Next Wave Investors, LLC (Next Wave) a private equity firm focused on value-add multifamily investments, has sold Harlow Luxury Apartments, a 98-unit Class A luxury multifamily community in Las Vegas, Nevada. The asset was purchased by a Southern California-based private equity firm for $21.5 million.
Next Wave originally acquired the resort-style property in March 2019 for $17.1 million and increased its value by more than 25 percent during less than 16 months of ownership, according to Jordan Fisher, Principal at Next Wave.
“The quick disposition of Harlow Luxury Apartments, especially in the midst of a pandemic, is a prime example of the success of our strategy and demonstrates the continued desirability of this market,” says Fisher. “Our team has the ability to identify multifamily assets with the potential for high performance, located in key growth markets. Upon acquiring these assets, we implement our proven value-add strategy in order to serve renters in those markets and maximize return for our investors.”
Fisher additionally notes, “Harlow Luxury Apartments is located near Lone Mountain, in the expanding northwest region of Las Vegas. It is within five miles of Summerlin, one of the most prestigious communities in the Las Vegas Valley. Summerlin offers direct access to numerous entertainment and shopping centers, which positioned Harlow the opportunity to draft off the rapid growth trajectory of the submarket. We recognized this positioning and capitalized on the opportunity to purchase a promising asset in the region and improve upon it.”
Before the sale, Next Wave performed major interior renovations, including the installation of new countertops, flooring, appliances, lighting, miscellaneous fixtures and paint in nearly 30 units at Harlow Luxury Apartments, proving the company’s underwritten value-add strategy, according to David Sloan, Principal at Next Wave.
“Our efficient operations model, coupled with achieving higher revenues in newly-renovated units, resulted in our investors realizing an IRR above projections for this investment,” says Sloan.
Sloan adds: “Prior to the pandemic, Nevada was ranked number one in job growth in the U.S. While the region is currently suffering an economic downturn due to the circumstances, we believe that the favorable business climate, transportation accessibility, and affordable cost of living will lead to resumed growth as the national economy recovers from the COVID-19 outbreak.”
Next Wave has extensive experience repositioning assets in the Las Vegas market. Harlow is the company’s seventh disposition in Las Vegas since it first began investing there in 2015.
According to Sloan, Next Wave currently has three assets with 304 units remaining in its Las Vegas portfolio and expects to add to its holdings in market in the coming months.