"That's Virtu's MO," Vincent M. Cardamon, Arbor's regional director in San Francisco, tells GlobeSt.com. "They find properties that are under managed and they turn them around."
Cardamon says seller, JTJ Management of Las Vegas, owned the Island Club for 13 months, disposing of the holding after undergoing "several partnership problems." The complex itself fell on hard times when tourism cut into the casino-driven heart of Las Vegas. Cardamon says 80% of Island Club's tenants worked in the hospitality industry. Thus, vacancy was riding at 17% after 9/11 and delayed the closing. By sale time, "vacancy, bad debt and concessions" lowered that number to 12 1/2%, he confides. "Because the underwriting team went the extra mile to understand the post-9/11 Las Vegas market, we were able to execute the loan in a timely manner and terms that were very satisfactory to the client," he adds.
Cardamon says Arbor was the second lender to scrutinize the loan. Virtu secured a 10-year loan with a 30-year amortization from Fannie Mae. The interest rate is 7.22%.
Virtu also repositioned the 220-unit Miriam Manor, which is positioned close to Island Club, and the 368-unit Desert Park. Island Club, a 1980s product, is located at 3700 E. Bonanza Rd. Brian Anderson and Carl Sims, both of the Las Vegas office of Phoenix-based Hendricks & Partners, represented both sides of the deal.
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