TruAmerica Multifamily has acquired two Las Vegas apartment communities for $77.2 million. The assets, Crossing at Green Valley and The Retreat, collectively bring 504 additional units into TruAmerica’s local portfolio. That portfolio now includes more than 3,200 units.
Over the past 12 months, Las Vegas occupancy has averaged 95 percent. Axiometrics reports rents have increased by an average of approximately 5.5 percent since 2015. The Las Vegas market witnessed employment expansion of 3.4 percent over the past year. With a mere 6,400 new rental units having come online since 2012, according to Fannie Mae, need for affordable multifamily housing remains high.
The Retreat, a multifamily community in East Las Vegas, was built in 1996 and offers 120 one-, two- and three-bedroom apartment homes. Features and finishes include nine-foot ceilings, full-size washer-dryers, walk-in closets, and private balconies or patios. The property was acquired in partnership with Cleveland-based Citymark Capital, with which it undertook its second joint venture this year.
Economies of scale
Crossing at Green Valley is a 384-unit multifamily community in Henderson, Nev. acquired in partnership with an institutional investor. The 32-year-old property features a mix of one- and two-bedroom apartments, each with full-size washers/dryers, walk-in closets and private balconies. Among the property’s amenities are two swimming pools, two spas, a fitness center, barbecue areas, playground and dog park.
It’s the fourth investment with the institutional investor. Among the others are the 420-unit Henderson community called Montego Bay, which the two joined forces to acquire in 2016.
“By leveraging our significant presence in this market, we can take advantage of economies of scale, to cost-effectively improve the appearance and amenities and achieve operational efficiencies at both properties,” said Zach Rivas, TruAmerica’s director of acquisition, who spearheaded the acquisition endeavor.
“Our renters will benefit from living environments comparable to newer product in the market, yet at rents which are affordable for working Las Vegas families.”
Capital improvement program
The acquisition of The Retreat fit Citymark Capital’s national apartment investment platform, said Dan Walsh, the company founder and CEO.
“Citymark’s unique platform provides investors with access to strong apartment investment opportunities across the United States, like The Retreat, by partnering with top operating companies like TruAmerica,” he noted.
Each apartment community will benefit from a multimillion-dollar capital improvement program. The program will see interior renovations as units become vacant, upgraded common-area amenities, new paint, signage and curb appeal-enhancing landscaping.
The acquisitions were leveraged with 10-year financing through Freddie Mac’s select sponsor program arranged by Mitch Clarfield and Ryan Greer of Berkley Point Capital. Charlie Steel, John Cunningham and Darcy Miramontes in the Phoenix office of JLL represented the seller, Acacia Capital and TruAmerica in the transaction.