Announcing the call for offers on in the Cameron, Evergreen, Pine Village and Sandpebble apartments – 1,185 units in Las Vegas. These four properties are contiguous to one another and are 2.5 miles west of the strip. These properties are C to C+ properties in B locations. They have assumable financing that is Interest only in the mid 5% range with about 7 years left other than the Sandpebble which can have a new loan placed on it. They have been providing for strong cash flows and are operating at a higher occupancy than the rest of the market on average due to our philosophy of "keep the rents lower than the rest of the market" mentality. This is due to the quality of our asset and the location catering to the work force close to the strip.
We run the properties as owner managed from San Diego and we are looking to move our equity back to San Diego where the core of our assets are and we can continue to manage with our hands on approach. These properties will probably sell about 30% less than similar comps priced at the peak of the market.
We will be looking at all offers, with a call for offers in place for July 24th, 2009. These properties can be purchased as a portfolio or separately.
This opportunity represents the ability to buy a large portfolio on the market with assumable debt and irreplaceable locations 2.5 miles west of the strip, and immediate cash flow . We have seen an increase in the amount of a calls from traditional buyers as compared to the distressed asset buyers. I think this is primarily the inability of buyers able to find the banks willing to move the properties.
Please see the comments and click the links below to view additional information and the offering memorandum.
Evergreen
Subject: PRICE REDUCED $1.1 Million - 313 Units, Las Vegas, NV
» $1,100,000 Price Reduction
» 313-Unit Apartment Community
» Property Purchased on 4/2006 for $24,250,000
» Assumable Financing: 5.84% Interest Only For The Term (Maturing In 2016)
» Year 1 Cash-On-Cash Return: 9.29%
» 2.5 Miles West of the Famous LV Strip
http://my.quickspace.com/present.asp?ID=72804UME
Cameron
Subject: PRICE REDUCED $1.6 Million - 317 Units, Las Vegas, NV
» $1,600,000 Price Reduction
» Year 1 Cash-On-Cash Return: 10%
» 317-Unit Apartment Community
» MAI Appraisal: $21,700,000 on 11/12/2008
» Assumable Financing: 5.44% Interest Only For The Term (Maturing in 2016)
» Rent Upside Potential
» 2.5 Miles West of the Famous LV Strip
http://my.quickspace.com/present.asp?ID=8912VG68
Sandpebble
Subject: PRICE REDUCED $900,000 - 280 Units, Las Vegas, NV
» $900,000 Price Reduction
» 280-Unit Apartment Community
» Great Unit Mix of Sudios, One, Two, & Three Bedroom Units
» Priced substantially below Average Comps of Similar Age & Quality
» Appraised at $17,800,000 on 11/12/2008
» Loan Terms Underwritten By Wells Fargo (5/15/2009): 70%-75% LTV; 250-260 Basis Points Over The 10 year Treasury - Please Call Doug Thompson at (909) 624-3755
» Cash-On-Cash Return: 8.6%
» Rent Upside Potential
» 2.5 Miles West of the Famous LV Strip
http://my.quickspace.com/present.asp?ID=EU79562Z
PINE VILLAGE
Subject: PRICE REDUCED $1.6 Million - 275 Units, Las Vegas, NV
» $1,600,000 Price Reduction
» Cash-On-Cash Return: 11.79%
» 275-Unit Apartment Community
» Excellent Location & Upside Potential
» Assumable Financing: 5.52% Interest Only For The Term (Maturing In 2016)
» 2.5 Miles West of the Famous LV Strip
http://my.quickspace.com/present.asp?ID=8632824C