SB Real Estate Partners (SBREP) has entered the Las Vegas real estate market with the $67 million acquisition of a 241-unit garden-style community. The California-based multifamily investment firm will rebrand The Russell Apartments, which is adjacent to the Summerlin master-planned community in West Las Vegas, as Portola on Russell.
The gated community features one-, two-, and three-bedroom apartments in 19 two-story buildings surrounding a central courtyard with a clubhouse and a resort-style pool with a poolside cabana, barbecue grills, and lounge seating areas. Other amenities include a fitness center, a dog park, a playground, a sand volleyball court, and a putting green.
The acquisition provides a value-add opportunity for SBREP, which will execute a $2 million capital improvement plan to renovate unit interiors and implement common area upgrades as well as building exterior and curb appeal enhancements. Once renovations are complete, according to SBREP, the community, which was 98% leased at closing, will be on par with the competitive set in the area but at a more attractive price point.
“The Las Vegas rental market will continue to benefit from very favorable supply/demand dynamics as well as ongoing in-migration of people seeking relative affordability across West Coast markets,” said founder and managing principal Srijin Bandyopadhyay. “This is why SBREP is committed to building out a substantial portfolio in the Las Vegas MSA over the next 12 months, including over $100 million of future acquisitions slated to close through Q1 2022.”
Taylor Sims, Carl Sims, and Brady Cleary of Cushman & Wakefield’s Multifamily Advisory Group in Las Vegas represented the seller in the transaction. Chinmay Bhatt, Noam Franklin, and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital arranged the joint venture equity.
