Zappos, in a joint venture with Resort Gaming Group, has completed the $65 million disposition of its 300,000-square-foot headquarters in downtown Las Vegas. DTP Cos. acquired the property, according to Yardi Matrix data.
The asset last traded in 2012, when the City of Las Vegas sold it for $18 million. Amazon’s Zappos had financed the purchase with a $15 million seller carryback loan and a $5.3 million note from City National Bank.
Located on 6 acres at 400 Stewart Ave., the property was developed in two phases: The 11-story building delivered in 1973, and the three-story structure surrounding it opened in 2003. In 2013, the seller implemented a $48 million capital improvement plan on the property prior to Zappos’ relocation, Las Vegas Review Journal reported. The company tapped KMD Architects to redesign the building, which received LEED Gold certification in 2014.
The deal was a sale-leaseback transaction, according to the same publication. The buyer’s entity is led by Tony Hsieh, Zappos’ former chief executive officer. Hsieh retired from the company in August after more than 20 years in the role.
The property is a short distance from CIM Group’s Downtown Grand Hotel & Casino, which recently expanded with a 495-key addition named Gallery Tower. The new construction is the first ground-up hotel built in downtown Las Vegas in more than a decade.