A luxury apartment complex near the Strip has sold for an exorbitant value, underscoring owners’ increased appetite for rental properties in southern Nevada.
California-based real estate company Ideal Capital Group has acquired Jade, a new 287-unit apartment complex near the Rio, for $ 124.5 million. The sale, by developer Jonathan Fore, closed last month, according to property records.
In total, the selling price stands at nearly $ 433,798 per unit, well above the average for the Las Vegas Valley.
Apartment complexes regularly exchange hands in southern Nevada, but sales fell sharply in 2020 amid devastating job losses and other unrest sparked by the coronavirus pandemic. However, the Las Vegas rental market has since warmed with rapidly rising rents and reduced availability, in part because people were looking for more space in a widespread work-from-home environment and investor sales increased. rebounded.
Austin Herzog, president and CEO of Ideal Capital, said his company has expanded its portfolio into new markets, including Utah and Arizona.
He pointed to the flow of newcomers settling in Nevada and Jade’s proximity to the Strip and noted that there wasn’t a lot of apartment construction nearby, making Jade a newer property.
Herzog also said his company, based in Clovis, Calif., Plans to retain the property for an extended period.
“We just believe in Vegas for the long haul,” he said.
Jade at 3150 W. Twain Ave. near Dean Martin Drive, features “Alexa” compatible smart home panels, a sky lounge, “concierge” lockers, electric vehicle charging stations and other amenities.
Arizona real estate firm Mark-Taylor Cos. announced the sale this week, saying Jade marks its third property under management in the Las Vegas area and Ideal Capital’s first acquisition in the area.
Fore, managing partner of the western region of Fore Property Co., said on Wednesday that the first tenants moved into Jade in January 2021 and that the complex was 86% occupied at the time of the sale.
He also said the sale price was higher than expected.
Overall, southern Nevada saw 193 apartment complex sales last year, up from 91 in 2020 and an average of 172 in the five years leading up to the new decade, according to figures provided by the Nevada State. Apartment Association.
Last year’s average price per unit, $ 215,151, was up 38% from 2020, according to data, which the association pulled from real estate tracker CoStar.