Service Properties Trust sells Las Vegas office building

Service Properties Trust (SVC) has completed the sale of a 138,558-square-foot office property located at 1505 South Pavilion Center in Las Vegas, for $57 million.

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 noncore assets acquired as part of the SMTA transaction,” said John Murray, SVC’s president and CEO. “The disposition proceeds, which represent a 6.4 percent capitalization rate and a record price per square foot for the Las Vegas office market, will be used to reduce the company’s leverage.”

Service Properties Trust is a REIT, which owns a diverse portfolio of hotels and net-lease service and necessity-based retail properties located in 45 states, Washington, D.C., Puerto Rico and Canada.