Standard, Mohr Capital Eye Reno Industrial Development
Standard Real Estate Investments and Mohr Capital are teaming up for the first time. The duo will develop a 180,000-square-foot multi-tenant industrial facility on an 11-acre site in Reno, Nev. Completion is expected by the third quarter of 2025.
Located at 9865 N. Virginia St. in the North Valleys submarket, the site is shovel-ready with municipal infrastructure and Washoe County approvals. CBRE Senior Vice President Greg Shutt will manage leasing for the development.
The amount of Standard’s equity investment in the development was not disclosed but the national real estate development firm with offices in Los Angeles and Washington, D.C., has a leadership team that has invested in more than $8 billion of assets.
Standard operates real estate directly and allocates LP joint venture equity to developers with a focus on industrial and workforce housing projects. The firm targets shovel-ready warehouse and logistics projects ranging in size from 150,000 to 500,000 square feet in major logistics markets nationwide.
In September, Standard provided financing from its new $150 million investment fund to Trammell Crow Co. for the development of Woodridge Industrial Center, a 217,000-square-foot logistics project in Woodridge, Ill. The firm also partnered with Trammell Crow to build the Apopka Business Center in Orlando, Fla.
Reno project details
The new development site is on the north side of Reno with access to Highway 395. Designed for logistics and distribution tenants, the single-story building is set to have four 14-foot by 16-foot grade-level doors.
Tenants will have options to build office spaces on the end caps as well as in-line. Other features will include a 32-foot clear height, 25 dock positions with 40,000-pound levelers and seals, motion-sensing LED light fixtures and a ESFR fire protection sprinkler system.
Growing industrial market
Officials at Mohr Capital, which owns land in the area and has successfully developed in Reno in the past, describe the North Valleys area as a very tight submarket in one of the best industrial markets in the country. There has been growth in the manufacturing, logistics and data center space in the area leading to a more diversified industrial base that will be well positioned to accommodate growing demand for space under 100,000 square feet, according to Standard.
During the first quarter, the overall vacancy rate in Reno was 7.2 percent and 6.8 percent across the North Valleys submarket, according to a CBRE report. The market’s inventory comprised approximately 114 million square feet at the end of the first quarter, with more than 2.7 million square feet of new product delivered in the first three months of 2024.
At the end of March, the construction pipeline had more than 960,000 square feet underway, with another 17.3 million square feet in various planning stages, CBRE reported. New deliveries are not expected until later this year or early 2025. The North Valleys submarket encompassed more than 27 million square feet of net rentable industrial space at the end of the first quarter.
Mohr Capital projects
Mohr entered Nevada in July 2021 with the development of a 596,400-square-foot speculative industrial property at 1500 Waltham Way in McCarran. It is situated on a nearly 40-acre site in the East Valley submarket at the Tahoe-Reno Industrial Center. Shutt of CBRE assisted Mohr on the land acquisition and manages leasing for the property. The firm also had another project planned in the East Valley community of Fernley, Nev., about 25 miles east of McCarran along Interstate 80.
More recently, in May, Mohr leased a 1.1 million-square-foot recently built Class A building at its 475-acre Mohr Logistics Park near Indianapolis to Cummins Inc., a Columbus, Ind.,-based global power solutions company.
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