Service Properties Trust has sold a 138,558 square foot office property located at 1505 South Pavilion Center in Las Vegas, Nevada for $57.0 million, or approximately $411 per square foot.
The sale is part of SVC’s previously announced disposition plan to sell up to $500 million of assets in connection with the acquisition of a net lease service retail portfolio from Spirit MTA REIT.
“The disposition of 1505 South Pavilion Center is the first step in executing on the company’s strategy to sell certain non-core assets acquired as part of the SMTA transaction,” said John Murray, Service Properties Trust’s President and Chief Executive Officer.
“The disposition proceeds, which represent a 6.4% capitalization rate and a record price per square foot for the Las Vegas office market, will be used to reduce the company’s leverage,” he added.
Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties located in 45 states, Washington, DC, Puerto Rico and Canada.