ConAm Group Acquires Las Vegas Apartments
- Nov 06, 2019
The ConAm Group has purchased a 292-unit apartment community in Henderson, Nev., for $54.5 million. South Valley Ranch is a 22-year-old property consisting of 37 two-story buildings spread across a 17.4-acre parcel.
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The seller is the family office SVR Apartments LLC. Glenn Dulaine, CCIM and broker salesman for Realty Executives SNV in Las Vegas, represented both the buyer and the seller in the transaction.
The property features 104 one-bedroom units, 164 two-bedroom apartments and 24 three-bedroom residences. Each apartment features its own patio or balcony. Among the most popular amenities is a swimming pool.
“Locating multifamily assets in Las Vegas is very challenging because there is so much demand and very few available assets,” Dulaine told Multi-Housing News. “I was able to locate this property off market through relationships I had with the seller and the buyer. The nice thing about working with ConAm is they’re very professional and capable, so all aspects of the transaction on the buyer side worked like clockwork.”
Though South Valley Ranch was the seller’s first large multifamily asset, Dulaine said, the family office “did a surprisingly good job of operating it.”
“The desire to sell was to allow a professional operator the chance to take it to the next level with new capital and renovation, which will reposition the asset in this popular and fast-growing area of the greater Las Vegas (market).”
South Valley Ranch is situated in a Henderson submarket that has benefited from proximity to significant employment centers, Dulaine said. Union Village Medical Campus and a new $600 million Google data center are sited nearby.
“We think that’s going to open up more employer demand for the same area,” he added. “The infrastructure is there because of the data center and there’s a lot of vacant land around there for companies to locate and expand. And Henderson is a pro-growth community actively seeking business relocations, many coming from California.”
Additionally, South Valley Ranch is located in a very small master-planned community that exudes a quaint feel and identity, Dulaine reported.
“That happened to be very attractive to the buyer as well,” he said.
Initially, ConAm Group pursued a loan through Freddie Mac. “Mid-stream during the escrow period, Freddie Mac cancelled the value-add program ConAm had pursued,” Dulaine said. “Many buyers would have been stymied. But ConAm, with its strong relationship with lenders, was able to pivot, obtain alternate lending and close on time.”