Tesoro Ranch represents TruAmerica’s 11th investment overall in the Las Vegas metro and 15th acquisition in 2018. The property enjoys an outstanding location as it borders one of Las Vegas’ most desirable submarkets, Henderson.
The Las Vegas apartment market is among the strongest in the nation. Las Vegas was ranked 5th in the nation for leader in annual rent growth in 2018. The average asking rent has increased every quarter since Q3 2011, while the average vacancy rate is finished at approximately 3.7%. Rent growth is projected to remain consistently above 3.0% and vacancy is not expected to get above 4.0% through 2020. Furthermore, Las Vegas boasted the strongest population gains in the West among metro areas with more than 1 million residents last year.
Tesoro Ranch represents a true and proven value-add opportunity as the seller performed a moderate renovation program. TruAmerica plans to bring all apartments to a fully renovated status in order to decrease the rental gap between apartments built in the early 2000’s and newly constructed apartments in the East Las Vegas and Henderson submarkets.
TruAmerica is well acquainted with the Las Vegas MSA as it currently owns and operates 9 properties totaling approximately 3,600 apartments. Three of those properties (Montego Bay/ Villas at Green Valley/Crossing at Green Valley) are all within six miles from Tesoro Ranch. Through TruAmerica’s existing presence and experience in this market, there is the opportunity to achieve synergy through economies of scale and leveraging existing operational experience.
Tesoro Ranch is a 400-unit multifamily community built in 2007. The property features an attractive apartment mix comprised 32% of one-bedroom, 52% of two-bedroom, and 16% of three-bedroom apartments with well-planned layouts at an average size of 1,007 square feet. All of the apartments feature full-size washer and dryer, 9-foot ceilings, private patio or balcony, central heat and air conditioning, and select apartments enjoy fireplaces. Tesoro Ranch also features two resort-style pools and spas, a 24-hour fitness center, shaded barbeque and picnic areas, business center, outdoor terrace with a big screen TV, and a fire pit lounge.
Tesoro Ranch enjoys an outstanding location as it is located right off Boulder Highway and less than one mile from Interstate 515, providing quick access to the Las Vegas strip, University of Nevada Las Vegas (UNLV), 10 million square feet of office in downtown Las Vegas, and McCarran International Airport. Additionally, the property is a mile away from Union Village, a 170-acre community that includes health care, housing, retail, and entertainment. Henderson Hospital is one of the main attractions of Union Village and was responsible for creating 700 jobs. As a whole, Union Village is expected to create 17,000 jobs over the next 20 years.
The seller upgraded 194 apartments (49%) with stainless steel appliances, wood-style flooring in the common areas, lighting fixtures, and hardware. TruAmerica plans to continue and expand on the seller’s renovation program in order to bring all apartment homes to a fully renovated status.