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Laguna Point Properties Acquires Two LV Apartment Communities for $129.7 Million
Topaz and Viridian are part of a 1,945-unit, $566 million multifamily portfolio acquisition by Laguna Point Properties that includes five properties in Los Angeles and one in Jacksonville, Fl, that closed in the past few weeks. The Orange County-based firm negotiated the complex value-add portfolio deal with three separate sellers.
"Most transactions of this size typically require significant institutional or private equity joint venture capital, but we bought this portfolio with the 100% support of our syndication of high-net-worth investors," said Laguna Point Properties Co-Managing Principal Dan Hick. "As our investor pool continues to grow, we are able to seek out larger and more complex transactions throughout the United States," he said.
Built in 1985 and 1981, respectively, the Topaz and Viridian apartment communities are located adjacent to one another on West Viking Road across the street from The Palms Casino & Resort. It is less than 1.5 miles west of the Las Vegas Strip, a major job center employing more than 500,000 people. The 252-unit Topaz offers one- and two-bedroom floorplans, and floorplans at the 456-unit Viridian range from studio to three bedrooms.
With neither property having received and meaningful renovation in years, Laguna Point Properties will commence upgrades and renovations at the multifamily properties, including modernized unit upgrades, exterior and common area improvements and landscaping enhancements. The firm's value-add strategy is further supported by the off-market acquisition that yielded a substantial discount to replacement cost. Las Vegas experienced a 13.6 percent jump in effective asking rents for new apartment leases of in 2021, more than tripling the U.S average of 4.2 percent.
"Having experienced huge operational and renovation success before in this Las Vegas submarket, we're very excited about the tremendous value-add opportunity that the Topaz and Viridian properties present," said Greg Campbell, Co-Managing Principal at Laguna Point. "All units are in 'classic' condition, providing major upside through our interior renovation program. The addition of third-party management already in use on the rest of our local portfolio should result in substantial operational upside as well."
Laguna Point Properties has engaged Cushman & Wakefield to manage the two properties in Las Vegas, Greystar to manage the properties in Los Angeles and ZRS Management to manage the property in Jacksonville.
DB&R Marketing Communications