A new industrial project near Nellis Air Force Base landed a tenant that says it will supply luxury suites for Las Vegas’ upcoming Formula One race.

Illinois-based InProduction, which provides temporary seating, staging and the like for events, leased a newly built warehouse that spans more than 102,000 square feet, brokerage firm Cushman & Wakefield announced this week.

Cushman represented the tenant, which expects to occupy the building, near the intersection of Lamb Boulevard and Cheyenne Avenue in the northeast Las Vegas Valley, next month.

InProduction President and CEO Jason Tedrow confirmed to the Review-Journal his firm is moving there from a smaller industrial space a few miles away.

“We need to expand our operation in Vegas,” he said, noting America’s casino capital is a major entertainment hub with lots of big events.

He said that the company is providing several “multi-level hospitality structures” for the F1 race and that they’re more like luxury suites. For the most part, they will be along Koval Lane just east of the Strip.

A spokeswoman for F1 owner Liberty Media Corp. did not respond to a request for comment.

Scheduled for Nov. 16-18, Las Vegas’ Formula One race is poised to draw huge crowds. The 3.8-mile route will include a stretch of the Strip, and drivers are expected to reach speeds of more than 200 mph.

Casino chain Caesars Entertainment Inc. unveiled a $5 million VIP “Emperor Package” for the race that includes five nights in a villa with views of the track.

MGM Resorts International announced it will build grandstands in front of Bellagio’s iconic fountains for the event.

“Access to these epic seats is currently only available as part of MGM Resorts’ race-and-stay packages,” the casino giant said in a news release.

The race is expected to produce a windfall of spending in Las Vegas, with almost $1.3 billion in total economic impact, according to an announcement Monday from Las Vegas Grand Prix CEO Renee Wilm.

InProduction, for its part, locked up a new warehouse amid strong demand for distribution space in Southern Nevada. The local industrial market’s vacancy rate was a record-low 1.3 percent in the third quarter last year, brokerage Colliers International reported.

Developer EBS Realty Partners broke ground on the northeast valley project last May without a user lined up first, a common approach to warehouse development in Southern Nevada. It finalized a lease with InProduction last month, EBS founder and managing principal Quinn Johnson told the Review-Journal.

“We had a lot of tenant activity on it,” he said.

The former LT Platinum site next to Angel Stadium in Anaheim’s Platinum Triangle, once eyed for one of Orange County’s more ambitious mixed-use developments, has traded hands once again.

The deal could lead to another shake-up for the long-planned redevelopment of the largely vacant 14-acre site near the southwest corner of the baseball stadium.

An entity with ties to Irvine-based Camphor Partners recently sold the site at 2030 S. State College Blvd. for $43.8 million, or about $3.1 million per acre, property records indicate.

The deal marks a premium over the prior 2019 sale, when the Camphor affiliate paid about $32 million, or $2.3 million per acre, for the site from Hong Kong-based LT Commercial Real Estate Ltd., signaling land values have held up throughout the pandemic. LT Commercial had bought the site in 2014 for $28.4 million.

Property records indicate the new owner is a venture between Newport Beach-based EBS Realty Partners and Connecticut-based Penwood Real Estate Investment Management.

The buyers are said to be in talks with the city of Anaheim regarding future redevelopment plans, which will be consistent with “the highest and best use” master plan for the Platinum Triangle, according to city spokesperson Mike Lyster.

In the interim, the new owners may utilize the existing industrial space on the property while they finalize plans for a development, likely mixed-use in nature with apartment and retail components.

New Direction

The Anaheim site, at the northeast corner of State College Boulevard and Orangewood Avenue, has been largely vacant for almost seven years. It has seen several development proposals over that period.

Plans under LT Commercial’s ownership involved an L.A. Live-type development holding some 1.7 million-square-foot of entertainment, hotel and residential uses, with several towers built. Its cost was estimated in the $500 million range when initially proposed.

In 2016, the city approved a plan with 405 residential units, 583,000 square feet of commercial development, and 77,000 square feet of office development. Construction never kicked off at the site.

Last year, the Camphor-led group proposed a scaled-down project that would have seen 947 rental apartment units, a 25,000-square-foot grocery store, two parking structures totaling 1,970 spaces and a 1-acre park.

The new ownership team has yet to submit any formal plans, though a mixed-use project similar in scope to Camphor’s project is likely.

EBS

The deal is a rare Orange County buy of late for EBS, a commercial real estate investor that typically invests in and develops industrial and office projects in the Inland Empire.

In 2019, the company made its first reported local buy in several years when it closed on a 95,000-square-foot Tustin building for nearly $20 million.

The site, located at 14192 Franklin Ave. just south of the Santa Ana (5) Freeway, is currently being eyed for redevelopment, with potential plans to build a new 45,000-square-foot industrial building and renovate the existing Class B flex property.

Former Teva Pharmaceuticals facility was expected to fetch $50M

EBS Realty Management and a Connecticut investor have bought the former manufacturing campus for Teva Pharmaceuticals Industries in Irvine for $24 million.

The Newport Beach-based commercial investor and Penwood Real Estate Management bought the three industrial buildings at 19 Hughes Avenue, the Orange County Business Journal reported. The 6.7-acre site includes three buildings totaling 186,000 square feet, including a main building of 88,000 square feet near the south side of the Great Park.

The property was once occupied by the Tel Aviv-based pharmaceutical firm, once the second largest drugmaker in Orange County.

Last March, Teva announced plans to permanently cease manufacturing operations in Irvine.

Real estate experts had expected the industrial campus to fetch up to $50 million, given recent pricing for new industrial projects.

Patrick Remolacio, a principal with EBS, attributed the lower-than-expected price to weakened market conditions and troubled debt markets since the facilities were listed last year.

The company is weighing several options for the site in light of new market conditions.

Teva’s lease runs out in a few more months, EBS said, at which point the developer will look at redeveloping the site on a build-to-suit or speculative basis, or lease the buildings as they stand.

Redevelopment may pose a challenge because of proposed changes to Irvine’s entitlement process, according to EBS.

“The planning staff has proposed a requirement of conditional use permits for new industrial properties, which would add a considerable amount of time to the entitlement process and would be problematic to future users,” Remolacio told the Business Journal.

In 2021, the EBS-Penwood venture bought the former LT Platinum site next to Angel Stadium at 2030 South State College Boulevard for $43.8 million. The site, once eyed for a mixed-use high-rise development, has a 100,000-square-foot warehouse leased through early next year.

In 2019, the Newport Beach firm bought a 95,000-square-foot industrial building at 14192 Franklin Avenue in Tustin for nearly $20 million. The next year, it leased it to Rivian Automotive, an electric vehicle company based a few blocks away.