LAS VEGAS, NV - TruAmerica Multifamily in partnership with an institutional investor has acquired Montego Bay, a 420-unit Class B apartment community in the Las Vegas submarket of Henderson, NV in a transaction valued at $51.1 million.
With the acquisition of Montego Bay, TruAmerica now owns approximately 1,000 rental units in Las Vegas. In June 2015, the Los Angeles-based investor entered the market with the acquisition of Solis at Flamingo, a 524-unit urban infill apartment community five miles east of the Strip. The Los Angeles-based investment firm, which specializes in acquiring and repositioning mid-tier apartment communities to provide higher quality housing for working class families, considers Las Vegas one of the most attractive markets for multifamily investment in the United States.
“Compared to the majority of other major metros in the Western U.S., Las Vegas is still in the early innings of its economic recovery,” said TruAmerica Senior Managing Director of Acquisitions Greg Campbell. “Yet despite its tremendous employment and population growth, there remains a limited supply of new inventory in the pipeline to meet the pent up demand for quality affordable rental housing.”
Las Vegas is expected to see the third best job growth in the nation in 2016, according to Fannie Mae, however it sits in the bottom 10 major markets in the US for the delivery of new multifamily product. This combination of dramatic growth and lack of inventory will put tremendous upward pressure on rents.
Built in 1990, Montego Bay is located near East Russell Road and I-515, just two blocks from Union Village, which when completed will be the first Integrated Health Village in the world. The $1.2 billion construction project is listed as the top healthcare building project in the US by Health Facilities Management, and is expected to generate in excess of 17,000 jobs.
The gated community features a mix of one-, two- and three-bedroom floorplans in 46 two-story buildings on a 18.08-acre site. The property boasts three swimming pools, volleyball and basketball courts, a dog park and an expansive clubhouse with a fully equipped fitness center.
Montego Bay represents a tremendous value add opportunity for TruAmerica, which will implement a strategic renovation plan that will include upgrades to the interior units, exterior and common areas.
The scope of the interior renovation will include faux-wood flooring, updated cabinetry, a new appliance package, upgraded fixtures, resurfaced countertops and tile backsplashes.
Changes to the physical plant will include a new resort-style entrance, renovated clubhouse, complete remodel of the main pool area with a new outdoor kitchen, new exterior paint and landscaping, and the addition of a second dog park.
“At our cost basis, we will be able to implement these changes to create a higher quality product at rents still affordable to working families,” added Campbell.