New Project in Las Vegas. Same Partner as Phoenix.

Opportunities, Performance

Alternative Investors Mastermind Postcast

Hosted by Jack Krupey

Alternative Investors
Mastermind Postcast

Hosted by Jack Krupey

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%.

Tides on Dunlap

Phoenix, AZ

This is a short walkthrough video of the Phoenix asset that is exceeding initial projections.

The Avenue Apartments

Las Vegas, NV

We are pleased to present the details of our latest off-market apartment project in Las Vegas, NV. The Avenue, a 252-unit apartment community, is 94% occupied and is targeted to provide both in-place income and growth over a shorter 3-year investment term.

 

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+.

Highlights & Investment Summary

Positive Market Trends, Las Vegas Stats:

  • Las Vegas rents grew 5.5% in 2020 despite the effect the COVID-19 pandemic had on the economy.
  • The Las Vegas metro apartment market ranked 3rd in the nation for annual rent growth.
  • The Las Vegas market has now experienced 8 straight years of positive rent growth and has increased rents 57% since the bottom of the recession in 2012.
  • Population is projected to grow to 2.3 million by 2025, up 2% from 2020.
  • Las Vegas is projected to experience one of the largest employment gains through 2025, with employment levels returning to pre-pandemic levels by Q3 2021.

Highly Attractive Property & Location:

  • The Avenue sits on over 12 acres, consists of 252 units and is 94% occupied.
  • The property is very well located on Tropicana Ave, 15 minutes from the Las Vegas Strip, McCarran International airport and less than 5 miles from the 350 acre campus of the University of Las Vegas (UNLV) which enrolls about 30,000 students.
  • The property features numerous amenities including a leasing office/clubhouse, fitness center, swimming pool and spa, business center, bark park, BBQ areas, and a racquetball court.
  • Built in 1995, the community’s unit mix consists of 1bed/1bath and 2bed/2bath floor plans with attractive 9-foot vaulted ceilings.

Experienced Operating Partners:

  • This will be the Fund’s second partnership with this specific Operating Partner. Our latest project with them in Phoenix last year is over-performing 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%.
  • Their current portfolio consists of 28+ apartment communities and 8,000+ units with $1,300,000,000 in value.

Proven Value-Add Plan:

  • Current rents are below market by about 18% for the post-renovation product.
  • The business plan is to grow rents from $1,089 to $1,290 on average by injecting $4.4m in renovations and upgrades and increase the net operating income from $2.2m today to $3.3m in year 3.
  • Planned renovations will follow our Operating Partner’s brand design, which includes new quartz countertops, stainless steel appliances, upgraded shaker-style cabinets with pulls, brushed nickel hardware, upgraded plumbing & lighting fixtures, a contemporary paint scheme, wood- like flooring and replacing any outdated washers/dryers.
  • Once fully renovated, The Avenue will attract young professionals and millennials who are drawn to freshly renovated, amenity-driven communities in excellent locations.

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+.