Coldwell Banker Premier Realty. Strategic Services. Price: $31,500,000

Transcription

1 Multifamily Investment Opportunity APARTMENTS 6885 W Lone Mountain, Las Vegas, NV Number of Units Unit Type Size Total Sq.ft Br / 1 Bath , Br / 1 Bath , Br / 2 Bath 1,077 77, Br / 2 Bath 1,189 57, Br / 2 Bath 1,201 19,216 Total Units 252 Avg. 980 Total Sq.ft. 247,072 Price: $31,500,000 EXCLUSIVEILY OFFERED BY COLDWELL BANKER PREMIER REALTY STRATEGIC SERVICES CONTACT RON OPFER, CCIM Director of Commercial Real Estate S. Eastern, Suite 300 Henderson, NV Direct: Mobile: E-fax: ropfer@ccim.net The information and opinions in this report are believed to be reliable and has been obtained from sources believed to be reliable. makes no representation as to the accuracy or completeness of such information.

2 Property Details: Inspirado Apartments is a 252 Unit gated Apartment complex in 14 buildings located off US 95 at Lone Mountain in Las Vegas, NV. The unit breakdown is as follows: Number of Units Unit Type Size Total Sq.ft Br / 1 Bath , Br / 1 Bath , Br / 2 Bath 1,077 77, Br / 2 Bath 1,189 57, Br / 2 Bath 1,201 19,216 Total Units 252 Avg. 980 Total Sq.ft. 247,072 Each of the units are distinctly apportioned with a minimum of 9 ceilings and custom tile/ upgraded carpeting throughout. There are built-in computer desks, walk-in closets, ceilings fans, extra storage and cabinet space, garden tubs, stainless steel appliances and spacious bathrooms. Inspirado has 75 garages for rent, covered parking for all units, and open parking for guests and visitors. Inspirado has a pool with cabana, fitness center with Pilates and free weights, BBQ area, and outdoor bathrooms with showers. There is a clubhouse offering Wi-Fi for the guests. Inspirado is a new apartment community with the last buildings completed in Inspirado has extra-large patios and balconies with a distinct spacious round design. There are stone accents, architecturally appealing pop outs, and an appealing color pattern throughout. Property Details Location Multifamily Rebound Multifamily Opportunity Insprirado Economics Location Map Floorplans PRESENTED BY COLDWELL BANKER PREMIER REALTY STRATEGIC SERVICES CONTACT RON OPFER, CCIM Director of Commercial Real Estate S. Eastern, Suite 300 Henderson, NV Direct: Mobile: E-fax: ropfer@ccim.net 2 The information and opinions in this report are believed to be reliable and has been obtained from sources believed to be reliable. makes no representation as to the accuracy or completeness of such information.

3 Location, Location, Location! The market has spoken and Inspirado is well received by the Las Vegas audience. Even as vacancies were rising, Inspirado outperformed the market and within 17 months of opening, the property was operating above 90% occupied. Inspirado is close to US 95 and regional shopping yet tucked away on a secluded quiet street. Inspirado is just minutes from the Las Vegas Strip, Downtown, and the Airport. The Multifamily Market Heading Towards Recovery In 2011, Integra Realty Resources reported that only Las Vegas, NV and Greensboro, NC, were in the Recessionary Apartment Market Cycle. The rest of the country emerged from recession and are well into recovery. In early 2012, vacancies stabilized, new construction expanded, employment improved and concessions began to lower. At Inspirado, rental rates began to rise. These changes indicate that the Las Vegas Apartment Cycle will be moving from Recession to Recovery very soon. More recent data on overall vacancies and lease rates, suggests that we may have moved from the second phase in the recessionary cycle to the third and final phase. 3

