A furniture maker and retailer in Wisconsin has bought a plot of land alongside Ikea in the southwest Las Vegas Valley and bought much of the spread from another rival who wanted to build a big business there.
Ashley Furniture Industries acquired nearly 20.4 acres on Sunset Road east of the 215 Beltway for approximately $ 27.4 million. The sale was completed on December 29th.
The deal again raises the prospect of a newly built store selling couches, beds, and other home furnishings alongside the popular Swedish retail giant known for its meatballs and inexpensive self-assembly furniture.
Ashley, based in Arcadia, Wisconsin and run by the billionaire Wanek family, has 690 stores nationwide, including six in Nevada, according to its website.
A company representative did not respond to requests for comment on Tuesday.
Ashley bought the majority of the property – 14 acres – from Walker Furniture, property reports indicate. The local retailer acquired the property in 2017 and announced plans for 150,000 square feet for Walker and an additional 50,000 square feet of retail space. However, the projects were never built.
Larry Alterwitz, CEO of Walker, told the Review Journal on Tuesday that Ashley made a “really nice offer” and that he would be considering opening a business in the Southwest Valley at some point.
He also said that Walker’s Henderson store, which opened in 2018 and covers more than 60,000 square feet, was a “huge hit” and “opened our eyes a little”.
“Those are the types of business that we need,” said Alterwitz.
Ashley bought the remainder of the southwest property from Michael Dean, founder of MJ Dean Construction.
Dean didn’t return a call for comment.
According to Alterwitz, furniture sales were strong during the coronavirus pandemic. The outbreak dealt a severe blow to the tourism-dependent economy in Las Vegas, causing huge job losses. However, the real estate market in the region has warmed with record prices and rising sales, largely due to cheap borrowing costs.
Alterwitz noted that some industries have suffered from the public health crisis, but others have performed well.
“We are blessed in that sense,” he said.
Contact Eli Segall at [email protected] or 702-383-0342. Follow @eli_segall on Twitter.