February 6, 2020 – Next Wave Investors, LLC (“Next Wave”), a private equity firm focused on value-add multifamily investments, has expanded its portfolio in Las Vegas, Nevada with the acquisition of an 88-unit multifamily apartment community, Villaggio Di Murano.
The property was acquired in an off-market transaction at a discount to replacement cost, according to Jordan Fisher, Principal at Next Wave, who confirmed that Next Wave acquired the asset from a Southern-California based multifamily investment group for $14.50 million.
“Villaggio Di Murano fits squarely within our investment thesis, through which we invest in well-located, opportunistic and value-add multifamily properties in key secondary markets including Las Vegas, Phoenix, and Salt Lake City,” says Fisher. “Built in 2005, this property was well-maintained by the seller and remains in its original classic condition, giving our team a tremendous opportunity to create deep value by implementing thoughtful renovations while also adding in-demand amenities.”
Next Wave will implement a series of capital upgrades including exterior paint and signage, new landscaping, interior unit enhancements, pool area improvements, and the addition of new community amenities including collaborative outdoor BBQ and gathering spaces.
“This acquisition demonstrates Next Wave’s continued proficiency as a multifamily buyer and owner,” says Fisher. “We performed on 100% of the purchase contract, delivering surety of close to, and a streamlined transaction process for, the seller. Moving forward, we will draw upon our in-house property management platform to create operational efficiencies and further improve our residents’ quality of life.”
David Sloan, Principal at Next Wave, notes that the firm’s continued investment in the Las Vegas market coincides with ongoing economic growth in the region.
“Las Vegas was the first market in which Next Wave invested, and we continue to see strong opportunity in its long term trajectory,” says Sloan. “The city’s workforce has expanded by 1.4% in the past 12 months and Clark County posted the second-largest population increase of any U.S. county between 2017 and 2018 – all of which is fueling demand for well-located, well-amenitized multifamily product.”
Sloan notes that this activity is driven by major construction projects such as Raiders Stadium, the new convention center, resort developments and new distribution centers, all of which support continued expansions in construction, transportation and tourism sectors.
“As one of the strongest markets for multifamily investments in the nation, Las Vegas offers an average asset appreciation of 13.29%, supporting steady rent growth while maintaining a rental ratio that is sensible for residents,” Sloan explains. “The average rent in this market is $1,073 per month – much lower than the national average of $1,472 per month. Renters here are spending only 21.7% of their income on rent, keeping them well below the 49.7% of American renter households that are considered cost-burdened based on spending more than 30% of household income on rent.”
Sloan confirms that Villaggio Di Murano is strategically located to benefit from Las Vegas’ economic growth and strong housing demand. Situated in the sought-after Spring Valley submarket, the property is in close proximity to newly built parks, sports fields, schools, and retail offerings – all of which will contribute to long-term renter demand, according to Sloan.
“We see this acquisition as an opportunity to deepen our presence as an owner in Las Vegas and benefit from increased economies of scale while delivering continued long-term value for our firm and our investors,” says Sloan.
Located at 9475 W. Tompkins Avenue in Las Vegas, Nevada, Villaggio Di Murano offers a mix of one-, two-, and three-bedroom floor plans as well as a community business center, fitness center, swimming pool and spa/hot tub.