LAS VEGAS-A joint venture last week closed on a $60-million loan to acquire and convert to condominiums the 551-unit Village Green apartment community on 20 acres adjacent to the Las Vegas Country Club. TR Village Green LLC, a JV of TR Co. and Coleraine Capital Group, paid $49 million for the property on July 29, according to Clark County records. The TR stands for Tom Rielly, a Newport Beach, CA-based real estate investor.Village Green was completed in 1973. Spread out in 40 two-story buildings, the units will undergo major renovations prior to being sold off as condominiums. Each unit will be given new finishes including new cabinetry, trim and moldings; granite countertops; new kitchen appliances and in-unit washer/dryer; oversized walk-in closets; and new flooring. All units also will be wired for high-speed data transmission and Internet access.Corus Bank provided the loan for the project. The bank says it was able to structure a non-recourse loan with no pre-sale requirement due to, among other things, the significant improvements to be undertaken, the strength of the Las Vegas condominium market, and the involvement of Fidelity Investments’ Real Estate Growth Fund II. “We typically don’t consider financing assets of this vintage,” Corus Bank commercial loan officer Seth Hewitt tells GlobeSt.com. “But with all those components together it makes sense.”Hewitt declined to go into the specifics of the loan, other than to say it was a Libor-based, variable rate loan. Rielly did not return a phone call seeking comment. Corus typically funds these types of projects at between 50% and 60% of the expected gross proceeds from the sale of the units. The terms of such loans are generally two- to four years. According to published reports, condominium sales through June have increased 90% from a year ago to 3,885. The median price for 862 units sold in June was $160,000, compared with median new Las Vegas home prices that are closer to $250,000. Of the 1,900 condominiums listed for sale in June on the Multiple Listing Service, 1,166 were new listings. The median asking price for al 1,900 was $189,000 and the average asking price was $217,000.

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