Tru Development Lands $246M to Build 716 Apartment Units in Nevada
The firm secured construction financing to build KaktusLife@theCurve, a 356-unit multifamily development in Las Vegas, and theApex@Vista, a 360-unit multifamily development in Sparks/Reno.
Tru Development has secured $246 million in construction financing to build two apartment projects in Nevada totaling 716 units. The capital stack includes construction debt, Co-GP equity and LP equity. The funds will be used to build KaktusLife@theCurve, a 356-unit multifamily development in Las Vegas, and theApex@Vista, a 360-unit multifamily development in Sparks/Reno.
Tru Development secured $78.4 million in non-recourse construction debt and $56.6 million in Co-GP and LP Equity for the construction of KaktusLife@theCurve, and $66.5 Million in non-recourse construction debt and $44.3 Million in Co-GP and LP Equity to build theApex@Vista. Lucent Capital advised Tru on the deal.
Las Vegas has already been pegged as one of the top multifamily markets for 2022. Along with Orlando, Las Vegas will be one of top apartment markets for 2022, according to Marcus & Millichap’s 2022 Multifamily National Investment Forecast released this week. Nation-leading rates of job creation and household formation placed Orlando and Las Vegas at the top of the U.S. National Multifamily Index. Robust in-migration also positions other major Southwest and Florida metros near the top of the rankings.
Likewise, Freddie Mac research forecasts Las Vegas to be among the top performing markets this year. Other cities in the American West and Florida also made the list. These cities are projected to post annualized growth in gross income ranging between 6 and 7.6%, with vacancies hovering in neighborhoods of between 3.3% (Albuquerque) and 4.6% (Phoenix). Atlanta, Sacramento, Riverside, West Palm Beach, and Fort Lauderdale round out the top 10.
Investment capital isn’t wasting time scooping up deals. Already this year, for example, Kennedy Wilson has acquired 3001 Park, a 528-unit apartment building in Henderson, Nevada, for $155 million. The deal caps off a significant buying spree for the firm last year, which saw it buy more than 5,000 apartment units across the country. With this purchase the company now has more than 35,000 units in its apartment portfolio.