June 2018
LAS VEGAS
INSIDER A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS
CLIMB RED ROCK
Red Rock Canyon National Conservation Area is one of the finest rock climbing areas in the world.
LAS VEGAS INSIDER | JUNE 2 018
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SEVEN MAGIC
Located approximately 10 miles south of the intersection of Las Vegas Boulevard and St. Rose Parkway in Henderson, Nevada.
MOUNTAINS
Accelerating success.
FACEBOOK.COM/COLLIERSLV
TWITTER.COM/COLLIERS_LV
TABLE OF CONTENTS: GROWTH – LV RESEARCH 4 FEATURED DEALS 7 FEATURED LISTINGS 8
COLLIERS IN THE NEWS 9 VGK FAN WEEK 10 UPCOMING EVENTS 11
VEGAS BY THE NUMBERS 12 BROKER OF THE MONTH 13 DIRECTORY 14
PUBLIC ART
Public art is redefining the identities of places around the world. Seven Magic Mountains strengthens Nevada’s identity as a place that celebrates and supports the work of interesting artists, and draws attention to Las Vegas as it evolves into a city also known for the arts. Significantly, Seven Magic Mountains has been encouraged and supported by regional public-private partnerships that yield important economic and cultural development opportunities for Las Vegas and Nevada.
LAS VEGAS INSIDER | JUNE 2 018
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LAS VEGAS RESEARCH
GROWTH
CONTINUES, BUT AT DIFFERENT
RATES Commercial real estate demand remained strong at midyear 2018 in Southern Nevada, some segments of the market saw growth accelerate, while others saw growth slow.
BY JOHN MATT STATER
T
The office market in Southern Nevada continued its hot streak in the second quarter of 2018. Southern Nevada has seen fourteen consecutive quarters of positive net absorption, which has sent vacancy down from a high of 22.4 percent to the current vacancy rate of 15.1 percent. Lower vacancy rates are beginning to drive increases in asking rates, which in turn may generate more office construction in the future, especially in the submarkets that are most in demand.
“Southern Nevada’s office market has shifted into high gear in 2018.” remarked John Stater, the research manager of Colliers International’s Las Vegas office. Southern Nevada’s medical office market was strong at midyear 2018. The vacancy rate has fallen from 16.2 percent to 13 percent over the past five quarters and asking rents have shown moderate growth. Net absorption over the past five quarters totaled over 500,000 square feet, more than net absorption in the previous 46 quarters combined. Just as modern technology and needs for efficiency have driven changes in the retail and professional office markets, the medical office market has had to transition to a landscape of medical groups, mini-hospitals and retail health clinics. In 2018, Southern Nevada’s medical office market appear to be managing this transition well.
Mike Mixer, Executive Managing Director said, “Southern Nevada’s medical office market now has a solid year of growth and recovery behind it.” Southern Nevada’s multifamily market appears to be embarking on a critical year in its history. With as many as 7,000 units of multifamily scheduled for completion in 2018 – three times as many completions as in 2017 – we will discover if tepid levels of net absorption point to higher vacancy by year’s end, or a market where tenants are just waiting for new product to arrive. Population increases and single-family home prices should boost the multifamily market in 2018, but by how much is yet to be seen. At the start of 2018, the industrial market saw a hasty departure from what had become common in 2017, namely strong demand for the new industrial projects that were being constructed in Southern Nevada. The second quarter of 2018 delivered a reprieve, with new completions slowing down and demand showing moderate improvement. While we are keeping an eye on vacancy in the warehouse/distribution sector, and expect that it will probably be higher by the end of the year than it is now, the more important activity is occurring in other industrial sectors. Sectors which are not experiencing record levels of inventory expansion are seeing weaker demand than they saw in 2017; in other words, new completions are not the problem. The industrial market began a significant
