CoStar: Related Sells Three Las Vegas Apartments Totaling 1,194 Units
Roxborough, Continental Complete Second Area Acqusition with Plans to Upgrade Rental Homes
The Related Companies has sold a portfolio of three multifamily communities totaling 1,194 units across Las Vegas, NV to a joint venture between Denver-based multifamily investment and management firm Continental Realty Advisors Ltd. and Roxborough Fund I, an affiliate of San Francisco, CA-based real estate investment firm The Roxborough Group LLC.
The portfolio includes the 402-unit Loma Vista Apartments at 1200 W. Cheyenne Ave., totaling 398,556 square feet on 22.2 acres in the North Las Vegas submarket; the 440-unit Stonegate Apartments at 5075 Spyglass Hill Dr., totaling 374,000 square feet on 19.1 acres in the Outer North Las Vegas / Sunrise Manor submarket; and the nearby 352-unit Stonegate West Apartments at 2675 S. Nellis Blvd., totaling 301,896 square feet on 14.4 acres.
The three properties were built between 1978 and 1998, all in close proximity to primary employment centers including the Strip, Las Vegas Medical District, Union Village, and the industrial and manufacturing hubs in the northern region. Each features a mix of one-, two- or three-bedroom layouts and offers a host of community amenities including swimming pools, clubhouses, playgrounds, sports courts, fitness centers and on-site management.
“We are excited for the opportunity to acquire a portfolio with scale at a significant discount to replacement cost,” said Matt McCormick, senior vice president with The Roxborough Group. “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.”
Following the joint venture partnership’s success at the Turtle Creek Apartments in Henderson last year, which saw that multifamily community undergo significant rental growth upon completion of common area upgrades and a rebranding of the asset to Tesoro Ranch, the buyers again plan a light renovation of specific units in its newly-acquired portfolio in addition to a full upgrade of common areas and amenities to capitalize on rent growth in the various submarkets these properties are located in.
“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,” commented 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.”
Please see CoStar COMPS #3750330 for additional information on this transaction.