Entire Apartment Complexes Sold

Demand for multifamily housing in Las Vegas is on an upward swing and as interest rates go up the demand for renting apartments does too. Many factors contribute towards the preference for multifamily housing. Economic factors and housing affordability and the nontraditional composition of households are among the major factors that contribute to the high demand for multifamily rental and outright purchase. Experts believe that the first stage of Manhattanization of Las Vegas is over and the city is heading towards its second stage. The real estate market may have balanced out but the demand for median range apartments and condos is still very great. Apartment prices have gone up from about $80,000 a few years ago to the $120,000 to $130,000. The population base of Las Vegas is growing and so are employment opportunities.

The need for reasonable housing on rent has not been met extensively but unless the situation improves people relocating to Las Vegas will have no option but to pick up condominiums. Condo conversions in the Las Vegas Valley began around 2004 mainly because of increased demand and consequent sharp rise in housing prices. Currently the median price of a condo or townhome in Las Vegas is over $200,000.

Developers are moving to locations pretty far out of the city and building reasonably priced apartments in rural areas where the cost of land is low. A 152 unit development in Mesquite named Hawkridge has two bedroom condos for around $170,000, and three bedroom condos are available in the low $200,000s. The prices in Mesquite too have shot up a great deal but the amenities available are at least better and one can afford a resort lifestyle and climate at a reasonable price. Builders and developers of apartments and condos are buying much larger tracts than they plan to develop in order to offset part of the escalating land and construction costs by selling the surplus at a higher rate. Builders are also developing projects in phased manner so as to deflect the cost. The search for alternative material sources is constantly on and developers are working on various schemes to tackle price spikes.

The Orchid apartments at 2700 N. Rainbow Blvd were recently purchased for $35 million which works out to $125,000 a unit. Oregon-based Bean Investment Co. bought the Orchid apartments the total area of which was over 187 thousand square feet. There are 266 units of one-bed/one-bath units and 40 two-bed/one-bath units. The amenities include laundry facilities and a pool. There is every chance that these will be converted to condos.

The entire complex of the Princess by the Lakes apartments at Durango Drive and Edna Avenue was also purchased by BF Group for $44 million. There are one, two and three bedroom apartments here and the average price paid per apartment works out to $123,240 a unit. BF Group has also purchased about four acres of land at the northeast corner of Durango and Edna. This extended property will most certainly be put to good use by the investors. We can look forward to more condo conversions here.