Parkwood Apartments
Address: 3417 East Cheyenne Ave., Las Vegas, NVUnits: 160 | Built: 1988 | Date Purchased: OCTOBER 2011
Western Region
Units: 160 | Built: 1988 | Date Purchased: OCTOBER 2011
Arville Park Apartments
Executive Summary:
Arville Park was sold by the Lender as a foreclosure sale. The property was approximately 85% occupied at the time of acquisitions and SRC was able to reach 100% leased occupancy within 3 months of ownership. The property was in need of several repairs to help stabilize and fill the property back up. SRC completed major capital items such as: new monument signage, new exterior accent painting, new dog park, new playground, new pool furniture, new business center, new bbq grills, new model, upgraded leasing office, upgraded wood flooring, upgraded appliances, and upgraded counter tops. The property was acquired All Cash and SRC plans to refinance most or all of the equity invested within 12 to 24 months of acquisition. Arville Park is well located 1 mile west of the Las Vegas strip on the corner of Sahara and Arville Street.
Regency Heights
Executive Summary:
Also part of the 3 property distressed REO portfolio, Regency Heights, has 146 units and simply suffered from mis-management. Regency was 70% leased at the time of takeover and SRC found over 70 outstanding work orders from residents from as minor as a leaky faucets to HVAC systems that didn't work. Upon takeover, SRC completed every work order and added amenities including a dog park, playground and monthly resident functions. Total occupancy dipped to 60% after cleaning up the unqualified residents prior to ending the 2010 year (6 months after closing) at 97% leased occupancy! Regency's new Chihuahua mascot "Kobe" claims the prize for the most signed leases ahead of its competitive leasing staff.
Bella Estates
Executive Summary:
Bella Estates is a 185 unit apartment building constructed in 1986 that was part of a distressed portfolio purchase from an institutional lender at an average price of $22,000 per unit ($30 cents on the 2006 dollar). The property was 45% leased due to neglect (the pool was closed for over 2 years with leaking roofs and a host of other classic mis-management issues). This was by far SRC's most dramatic lease-up success story of 2010. After closing in May 2010, SRC and its management team immediately cleaned house whereby occupancy dipped to under 40% before its dramatic lease-up and is currently ahead of budget at above 90% occupancy before the end of December 2010. Amenities including 2 dog parks and playgrounds in conjunction with hands on marketing, management and attention to residents are among the reasons credited for this impressive lease-up success.
Paradise Square
Executive Summary:
Paradise Square is a 146 unit, former lender owned asset, which was acquired as part of a 3-property pool in 2010. At closing, the property was 88% leased and required relatively little capital improvements to bring the property to a stabilized level. SRC focused on upgrading common area amenities, aggressive management, marketing outreach and has continued to move the property's income on a positive trend line. The property was acquired with the use of an expensive bridge loan. SRC plans to enter into the refinance market on this property in the first quarter of 2011. This 1980 vintage property is located near Tropicana Avenue, and has been a stellar performer in the SRC portfolio.
Reserve On Baltimore
Executive Summary:
The Reserve on Baltimore was acquired in late 2008. The 406-unit property was previously under the same ownership for approximately 30 years. The owners had not kept the property up to market standards. Instead, they have continued to maintain the property in acceptable conditions for a project of its vintage, but have made no effort to keep the rents at market or update the property to be competitive with its peer group or provide professional management on-site. The asset is four separate properties built from 1970 to 1980 and are all contiguous. The property is in a strong market and has performed well after its $3MM exterior renovation that took four vintage properties located contiguously and has been combined to run as one property. Capital improvements include new paint, new signage, installation of a dog park, leasing office expansion and remodel of the interior units.
Oasis on the Highline
Executive Summary:
SRC purchased Oasis from a developer who failed in his conversion of the asset to condominiums in May of 2008 and can claim to be the first in the "Great Recession Downturn" to place Fannie Mae take out financing on a broken condominium. Constructed in 2001, Oasis on the Highline was converted into condominiums in 2006. Originally a 96-unit luxury apartment community, the current owners sold 7 of the units as condominiums, at an average of $175,000/unit. Unfortunately the current owners timed their sales alongside the depreciating housing market, made it very difficult to sell the remaining units as condominiums. But because of its prime location and asset quality, Oasis on the Highline leased out the remainder of the condominiums as apartments. The project is currently over 95% occupied and has consistently been there since 3 months after SRC purchased the asset. SRC has raised income over 30% since purchasing the asset.