recovery in 2012, and 2018 could mark a slowing of demand for industrial as that cycle ends. Provided the end of this cycle does not correspond with an overall economic recession, the down portion of this cycle should not last for more than a few quarters. Southern Nevada’s retail market appears to be shifting back into growth mode. Last quarter’s negative net absorption was not repeated in the second quarter of 2018, as net absorption increased to 124,512 square feet. Aside from the internal migration of people and retail from the north/ east to the south/west, the main impact on the local retail market is e-commerce. Since 2017, fourteen anchor retailers have closed their doors in Southern Nevada, totaling approximately 500,000 square feet of retail space. These closures are at least partially due to the impact of e-commerce on brick-and-mortar retail. If development remains relatively light, and we think it will, Southern Nevada’s renewed population growth should partially mitigate this issue and bring vacancy rates lower. Visitor volume in Southern Nevada continued to come up short when compared to visitor volume last year; average year-over-year growth in 2018 was negative 1.1 percent from January to April. Gaming revenue, however, had 3.9 percent growth over the same period, and taxable sales in the leisure and hospitality sector had year-over-year growth of 107.4 percent. These factors apparently outweighed visitor volume woes in the minds of buyers, because sales of hospitality properties at midyear 2018 are stronger than in all of 2017, and are on pace to beat hospitality sales in 2016. Large casino hotels do not sell every year, but they do appear to sell every other year. 2018 has been one of those years, with sales volume at midyear topping $1 billion dollars. This volume of sales puts 2018 on pace to beat the last year of casino hotel sales in 2016, when sales volume for the year totaled $1.2 billion. This indicates that buyers are bullish on the future of Southern Nevada’s hospitality sectors, despite a downward trend in visitor volume that has persisted for almost a year. Southern Nevada’s land market is experiencing a resurgence in 2018. At midyear, Southern Nevada has seen more acres sold than in 2017 and is on pace to surpass 2016, during which over 4,000 acres were sold. Sales volume in the second quarter of 2018 was higher than in the first quarter, despite only half as much land changing hands. Sales volume was also higher in the second quarter than one year ago. While the key sector last quarter was commercial land, residential land showed the most improvement in the second quarter. We think that as confidence in the local economy’s future improves, the potential for real estate development – commercial, industrial and residential – increases, and that will drive developers and investors to continue to buy land through the remainder of 2018.
LAS VEGAS INSIDER | JUNE 2 018
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Come Hungry JULY 12
11:30am-1pm
Bbq Rib throwdown
ENJOY FAVORITE RECIPES FROM THE COLLIERS TEAM
Grant Traub, Taber Thill and Phil Dunning will be bringing their rib recipes. Side dishes and desserts welcomed. MAIN CONFERENCE RO OM
RSVP to Courtney X3710
FEATURED DEALS
INDUSTRIAL SALE
OFFICE LEASE
±192,451 SQUARE FOOT INDUSTRIAL PROPERTY A sale to BKM Capital Partners, L.P. The ±192,451 square foot industrial property is located in Patrick Mojave Industrial Center at 2700-2710 East Patrick Lane, 6035-6045 Harrison Drive, 6012-6038 Topaz Street, 6255-6285 Mojave Road in Las Vegas. The transaction amount was $23,100,000.00. Dean Willmore, SIOR of Colliers International represented the seller, Stockbridge Patrick & Mojave, LLC.
±4,130 SQUARE FOOT OFFICE PROPERTY A lease to Universal Watch Co., Inc. The ±4,130 square foot office property is located at 9225 West Flamingo Road, Suite 180 in Las Vegas. Chris Connell and Grant Traub of Colliers International represented the landlord, West Flamingo Road, LLC.
RETAIL SALE
INDUSTRIAL LEASE
±3,575 SQUARE FOOT RETAIL PROPERTY A sale to Rudolf and Rhoda Schaefer Family Trust. The ±3,575 square foot retail property is a Raising Canes Restaurant at 3023 St. Rose Parkway in Henderson. The transaction amount was $4,700,000.00. Brian Fike of Colliers International represented the buyer.
±181,788 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Fellowes, Inc. The ±181,788 square foot industrial property is located in Sunrise Industrial Park 3 at 3051 North Marion Drive, Suite 105 in Las Vegas. Spencer Pinter of Colliers International represented the tenant.
