Ambleside, LLP purchased Clark Studios, a 44-unit apartment property located at 501 S 10th St in Las Vegas, NV. The asset sold for $1,440,000. Michael R. LaBar and Michael L. Shaffner, Vice President Investment Specialists in Marcus & Millichap’s Las Vegas office, had the exclusive listing to market the property on behalf of the seller, T.H. Steele, a private investor.
Category – Multifamily – Las Vegas
Marcus & Millichap announced the sale of Villa Paradisa, a 32-unit apartment property located at 4757 Harrison Drive in Las Vegas, Nevada. The asset sold for $1,720,000, according to Todd Manning, regional manager of the firm’s Las Vegas office.
Michael L. Shaffner and Michael R. LaBar, both Vice President Investments in Marcus & Millichap’s Las Vegas office, had the exclusive listing to market the property on behalf of the seller, Mimosa Management, LLC, a limited liability company. The buyer, Cyrus Investment Group, LLC, a limited liability company, was secured and represented by Shaffner and LaBar as well.
NAI Vegas’ Sauter Multifamily Group announced the sale of Sonoma Shadows (376 units) and Pine Hills Lodge (376 units) apartment portfolio located at 1750 & 1500 Karen Avenue in Las Vegas for $45,496,000 ($60,500 per unit).
Meiji Sangyo Co Ltd purchased Waikiki Palms Apartments, a 26-unit apartment property located at 2565 Lynnwood Street in Las Vegas, NV. The asset sold for $1,300,000, according to Todd Manning, regional manager of Marcus & Millichap.
Michael R. LaBar and Michael L. Shaffner, both Vice Presidents of Investments in Marcus & Millichap’s Las Vegas office, had the exclusive listing and represented the seller, a private investor, in the transaction.
Andy Crawford with CommCap Advisors arranged an unusual permanent loan for $5,600,000 at Veterans Village 2, located at 50 N 21st Street, in Las Vegas. This 204 unit multi-family property consisting of 75,828 SF was arranged with a community development lender and involved a non-profit borrower, City of Las Vegas grant money, and significant rehab with donated labor & materials. The property is being used to house US veterans.
The Siegel Group Nevada, Inc., announced the acquisition of the former Somerset Apartments. The sale was a quick off-market transaction. Built in 1961 and situated on 1.24 acres, the two-story complex totals approximately 31,500 square feet and is comprised of a mixture of 40 large one and two bedroom apartment units. The property,which will be renamed Siegel Gardens, has an exterior courtyard, outdoor swimming pool and laundry facility and is centrally located on Kishner Drive contiguous to the parking lot of the Las Vegas Convention Center (LVCC) to the east and adjacent to the former site of the Riviera Hotel that was acquired by the LVCC. Additionally, the complex is just one-half block from the Las Vegas Strip and the multi-billion dollar development site for Resorts World Las Vegas. This is the sole property located on the cul-de-sac of Kishner Drive that is not owned or controlled by the Kishner family. For the near term, the property will continue to be operated as a traditional apartment complex while The Siegel Group investigates alternative redevelopment uses and further expansion opportunities.
Stephen Siegel, President of The Siegel Group stated: “I’m pleased to have added this important and strategically located asset to our growing portfolio. This marks the second location we have recently acquired in this vicinity which we believe will be the center of the largest redevelopment plan to occur in Las Vegas since exiting the downturn.”
Marcus & Millichap announced the sale of Sage Point Apartments, a 128-unit apartment property located at 1400 E Reno Ave., in Las Vegas. Built in 1982, the property is located just minutes from UNLV, McCarran International Airport, and the Las Vegas Strip. The asset sold for $7,000,000, according to Todd R. Manning, sales manager of the firm’s Las Vegas office. Cameron Glinton, a senior associate in Marcus & Millichap’s Las Vegas office, had the exclusive listing to market the property on behalf of the seller DT Las Vegas IV LP. The buyer, Westland Sage Poiint LLC, was also secured by Glinton.
NAI Vegas’ Sauter Multifamily Group announced the sale of the 240 unit Majestic Heights Apartments located at 5325 E. Tropicana Avenue in Las Vegas to Aspen Square Management, Inc. Built in 1990, the 94% occupied property closed for $18,600,000 ($77,500/unit) on a 5.51% CAP. Art Carll and Patrick Sauter represented the seller, Majestic Heights Owner, LLC.
The average rent for Las Vegas apartments will reach the highest level on record as strong employment growth and the robust demographic base encourage renting. This year, the local economy regained all jobs lost during the recession, driven by expansion in the tourism industry. Construction and retail trade employers are padding payrolls, placing downward pressure on metrowide unemployment. Job opportunities and steady wage improvements are bolstering the metro’s demographic profile. Population growth, household formation and net migration are all trending upward, supplying a deep pool of renters to Las Vegas property owners. On the supply side, development is set to be on pace with the five-year average. Builders overwhelmingly pursue the top of the renter pool with much of the new construction focused on Class A, resort-style complexes that have creative amenity packages. The strategy seems to be working; a large portion of the development coming online is highly pre-leased and vacancy rates are falling. Tightening market conditions will enable rents to continue their steady climb, particularly in burgeoning hot spots to the west and southwest.
The apartment market is poised for another solid year as relatively higher yields and a positive economic outlook keep demand elevated for Las Vegas assets. Although historically buyers have heavily outnumbered available listings, the pool of sellers is beginning to widen. Camden Property Trust, a publicly traded multifamily REIT, divested the remainder of its Las Vegas apartment portfolio in April for $630 million. This along with heightened activity from non-institutional players contributed to an upswing in transaction velocity. Relatively inexpensive liquidity has encouraged some investors to rehabilitate their properties to capture higher rents, boosting NOIs and property values. Pricing experienced a double-digit hike this year, pushing the average cost per unit past the pre-recession peak. Average cap rates remain in the mid- 6 percent range and will fall to the 5 percent territory for high-end product.
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The Las Vegas apartment market saw an increase in the average asking rent and a decrease in the vacancy rate this quarter, according to data from the Lied Institute’s Apartment Market Trends report. This was the sixth consecutive quarter where the average asking rent increased. This quarter saw a 1.5% increase in the average asking rent and the average asking rent is now $880.