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Atlas Apartments

OVERVIEW

Atlas Apartment Homes (previously Falcon Landing) is a garden-style community located in North Las Vegas and constructed in 2008. The property’s 26 buildings consist of 198 one- and two-bedroom apartment homes, featuring optional loft-style floor plans. In 2018, Interwest, in partnership with New York-based institutional partner, purchased the multifamily asset for just over $27 million.

OPPORTUNITY

Atlas was acquired from an individual owner who self-managed the property. His management style consisted of maintaining low rents to ensure high occupancy. Rent growth was constrained by the overall feel and condition of the community. From common areas to apartment interiors, the asset was dated and needed a significant refresh.

property key statistics

LOCATION: 5067 Madre Mesa Dr, Las Vegas, NV 89108

ACQUIRED: Aug 2018

RESOLVED: Jun 2021

PROPERTY SIZE: 198 Units

PROPERTY TYPE: Multifamily

PURCHASE PRICE: $27.3M

SALE PRICE: $41.3M

IRR: 30%

EQUITY MULTIPLE: 1.84

OUR APPROACH

At the time, the property was located in a growth submarket of Las Vegas where Amazon had recently opened a new warehouse. We knew with the right approach, we could bring rents up in line with the market.

Immediately after the acquisition, we rebranded and repositioned the asset as Atlas Apartment Homes. In our first year of ownership, we transformed the building exteriors with new paint colors and completely remodeled the clubhouse and pools to modernize the community. During the three-year hold period, we also rolled out modern renovations and eco-friendly features on the apartment homes.

As COVID began impacting the housing market and the overall economy in the first part of 2020, Interwest was able to maintain high occupancy and low delinquency percentages at the property compared to the Las Vegas market. The property has a very strong performance during a very challenging year in 2020.

RESULTS

The revitalized community was extremely well received in the market – driving demand and rents property-wide. In June of 2020, the property sold for $41,250,000 exceeding list price and expectations. The sale price also exceeded business plan by about $4MM and the exit took place 3 years following acquisition, which was 2 years prior to the original business plan. IRR at the deal level for this transaction is at 30%.

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