(Read more on the multifamily market.)
LAS VEGAS-The 368-unit Mesa Club Apartments in Henderson has changed hands for $43.8 million. The new owner is Colony Realty Partners. The seller, Sentinel Real Estate Corp., acquired the property in 1990 for $16.2 million.
The complex, located on Mountain Vista Street in Henderson, was built in 1989. One of the brokers in the deal, Jeff Swinger of CB Richard Ellis tells GlobeSt.com the two-story garden-style complex drew 19 offers and sold at a cap rate in the mid-to-upper 4% range based on trailing numbers. Swinger brokered the deal in partnership with Spence Ballif, also with CBRE.
"That's as many offers as we have ever had on any deal," Swinger says. "Supply is down due to condominium conversions and land prices have limited new construction while demand remains high. There are maybe 10 properties on the market now where in the past there have been 20 to 30 properties."
Valley-wide rental rate growth in the first quarter of 2007 was 4.3%, which was greater than the rate of inflation, according to Applied Analysis. Rents in the first quarter averaged $0.97 per sf, with newer communities coming in above that market and older communities coming in below.
"The for-sale residential is holding stubbornly to its pricing gains, although the fist quarter of 2007 did report the most significant supply-demand imbalance present in some time," says Jeremy Aguero, principal of Applied Analysis. "Foreclosures are a major issue and are increasing at a record pace, while consumer demand has failed to offset nearly 20 weeks of rising residential inventories. Apartments and other multifamily housing units will undoubtedly play an increasingly important role, not only among those displaced from their owner-occupied homes but for the new workers expected to be added to the market during the next 36 months."
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