Gramercy Commercial / Apartment Space Sells for $61.75 Million Amid Region Revival
LAS VEGAS, NV – The Gramercy – formerly known in its original incarnation as “ManhattanWest” – has sat partially finished in Las Vegas for a number of years, a mute testament to the impact of the recession upon Southern Nevada real estate. Construction originally started on the 187,000 square-foot mix of retail, office, and apartment space in 2008 by investor Alex Edelstein’s Gemstone Development, who pulled out six months after the first brick was laid – $170 million poorer – amid the crushing blows dealt by a collapsing economy and a real estate market no longer able to sustain itself as a result.
However, as a sign of Vegas’ continued revival, the mixed-use condo space on Russell Road west of the Beltway – re-dubbed The Gramercy – was recently sold to developers The Koll Company and Estein USA by WGH Partners and The Krausz Cos., who in turn originally purchased the property from Edelstein in 2013 and completed its construction. Koll/Estein paid a cool $61.75 million for The Gramercy, which is a bump-up in price from the $20 million Edelstein let it go for in 2013; part of the reason WGH Partners sold the property off this April was due to the difficulty in leasing out the retail space, although the vast majority of the office space has been rented.
Representatives of Koll/Estein have stated a number of reasons for their purchase of The Gramercy; among them the fact that they are happy with the amount of square footage that has currently been leased, and envision a continued influx of tenants – and, as a result, increased revenue – as the property sits amid a part of the southwest Las Vegas community, an area that is experiencing perhaps the largest spurt of rapid economic and population growth in Southern Nevada at the moment. As a result, investors across the board have been snapping up whatever properties in the region they can get their hands on.
The Gramercy consists of two apartment buildings with approximately 600 living units and two office buildings with retail space at ground-level; an additional condominium tower, started in 2008 but never completed, was imploded and destroyed in 2015. Plans currently exist for additional office space to possibly be built on the property.
Several high-profile retailers are currently taking up residence at The Gramercy, although precious few represent national chains, something the previous landlords purposely sought to avoid according to reports. Among the higher-profile retail tenants calling The Gramercy home are the DW Bistro, a 4,512-square-foot eatery described as “Jamaican Meets New Mexican Cuisine” and featuring a full bar; Pinches Tacos, a Mexican restaurant; The Cuppa Coffee Bar; exercise studio Raw Fitness; and, eventually, Kitchen Table Squared, the new second location of Henderson’s popular Kitchen Table upscale restaurant, slated to feature an “upscale dining room, formal pastry and coffee bar and an oyster bar.”
With the new buyers putting real money into a property that was considered almost dead and buried just a few short years ago, The Gramercy – along with record-breaking home and apartment prices and sales in the region as more and more people seeking employment opportunities move in – represents the real estate and economic boom that Southern Nevada in general, and Las Vegas in particular, is currently experiencing after several years of financial drought, and points to a bright and prosperous future as this trend is cultivated and grown.