The Destinations Portfolio in Las Vegas was a troubled asset that Interwest originally tracked from 2010. Between 2011 and 2013, we attempted to purchase the portfolio from the special servicer who had foreclosed. When the properties were ultimately up for auction, the process was abbreviated. Because of our familiarity with the assets, we were able to capitalize quickly and fully. We finished 2013 by closing on the first portion of what would be a $150 million investment in two portfolios of four properties each—for a total of eight age-restricted multifamily properties in Las Vegas.
All eight rental complexes—Destinations at Winterhaven, Sandhill, Pueblo, Alexander, Valley View, Pebble, Spring Valley and Oakey—were branded under the Destinations name, a well-known leader in Las Vegas senior living. At the time, the local market was already well served with strong demographics and demand for senior housing—but there was no new or planned construction in the pipeline. We saw an opportunity to tap into the aging population, attracting residents 55+ who generally stay longterm in one place during their retirement years.