SB Real Estate Partners (SBREP) has acquired The Russell Apartments, a 241-unit garden-style apartment home community for $67.0 million, marking the California-based multifamily investment firm’s entry into the Las Vegas real estate market.
The Russell Apartments, which will be rebranded as Portola on Russell, is located at 9620 W. Russell Road in West Las Vegas adjacent to Summerlin. The gated community’s one-, two- and three-bedroom apartment homes are situated in 19 two-story residential buildings surrounding a central courtyard with clubhouse and resort-style pool area with a pool-side cabana, barbecue grills, and lounge seating areas. Other community amenities include fitness center, dog park, playground, sand volleyball court and putting green.
The acquisition of The Russell represents a compelling value-add opportunity for SBREP, which plans to execute a $2 million capital improvement plan that will include renovating unit interiors, along with common areas upgrades and building exterior / curb appeal enhancements. When complete, Portola on Russell will be on par with the competitive set in the area but at a more attractive price point.
“The Las Vegas rental market will continue to benefit from very favorable supply/demand dynamics as well as ongoing in-migration of people seeking relative affordability across West Coast markets,” according to SBREP Founder & Managing Principal, Srijin Bandyopadhyay. “This is why SBREP is committed to building out a substantial portfolio in the Las Vegas MSA over the next 12 months, including over $100 million of future acquisitions slated to close through Q1-2022.”
The property was 98 percent leased at closing.
Taylor Sims, Carl Sims and Brady Cleary of Cushman & Wakefield’s Multifamily Advisory Group in Las Vegas represented the seller in the transaction. Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital arranged joint venture equity.