Vegas Apartments Change Hands in $60M Deal
- Mar 20, 2018
A joint venture between Hamilton Zanze and Cantor Fitzgerald L.P. has acquired Arrow Canyon, a 426-unit apartment community in Las Vegas for $60 million and rebranded the community Norterra Canyon Apartments.
“This Las Vegas property fits our platform perfectly, as we are looking to acquire large assets at stabilized cap rates above 5 percent in markets throughout the United States,” David Nelson, HZ’s managing director of acquisitions, said. “We are excited to continue investing significantly through this platform in the year ahead.”
Originally constructed in 2007 on approximately 17 acres, the community consists of 458,294 rentable square feet in 20 three-story buildings. It features one-, two- and three-bedroom units, all boasting upgraded interiors with stainless steel appliances and granite countertops.
Amenities include a complete fitness center, community playground, bocce ball court, covered parking, three-hole putting green and a resort-style swimming pool and spa with poolside cabanas.
The joint venture received a 10-year, $30 million fixed rate loan from Cantor Commercial Real Estate in collaboration with Berkeley Point Capital.
“This transaction represents the first joint acquisition for HZ and Cantor Fitzgerald, in realization of the breadth of our combined real estate capabilities,” Ken Carpenter, Cantor Fitzgerald’s managing director, said. “We continue to look for high-quality, multifamily properties in growing markets and seek to acquire $1 billion of property in 2018.”
The deal marks HZ’s 11th investment in the Las Vegas metro area.
Arrow Canyon is located north of the city, less than five miles from Nellis Air Force Base. It’s also close by both the I-15 and I-215 onramps, allowing for strong access to fine dining, shopping and entertainment venues.
According to Nelson, the joint venture is planning to invest around $1.4 million in capital improvements, which will include pool area enhancements, a clubhouse renovation, and upgrades for select unit interiors.
The community is now managed by Mission Rock Residential, an HZ property management affiliate. Other properties managed by the firm in the Las Vegas area include the Alicante Apartment Homes, Sonoma Palms, Whispering Palms and the Village at Desert Lakes.