

CapRock acquired 707,010 square feet of Class A logistics space at 3200 USA Parkway in Tahoe Reno Industrial Center in July of last year, and it quickly followed that purchase with the acquisition of two freestanding warehouses at 120 and 250 Greg St.

Chad Ridenour, senior associate at CapRock, told NNBW that the company will continue to seek targeted acquisitions in Northern Nevada, as well as look for additional opportunities for new construction.

“We are a developer of Class A buildings, but we actually got our start in the value-add space,” Ridenour said. “We are very comfortable with both asset classes. We have a pretty wide berth of properties that we consider, which is on display in Reno in what we’ve taken down in the past six months.

“We will continue to focus on land and development deals while still looking for value-add industrial plays.”

CapRock Partners has added more than 1 million square feet of Northern Nevada industrial space to its portfolio in the last two quarters. The company headquartered at Newport Beach, Calif., has acquired, developed and entitled more than 33 million square feet of industrial and logistics facilities across the western and central U.S. since its inception in 2009. Its Nevada portfolio consists of more than 5.3 million square feet of industrial space, mostly in Southern Nevada.

Taylor Arnett, senior vice president at CapRock Partners, said in a statement that the acquisition dovetails with the company’s entrepreneurial approach as it expands its footprint in Northern Nevada.

“Reno is a dynamic and rapidly growing market, and we look forward to continuing to bolster CapRock’s portfolio with high-quality investments that deliver exceptional value to our investors,” Arnett said.

Adding industrial assets in Northern Nevada to the company's portfolio was a natural extension of CapRock’s work in the southern half of the state, Ridenour added.

“Reno operates very similar to Las Vegas – it’s land-constrained, and it’s got the same benefits. We are very familiar with Vegas, and it felt very efficient to move into Reno as well,” he said.

The building at 55 Vista Blvd. in Sparks was constructed in 1995 and sits on a five-acre parcel. The upside of the deal is in the tenant’s lease, which is up for renewal, Ridenour added.

“It’s a good quality building that’s very efficient for a distribution user,” Ridenour said. “They are a great-credit tenant with a long tenure.

“As the market has grown (and rental rates have increased), it causes other leases to be undermarket,” he added. “This is a great opportunity to bring the in-place lease to market (rates); that’s the value-add piece of this deal.”

CapRock’s in-house development team can also work to improve the facility’s operating costs, Ridenour said. Much of CapRock’s success in Northern Nevada is due to multiple teams pulling as one, he added.

“It’s been a great experience moving into Reno,” Ridenour said. “The successes we have had have been because of a huge effort by our asset management and development teams. Each acquisition has gotten better after we entered the market.

“We are proud of what we were able to do in 2024,” Ridenour added. “It was a roller-coaster year. The 10-year Treasury was up-and-down, and it was hard to know what was going to happen. But Reno is a market in which we feel confident based on the fundamentals and benefits that Reno and Nevada provide. That’s the reason why we planted our flag last summer and will continue to be (active) in the market moving forward.”

Joel Fountain and Nick Knecht of Dickson Commercial Group, along with Jeff Huberman of Lee & Associates, represented the seller of 55 Vista Blvd. CapRock Partners represented itself in the purchase.