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6/11/15
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TruAmerica Multifamily and institutional capital partner Investcorp have acquired Solis at Flamingo, a 524-unit urban infill apartment community in Las Vegas. The asset was purchased from Alliance Residential in an off-market transaction valued at $50.5 mil, or $96.4k/unit.
Built in 1988, Solis at Flamingo benefits from a prime location within five miles of the Las Vegas Strip, UNLV and McCarran International Airport. The complex features a mix of one- and two-bedroom apartment homes. Common area amenities include three resort-style pools and spas, clubhouse, fitness center, business center and basketball and tennis courts.
TruAmerica will invest an additional $5.5 mil in capital improvements that will include full interior renovations combined with exterior and common-area upgrades including new landscaping, upgraded pool furniture, outdoor kitchens and a pet park which will significantly improve the resident living experience.
The acquisition of Solis at Flamingo is TruAmerica’s first investment in Nevada, and the third new market – including Salt Lake City, UT and Portland, OR -- for TruAmerica in the past two weeks as the Los Angeles-based real estate investment firm continues its expansion into economically robust Western U.S. markets.
Since its founding in 2013, TruAmerica has acquired a portfolio of 9,000 rental units making it one of the most active multifamily property investors in the United States. The company acquires and repositions mid-tier apartment communities throughout the Western United States to provide Class B or better affordable rental units for working class families.
“Construction of new multi housing units throughout the United States has been on the rise for the past five years, but the majority of the new inventory is being priced out of the reach of middle-income working families,” said TruAmerica Senior Managing Director Greg Campbell, who led the acquisition team. “Our platform’s core competency is the ability to identify and invest in assets at an attractive cost basis, where we can then create value through thoughtful renovation programs and improved operating performance and still offer an affordable quality living experience for our tenants.”
We are seeing rent growth return to the Las Vegas market in recent months which should continue as large scale construction on The Strip contributes heavily to job growth and investment capital for the local economy,” added Campbell.
The Las Vegas market is in the early stages of recovery, with a young, diverse and rapidly growing population – the metro population increased at more than 6.5 times the national population growth rate from 1990 to 2015. Already the top convention and trade show destination in the US, the Las Vegas metro economy is diversifying. Healthcare jobs reached almost 10% of the total workforce in 2013, and are expected to grow, with projects such as Union Village, a $1.6 bil healthcare and hospital community expected to create more than 17,000 new jobs.
As a result vacancy rates have declined every quarter since Q1 2010 and are expected to fall to just 5% by the end of 2015 putting additional upward pressure on rents and reinforcing the need for quality workforce housing in Las Vegas.
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