LAS VEGAS (Oct. 25, 2010) — Alliance Residential Company is pleased to announce the acquisition of The Reserve at Arrow Canyon, a 426-unit apartment community in north Las Vegas. The property was acquired via a short sale transaction.
Located at 5005 Losee Road, The Reserve at Arrow Canyon was initially conceived and developed as condominiums; however, it has been operated as a rental community since completion in 2009. The property offers one-, two-, and three-bedroom homes that average 1,076 square feet per unit. Residential interiors feature granite countertops, stainless steel appliances, premium cabinetry, upgraded plumbing and lighting fixtures, and 9-foot ceilings.
The opportunity was sourced through an existing relationship with the property seller's lender. All due diligence, including physical inspections and third-party reports, was completed in less than seven days. The short sale transaction was presented to Alliance because of its execution of prior transactions with the same lender, as well as Alliance's ability to perform all due diligence in-house and meet the compressed closing timeframes.
The community will be rebranded as an Alliance-owned asset under the Broadstone community name. The company also plans to reposition and improve the property by capitalizing on the depth and breadth of its experience in the greater Las Vegas apartment market, which currently includes more than 3,000 owned and managed units.
"Although the compressed transaction timeline made for a very challenging and exciting end to the quarter, the short sale vehicle allowed us to obtain the desired fee simple title while eliminating the timing delays and conversion risks associated with a potential foreclosure action," says Russ Kindorf, Managing Director of Investments for Alliance. "Despite the lack of trades in the Las Vegas marketplace over the past few years, we feel very good about the investment given the attractive basis in a new asset, well below current replacement cost. We expect to realize a competitive advantage in the market as a result of the quality construction and premium finishes of the property."
Per V. Jay Hiemenz, Chief Financial Officer: "This is another example of using Alliance's vertically integrated capabilities to achieve a great portfolio addition at a basis that is much more attractive than an acquisition with ample time and marketing process. There aren't many competitors who can offer the production, redevelopment, management and financing capabilities needed to close in seven days as we can, and thus we are rewarded with above market returns for the acquisition."
For more information, visit www.allresco.com.
Company Information
Alliance Residential is a fully-integrated multifamily real estate operating company focused on the development, acquisition, construction and management of residential and mixed-use communities in the United States. Headquartered in Phoenix, Alliance has 16 regional offices divided between six regions throughout the U.S. Over the past 10 years, Alliance has become one of the largest private apartment owners and the 15th largest management company in the nation, boasting a $6.0+ billion portfolio, and 45,000 units in 22 metropolitan markets across 12 states (including Arizona, California, Colorado, District of Columbia, Florida, Georgia, Nevada, New Mexico, Oregon, Texas, Utah and Washington). For more information, visit www.allresco.com.