A multifamily portfolio with 1,077 units across eight communities in Reno, Nevada, has traded for $302.5 million, or $280,872 per unit, according to brokerage firm Marcus & Millichap. The seller is ERGS Properties, a family-owned Reno developer, and the buyer is San Diego-based MG Properties.
“With this purchase, the buyer establishes a strong presence in Reno’s multifamily market,” said Kenneth Blomsterberg, senior managing director of investments in Marcus & Millichap’s Reno office. “The tremendous upside potential that can be captured through value-add renovations across the majority of the assets in the portfolio, along with the high-value major employers that can be found in the Tahoe-Reno Industrial Center (TRI Center), made for an extremely attractive acquisition.”
The properties, which were built between 1958 and 2021, include the eight-unit Angel Street Apartments, the 352-unit North Peak Apartments, the 47-unit Oak Manor, the 30-unit Peavine Peaks, the 232-unit Sierra Sage Apartments, the 352-unit Silver Lake Apartments, the 40-unit Vale Apartments, and the 16-unit Vale Townhomes.
Marcus & Millichap’s Blomsterberg, Ryan Rife, and Daniel Winrod represented the seller and procured the buyer on the transaction.
The Reno-Sparks region continues to experience business development and employment growth.
“Tesla, Apple, Google, Amazon, Blockchain, Switch, and Panasonic are only a few of the major employers that have brought thousands of new jobs to the region. Many of these companies are in the TRI Center, the nation’s largest industrial park, located just a short drive from the ERGS portfolio,” added Winrod. “The bulk of the ERGS portfolio is located within the North Valleys submarket, which is the second-fastest growing employment location in northern Nevada.”
The portfolio also is located near Truckee Meadows Community College and the University of Nevada, Reno, as well as a short drive to Lake Tahoe, Black Rock Desert, and North Valleys Regional Park.