(To read more on the multifamily market, click here.)

LAS VEGAS-Universe Holdings Development Co. LLC has paid $40 million for the 344-unit Broadstone Sunrise Mountain Apartment Homes located four miles east of Downtown Las Vegas. The Beverly Hills, CA-based company owns 3,000-units in Southern California but is making its inaugural investment in Las Vegas. The seller was a joint venture led by Blackrock Realty Advisors, a publicly held investment management firm.

Universal Holdings CEO Henry Manoucheri tells GlobeSt.com the company would like to work its way up to 2,000 units over the next year or so. "We've been studying the market for nine or 10 months now and just now jumped in," he says.

Broadstone Sunrise Mountain Apartment Homes is 96% leased and 94% occupied at an average rent of $0.92 per sf. The property has a secured gated entry a fitness facility and two resort-style pools. Each unit has a full-size washer and dryer, a fully appointed kitchen, ceiling fans, window treatments and walk-in closets.

Built six years ago, it consists of 22 two-story buildings that are mapped for conversion to condominiums. It will not be converted anytime soon.

"We bought it because it made sense as an apartment investment," Manoucheri says. "Right now the condo market is not too hot [in Las Vegas]."

The in-place cap rate is in the low 5% range. Manoucheri hopes to have it up to 6% within a year. He expects to be able to push rents by 6% a year in the coming years.

"It's in a growing and improving section of northeast Las Vegas," Manoucheri says. "There's been some concern about the shadow rental of unsold condos, but there's none of that near us and there's good job growth."

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.