SPANISH OAKS APARTMENTS SELLS FOR $50M
Next Wave Investors LLC, a private equity firm focused on value-add multifamily investments, recently sold Spanish Oaks, a 216-unit garden-style multifamily community for $50 million after acquiring it for $28.5 million in February of last year.
Through strategic, streamlined renovations and a unique awareness of the market, the firm was able to realize significant value within 15 months of ownership, according to Jordan Fisher, principal at Next Wave.
“We began our acquisition of this property amidst the thick of pandemic-driven uncertainty in October 2020, when investors generally saw a light at the end of the tunnel but still shied away from largely tourism-driven cities like Las Vegas and Orlando,” he said. “Because we already owned assets in the market, we knew that multifamily performance remained strong, in part due to effective government subsidies. Our foresight that visitors would return to Vegas sooner rather than later, coupled with strong fundamentals and ongoing diversification of the local economy projected in the pre-pandemic market, gave us confidence to acquire this asset at far below replacement cost.”
Drawing upon nearly 20 years of hands-on experience in the operation and enhancement of multifamily properties, the Next Wave team also created value through implementing a strategic value-add business plan.
According to David Sloan, principal at Next Wave, the population of Clark County has increased by roughly 20 percent over the last 20 years, and looking ahead, the population is projected to grow by another 8.3 percent by 2032.
“As our firm dials in on key submarkets throughout the Western U.S., Las Vegas has continued to demonstrate one of the strongest markets for value-add investments and regional growth,” Sloan said. “Spanish Oaks was a particularly opportunistic play, and the increased strength and demand of the submarket informed us that a three-year hold was unnecessary, hence the quick turnover and sale at nearly double the purchase price in just over a year.”
Spanish Oaks Apartments, which were built in 1976, are located less than 10 minutes from the Las Vegas Strip. The property is situated along the Interstate 15 and State Route 159, also providing residents access to 10 million square feet of office in downtown Las Vegas as well as proximity to retailers, recreation and award-winning schools.
COMPLETED SALES TRANSACTIONS
• A sale to Formula One’s parent company Liberty Media Corp. The groundbreaking sports entertainment site is a 37.54-acre high profile Las Vegas land development parcel located at the northeast corner of Harmon Avenue and Koval Lane within the Las Vegas Resort Corridor. The transaction amount was $240,000,000. Mike Mixer, SIOR, of Colliers International represented the buyer.
• Kevin Higgins, SIOR, of CBRE Inc. represented the seller and Garrett Toft, SIOR, of CBRE Inc. represented the buyer, Prologis L.P. in the sale and purchase of 163.01 acres of vacant industrial land at Apex I-15 and N. Las Vegas Boulevard for $132,000,000.
• Sean Zaher of CBRE Inc. represented the buyer, PDC/Reno/LV/PHX LPIV, LLC, in the purchase of 2.39 acres of vacant industrial land at E. Caret Avenue and Betty Lane for $1,750,000.
• Jason Dittenber; Jerad Roberts; Devin Lee, CCIM; and Robin Willett of Northcap Commercial announced the recent sale of the 3828 Hazelwood Street Apartments for $1,730,000 ($96,111/unit). This sale consisted of 18 units built in 1971 at 3828 Hazelwood St. This off-market transaction closed on May 20. Northcap Commercial represented the seller, Sackley Family Trust, on this sale.
• Jason Dittenber; Jerad Roberts; Devin Lee, CCIM; and Robin Willett of Northcap Commercial announced the recent sale of the 3842 Royal Crest Street Apartments for $951,500 ($118,938/unit). This sale consisted of 8 units built in 1963 at 3842 Royal Crest St. This off-market transaction closed on May 20. Northcap Commercial represented the buyer, Nevada Properties Las Vegas IV, LLC, on this sale.
COMPLETED LEASE TRANSACTIONS
• CNC Waterjet LLC renewed its lease of approximately 8,548 square feet of industrial space in Silverado Business Park at 4168 N. Pecos Road. Sean Zaher of CBRE represented the landlord.
• A lease to Kimley-Horn and Associates, Inc. The 46,719-square-foot office space is located within Town Square Las Vegas, an open-air shopping, dining, office and entertainment center development in the Airport Submarket at 6671 S. Las Vegas Blvd., Suite D-300. The Thill, Dillon & McInerney Office Team consisting of Taber Thill; SIOR, Patti Dillon, SIOR; and Megan McInerney of Colliers International represented the lessee.
• A lease to Union Home Mortgage Corp. for a 36-month term. The 2,206-square-foot office space is located within City Center West at 7251 W. Lake Mead Blvd., Suite 100. The Thill, Dillon & McInerney Office Team consisting of Megan McInerney; Patti Dillon, SIOR; and Taber Thill, SIOR, of Colliers International represented the lessor, 7251 W Lake Mead LLC.
• A lease to Svinn Co, a Nevada Corporation for a 61-month term. The 12,226-square-foot industrial space is in the Henderson Commerce Center at 7360 Eastgate Road, Suite 145-155 in Henderson. The Telles Industrial Team consisting of Chase Pavlov, Gabe Telles and Ryan Hendershot of Colliers International represented the lessee.
• A lease to Bright Minds ABA LLC for a 64-month term. The 3,797-square-foot office space is at 9089 S. Pecos Road, Suite 3400 in Henderson. Steven Haynes in partnership with The Thill, Dillon & McInerney Office Team consisting of Megan McInerney; Taber Thill, SIOR; and Patti Dillon, SIOR, of Colliers International represented the lessee.
• A lease to FJW Incorporated. The 3,992-square-foot medical office space is in the East Las Vegas submarket within Partell Medical Center at 2870 S. Maryland Parkway, Suites 230-250. Stacy Shapiro, CCIM, and Anna Dreyer of Colliers International represented the lessor, Welltower OM Group, LLC.
• A lease to RD Prabhu, LK Shete MD’s, DBA Sleep Center of Nevada LTD for a 63-month term. The 3,000-square-foot office space is located within Cheyenne Fairways at 8670 W. Cheyenne Ave., Suite 225. Steven D. Haynes in partnership with The Thill, Dillon & McInerney Office Team consisting of Patti Dillon, SIOR; Taber Thill, SIOR; and Megan McInerney of Colliers International represented the lessor, ORB, Inc.