LAS VEGAS, NV – Haven Realty Capital, a Los Angeles-based real estate investment and asset management firm has sold The Grove apartments for $34,500,000 or about $135,000 per unit. The Grove is a well-located asset on the outskirts of Summerlin along interstate 95 in northwest Las Vegas.
Vittal Ram, Curt Allsop, Angela Bates and Doug Schuster with Newmark Knight Frank represented both the buyer and seller.
Haven acquired the property in August 2016 as an REO and undertook a significant repositioning of the property. The interior of the clubhouse was demolished and rebuilt to allow for a more open floor plan and a larger fitness center. The exterior façade of the property was repaired and painted in a multi-tone color palette. A firepit and grilling station were added to the pool area, along with a dog park to provide tenants with more amenities. The property was rebranded as The Grove with a new monument sign installed at the entrance.
In addition to the exterior renovations, 50% of the interior units was upgraded with faux-wood flooring, stainless steel appliances, grey two-tone paint, new modern counter tops, new cabinet faces and brushed nickel lighting and plumbing fixtures.
"Haven has been able to generate above market returns for investors by acquiring, renovating and stabilizing distressed and underperforming assets through intense operational management," stated Sudha Reddy, Managing Principal of Haven Realty Capital. "It began with our investment in the single-family rental industry and we've been able to carry over that same operational oversight to the multifamily sector."
"We identified the Las Vegas market as a growth market early before the institutional equity had arrived. The Grove benefited from its proximity to the Summerlin sub-market and the improving demographics along the Rainbow corridor," added Chris Turitto, Vice President of Acquisitions at Haven Realty Capital.
The Grove was built in 1989 and is situated on 13.5 acres of lush green landscape. Located at 2901 N Rainbow Blvd in northwest Las Vegas, the property consists of 15, two-story buildings comprised of one- and two-bedroom units. The property amenities include a 24-hour fitness center, completely renovated clubhouse, firepit and grilling station next to the pool, and a dog park.
The lead broker on the transaction, Vittal Ram, stated, "The Grove presented investors with the opportunity to acquire a really solid asset in an improving sub-market with some additional upside left from renovating the remaining 50% of the units. Haven did a great job taking an underperforming property and transforming it into a solid B+/A- apartment community. We saw strong demand while marketing the property and the buyer is very happy with asset they acquired."
Las Vegas is in the midst of a strong recovery from the economic downtown that crippled the city. With the addition of two professional sports franchises, the Vegas Golden Knights of the NHL and Las Vegas Raiders of the NFL, the city has been diversifying its economic base away from gambling and hospitality. Las Vegas continues to solidify its position as a premier entertainment destination. The business-friendly environment has also been a strong driver of increased job growth in the region.