By Jeffrey Steele, Contributing Writer
Las Vegas—The $51 million needed in construction financing for development of the 360-unit Elysian at the District multifamily property in Las Vegas has been arranged by commercial real estate banking firm George Smith Partners.
Elysian at the District will be developed by a joint venture partnership comprised of The Calida Group and Cypress Equity Investments.
Working with multiple senior construction lenders within its network of financiers enabled George Smith Partners to obtain the most competitive financing for the client. The ultimate solution was a mix of a mezzanine loan and a senior loan, obtained by negotiating an inter-creditor agreement with two separate providers.
“The Las Vegas multifamily market has taken longer to recover than other western markets, primarily because it suffered deeper pain resulting from the financial crisis,” Los Angeles-based GSP principal and managing director David Rifkind tells MHN. “Fundamentals turned positive in 2012. Rising rents and occupancies continued for Class A buildings during 2013. This trend supports new multifamily starts.”
Rifkind, assisted by George Smith Partners vice president Omer Ivanir, began this assignment in the first half of 2013. “The Las Vegas market was still out of favor for most national lenders,” Rifkind recalls. “We had to tell the emerging story of the market and support it with current hard data. Next, we had the pleasure of selling the story of this particular site. We took on the assignment because we believe in our client’s vision and that this site truly speaks for itself.”
The Rifkind Team at George Smith Partners has considerable knowledge of the Las Vegas market, having financed thousands of units over the past two decades, Rifkind reports. George Smith Partners was chosen on the basis of its ability to broadly market the unique Elysian at the District project and negotiate the optimal capital structure.
“This is a ‘story’ project,” Rifkind observes. “George Smith Partners had the privilege of being able to tell this story to a broad audience, resulting in a very successful placement.”
Rifkind is convinced Elysian at The District, a Class A development, will serve to raise the bar on quality, location and concept for the Las Vegas luxury market. “It joins a small cadre of high quality luxury buildings in Las Vegas, which outperformed the rest of the market in the downturn,” he says.
“The location is superb; it is part of Green Valley Ranch, [which is] one of the most dynamic retail, dining and entertainment districts in Las Vegas. The location on the 215 Beltway allows easy access to anywhere in the Las Vegas valley. The Elysian joins an already vibrant neighborhood, and will provide a quality living experience to its residents for decades to come.”