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Category – Multifamily

Marcus & Millichap Releases 4Q 2017 Las Vegas Apartment Report

Marcus MillichapHealthy job growth in office-using, hospitality sectors drives rental demand. Amid rising payrolls in the professional and business services and hospitality sectors, household growth is prompting demand for rentals. Elevated demand has prompted multiyear declines in vacancy to below 5 percent through the first half of 2017. Builders have responded to the sharp drops in vacancy, with completions set to rise to a multiyear high this year as 3,500 rentals are delivered. As a result, the three-year delivery total will top 9,100 units, which has begun to weigh on overall vacancy in the metro. While longer-term demand trends remain positive, a backup in vacancy is likely until supply moves more in line with the local need for housing.

Construction rises to multiyear high; projects proliferate in Southwest Las Vegas and Green Valley. Tight conditions are spurring a focus on multifamily and mixed-use projects, particularly in the southwestern submarkets and neighborhoods. Performance in these locations has begun to bifurcate, with many submarkets remaining tight while others struggle with new supply. The influx of properties at the high end is boosting overall rents as tenants lease at rates above the metro average.

View full report

NAI Sauter Multifamily Represents Sale Of Cheyenne Point Apartments

Cheyenne PointNAI Vegas is pleased to announce the successful marketing and sale of Cheyenne Pointe Apartments, 204-units located at 3240 N. Las Vegas Blvd., Las Vegas, NV 89115 for $17,442,000 ($85,500 per unit) on 11/1/17.

Patrick Sauter, Art Carll and Antone Brazill of NAI Vegas’ Sauter Multifamily Group appreciates the opportunity to have exclusively represented the Buyer and Seller in this successful transaction.

 

 

Cheyenne Pointe Apartments 3240 N Las Vegas Blvd, Las Vegas, NV 89115

Transaction Details

  • $17,442,000 Sale Price
  • 5.51% Cap Rate
  • Class B Community
  • Built in 1999
  • Date Sold:11/1/2017

Boston And Las Vegas Bookend Required Credit Scores For Apartment Renters

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The average credit score of those approved for an apartment lease is on the increase, up 12 points since 2014 to hit 650 in 2017, according to rental applications submitted nationwide.

Across building types, rental applicants approved for an apartment in 2017 had average scores that range from 683 in high-end buildings to only 624 in low-end buildings.

And if you’re wondering which generation of renters is in the best credit shape, that’s Baby Boomers for you, with the highest accepted average score of 683.Zooming in to the city level, two of the most expensive hubs for renters lead the way, Boston with a 737 average credit score of approved applicants and San Francisco with 724. Las Vegas is on the other end of the spectrum with 590, the lowest average credit score of approved renters out of the 50 cities we looked at. Sin City has also witnessed a 6.3% increase in rents since last year, now at $962/mo.

While it may not all boil down to a renter’s credit score, our research shows there’s a strong correlation between it and application approval rates, as you can see in the graph below:

See full credit score report here

Bay Bridge Apartments Sells For $19 Million

bay ridgenorthcap-logoDevin Lee, CCIMRobin Willett,  Jerad Roberts and Jason Dittenber, of Northcap Multifamily, are pleased to announce the recent sale of the Bay Bridge Apartments for $19,000,000. This sale consisted of 208 multifamily units, located at 5400 S Maryland Parkway in Las Vegas, NV.  The sale closed on October 17, 2017 and Northcap Multifamily represented the Seller (29SC Country Hills LP) in this transaction.

“A 1981 property selling for $91,000 per unit at a 5.7% cap definitely signifies the forward outlook and current strength in the Las Vegas multifamily market”, said Devin Lee.

Entire Senior Apartment Community to Be Relocated

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The 42-year-old Rose Gardens Senior Apartments and its 120 units are feeling their age and are in need of interior and exterior nips and tucks. Instead of continuous repairs or renovation, an entirely new Rose Gardens Senior Apartments – with more amenities and services – will be built with all 120 households to be relocated together in a new affordable apartment community across the street from their current North Las Vegas location.

This is the first project of its kind in Clark County with permanent resident relocation to new facilities compared with a few previous temporary relocations during renovation. Rose Gardens is a Senior Public Housing Development of the Southern Nevada Regional Housing Authority (SNRHA). The estimated $21 million cost to develop the new Rose Gardens affordable senior community is through the federal government’s Rental Assistance Demonstration (RAD) public-private partnership program.

SNRHA has chosen to partner with Nevada HAND (Housing And Neighborhood Development) and its affiliate company HAND Construction to manage and build the new Rose Gardens Senior Apartments. The nonprofit real estate development and management organization was formed in 1993 to improve the lives of low-income individuals, families and seniors in Southern Nevada through affordable housing solutions and supportive services.

Residents are expected to move into their new apartment homes in December 2018. There will be no cost to them for the move; and their rent, which includes utilities, is not expected to increase from the 30 percent of adjusted household income they pay.