INDUSTRIAL SALE ±122,472 SQUARE FOOT INDUSTRIAL PROPERTY A sale to STAG Industrial Holdings, LLC. The ±122,472 square foot industrial property is located in Hughes Airport Center at 730 Pilot Road in Las Vegas. The transaction amount was $18,000,000.00. Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane and Jerry Doty of Colliers International represented the seller, PNL Newco II, LLC.
LAS VEGAS INSIDER | JUNE 2 018
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FEATURED LISTINGS
4175 WEST TOMPKINS AVENUE
CHEYENNE FAIRWAYS
DEAN WILLMORE, SIOR AND MIKE WILLMORE
STEVEN HAYNES, TABER THILL, SIOR AND PATTI DILLON, SIOR
•
±5,500 SF Total
•
Prime Southwest location
•
For Sale: $1,075,000
•
Suites available ranging from ±1,970 SF to ±3,618 SF
•
Cheyenne Fairways Business Center is located on Cheyenne Boulevard just west of Rampart Boulevard
•
Starting Lease Rate: $0.99 PSF
3930 WEST WINDMILL LANE
335 AUTO MALL DRIVE
DAN DOHERTY, SIOR, PAUL SWEETLAND, SIOR, CHRIS LANE AND JERRY DOTY • ±161,280 total SF available in Blue Diamond Business Center • The property is located in the southwest industrial submarket near Interstate 15 and Blue Diamond Road with convenient access to McCarran International Airport and the “Las Vegas Strip” • Lease Rates from $0.50 - $0.58 psf NNN
GRANT TRAUB AND CHRIS CONNELL
4305 & 4275 EAST SAHARA AVENUE
6059 SOUTH MARYLAND PARKWAY
BRIAN RIFFEL, SIOR AND TYLER JONES
STACY SCHEER, CCIM, LEED GA AND ANDREW KILDUFF
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2 suites available: ±950 SF at Rincon Industrial Park
•
•
Located adjacent to the Lamb Boulevard and Sahara Avenue
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±6,800 Total SF on ±4.05 acres
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Direct access and visibility from US 95
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Price: $6,000,000
Two suites available: ±4,043 RSF in grey shell and ±5,012 RSF with newly renovated, turn-key office improvements
intersection with quick access to US-95 at Boulder Highway
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Generous tenant improvement allowance
$0.75 NNN PSF / $0.19 CAM PSF
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$1.40/SF Modified Gross (MG)
WELCOME TO COLLIERS
BROKER INTERN DOMINIC COLLURA
BROKER INTERN MICHAEL JIN
RECEPTIONIST MEGAN MCINERNEY
Please join us in welcoming Dominic Collura to the Colliers Las Vegas office as a Broker Intern. Dominic is currently in his second year at Southern Methodist University where he is studying Business/Finance. Dominic is spending the remainder of the summer in the Colliers office as Broker Intern to gain valuable work experience and a better understanding of brokerage as a potential career path. He will be shadowing our brokers and learning some of the intricacies of various disciplines of Commercial Real Estate.
Please join us in welcoming Michael Jin to the Colliers Las Vegas office working with Al Twainy’s team as a summer intern. He will be earning valuable experience and learning the intricacies of commercial real estate.
Please join us in welcoming Megan McInerney to the Colliers Las Vegas office as Receptionist. Megan will be responsible for front desk operations which include: greeting clients, answering phones, facilitating the flow of property inquiries and receiving and transmitting mail correspondence. In addition, Megan will be responsible for the coordination of company meetings and assisting brokers with general administrative tasks.
He recently returned from Switzerland where he was studying abroad for four months. In his free time, Dominic enjoys spending time with friends, working out, playing the piano, snowboarding and surfing. Welcome aboard Dominic!
His interests include playing basketball, spending time with friends and family, and enjoying good food. Welcome aboard Michael!
Michael was born and raised in Las Vegas. Currently, he is an upcoming senior at Boston University, where he is studying business and concentrating on finance and accounting.
