LAS VEGAS-The 180-unit Courtney's Bay apartment development here has changed hands for $27.7 million. Atherton-Newport, a Newport Beach, CA-based investment company, sold the asset to RW Selby, a Los Angeles-based multifamily investment firm.
Built in 2001 and recently rebranded as Bacarra Apartment Homes, Courtney's Bay is located just east of Las Vegas Boulevard and south of Interstate 215 in the Silverado Ranch area, which recently benefited from a new off ramp from I-15. The gated community offers one-, two- and three-bedroom apartment homes and has a tentative condominium map on it, though there are no current plans for conversion
Christopher Bentley, president and broker of the Bentley Group Real Estate Advisors, had the disposition assignment and procured the buyer. The sale price equates to $153,889 per unit and $161.42 per sf. The per unit price is approximately market rate for A-type product while the per-sf price was a little higher than market, "but the location is dynamite," Bentley tells GlobeSt.com.
The cap rate on the deal was in the 4% range based on actuals in part because several units were in the process of being rehabilitated, Bentley says. The seller had already renovated a few dozen units and was achieving higher rents on the renovated units; the buyer will continue the rehabilitation program and, given the higher rents, expects to have the cap rate into the high 5% range within 12 months or so, Bentley says.
Another likely reason for the low cap rate is a supply-demand imbalance. "Southern Nevada's multifamily market remains healthy as investor demand continues to outpace supply," Bentley says.
In another recent deal, the much older 178-unit Mountain Vista apartment complex near Flamingo Road and the Boulder Highway has changed hands for $14.5 million or $81,460 per unit. The complex was built in 1979. Haberman-Vista Invst. Co. LLC and Mountain Vista Apts. LLC of Marina Del Rey, CA sold the asset to Mountain Vista Apartments Nevada LLC of Los Angeles. Carl Sims with Hendricks & Partners in Las Vegas brokered the deal with Brian Anderson with the Sacramento office of H&P.
Falling in between those two deals in terms of the per-unit price was the Loma Vista Apartments in North Las Vegas. Built in 1998 at 1200 W. Cheyenne Ave., the 402-unit complex changed hands recently for $42 million or $104,500 per unit. American Properties Development of Seattle sold the property to National Commercial Ventures of Los Angeles. Peter Katz of Marcus & Millichap brokered the deal.
Sims tells GlobeSt.com the Vegas apartment market is being affected by the high foreclosure rate for single family homes in the region. "With Nevada having the highest foreclosure rate in the country rate for single family homes and condos we have seen the vacancy rate increase," he says. "It seems the people being foreclosed on are moving into rental homes or upper end apartments. In addition with prices going down for homes renters are now starting to buy foreclosed homes."
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