Security Properties Expands Nevada Holdings
- Jun 11, 2019
Seattle-based Security Properties has acquired The Edge at Traverse Point, a 296-unit, Class A garden-style community in the highly desirable submarket of Henderson, Nev., about 20 minutes from the Las Vegas Strip and downtown Las Vegas.
While Security Properties did not release the acquisition price or the seller, Yardi Matrix data identified the previous owner as Bascom Group and noted it had acquired the property at 1131 Wigwam Parkway in July 2014 for $43 million from Nevada West Development. The purchase was made that year as part of a $250 million venture between Bascom and Oaktree Capital Management and was the second acquisition made through the joint venture. Nationwide Life Insurance provided a $29 million loan for the acquisition that had a due date of August 2019. However, the asset became subject to a $41 million loan in October 2017 held by the Blackstone Group, Yardi Matrix data showed.
The 15.6-acre property was 95.6 percent occupied at the time of the sale. Completed in 2013, the apartment community has 22 buildings with one-, two- and three-bedroom units ranging from 643 square feet to 1,390 square feet.
Rents at The Edge at Traverse Point range from $1,077 to $1,716 with a total average of $1,408, according to Yardi Matrix data. Security Properties said rents in the Henderson submarket have increased approximately 20 percent over the past three years, noting it was one of the Las Vegas metro’s first submarkets to bounce back after the recession in terms of rent growth.
The units feature nine-foot ceilings, stone countertops, stainless steel appliances, large walk-in closets, garden-style tubs and full-size washer/dryers. Community amenities include two resort-style pools with spa and cabanas, 24-hour fitness center, theater room, pet exercise park, business center and outdoor picnic areas with barbecues and fire pits.
The new owner plans to update unit interiors by installing vinyl plank flooring, updating lighting and adding USB outlets and Nest thermostats. The upgrades, combined with the amenities, are designed to make the property competitive with new construction in the area.
Davis Vaughn, senior director of investments at Security Properties, said the company was attracted to Henderson because of the outstanding demographics and schools. The firm also owns Martinique Bay and Verona Apartments in Henderson.
The Edge at Traverse Point is located at the intersection of Wigwam Parkway and North Gibson Road with a grocery-anchored retail center within a half-mile. The property has direct access to Interstate 215, the region’s primary thoroughfare, with access to dining, retail and entertainment options.
The asset will be managed by Security Properties Residential, an affiliate of Security Properties.
Recent Investment Activity
Security Properties started off 2019 by expanding its Colorado holdings with the purchase of Highlands at Red Hawk, a 56-unit property in Castle Rock, Colo., for $16.5 million. The company now owns 12 assets with a total of 2,393 units in Colorado.
In May, a joint venture of Security Properties and Rockwood Capital acquired Taluswood, a 512-unit apartment community in Mountlake Terrace, Wash. Built in 1987, the 41-acre property is one of the largest garden-style apartment communities north of Seattle.