MultifamilyBiz.com: Joint-Venture Group Acquires 1,194-Unit Portfolio of Three Apartment Communities in Las Vegas
LAS VEGAS, NV – Roxborough Fund I, an affiliate of San Francisco-based real estate investment firm The Roxborough Group, in partnership with Continental Realty Advisors, a Denver-based multifamily investment and management firm, have completed the acquisition of three apartment complexes totaling 1,194 units, located in the north and east suburbs of Las Vegas. Terms of the deal remain undisclosed.
The portfolio includes the 402-unit Loma Vista Apartments in North Las Vegas, as well as the 440-unit Stonegate Apartments and 352-units Stonegate West Apartments located on the eastside of Las Vegas. The properties are close to primary employment centers in Las Vegas such as the Strip, the expanding Las Vegas Medical District and Union Village development, and the northern industrial and manufacturing hubs. Las Vegas is currently experiencing pent-up demand for rental housing due to historic lows in new development, and both the North and East Las Vegas submarkets currently have no active or planned new development.
“We are excited for the opportunity to acquire a portfolio with scale at a significant discount to replacement cost,” said Senior Vice President of The Roxborough Group, Matt McCormick. “The Las Vegas market is experiencing a significant recovery in employment, wage and population growth, yet the growth in new rental housing remains below peak levels and significantly behind most major cities throughout the country. We see significant room for rent increases in this sector.”
The portfolio is the second acquisition for the partnership in Las Vegas, which acquired Turtle Creek Apartments in the Las Vegas suburb of Henderson in November of 2015. This property was recently rebranded as “Tesoro Ranch” and has experienced significant rental growth upon completion of its common area upgrades. The business plan for the portfolio calls for a light renovation of a subset of the individual units and a full upgrade of common areas to capitalize on the rent growth in the market. The renovation will bring the properties in line with their competition in each submarket.
“The opportunity to acquire this portfolio and add another 1,200 apartment units to our holdings in Las Vegas is the result of a strategic effort between CRA and Roxborough,” said David Snyder, chairman of Continental Realty Advisors. “We intend to grow our southwest portfolio and welcome the opportunity to offer quality, renovated apartment lifestyles to the region. We want to embrace the Las Vegas community and hope it will appreciate a conscientious owner that values its residents and their living needs. We are excited to be part of their lives.”