Chicago Buyers Expand into Las Vegas Market

By D.C. Stribling

Oak Residential Partners and POB Capital LLC, both based in Chicago, have acquired the 252-unit Avenue Apartments in the metro Las Vegas market. The deal marks the entry into the market for both buyers.

The Avenue Apartments is in north Henderson, Nev., a city—the second-largest by population in Nevada—that’s about 15 miles to the southeast of Las Vegas. According to the buyers, they were attracted to the location by its proximity to large job centers around the Las Vegas Strip, downtown Vegas and in Henderson itself.

Located at 4800 East Tropicana Ave., the property is a garden-style community originally developed in 1996. It consists of 34 residential buildings in a low-density layout, including one- and two-bedroom units and featuring nine-foot ceilings.

Common amenities include a resort-style swimming pool with a spa and a clubhouse featuring a full kitchen, gas fireplace, lounging area, multiple TVs and a business center. There is also a 24-hour fitness center with two racquetball courts, and a dog park and pet area.

Value-Add Play

The buyers plan to capitalize on the property as a value-add, with funds earmarked to modernize the community, including conversion of the under-utilized racquetball courts into yoga/stretching space and a game room. They also have plans to renovate the unit interiors, including new kitchen cabinets, countertops, flooring, and stainless steel appliance packages, among other planned improvements.

“It’s been our goal to expand to Vegas and other western U.S. markets for some time now,” said Eytan Peer, Oak’s head of acquisitions in Las Vegas. “Avenue provides us the opportunity to improve and reposition the property.”

The company plans further acquisitions in this part of the country, Peer added. “As we continue to grow our multifamily investment platform in Las Vegas and other major markets around throughout the West and Southwest, we will look to identify attractive investments,” he explained.