Despite the current slowdown in industrial development and what experts are calling a return to pre-pandemic levels, fundamentals remain strong for this asset class. Investors and real estate developers with long-term strategies continue to view the sector as a solid one. And the 4,300-acre Victory Logistics District project in Fernley, Nev., stands as proof.

Victory Logistics District spans 4,300 acres and is taking shape in Fernley, Nev. Image courtesy of Premier Design + Build Group

Located along Interstate 80 and U.S. Route 50, with access to Union Pacific and BNSF railways, this master-planned industrial development is set to change Northern Nevada’s landscape. Mark IV Capital acquired the site in 2019 for $45 million, in what was then considered the second-largest industrial land sale in the state’s history.

Working with general contractor Premier Design + Build Group, Mark IV Capital rolled out the first phase of the development in 2021. Due to the increased demand for industrial space during the height of COVID-19, the owner quickly leased 815,215 square feet to Redwood Materials. A year later, Mark IV Capital broke ground on the 1 million-square-foot second phase of the project, encompassing three buildings.

What’s the impact of such a mammoth development on the industrial sector in Nevada and the West region? We reached out to Evan Slavik, CEO & president of Mark IV Capital, to find out.

Tell us about the inspiration behind Victory Logistics District. What made you decide to embark on such a massive project?

Mark IV Capital’s long-term approach represents an advantage in the face of the market’s cyclicity, said Slavik. Image courtesy of Mark IV Capital
Slavik: Our team understood that 4,300 acres of contiguous land, well suited for large-scale industrial development, was quite rare in Nevada and could strategically serve the region’s needs. We also understood that the unusually high percentage of federally controlled land in the state makes it challenging to assemble larger tracts of contiguous parcels and that this acquisition was a once-in-a-generation opportunity for us.

Our company decided to double down on our history of buying land with a long-term development strategy in mind, knowing that a focus on a high-quality design of both infrastructure and vertical development would result in a project that will continue to create value over multiple decades in the greater Fernley community.

What else attracted you to this area? Why is Northern Nevada a good location for industrial projects?

Slavik: This project was unique in that it offered both development-ready sites, as well as thousands of acres of unplanned land to serve as a blank slate for our master-planning efforts. The transport options … combined with ample access to both power and fiber was a rare combination we did not want to pass up.

Article Source: commercialsearch.com