WGH Partners and the Krausz Companies have completed the sale of the two Class-A office and retail buildings at The Gramercy to The Koll Co. of Irvine, California and Estein USA of Orlando, Florida for $61.75 million, or approximately $330 per square foot. The transaction was recorded April 25, 2017 and reported by the Las Vegas Review-Journal. The two four-story buildings at 9265 West Russell Road in southwest Las Vegas were 98 percent leased at the time of sale, anchored by a tenant mix that included CalAtlantic Homes, Bank of Internet USA, and Liberty Mutual Insurance in the office component and DW Bistro, Pinches Tacos, and other service-retail operators at the ground floor.
WGH Partners and Krausz had acquired the underlying property in 2013 for $20 million, purchasing what was then the financially distressed and partially completed ManhattanWest project from developer Alex Edelstein. The co-developers oversaw the completion and stabilization of the roughly 187,000-square-foot campus — 80 percent office, 20 percent ground-floor retail — before executing a disciplined lease-up strategy that brought occupancy to near-full capacity by the time of disposition. WGH co-founder Benjy Garfinkle confirmed that the buildings were 98 percent leased at sale. Lance Fair, COO of Estein, cited the property's quality and location as primary acquisition drivers.
The $61.75 million sale price was a meaningful benchmark for the southwest Las Vegas submarket and reflected the premium that stabilized, institutionally managed, Class-A office product commands when brought to market in a competitive environment. The transaction, combined with the subsequent sale of The Gramercy Residences for $45.75 million in 2018, returned more than $100 million in total gross proceeds on a project that began with a $20 million purchase of a distressed asset — a full-cycle outcome that illustrates the investment thesis WGH Partners applied consistently across its Las Vegas portfolio.