Marcus & Millichap Arranges $17.1M Sale for Nevada Community

Marcus & Millichap Real Estate Investment Services has arranged the sale of a 240-unit community in Sparks, Nev., for $17.1 million. This sales price equals $71,250 per unit.

Sparks, Nev.—Marcus & Millichap Real Estate Investment Services has arranged the sale of a 240-unit community in Sparks, Nev., for $17.1 million. This sales price equals $71,250 per unit. The seller was Silverwing Development, and the buyer was a Danville, Calif.-based apartment investment firm.

The community, called The Waterford Apartments, was originally built in 1980. It includes 32 two-story wood frame buildings with vinyl siding. Waterford Apartments features 120 one-bedroom/one-bathroom units, 32 two-bedroom/one-bathroom units, 72 two-bedroom-two-bathroom units, eight three-bedroom-two-bathroom single-floor units and eight three-bedroom/two-bathroom duplex units.

“The location is superior—it’s by the Sparks Marina and it’s adjacent to a shopping center,” Kenneth Blmosterberg, a first vice president investments in the Marcus & Millichap’s Sacramento, Calif., and Reno, Nev., offices, tells MHN.

Amenities include fully equipped kitchens for the units, a health club and lighted tennis and basketball courts.

What especially attracted the buyer was that Waterford Apartments were recently renovated.

“The property had a major renovation over the last six or seven years to the tune of about $4.7 million,” Blomsterberg says. “The sellers on this property bought this property in a distressed manner, in a distressed situation, and turned it around and sold it in about a year and a half.”

These renovations included new windows, doors, siding, landscaping, a pool and spa and washers and dryers in more than 80 percent of its units.

Blomsterberg feels that this sale goes along with a positive real estate trend in Nevada.

“Reno for the longest time has suffered from high unemployment because of the economy, but we represented a number of sales in the past year, and not just local people,” he says. “Offers came in from Miami, New York, Chicago, and many Bay Area investors, so we’re seeing investors with a lot of money to deploy looking at secondary and tertiary markets in Reno as a market that has caught a lot of attention.”