LAS VEGAS, NV – Hamilton Zanze, in a joint venture with Cantor Fitzgerald, has acquired the 426-unit Arrow Canyon apartment community in Las Vegas, Nevada. Located north of the city, the $60 million purchase marks HZ’s 11th investment in the Las Vegas metro area.
“This Las Vegas property fits our platform perfectly, as we are looking to acquire large assets at stabilized cap rates above 5% in markets throughout the United States. We are excited to continue investing strategically in the year ahead,” says David Nelson, Managing Director of Acquisitions for HZ.
The property has been rebranded Norterra Canyon Apartments and also transitioned to new management under Mission Rock Residential, an HZ property management affiliate.
The acquisition was financed with a $30 million, ten-year, fixed rate loan from Cantor Commercial Real Estate in collaboration with Berkeley Point Capital. In addition to the Cantor Fitzgerald equity investment, affiliates of Cantor brokered and financed the acquisition, while affiliates of Hamilton Zanze co-invested in the equity.
“This transaction represents the first joint acquisition for HZ and Cantor Fitzgerald, in realization of the breadth of our combined real estate capabilities,” said Ken Carpenter, Managing Director, Cantor Fitzgerald. Carpenter continued, “We continue to look for high quality, multifamily properties in growing markets and seek to acquire $1B of property in 2018.”
The property was built in 2007 on nearly 17 acres and comprises 458,294 net rentable square feet in 20 three-story buildings featuring one-, two-, and three-bedroom units. Community amenities include a complete fitness center, community playground, bocce ball court, covered parking, three-hole putting green, and a resort-style swimming pool and spa with poolside cabanas. Nellis Air Force Base is located less than five miles east of the property and is home to more Air Force squadrons than any other base nationwide. Additionally, I-15 and I-215 onramps are less than three miles from the property, providing easy access to fine dining, shopping, several schools, and entertainment venues.
HZ and Cantor Fitzgerald have an estimated $1.4 million ($3,286/unit) of capital improvements planned, including pool area enhancements, clubhouse renovation, and upgrades for select unit interiors.
Job growth in Las Vegas over the past several quarters has supported multifamily demand, rising rents, and low vacancy, and Las Vegas appears to have entered a period of steady growth. Northern Las Vegas in particular has experienced considerable industrial expansion, driven largely by e-commerce, with projects like Amazon’s new 800,000-square-foot warehouse in North Las Vegas dramatically adding to the area’s industrial footprint.