Tides Equities Buys Las Vegas Asset for $42M
The new owner plans to upgrade the 208-unit community.
Tides Equities paid $41.5 million for VIO, a 208-unit community in Paradise, Nev., marking the company’s 15th acquisition in the Greater Las Vegas area. The new owner will rebrand the property as Tides at Desert Pointe. The seller was a joint venture between The Midtown National Group and Laguna Point Properties, according to Yardi Matrix.
The 1973-built community in the University submarket last traded in early 2019, when the current sellers paid $16.8 million to 3D Investments, the same data provider shows. Tides Equities plans to upgrade the property through a capital improvement plan totaling approximately $5 million.
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Located within an Opportunity Zone at 764 E. Twain Ave., the pet-friendly community encompasses 26 two-story buildings across 7.8 acres. Tides at Desert Pointe features one- and two-bedroom units with floorplans averaging 889 square feet.
The tenants have access to a swimming pool, a fitness center, a dog park, a clubhouse, a playground, two laundry facilities and a picnic area with barbecue grills. The property is steps away from several shopping and dining options and within 2 miles of Interstate 15 and the Las Vegas Strip. University of Nevada, Las Vegas is roughly a mile south.
A string of acquisitions
The current purchase marks Tides’ 111th acquisition in the Western U.S. since 2016. Based on Yardi Matrix data, nine assets within a 5-mile radius of Tides at Desert Pointe traded in the first quarter of 2022, for a combined $368.9 million. The total breaks down to $230,106 per unit, slightly above the roughly $200,000 per unit paid by Tides. In January, the company also paid nearly $143 million for two Las Vegas communities encompassing 725 units combined.
On top of many other multifamily fundamentals, the Las Vegas economy continues to show significant improvement. The metro’s unemployment dropped to 5.3 percent as of February, according to preliminary Bureau of Labor Statistics data. The figure is the lowest rate since the pandemic-induced high of 33.3 percent recorded in April 2020.