IN THE NEWS COLLIERS INTERNATIONAL – LAS VEGAS RAISES $130,000 AT 24TH ANNUAL LINKS FOR LIFE CHARITY GOLF TOURNAMENT www.nevadabusiness.com/2018/06/colliersinternational-las-vegas-raises-130000-at-24thannual-links-for-life-charity-golf-tournament/
June 01 THE NOTES: FOUR BROKERS WERE NAMED TOP COMMERCIAL BROKERS IN OFFICE AND INDUSTRIAL LEASING https://vegasinc.lasvegassun.com/business/publicrecord/2018/jun/04/the-notes-june-4-2018/
June 04 NEIGHBORHOODS, BUSINESSES COMING TO UNDEVELOPED LAND SOUTH OF LAS VEGAS VALLEY http://news3lv.com/news/local/neighborhoodsand-businesses-coming-to-undeveloped-landsouth-of-las-vegas-valley
Megan graduated from the University of Arizona with a major in Communication and a minor in Marketing. Come September, Megan will be moving to Australia for six months where she will work and travel with her best friend. In her free time, Megan enjoys running, watching Netflix and hanging out with friends. Welcome aboard Megan!
PROPERTY MANAGER STACY INNESS Please join us in welcoming Stacy Inness to the Las Vegas office as Property Manager in the Property Management Department. Stacy brings 9 years of experience as a commercial property manager in the Las Vegas Valley and holds her Certified Property Manager (CPM) designation through the Institute of Real Estate Management (IREM). Prior to beginning her career as a property manager, Stacy worked in advertising and marketing for about 10 years and owned a boutique clothing store. Stacy graduated from Loyola Marymount University in Los Angeles with a Bachelor of Arts degree (emphasis in Graphic Design). In her free time she enjoys spending time with her Akita, Emmy, and traveling the world with family and friends. She is a self proclaimed “huge” hockey fan and is excited that we finally have a local NHL team to cheer for. Go Knights Go!
Welcome aboard Stacy!
June 19
LAS VEGAS INSIDER | JUNE 2 018
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VEGAS GOLDEN KNIGHTS FAN WEEK
The first week of June was an exciting time for our city. Our first professional sports team was competing in the Stanley Cup Finals. To celebrate and show our fandom we enjoyed a full week of fun and treats including a bottle opener keychain giveaway, special VGK black and white cookies from Great Buns Bakery and a raffle for a bottle of VGK Chardonnay! Congrats to Breanna Lara for winning our raffle and thank you to all that dressed up to help us celebrate an incredible season. Go Knights Go!
DID YOU KNOW? SOME 160 BILLION EMAILS ARE SENT DAILY MORE THAN 2 MILLION PER SECOND – BY 1.2 BILLION EMAIL SENDERS
97% OF IT IS SPAM DID YOU KNOW? THE SENTENCE “THE QUICK BROWN FOX JUMPS OVER THE LAZY DOG” USES EVERY LETTER OF THE ALPHABET.
CONGRATULATIONS, YOU MADE THE PLANE!
2018 SALES AWARD TRIP MAUNA KEA BEACH RESORT, BIG ISLAND, HAWAII
FRIDAY, MARCH 8 – TUESDAY, MARCH 12, 2019 VINCE SCHETTLER
DEAN WILLMORE, SIOR
PAUL SWEETLAND, SIOR
DAN DOHERTY, SIOR
BRIAN RIFFEL, SIOR
CHRIS CLIFFORD*
MICHAEL STUART
PAT MARSH, SIOR
SPENCER PINTER*
CHRIS BENTLEY
SCOTT GRAGSON
AL TWAINY, CCIM* *These brokers qualified for the plane in May
UPCOMING EVENTS
Office Closed INDEPENDENCE DAY
SIOR LUNCHEON 11:30am Maggianos Fashion Show JULY 11 NAIOP BOWLING TOURNAMENT 4:30pm Gold Coast Bowling Center JULY 11
Bbq Rib th rowdown
MONTHLY RETAIL MEETING 8:30am Main Conference Room JULY 17 NAIOP BREAKFAST 7:30am Orleans Hotel & Casino JULY 19 MONTHLY OFFICE MEETING 9:00am Main Conference Room JULY 25 CCIM LUNCHEON 11:30am Westin Las Vegas JULY 25 MONTHLY INDUSTRIAL MEETING 9:00am Main Conference Room JULY 26
Come Hungry JULY 12
11:30am-1pm
MONTHLY BIRTHDAY CELEBRATION 2:30pm Main Conference Room JULY 26
First Las Vegas establishment to erect a neon sign. This was in 1930.
