DB Capital Enters Las Vegas With $64M Buy

The Boulevard. Image courtesy of DB Capital Management

Denver-based DB Capital Management has entered the Las Vegas market with the $64 million acquisition of a 296-unit multifamily community known as The Boulevard. Cottonwood Group was the joint venture partner for the acquisition. Dekel Capital arranged a $45.8 million bridge loan from UBS for the buyers.

CBRE represented McDowell Properties, identified by Yardi Matrix as the seller. According to the same data provider, the property previously traded in 2018, when McDowell paid $29 million for the asset, as part of a $133.8 million portfolio transaction.

Built in 1998, the community will be rebranded as Summit on Nellis. The property spans 13.6 acres across 24 buildings and features a mix of one-, two- and three-bedroom floorplans averaging 878 square feet. A fitness center, a swimming pool, a dog park, a clubhouse and 48 detached garages are among the common-area amenities.

Located at 3050 S. Nellis Blvd., the community is roughly 12 miles from both downtown Las Vegas and the Las Vegas Strip. The Sunrise Hospital and Medical Center, the Desert Springs Hospital Medical Center and the Union Village Integrated Healthcare Campus are all within a 5-mile radius.

The CBRE team arranging the deal for the seller included Executive Vice President Spencer Ballif, First Vice President Adam Schmitt and Client Services Specialist Jannie Mongkolsakulkit.

A strategic market entry

The acquisition of The Boulevard represents a value-add investment for DB Capital, which plans to execute a capital improvement plan at the property. The overhaul will incorporate upgrades of the existing units and common areas, as well as the buildings’ exterior.

Acknowledging the market’s potential, DB Capital CEO Brennen Degner mentioned in a prepared statement that the company is committed to acquiring a substantial portfolio in the metro, with a goal of $200 million in investments over the next two years.

According to a Yardi Matrix report, employment in Las Vegas expanded by 11.7 percent in the last 12 months ending in May, with all sectors adding jobs. The same report reveals that the Vegas market remained an investor magnet, with $1.9 billion in multifamily transactions closing during the first half of the year.