Dornin Investment Group has sold the equity interest in a Las Vegas community to one of its equity partners. DIG obtained the property in 2017 for $15.6 million, a sale which was subject to a $11.7 million Fannie Mae loan, originated by Newmark Knight Frank, according to Yardi Matrix. The current repositioning yielded an internal rate of return of more than 74 percent.
Sunrise Springs Apartments is located at 4455 E. Twain Ave., an area with several points of interest, including dining, shopping and entertainment destinations. The 15-building community comprises 64 one-bedroom, 88 two-bedroom and 40 three-bedroom units, ranging from 667 to 1,076 square feet.
DIG held the asset for 18 months, during which it applied multiple improvements to the property, including remodeling the clubhouse, office, indoor pool, sauna, gym and several unit interiors. The company obtained the asset following the 2013 foreclosure of a CMBS loan.
As Las Vegas steadies its economic growth, demand for multifamily product is growing and rent growth was the second-largest across the U.S., allowing for value-add strategies such as DIG’s sale to flourish. After picking up pace last year, transaction volume in metro Las Vegas exceeded the $1 billion mark in June.
Image courtesy of Yardi Matrix