TODAY’S DEALS: Investors Take Note of Las Vegas Market Conditions
TruAmerica bets on growing rents in Las Vegas, and Wells Fargo completes a $344.86 million loan pool.
Las Vegas—Improving economic conditions have led to rent increases in Las Vegas. From 2013 to 2015, average rents have increased from $751 to $822, according to Yardi Matrix data. Investors see continued room for growth, as most recently demonstrated by TruAmerica’s acquisition of Broadstone Solis. The Los Angeles-based investor picked up the 524-unit asset from Alliance Residential for $50.5 million in a sale arranged by JLL’s Capital Markets.
“Economic conditions in Las Vegas continue to improve dramatically, and institutional investors are taking notice,” said Charles Steele, vice president at JLL. “Due to its outstanding infill location, Broadstone Solis is poised to capitalize on the expansion of the local economy with strong future rent growth.”
Steel worked alongside executive vice president John Cunningham on the transaction.
Broadstone Solis was built in two phases in 1988 and 1992. Amenities include a three swimming pools and spas, cabanas, barbecue and picnic areas, basketball courts, a fitness room and a clubhouse.
Wells Fargo completes $344.86M in loans to AVR Realty
New York—Wells Fargo’s Multifamily Capital group recently closed a pool of Fannie Mae loans totaling $344.86 million, provided to AVR Realty for the refinancing of 15 apartment properties located in Louisiana, South Carolina, Georgia and New York.
“AVR Realty is an important, long-term client of Wells Fargo and has been a client of the bank since 2003,” said Brian Manion, a managing director in Wells Fargo’s Multifamily Capital group. “AVR was looking to refinance a portion of its multifamily portfolio into longer term, interest only financing. Our national and regional scope enabled us to successfully deliver the needs for this unique refinancing.”
Additional details include:
- Deal Amount: Refinance into 15 non-crossed Fannie Mae loans totaling $344.86 million
- Deal Location: 15 Class A properties located in LA, SC, GA and NY
- Term:/LTV 10-year term, full term Interest Only at 65 percent LTV
- Rate: 3.58 percent note rate on all loans
- Borrower: AVR Realty
- Additional info: Smallest loan was $13.4 million and the largest was $89.1 million with the average loan size $22.99 million
“It was a pleasure working with the Wells Fargo team led by Brian Manion,” said Lily Ann Marden, director of finance for AVR Realty Company LLC. “AVR was able to lock-in a very favorable interest rate. All 15 loans closed on time and at the full loan amounts. AVR is looking forward to doing more financings with the Wells Fargo team.”
For more than 45 years, AVR has built a reputation for identifying intrinsic real estate value in a wide range of properties. To date, AVR has built, acquired, and developed more than 30 million square feet of commercial and residential space. AVR’s portfolio includes office complexes, shopping centers, corporate and industrial parks, apartment communities, residential communities and hotels.