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Bow River Capital's Real Estate Fund II Sells Industrial Property in Henderson, NV
April, 14 2021 | Real Estate
Bow River Capital, a Denver-based private alternative asset management company, announced today that its Real Estate Fund II sold Gateway Phase I, a 17.6-acre Henderson, Nevada property that is part of a larger 25.8-acre industrial property.
“Gateway Phase I is the latest and best example of the tremendous demand we’re seeing for light industrial in the Rocky Mountain West and Southwest, an area that we refer to as the Rodeo Region,” said Nicholas Koncilja, managing director of Bow River’s Real Estate platform. “Given inadequate supply and growing demand, we expect this trend to continue for the foreseeable future.”
In just three years, Gateway Phase I returned 1.5x gross project multiple on invested capital (MOIC) and 19.0% gross project Internal Rate of Return (IRR). The sale marks the third property disposition from Bow River’s Real Estate Fund II, which had its final close on July 31, 2018 and is currently 54% distributed on paid-in capital.
Gateway Phase I is located on the northwest corner of Executive Airport Drive and Sunridge Heights Road in Henderson, south of the McCarran International Airport and the Las Vegas Strip. At the time of investment in April 2018, Southern Nevada saw strong demand for industrial space, given the centrally located access to major coastal markets, with a vacancy rate of 4.3%. Today the vacancy rate is 6.0%.
Strategically located adjacent to the newly-built Las Vegas Raiders practice facility and headquarters, Gateway Phase I represented an opportunity to invest in unmet local demand. Henderson, which is a growing submarket, has experienced increasing rental rates and historically low vacancy rates.
The total development will consist of seven Class A industrial buildings totaling 480,000 square feet. Phase I was 300,000 square feet across four buildings and was fully leased at the time of sale. Phase II is currently under construction and is seeing strong pre-leasing activity.
About Bow River Capital
Founded in 2003, Bow River Capital (“Bow River”) is a private alternative asset management company based in Denver, Colorado, with Buyout Private Equity, Real Estate and Software Growth Equity platforms. The Bow River Funds focus on the lower middle market across a geographic area referred to as Bow River Capital’s Rodeo Region®, which encompasses the Rocky Mountains and surrounding states. Collectively, Bow River has deployed capital into diverse industries, asset classes, and across the capital structure.
Founded in 2003, Bow River Capital (“Bow River”) is a private alternative asset management company based in Denver, Colorado, with Buyout Private Equity, Real Estate and Software Growth Equity platforms. The Bow River Funds focus on the lower middle market across a geographic area referred to as Bow River Capital’s Rodeo Region®, which encompasses the Rocky Mountains and surrounding states. Collectively, Bow River has deployed capital into diverse industries, asset classes, and across the capital structure.
Important Information for Potential Investors
Bow River Asset Management Corporation d/b/a Bow River Capital (“Bow River”) is the management company for the Bow River Funds.
Bow River Asset Management Corporation d/b/a Bow River Capital (“Bow River”) is the management company for the Bow River Funds.
This document has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell interests or any other security or instrument or to participate in any particular investment strategy. Any such offering or solicitation will be made pursuant to a confidential private offering memorandum that will be furnished only to qualified investors and only in those jurisdictions where permitted by law.
All statements made herein are opinions of Bow River and should not be construed as investment advice and recommendations.
The Gross IRR and ROIC represent the pre-tax internal rate of return based on the actual dates of the related cash flows. Both the Gross IRR and ROIC are computed without consideration of cash outflows associated with management fees, Fund expenses and carried interest distribution that may be paid to the General Partner. An individual limited partner’s return may vary from these returns based on the timing of capital movements.
Bow River may modify its investment strategy and targets at any time and in any manner in which it believes is consistent with its overall investment objective in response to market conditions or other factors without notice to investors.
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The asset described above is only a sampling of the assets held in the Fund and has been chosen solely based on objective non-performance-based criteria and are intended solely to illustrate the breadth and depth of Bow River’s experience. There is no guarantee that any future investments will be profitable or will equal the performance of the investment identified above. Past performance is not indicative of future results.