(To read more on the multifamily market, click here.)
LAS VEGAS-Sunvest Communities of Hallandale, FL has a buyer for the 272-unit Augusta Apartments here at $38.95 million. The soon-to-be new owner of the 95% leased, class A apartment property is S-J Management, a Seattle-based real estate investment firm that is making its inaugural investment in the market. Company CEO Michael Sauter tells GlobeSt.com the company already has a 4,000-unit apartment portfolio in the Phoenix area and plans to build a Vegas portfolio totaling at least 2,500 units.
Completed in 2000, Augusta Apartments is a gated community located at 10175 Spencer St. in Henderson. The city sits immediately southeast of Las Vegas and is the state's second largest city. The sale is expected to close by the end of the month.
Sauter believes the asset is "well positioned for appreciation in both income and value over our standard holding period of two to five years." A look at eight Vegas-area properties with similar characteristics that were built in the last 10 years and sold in 2005 or 2006 shows that the $143,222 per-unit price paid for Augusta is below the average price of the comparables, which was $169,468 per unit.
The complex has one-, two- and three-bedroom units with fully equipped kitchens, 9-foot ceilings, full-size washer and dryer, fireplace, ceiling fan, and a private patio or balcony. Property amenities include two resort style pools with hot tubs, a fitness center with free weights, a clubhouse, a business center, a movie theater, a conference room, barbeque grills and detached garages.
The complex is mapped for conversion, though Sauter says there are no current plans to convert the property to condominiums. That the property could be converted was a plus, says Sauter, because the company looks to acquire properties with multiple exit strategies.
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