After a five-year hiatus, The Gramercy lands its first big office tenant

By Jennifer Robison | LAS VEGAS REVIEW-JOURNAL

The Gramercy has its first major office deal.

The residential, retail and office development at Russell Road and the 215 Beltway has signed a lease agreement with HMS Holdings Corp., a publicly traded provider of cost-containment solutions for the health care industry.

Neither party disclosed the terms of the deal, but both sides described it as a “long-term” lease on 65,000 square-feet of space. More than 250 HMS employees will move into The Gramercy in early summer.

HMS currently has an office at 7501 Trinity Peak Drive.

Jay Krigsman, executive vice president of The Gramercy co-developer The Krausz Cos., said the property has interest from national and local companies, and leasing agents are in “active negotiations” with other office tenants, as well as restaurants.

Construction started back up on The Gramercy in September, five years after work stopped on the project. The Krausz Cos., based in California, and Las Vegas-based WGH Partners bought the property, formerly called Manhattan West, and revived it. The Gramercy will have more than 200 luxury apartments, as well as a central park, offices and stores. The first residential occupants are scheduled to move in during summer.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

Former City Club reawakens, now The Lennox

By Jennifer Robison | LAS VEGAS REVIEW-JOURNAL

A dormant apartment project in southeast Las Vegas has reawakened.

Developers WGH Partners of Las Vegas and Florida East Coast Realty of Miami announced Thursday that they’ve taken over the former City Club and rechristened it The Lennox Las Vegas. The developers said they’ve also restarted construction of the building at the northeast corner of Cactus Avenue and Bermuda Road.

The 200,000-square-foot, four-story building will have 100 units ranging from 900 square feet to 1,900 square feet. It will also have a ground-floor parking garage, on-site storage units and a 2,000-square-foot clubhouse and fitness center with a coffee bar and a pool.

The developers said they expect to begin leasing The Lennox in May. The Agency of Beverly Hills and Las Vegas-based Northcap will handle marketing and leasing.

Thomas & Mack Development Group is the development consultant overseeing construction. Martin-Harris Construction is the general contractor.

WGH Partners is also a partner in The Gramercy near Russell Road and the 215 Beltway. That project, also a victim of the recession, stalled in 2009 when it couldn’t find a market for its units, which were priced from $200,000 to $1 million. WGH Partners and The Krausz Cos. of California have restarted construction at the site, formerly called Manhattan West, and are marketing it as an apartment community.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com.

Construction set to begin in September on stalled Manhattan West project

By Chris Serioty | LAS VEGAS REVIEW-JOURNAL

It’s been a visible reminder of the recession’s devastating impact on the building industry in Las Vegas, but the new owners of the stalled Manhattan West project are prepared to resume construction in September on the partially finished project.

The Krausz Cos. Inc. spent $20 million in June to acquire the 20-acre project and plans to spend about $30 million to complete the development, which has been renamed The Gramercy.

The project, which consists of retail, office and residential on Russell Road just west of the Las Vegas Beltway, is being developed by Krausz of Irvine, Calif., and Las Vegas-based WGH Partners.

“We are ready to start today,” Benjamin Garfinkle, principal with WGH Partners, said Monday. “We are just finalizing all the (construction) details and budgets.”

The project, which has sat unfinished behind a wire fence since January 2009, has two four-story Class A office buildings, two four-story residential buildings and a nine-story residential building. It also has ground-floor retail.

Construction to complete the two 100,000-square-foot office buildings and the midrise residences is scheduled to begin in September, and occupancy is set for May.

Garfinkle said two well-known Las Vegas-based companies have expressed an interest in leasing 45,000 square feet, along with 65,000 square feet of office space, at The Gramercy. He declined to identify either.

“All I can say is that we have a very large tenant with lease in hand,” he said. “We already have strong interest from potential tenants and are expediting our development schedule to accommodate them.”

Garfinkle attributed interest in The Gramercy to there being “very little large contiguous Class A office space in the market.”

He said that for companies looking for 30,000 square feet to 40,000 square feet, “there is a big hole in the market that gets narrowed down really quickly” as companies look for smaller sizes of upscale office space.

At the end of the first quarter, there were 65 Class A buildings in the Las Vegas market, which includes all of Clark County, totaling 5.61 million square feet of space, according to a CB Richard Ellis report. As of March 31, the Class A vacancy rate in Las Vegas was 29.4 percent.

The report also found Class A asking rents at $29.65 per-square-foot gross.

Garfinkle said The Gramercy includes entitlements for an additional 500,000 square feet of residential and commercial space. Once completed, the project will have a gym, wine and coffee shops, a weekly farmers market and space for food trucks, he said.

Garfinkle and his business partner, Ofir Hagay, are no strangers to completing troubled developments.

In June 2012, they spent $3.1 million on a pair of unfinished two-story office buildings and by February had completed the development. Keller Williams Realty and Fidelity National Title anchor the Red Rock Business Center at 6140 and 6180 Brent Thurman Way.

Garfinkle said there were “half a dozen prospective tenants” looking to possibly lock up space at the 75,000-square-foot development.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.