4 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Average Rent Average Vacancy After peaking in 2009, vacancy rates have been on a downward trend, falling substantially from its peak. Similarly, concessions have also been burning off. Apartment data provider ALN, measures a 11.2% year-overyear drop in the average concession package from July 2011 to July As occupancies have made significant headway, rental rates have followed with several quarters of stability. $1,000 $900 $800 $700 $600 Las Vegas Valley Apartment Vacancy and Lease Rate Vacancy Rates are Turning Around Stabilizing Rents 12% 10% 8% The natural question is, are rents bottoming? With a decline in concessions and vacancy rates, in addition to the apparent return to positive household migration to $500 $400 6% 4% Southern Nevada (measured by drivers license surrenders, $300 active residential meters and household moves), $200 there appears to be a firming up of the structural components 2% required for positive rent pressures. Clark $100 County s largest single employment sector, Leisure and Hospitality, has recorded enough gains to indicate that it is in recovery. This is driven by gains in tourist visitation, gaming revenues and retail sales. An expanding medical $0 0% Rental Rates and a burgeoning tech sector, which includes cloud computing Source: Center for Business and Economic Research,. Vacancy technology, are adding to the economic diversity of the region. Recent entrants to Southern Nevada include Switch, Aerosprays Inc, Clinical Pathology Laboratories and many other firms. Zappos, which is headquartered in Southern Nevada, is also driving interest in the area by other tech companies and retailers. United Van Lines & Atlas Inbound/Outbound Moves 2011 Source: Atlas. District of Columbia Oregon Nevada North Carolina Florida Source: United Van Lines. 54.8% 55.1% 54.9% 56.9% 56.4% 57.8% 59.5% 60.8% 62.5% 2011 Percentage of Inbound Shipments 2010 Percentage of Inbound Shipments Indicator Q2, 2012 Change Year Ago New Residents (Drivers License Count) 16, % Active Residential Electric Meter Count 748, % Source: Center for Business and Economic Research. 64.3% Recent Closed Sales In Las Vegas: The recent acquirer of a multifamily building in North Las Vegas, Thomas Lowder of Colonial, told REIT magazine that Colonial believes Las Vegas is at the bottom for rents and that their acquisition is an opportunity to acquire new, two-story direct-entry product in North Las Vegas at or below replacement cost in an area where we have good growth potential. Colonial purchased a 341 unit class A apartment complex located at 6300 McCarran in North Las Vegas for $41,200,000 ($117 per sq ft or $120,000 per door). Investors purchased Echelon Point in the northwest valley for $6.5 million/($105,000 per door). The 62 unit complex was 100% vacant and the required capital expenditure is expected to put to put the total cost for this 62 unit vacant complex at $7,750,000 or $125,000 per door. 4

5 Multi-Family Shifting from Challenging to Outstanding Financial Opportunities: Over the past 12 months, we have seen a shift in the fundamentals of the multi family market. We have seen the market shift from NOI declines to NOI increases, from value declines to value gains, and from market uncertainty to greater clarity. According to the National Apartment Association, the Apartment industry is expected to experience dramatic growth, improved operating performance, enhanced value appreciation, and increasing competition for a growing renter market. Christopher Lee s white paper on the Future of Apartment Living suggests that the housing mix for the United States is in the midst of change. Traditionally, the housing mix in the United States has been 2/3rds owners and 1/3rd renters. Over the next 10 years, the ratio could be closer to 60% owners and 40% renters. Mr. Lee cites that the shifting demographics, emerging economic, employment and social trends underway in the United States will likely dramatically reshape housing patterns. In the future, renting will become a far more popular form of housing than it is today. Inspirado Economics: At Inspirado, every day is better than the next. Concessions are lower, renewals are higher and net operating income (NOI) is on the rise. Occupancies continue to improve, expenses are being trimmed and we are expecting the first six months of 2012 to be a record breaking year. Inspirado is impressively outperforming the region with their economic performance: A property s Economic losses are a standard measure of health of both a property and the regional market in general. Economic losses are defined as the difference between Gross Potential Rent (GPR) and rent revenue collected. Included in the losses are revenues lost to physical vacancies, net uncollected rents and value of rent concessions. Nationally, economic losses for similar apartments have declined and stand at 12.16%. Inspirado s economic losses are out performing both local properties as well as similar properties in the same region. NOI is a key measurement for evaluating the health of a property and the rental housing market. It is defined as the difference between total revenue collected and total operating expenses. NOI represents the cash available for debt service, capital expenditures and profits. NOI as a percentage of GPR increased nationally to 54.1%. At Inspirado, the NOI/GPR percentage is once again outperforming many local properties as well as similar properties in the same region. Total operating expense as a percentage of GPR increased nationally, but, decreased for Inspirado. Other revenue collected increased as did rent revenue collected. No better time to maximize Up Side Potential: Timing is everything, and there is no better time to invest in well located quality apartment communities. Inspirado has an impressive track record and presents the absolute best opportunity for apartment investments in Las Vegas. If the best time to buy is when a property/market is transitioning from Recession to Recovery, then the market and Inspirado speak loudly. 5

6 Located Near US-95 & Craig Rd City of Las Vegas Library and Community Center Buffalo Regency Shopping Centennial Center Centennial Gateway Rio Vista Plaza Sante Fe Station Casino Target Mountain View Hospital Las Vegas Technology Center Cheyenne Commons Shopping Best in the West Shopping Las Vegas Athletic Club Nearby Amenities and Employment Centers Sante Fe Station Contains six restaurants, a buffet and a food court Lounges Bowling Movie theater Mountain View Hospital Neurology Imaging Women s center Craniotomy Emergency services Oncology Travel Time from Inspirado Downtown: 15 Minutes Las Vegas Strip: 20 Minutes McCarran Airport: 20 Minutes Summerlin Area Shopping: 15 Minutes Mount Charleston: 20 Minutes Red Rock Recreation Area: 20 Minutes Las Vegas Technology Center 6

7 1-Bedroom Style 1 1-Bedroom Style 2 2-Bedroom Style 1 2-Bedroom Style 2 3-Bedroom 7