Panattoni Development announced its purchase of the IGT operating headquarters and manufacturing campus located on 6355 S. Buffalo Drive in the highly desirable southwest submarket of Las Vegas. According to Doug Roberts, local partner with Panattoni Development, the company plans to reposition the investment as a multi-tenant property available for lease.
The 6355 S. Buffalo Drive property features world class amenities and above standard finishes in a business park setting. Built specifically as a design-build for IGT in 2008, the property sits on 37.88 acres and features 610,410 square feet of Class A office space, and includes a fully air-conditioned warehouse space with 35′ clear height and 14″ thermo-mass insulated walls, as well as accessory office space including a full service cafeteria and fitness center. The property has superior access to the I-215 & I-15 Interstates, McCarran International Airport, and the resort corridor. Neighboring companies include IKEA, Catamaran Pharmaceutical, Freeman, Ainsworth Gaming, Pepsi, Creel Printing, Scientific Games, Switch Communications, and the soon to be constructed UFC headquarters.
According to Roberts, “the acquisition of a signature property of this scale is a rare opportunity and allowed us to significantly increase our holdings in Southern Nevada. The resources and expertise provided by the IGT and Colliers teams exceeded our expectations and contributed to a seamless transaction.” The location of the property combined with a severe shortage of big box industrial product and a significant amount of interest from potential users, gives Panattoni and the Colliers team confidence that the ±297,000 square foot warehouse component of the campus will lease quickly.
Panattoni is off to a great start with its long-term lease strategy for the asset having secured IGT as its first tenant through a long-term lease-back of the entire three-story office building. Following its merger with GTECH last April, IGT consolidated its manufacturing operations to its existing Reno facility. However, the slot maker continues to be heavily invested in Las Vegas and will continue operating its North American Gaming and Interactive business at this location. “The sale of the IGT Las Vegas campus and subsequent lease back of the building that currently houses our North America Gaming and Interactive corporate offices and showroom space is a significant milestone in achieving the merger integration efforts that were anticipated as part of the IGT acquisition,” said IGT’s Renato Ascoli, CEO, North America Gaming and Interactive (DoubleDown Casino). “It allows us to maintain our presence at the South Buffalo site, consolidate all our employees under one roof with no significant disruption, and enhance collaboration through new innovative office environments.”
Panattoni and IGT were represented by the Colliers International team of Susan Borst, Dan Doherty, Taber Thill, Ryan Martin, Patti Dillon, Chris Lane, and Jerry Doty on both the sale of the campus and the lease-back of the office building. The Colliers Los Angeles Investment Team of Rick Putnam and Brett Hardy assisted on the sale. The Colliers Las Vegas team has also been retained by Panattoni to lease the remaining warehouse and accessory office space. Borst said “working with clients of this stature to reach their objectives on this high-image assignment was an amazing experience and opportunity. It’s not every day that you get to work on a project of this magnitude.”