The ConAm Group (ConAm), a San Diego-based real estate investment, development and services firm, has expanded its multifamily portfolio in the Las Vegas and Phoenix markets with the acquisition of two multifamily properties. The two acquisitions add 524 units to ConAm’s portfolio.
Las Vegas Acquisition
In Las Vegas, where ConAm already has a strong presence, the firm has acquired Silver Shadow, a 200-unit apartment community located in Las Vegas, Nevada for $22.6 million dollars.
“This property, located in the southwestern Las Vegas submarket adjacent to the Summerlin master planned community, strongly aligns with our strategy to acquire well-located assets in the Las Vegas market,” according to George Lloyd, ConAm’s Executive Vice President of Acquisitions. “The property offers immediate access to fine dining, retail and entertainment in the Summerlin community, as well as direct frontage on Charleston Boulevard, providing residents convenient access to the entire Las Vegas area.”
Las Vegas is demonstrating rapid near-term growth, according to Lloyd, who notes that a recent Axiometrics report projects an anticipated 3.40% percent increase in employment and a 5.02% increase in effective rents in 2016.
At the time of the acquisition, the apartment community was 92.5% percent occupied. ConAm plans to implement a series of interior and exterior upgrades to the property, including desirable common area amenities.
The Silver Shadow apartment community is located at 8301 W. Charleston Blvd. in Las Vegas, Nevada. ConAm and the seller, Bridge Investment Group Partners, were represented by Glenn Dulaine at Realty Executives of Nevada.
ConAm also expanded its multifamily portfolio in the Phoenix area with the acquisition of The Greens, a 324-unit apartment community in Chandler, Ariz.
“This property has exclusive frontage on the San Marcos Golf Resort with golf course views from most of the units and is within walking distance of historic downtown Chandler,” says Lloyd. “Located near Interstate 10, Loop 101 and Loop 202, the asset provides easy access to employment centers in both the City of Chandler and Greater Phoenix.”
“Chandler is an affluent community that is demonstrating the capacity for rapid growth, according to Lloyd, who notes that according to the City of Chandler the average household income is $83,296”.
Lloyd adds, “Our plan is to immediately improve the overall aesthetics of the property, complete the balance of an interior renovation, and upgrade the common area amenities enabling us to attract new residents and increase current resident retention. The property upgrades will also provide the opportunity for future rent increases, coinciding with population and job growth in this affluent area.”
At the time of the acquisition, the apartment community was 98.7% percent occupied.
“Both acquisitions expand ConAm’s portfolio in markets where we have a long term presence”, according to Rob Singh ConAm’s President and Chief Investment Officer. “We currently operate 7,100 units in the Las Vegas market and 4,300 units in the Phoenix market,” says Singh, adding that “By year end 2015, ConAm will have acquired eight properties totaling 1,886 units as part of our value-add investment strategy.”