The University of Phoenix is consolidating its Summerlin-area locations in an effort to cut costs.
The for-profit education system has signed a lease to occupy part of a 3-story building next to the Nevada Cancer Institute off Town Center Drive and the 215 Beltway. It plans to move in as soon as late January.
The university also is closing an outpost near the beltway and Flamingo Road, just two miles from its new building, three real estate brokers with knowledge of the deal said. Additionally, the school plans to close its campus near Buffalo Drive and Summerlin Parkway, roughly 8 miles from its new site, one of the brokers said.
In Las Vegas, most commercial real estate leases involve tenants shuttling from one building to another in search of more space at a better rate, though it’s unclear what discount, if any, the university landed. Overall, the valley’s office market has an almost 25 percent vacancy rate and is struggling more than most real estate sub-sectors.
The university’s landlord near the Cancer Institute is American Nevada Co., the real estate division of the Greenspun Corp., owner of VEGAS INC and the Las Vegas Sun. The school will occupy most of the first and second floors of the building and, according to a county permit, plans to make almost $1.5 million of tenant improvements.
It signed a lease in late August and is scheduled to finish interior work by late January, said Charles Van Geel, vice president of leasing and sales for American Nevada.
The 98,000-square-foot building has one tenant, casino owner Affinity Gaming, and Van Geel said it offers more expansion space than the university’s existing facilities. He said the school is renting about 44,000 square feet in the new building, though he declined to disclose its lease rate.
The school currently occupies about 30,000 square feet near Flamingo, landlord Charlie Clatterbuck said. He confirmed the university is leaving the 37,000-square-foot building but would not disclose its rental rate there.
Bud Perrone, a spokesman for Florida-based LNR Partners, which controls the building near Buffalo Drive, said the firm declined comment.
Danica Ross, spokeswoman for the Apollo Group that owns the University of Phoenix, also declined comment, as did the school’s local real estate broker Bret Davis, of Jones Lang LaSalle.
The University of Phoenix offers undergraduate and graduate degrees in fields such as nursing, business and criminal justice. It has four valley locations — the two near Summerlin, one in Henderson and one in northwest Las Vegas.
Its consolidation comes as Apollo looks to slash costs after a drop in profits. Apollo earned $423 million of net income in the year ending Aug. 31, down 26 percent from the previous year.
It plans to close 115 locations and lay off about 800 employees.