LAS VEGAS-Rancho Serene Apartments, a 216-unit luxury multifamily community here, has changed hands for $28.5 million. The new owner is Los Angeles-based R.W. Selby & Co., which plans to renovate the units and possibly entitle them for sale as condominiums.

The acquisition and renovation is being financed by MetLife Real Estate Investments. The $20-million acquisition loan was arranged by Holliday Fenoglio Fowler managing director Davis Bleiweiss, who is based in Orange County, CA.

The loan term is five years and includes a three-year interest-only component. The interest rate is 6.04% fixed. Bleiweiss tells GlobeSt.com that the borrower has allocated $1 million for renovations.

Rancho Serene is a luxury property that sits on 10.94 acres at 9405 South Eastern Ave. The property was completed in 1997 and has 12 buildings with 80 one-bedroom, 92 two-bedroom and 40 three-bedroom units ranging in size from 745 sf to 1,200 sf. Community amenities include a clubhouse, pool, fitness center and 46 enclosed garages.

Bleiweiss says some of the planned improvements include exterior paint, upgrades to the clubhouse and landscaping, new signage, and possibly the addition of more garages. Interior improvements upon tenant rollovers will include new paint and carpets, appliance replacement and resurfaced cabinets.

"The borrower should be able to increase rents upon completion of the renovation program," he says. "The owner also may entitle the units for sale as condominiums."

R.W. Selby & Co. is a multifamily development and investment firm specializing in value-added opportunities. The company is active principally in Southern California and Nevada, where it owns about two dozen properties. Its equity partners include both institutional partners and high-net-worth individuals.