VAC Development breaks ground on a $100 million Henderson office redevelopment

VAC Development broke ground on The Cliff on September 1, putting the $100 million redevelopment of a 100,000-square-foot office property on 10 acres in Henderson into motion with tenant delivery targeted for the second quarter of 2027.

The capital ran just ahead of the shovel. A joint venture led by VAC Development acquired and recapitalized the project at the end of August, with CAST Capital Partners continuing as a partner, according to Connect CRE, and the report names no seller, no acquisition price and no equity split, leaving the venture's new basis and the size of the equity check outside public view.

The only disclosed figure is the $100 million program, about $1,000 a foot against the 100,000 square feet of office. The report does not say whether the redevelopment adds square footage to that base, but the case being financed rests on a tenant roster rather than on office rents.

The roster has been assembling since before the shovel moved: Visual Comfort, Pvolve and BODYROK are the newest signings, joining Arhaus, The Taco Stand, Lyte House, The Barista Botanist and Killer Whale Creamery for eight named tenants, with no rent, term or square footage disclosed for any of them.

Alongside the square footage, The Cliff is selling a calendar. Connect CRE describes an entertainment component that will host live music, DJs, comedy and karaoke, with outdoor programming for car shows, seasonal markets and arts and crafts fairs, which the report says gives the project more flexibility for recurring events than a traditional retail center.

Office has been clearing twice, once in debt and once in per-foot comps below replacement cost, and the tenant rather than the building carries the value. A converted office shell whose income rides on programming frequency tests that claim from an awkward direction, because the traffic depends on how often the calendar fills as much as on the credit of the names signed.

The retail premium has split between grocery anchors and drive-through boxes while everything else reprices tenant by tenant, and The Cliff is neither format. What is being underwritten looks more like programmed hours than an anchor covenant, which makes the events schedule a piece of the capital stack in all but name. Tenant delivery remains targeted for the second quarter of 2027, and whether the roster grows past eight names before then, and on what terms, has not yet been reported.