LAS VEGAS, NV - Security Properties purchased Orchard Club, a 342-unit affordable multifamily property in Las Vegas, Nevada, for $27,200,000.
Orchard Club is a garden-style community comprised of a mixture of family and senior, income restricted units. The property was originally developed in 2001 utilizing a combination of Low-Income Housing Tax Credits (LIHTCs) and HOME funds from the Nevada Housing District (NHD). A Regulatory Agreement tied to those original sources of financing ensures that the affordable housing restrictions will remain in-place for the next 15 years.
Orchard Club is a valuable addition to Security Properties' Las Vegas portfolio which already consists of over 1,400 conventional multifamily units across the greater metropolitan area. The company believes that Las Vegas's multifamily market fundamentals continue to trend in a positive direction as the supply of new apartments has been slower to respond to growing demand than it has in many other major US cities.
"This acquisition increases our already strong investment in the Las Vegas market, and allows us to preserve this high-quality affordable housing community for the next 15 years with energy efficiency upgrades and capital investment," states Bryon Gongaware, Managing Director of the Affordable Housing Group for Security Properties.
JLL Capital Markets provided a 15-year term fixed rate loan on the property and utilized Fannie Mae's Green Rewards program which will provide funding for energy efficiency upgrades throughout the property.
"JLL was very pleased to have the opportunity to provide the acquisition financing for this asset. This closing marks the most recent of many transactions that we have closed for Security Properties all of which have been sound investments that will generate significant returns for investors but will also improve the quality of life of the tenants and continue to provide much needed high quality affordable housing," notes Tim Leonhard, International Director of JLL Capital Markets.
The property will be managed by Madrona Ridge Residential, an affiliate of Security Properties.