Buchanan JV Buys Sin City Apartments

LAS VEGAS-A 200-unit apartment complex near the Strip has changed hands for $8.2 million. Buchanan Capital Partners, the equity investment arm of Newport Beach, CA-based Buchanan Street Partners, acquired the property in partnership with Gallelli & Sons, a Sacramento-based turn-around apartment investor. The joint venture plans to add value through renovation and better management.

Under the same ownership since the early 1960s, the Palms complex is located at 713 East Sahara, one-half mile east of the Las Vegas Strip near Wynn Las Vegas, the $2.5-billion resort under development by Wynn Resorts. The 23-building complex consists of 72 one-bedroom units, 104 two-bedroom units and 24 three-bedroom units. The 13.2-acre site includes six swimming pools and laundry facilities.

Buchanan invested $2.5 million in equity toward the acquisition and projects a five-year horizon for its investment. Initially, a $1.2 million is planned to “restore the competitive market position of the property.” Improvements will include interior unit upgrades, energy efficient air conditioning and heating systems, a reconfiguration of the main entrance to the complex, new signage and a new security system.