Lenders Vie for Las Vegas Multifamily Deals

Lenders are competing to pick up quality multifamily deals in Las Vegas. The recent acquisition financing deal for Allanza at the Lakes revealed the trend. TruAmerica Multifamily purchased the property—which was the largest transaction in Nevada history—and secure $106.8 million in acquisition financing on the deal. The combination of the quality asset, strong Las Vegas fundamentals and strong sponsorship made this a popular deal among lenders.

“Lender demand for a deal such as this is strong. Multifamily product is still the capital market’s favorite property type,” Ory Schwartz of NorthMarq Capital, tells GlobeSt.com. “Lender appetite is definitely strong in Las Vegas  for multifamily. The Las Vegas apartment market has seen consistent and solid growth over the past several years.”

TruAmerica has a value-add business strategy for the asset, and plans to renovate the property and hold for five years. The investor secured green advantage acquisition financing through the Freddie Mac’s 10-year floating rate program. “The sponsor was seeking a maximum leverage floating rate loan with five years of interest only,” says Schwartz. “Because of the type of loan the sponsor was looking for, the agencies were the best fit and ultimately Freddie Mac was more aggressive than Fannie Mae on this one.” Additionally, TruAmerica is a Freddie Mac select sponsor.