Bow River Capital, a Denver-based private alternative asset management company, announced today that its Real Estate Fund II sold Speedway Industrial, an 18.1-acre North Las Vegas, Nevada property.
“This is Bow River’s third disposition in Las Vegas over the last 60 days. The successful disposition of Speedway is the result of the investment themes that Bow River is focused on within the Rodeo Region. Strong population growth, relative affordability, and a strong business environment is the foundation for strong demand in industrial product in Las Vegas,” said Nicholas Koncilja, managing director of Bow River’s Real Estate platform. Both of the building sales at Speedway were to owner user’s relocating from California.
In just over two years, Speedway returned 1.74x gross multiple on invested capital (MOIC) and 35.0% gross project Internal Rate of Return (IRR) to Bow River’s Real Estate Fund II. The sale marks the fourth property disposition from Bow River’s Real Estate Fund II, which had its final close on July 31, 2018 and is currently 63% distributed on paid-in capital.
Speedway is located near the interchange of I-15 and 1-215 in North Las Vegas, the largest industrial submarket in Southern Nevada. Its strategic location services eight major markets within a one-day drive, making it appealing to Fortune 100 tenants including Amazon, Sysco and General Electric. At the time of investment in February 2019, the Las Vegas metro area reported their lowest vacancy in twelve years of 3.6% across 134 million square feet of industrial space.
Bow River partnered with Becknell Industrial to acquire and develop the project. Becknell Industrial, established in 1990, is a best-in-class vertically integrated industrial developer with a current industrial portfolio of 158 properties in 33 states.
The development consisted of two Class A industrial buildings totaling 297,000 square feet. Building one, which was 107,000 square feet of vacant core and shell, sold on March 5, 2020. Building two was 190,000 square feet and sold just six weeks later.
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.
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.
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.