WG Group and the Krausz Companies have acquired 18.7 acres at 1050 Waltham Way within the Tahoe Reno Industrial Center in Sparks, Nevada for $7.13 million, or approximately $8.75 per square foot of land area. The two Las Vegas-based firms plan to develop a 335,000-square-foot speculative industrial and distribution facility at the site, with a total project cost estimated at $44 million. Groundbreaking was targeted for the fourth quarter of 2023, with the Qualified Opportunity Zone designation of the site expected to inform the equity capitalization strategy.
The planned building will be a state-of-the-art tilt-wall industrial facility targeting logistics, distribution, and manufacturing tenants seeking large-format, functional space in the western United States. TRIC's positioning within 5 minutes of I-80 and 15 minutes of Reno International Airport makes it one of the most strategically located industrial parks in the region, with tenants able to reach major western population centers within a two-day drive. The park has attracted a roster of major occupants — including Tesla, Google, Switch, and Walmart eCommerce — and has maintained a near-1-percent vacancy rate among completed buildings, a supply-demand dynamic that underpins the business case for speculative development.
Benjy Garfinkle of WG Group noted that the acquisition provides an opportunity to expand the firm's presence at TRIC while taking full advantage of the Qualified Opportunity Zone structure to combine internal capital with outside limited partner investment. The partnership between WG Group and the Krausz Companies — which has previously executed projects exceeding $1 billion in aggregate development and redevelopment value — represents a continuation of the collaborative model that has characterized both firms' approach to larger-scale institutional industrial development.