Las Vegas–Alliance Residential Co. has restarted construction on Broadstone Ravello in North Las Vegas. Formerly known as the Pueblos and intended to be a condo development, Alliance acquired the unfinished 152-unit project in March. Five buildings totaling 40 units have been already been built, and the company plans to deliver the 112 unfinished units by early 2012.
Once finished, the property will consist of 19 two-story, wood-framed buildings featuring two- and three-bedroom apartments averaging 1,240 square feet, with most including attached garages. On-site amenities will include a resort-style swimming pool with sun deck, spa and restroom cabana, as well as a number of resident barbecue areas and a large recreation space for children.
“The target market for Broadstone Ravello is comprised of renters who are looking to upgrade to a high-end community, or are previous homeowners returning to apartment living,” Robert Hicks, Alliance’s vice president of operations for the Southwest Region, tells MHN. “As a result, this demographic desires a well-appointed apartment community with large floor plans and upscale finishes.”
The employment slump in Las Vegas has been so bad in recent years that even the apartment market has been affected. But the company believes that the market is primed for a recovery, and its completion of the property is timed to take advantage of that.
“Overall, Las Vegas has shown signs of stabilizing,” Dan McCadden, Alliance’s partner/managing director of development, tells MHN. “Our portfolio of more than 4,000 units in the Valley remains 94.5 percent occupied and there’s minimal new supply, so we’re taking a strong position for the upcoming recovery. Once job growth returns to the Valley—and it will return—we will see material improvements in property-level fundamentals, followed by increased valuations.”
As for the Broadstone Ravello project, McCadden says it’s a rare opportunity to purchase an unfinished asset at a significant discount. “The site was mass graded, all utilities were stubbed and distributed throughout the site, 40 units were completed and occupied, and almost all city impact fees were paid prior to our purchase of the property,” he says. “Given the embedded value of these improvements, Alliance could complete the project at a significant discount to new construction and at a risk-adjusted yield on cost higher than those achievable in any market in the country.”