Source: Security Properties / #Apartments #Multifamily
HENDERSON, NV - Black Mountain Villas, a 296-unit, multifamily property located in Henderson, NV, was acquired by Security Properties and an entity owned by Madison Core Property Fund. The asset was purchased through Security Properties Multifamily Fund III in its second joint venture with New York Life Real Estate Investors. It is Security Properties third purchase in the Las Vegas market.
The subject was built in three phases between 2001 and 2006. All of the units are two-story townhome style and feature three bedrooms and 2.5 baths with two-car direct access garages. Originally built as condominiums, it is a 100% rental property and its units offer large floor plans with garages that are very rare in the area.
Henderson has proven to be one of the most desirable submarkets in all of Vegas as it has experienced tremendous rent growth recently. With area job drivers that go beyond the gaming industry, such as medical and data centers, the rent growth should continue for years to come.
There is a value-add component of this acquisition as the amenity package is limited. The exterior and amenity space will be extensively upgraded to compete directly with Class A multifamily in the area. Additionally, as all units feature original interiors, the interiors will also be updated.
Davis Vaughn, Investment Manager of Security Properties says Fund III acquired this property because, "we feel that townhome product is undersupplied in Henderson on the rental side. New rental construction features primarily one and two bedroom units while the for-sale side usually builds the bigger units, but often with minimal amenities. By updating the interiors and amenities, we plan to offer the amenities typical of newer multifamily developments in a property with larger units. Once the renovation is complete, this asset will offer distinctive condo-style unit types, but with the convenience and flexibility of renting. We look forward to creating value for our investors with this acquisition."
The property will be managed by Security Properties-affiliate Madrona Ridge Residential.