LAS VEGAS INSIDER | JUNE 2 018
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OFFICE HAPPENINGS
THE NUMBERS:
OTHER 2%
OFFICE 9%
SALE 52%
RETAIL
MAY PROPERTY TYPES
34%
MAY
SALES VS. LEASE INDUSTRIAL 43%
LAND 12%
LEASE 48%
TOP 10 AGENTS OF THE MONTH MAY 2018 1. 2. 3. 4. 5.
Dan Doherty Chris Clifford Al Twainy Spencer Pinter Dan Gluhaich
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6. Mike Stuart 7. Pat Marsh 8. Paul Sweetland 9. Steven Haynes 10. Steve Neiger
MAY OFFICE TRANSACTIONS
MAY 2018 ANNIVERSARIES Gina Jones
1998
20 Years
Kim Hamilton
2007
11 Years
Dan Gluhaich
2012
6 Years
Eric Molfetta
2012
6 Years
Sara Johansson
2013
5 Years
Phillip Frank
2017
1 Year
BROKER RANKINGS YTD 2018 1. Mike Stuart 2. Dan Doherty 3. Vince Schettler 4. Pat Marsh 5. Scott Gragson 6. Chris Clifford 7. Christopher Bentley 8. Paul Sweetland 9. Brian Riffel 10. Dean Willmore 11. Spencer Pinter 12. Al Twainy 13. Dan Gluhaich 14. Patti Dillon 15. Taber Thill 16. Grant Traub
Vince Schettler Brian Riffel Dan Doherty Chris Clifford
85/15 CLUB
17. Keith Cubba 18. Patrick McNaught 19. Steven Haynes 20. Chris Lane 21. David Grant 22. Steve Neiger 23. Chris Connell 24. Scot Marker 25. Jerry Doty 26. Robert Torres 27. Garry Cuff 28. Tom Naseef 29. Alexia Crowley 30. Eric Molfetta 31. Stacy Scheer 32. Phillip Dunning
Mike Stuart Scott Gragson Dean Willmore
33. Brian Fike 34. Susan Borst 35. Jeff Naseef 36. Sam Newman 37. Kara Walker 38. Suzette Lagrange 39. Mike Mixer 40. Phillip Frank 41. Rebecca Staniec 42. Andrew Kilduff 43. Chris Lobello 44. Joe Bonifatto 45. George Connor 46. John Kilpatrick
Pat Marsh Chris Bentley Paul Sweetland
Spencer Pinter Al Twainy Dan Gluhaich
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BROKER OF THE MONTH
CO NG RA T UL A T IO NS DAN DOHERTY, SIOR Executive Vice President Industrial Division
Dan is an Executive Vice President in the Industrial Division of Colliers International, operating under Doherty Industrial Group and has been one of the top five producers in the Las Vegas Office for the past 16 years. Dan is experienced in all phases of industrial real estate including REO Properties, site selection, development and design, leasing and industrial investment sales.
Q A
Q A
What is your favorite hobby?
Exercising or fishing.
Vice President Office Division
Chris Connell is currently a Vice President in the Investments and Leasing Division of Colliers International. Chris’s primary discipline is the sale and leasing of office and retail product types for both Landlord and Tenant alike. Since joining Colliers International in 2011, he has been responsible for relocating more than 100 firms and has successfully closed over 250 transactions, totaling roughly 1 mm square feet of space and in excess of $50 million in sales.
What would be your perfect job?
Trial Attorney
Q
What would you do with your “15 minutes” of fame?
A
Announce myself as a candidate for president.
Q
Which would you prefer — three wishes over five years or one wish right now?
A
Three wishes over five years of course
.O.T.M. ONATION
CHRIS CONNELL
Q
Where would you love to go on holiday?
A
GOLD COAST AUSTRALIA
Q
What is your favorite TV show and why?
