Los Angeles buyer, Chinese money, Vegas real estate
LA-based Asia Pacific has purchased the 708-unit Grand View & Sunwood Village apartment complex in Las Vegas for $47.5M. Investment Real Estate Associates SVP William Everitt gave Bisnow the details on the deal.
William repped both sides of the transaction, along with his brother Clark Everitt. William tells us Asia Pacific, a firm that brings in all its investment dollars from mainland China, was the winner of more than 13 offers on the property, most of which he says were out of LA. The seller was a group of private individuals, financed by two investors out of Beverly Hills.
Built in three stages in 1981, 1982 and 1985, Grand View & Sunwood Village is situated just off West Flamingo Road, at the foot of the Palms Casino Resort, three blocks west of the Las Vegas Strip. William tells us Asia Pacific plans immediate capital improvements to the property, which was 95% occupied at the time of sale.
IREA says the sale was the second largest multifamily deal in Las Vegas in 2015 in dollar and unit amount. In addition, the 5.16% cap rate was pretty aggressive by market standards.
The properties were originally eyed for casino space, at one point entitled for more than 2M SF, with 500k marked for a casino resort. William tells us Asia Pacific is focused on improving management and getting some upside in rents, but will likely look to entitling a large casino project down the line as an exit strategy. “As you run it more efficiently, you could see a big opportunity for more height and density,” he says.