Las Vegas Project Overview with Mark Khuri

Features, Opportunities, Webinars

Alternative Investors Mastermind Postcast

Hosted by Jack Krupey

Alternative Investors
Mastermind Postcast

Hosted by Jack Krupey

The Avenue Apartments

Las Vegas, NV

The JKAM Diversified Real Estate Fund is participating in a deal in Las Vegas with the same Operating Partners who are greatly exceeding expectations. Our Phoenix, AZ asset with this Partner is performing 22% over our initial projections.

This Operating Partner has taken 16 communities full cycle with an average hold time of less than 2 years and a project-level IRR of 45.50%.

Our Fund has already made a substantial commitment to this project, and we have negotiated a sweetheart deal with the Operating Partner. Over the next week, the Fund can secure an estimated 3-5% increase on returns from this project through commitment of an additional $500k+.

Project Summary

Las Vegas Market Brief:

  • Las Vegas metro apartment market ranked 3rd in the nation for annual rent growth.
  • 8 straight years of positive rent growth and has increased rents 57% since the bottom of the recession in 2012.
  • Households earning $100k+ annually growing by 25.2% 2025.

Project-Level Returns:

  • 252 Units
  • 16-17% IRR over 3 years
  • 1.55x Equity Multiple
  • Upside Potential: 45.8%+

Asset Details:

  • Currently 94% occupied.
  • On Tropicana Ave, 15 minutes from the Las Vegas Strip, McCarran International airport and less than 5 miles from UNLV.
  • Targeted to provide both in-place income and growth over a shorter 3-year investment term.

Business Plan Brief:

  • Current rents are below market by about 18% for the post-renovation product.
  • Grow rents from $1,089 to $1,290 average.
  • $4.4m in renovations and upgrades.
  • Increase the net operating income from $2.2m today to $3.3m in year 3.
  • Upside scenario: assuming cap rates remain consistent with today‚Äôs market and revenue growth exceeds expectations by 2%, the deal level return results in a 45.8% IRR.

As mentioned, we have already made a substantial commitment to this project, and we have negotiated a sweetheart deal with the Operating Partner. Over the next week, the Fund can secure an estimated 3-5% increase on returns from this project through commitment of an additional $500k+.