A
THE GOLDEN GIRLS– THOSE BITCHES ARE CRAZY
LINKS FOR LIFE
F O U N D A T I O N
The Links for Life Foundation is donating in Dan Doherty’s name to the Las Vegas chapter of the Juvenile Diabetes Research Foundation
Q
What is your favorite song?
A
U2-SUNDAY BLOODY SUNDAY LAS VEGAS INSIDER | JUNE 2 018
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LAS VEGAS PHONE DIRECTORY INDUSTRIAL Susan Borst Dan Doherty Jerry Doty Tyler Jones Suzette LaGrange Chris Lane Pat Marsh Eric Molfetta Sam Newman Alyssa Parks Spencer Pinter Brian Riffel Alexander Stanisic Paul Sweetland Kara Walker Dean Willmore Mike Willmore Chris Zunis
LAND +1 702 836 3719 +1 702 836 3707 +1 702 836 3735 +1 702 836 3754 +1 702 836 3799 +1 702 836 3728 +1 702 836 3741 +1 702 836 3756 +1 702 836 3724 +1 702 836 3755 +1 702 836 3776 +1 702 836 3773 +1 702 836 3742 +1 702 836 3750 +1 702 836 3705 +1 702 836 3763 +1 702 836 3748 +1 702 836 3703
OFFICE Chris Connell Patti Dillon Phillip Frank Andrew Kilduff Rebecca Staniec Taber Thill
+1 702 836 3709 +1 702 836 3790 +1 702 836 3775 +1 702 836 3718 +1 702 836 3792 +1 702 836 3796
Scott Gragson Steven Haynes John Kilpatrick Pat McNaught Taylor Schettler Vince Schettler Mike Stuart Robert Torres
+1 702 836 3730 +1 702 836 3727 +1 702 499 8999 +1 702 836 3798 +1 702 836 3717 +1 702 836 3764 +1 702 836 3739 +1 702 836 3788
HOTEL/RESORT Mike Mixer Dharmesh Patel
+1 702 836 3777 +1 702 836 3713
INVESTMENT SERVICES Joe Bonifatto Brian Fike Tom Naseef Gabriel Skerlich Grant Traub
+1 702 836 3729 +1 702 836 3744 +1 702 836 3720 +1 702 836 3708 +1 702 836 3789
Chris Clifford George Connor Phillip Dunning Dan Gluhaich David Grant Amelia Henry Scot Marker Steve Neiger Brett Rather Al Twainy
+1 702 836 3746 +1 702 836 3786 +1 702 836 3766 +1 702 836 3757 +1 702 836 3785 +1 702 836 3774 +1 702 836 3782 +1 702 836 3760 +1 702 836 3794 +1 702 836 3725
Alexia Crowley Stacy Scheer
+1 702 836 3778 +1 702 836 3762
VALUATION SERVICES Richard Koldewyn Evan Ranes
+1 702 836 3738 +1 702 836 3749
PROPERTY MANAGEMENT Erica Aulino Valerene Corbin Kiara Davis Stacy Inness Jennifer Kennedy Breanna Lara Gretchen Lee Angelina Scarcelli
+1 702 836 3745 +1 702 836 3761 +1 702 836 3740 +1 702 836 3726 +1 702 836 3772 +1 702 836 3753 +1 702 836 3704 +1 702 836 3768
STAFF GOLF COURSE Keith Cubba
+1 702 836 3733
MULTI-FAMILY RETAIL
MEDICAL OFFICE
Christopher Bentley Garry Cuff Jeff Naseef Tom Naseef
+1 702 836 3779 +1 702 836 3716 +1 702 836 3731 +1 702 836 3720
Nicole Cauilan Courtney Goffstein Sara Johansson Gina Jones Megan McInerney Matt Stater Chris Sutton
+1 702 836 3706 +1 702 836 3710 +1 702 836 3771 +1 702 836 3783 +1 702 836 3701 +1 702 836 3781 +1 702 836 3721
RECEIVERSHIP Christopher LoBello
+1 702 836 3714
MIKE MIXER
Executive Managing Director | Las Vegas
+1 702 735 5700