TruAmerica Buys $152M Las Vegas Property in Record Deal
- Jun 12, 2019
The 896-unit Allanza at the Lakes apartment community in Las Vegas has changed hands. The property was acquired for $152 million by TruAmerica Multifamily, in a joint venture with an institutional capital partner. The acquisition represents the single largest multifamily asset transaction in the history of the state of Nevada, and brings the company’s 2019 transaction activity to more than $880 million.
TruAmerica Multifamily entered the market in 2016 and now owns 4,000 units in Nevada. The company is now one of the largest multifamily landlords in the Silver State.
Situated at 8600 Starboard Drive, Allanza includes a mix of one-, two- and three-bedroom apartments.
Fundamental market indicators
“We were successful in utilizing our extensive track record and deep understanding of the Las Vegas market to provide institutional equity the comfort needed to make such an investment,” Zach Rivas, TruAmerica director of acquisitions, told Multi-Housing News. “It was our established track record and research-based strong fundamental market indicators that ultimately contributed to this transaction’s success.”
Its 56 two-story apartments are situated across a 40-acre parcel. A “Main and Main” location benefits the property, putting it in the coveted Lakes enclave of Summerlin, Rivas said. The population within a five-mile radius of Allanza is anticipated to surge by 9 percent during the coming four years.
Las Vegas enjoys a standing as one of the lowest income-to-rent ratios MSAs in the U.S., according to Rivas. That makes renting a particularly attractive option for Sin City residents. Rent growth in Las Vegas continues strong as other markets cool. TruAmerica believes the Las Vegas market will continue experiencing long-term investment upside, Rivas added.
Allanza provides TruAmerica strong value-add upside leveraged through an institutional quality management strategy, A substantial capital improvement program to completely upgrade apartment interiors is also planned.
The program will be executed as leases expire. Targeted enhancements to building exteriors and common areas, including its five swimming pools, two fitness centers, pet spa, picnic areas and playground, are slated to help improve overall curb appeal.