Dwight Capital Closes on $40M Las Vegas Loan
- Jul 14, 2020
Dwight Capital has closed on a $40 million loan for Villas at Sunrise Mountain Apartments, a 304-unit gated apartment community in Las Vegas. The HUD 223(f) loan features a Reduced Green Mortgage Insurance Premium (MIP) at 25 basis points given the property’s ENERGY STAR certification.
Located at 63600 E. Sahara Ave., the property was built in 2000 and is 98 percent occupied, according to Yardi Matrix. The community consists of 38 garden-style, two-story apartment buildings on a 14.5-acre site and includes a clubhouse, fitness center, and swimming pool. Units range in size from one to three bedrooms. The sponsor is a long-term private owner and the property is managed by ConAm Management.
Dwight Capital’s Executive Vice President Keith Hoffman originated the transaction for the asset, which is located in the Sunrise Mountain neighborhood east of downtown, within walking distance of Las Vegas High School, the Lewis Family Park and Hollywood Regional Park.
“Dwight has found that HUD financings typically offer the most competitive terms in this market for multifamily financings, as other lenders struggle with the economic fallout from COVID-19,” a representative of the nationwide mortgage banking firm noted to Multi-Housing News.
Multifamily investment activity in Las Vegas reached a cycle high of $2.9 billion in 2019, according to Yardi Matrix data, but the coronavirus crisis interrupted the trend, hitting the heavily tourism-dependent economy of Nevada harder than that of most states. About $516 million of in assets changes hands in the first four months of 2020, representing an 11 percent year-on-year drop.