“We’re excited to be involved in Rose Gardens with so many great partners and revitalization in North Las Vegas to give residents a brand new home and features and services they currently don’t have,” Mullin said. “This type of public-private partnership is the perfect complement for our mission at Nevada HAND for residents at our properties to reach their full potential by creating opportunities for them to live well through support of economic stability, wellness, education and community engagement.”

Residents are excited too. “We’ve all known about this and have been looking forward to it for some time. Everybody knows everybody here,” said St. Clair Haywood, Jr., president of the Rose Gardens Resident Council.

In addition to new apartments, residents will get more amenities and access to services that are standard at Nevada HAND’s 31 other local affordable family, senior and assisted living communities.

These include a computer lab with free high-speed internet, fitness center, theater room, music room dog run, community gardens, BBQ/picnic facilities, gated parking, more secure building access, full-time property manager and on-site resident services with access to financial, supplemental         nutrition, and public resources; volunteer and education opportunities; and social programs.

During construction, residents will remain in their existing apartments. Upon completion, SNRHA and Nevada HAND will work together to make the relocation process seamless. Coordination and support will cover relocation assistance and counseling, transportation and moving services, utility and service transfers, social and support services, and elderly and disability assistance.

The new Rose Gardens will have 102 one-bedroom apartments of about 723 square feet and 18 two-bedroom units with approximately 928 square feet. These are larger than the current units and have more storage space, a private exterior balcony and energy efficient upgrades such as Energy Star-certified appliances. Currently there are 60 studio apartments and 60 one-bedroom apartments.

The design of the new apartments follows Leadership in Energy and Environmental Design (LEED) concepts and will result in lower energy costs at the complex. There also will be a recycling program. Upon project completion, the existing 1632 Yale Street facilities will be demolished with future plans for the site to be determined.

Las Vegas Stirling Club Goes to Auction

StirlingClub-7The once famous mega-luxury Stirling Club, a remarkable 73,576 square-foot destination property located in the heart of the Resort Corridor between the Las Vegas Convention Center and the Las Vegas Strip, will go to auction November 6 on the Ten-X Commercial internet-based platform.

Previously operated as an elite, private membership club, the Stirling Club sits on 3.2 acres on the grounds of Turnberry Towers, at 2827 Paradise Road, near the north end of the Las Vegas Strip – an area that is in the midst of a dramatic revitalization.

The property’s amenities include:

Full Service Spa Facilities

  • Indoor Lap Pool/Lagoon-Size Outdoor Pool
  • Four Tennis Courts
  • Fitness Center
  • Multiple Banquet Halls and Private Rooms
  • Two Commercial Grade Kitchens
  • Multiple Office Areas
  • Private Driveway with Underground Parking

CNR Retail Advisors (Chris Clifford, Steven Neiger, and Brett Rather) of Colliers International – Las Vegas, have been named the listing brokers for the sale of the property.

“This is an opportunity of a lifetime for the right buyer,” said Steve Neiger. “This area is renowned for its international appeal, and there’s extraordinary potential to transform this one-of-a-kind property into a new and exciting world-class venue.”

The property, which lends itself to a variety of uses, would cost approximately $60 million to build in today’s dollars. It is anticipated to sell at a fraction of that amount.

For more information, please visit https://www.ten-x.com/commercial/details/2827-paradise-rd-las-vegas-nv-89109-1000005167-b_219.

Two Las Vegas Multifamily Assets Sold by Marcus & Millichap for $39.3 Million

lasplamas rubixMarcus & Millichap announced the sale of two multifamily assets in Las Vegas. The properties are Las Palmas, a 394-unit apartment complex and The Rubix, which features 236 fully furnished studios. The assets sold for a total of $39.3 million.

“Consistent job growth is driving strong demand for local apartments,” says Michael Shaffner, first vice president investments in Marcus & Millichap’s Las Vegas office. “Strength in the labor market has reduced unemployment to below 5 percent for the first time in a decade, prompting considerably tight market conditions.”

Shaffner and Michael LaBar, first vice president investments, brokered both transactions.

Built in 1974 on 13 acres, Las Palmas is located at 3550 Paradise Road, across the street from the Wynn Hotel. The buyer plans to infuse the community with significant capital improvements and renovate the property’s interior and exterior.

The Rubix was built in 2009 and was acquired with tax-exempt bond financing. The new ownership strategy will focus on an expanded HUD-Veterans Affairs Supportive Housing program that will assist veterans and their families find and sustain permanent housing. The property is located on 7.75 acres in Las Vegas’s northeast corridor, adjacent to Nellis Air Force Base and near Amazon, Hyperloop, Bed Bath & Beyond, Fanatics, and the Las Vegas Motor Speedway.

Northcap Multifamily Reps Buyer Of 218 E. Merlayne

218 Merlaynenorthcap-logoRobin WillettDevin Lee, CCIMJerad Roberts, and Jason Dittenber, of Northcap Multifamily, are pleased to announce the recent sale of 218 E Merlayne for $420,000. This sale consisted of 8 multifamily units, located at 218 E Merlayne Drive in Las Vegas, NV.

This transaction closed on September 15, 2017. Northcap Multifamily represented the Buyer in this transaction.


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