By Mike Ratliff, Senior Associate Editor
Las Vegas—There are still distressed apartment deals to be done in Las Vegas if you look hard enough. Thorofare Capital announced yesterday that it provided an affiliate of California Capital Real Estate Advisors (CALCAP) with a $12.1 million fixed-rate bridge loan for the acquisition and reposition of a two-property REO portfolio. The distressed portfolio totals 340 units.
Ridgewood Apartments is a 112-unit community located at 3355 South Arville St., and Evergreen Apartments is a 228-unit asset located at 5400 West Cheyenne Ave. CALCAP grabbed the properties through Auction.com from Miami-based CMBS special services LNR Partners.
According to Thorofare Capital, both properties suffered from a lack of capital following their receivership in late 2014. This led to general disrepair of the properties’ appearance and negative perception within the rental market.
The bridge loan provides for a multi-million-dollar capital improvement program that will target exterior and common area renovations, as well as refurbishment of 68 units that were taken out of inventory. CALCAP has B&R Property Management to oversee the renovations. The general business plan is typical for a Las Vegas value-add: improve vacant units, push rents toward market values as units turn over and manage the community efficiently.