Laguna Point Properties has acquired the 996-unit The Harmon at 370, the largest multifamily community in Las Vegas, in an off-market transaction valued at $126 million.
This is the second significant multifamily investment in Las Vegas in the past 30 days for Laguna Point Properties whose local portfolio now counts seven communities totaling approximately 2,400 units. Earlier this month, the Southern California multifamily investment firm closed on a 708-unit portfolio for $129.7 million.
The property at 370 East Harmon Avenue is located three blocks east of Las Vegas Boulevard (The Strip) between the newly rebranded Virgin Hotel and Casino and a 39-acre site to be developed by Formula 1 as a race support and entertainment venue associated with the inaugural Las Vegas Grand Prix in 2023.
The Harmon at 370 has been operated as weekly rentals since it was constructed in 1989. 100 percent of the unit mix, which consists of studio and one-bedroom floor plans, remain in their classic condition providing Laguna Point Properties with the opportunity to renovate and reposition the community to meet the demand for quality, yet affordable conventional rental housing as Las Vegas’ population continues to grow.
“In addition to the sheer size of the asset, it is a short walk to the heart of The Strip and its nearly 500,000 jobs,” mentions Greg Campbell, co-principal at Laguna Point. “There is a lack of quality workforce housing near resorts and entertainment venues, and we intend to renovate the property to a very attractive level.”
The property is highly amenitized, including an expansive pool deck with two oversized resort-style swimming pools, a 2,500-square-foot fitness center, sports and pickle-ball courts and picnic areas.
Laguna Point Properties will immediately begin a multi-million-dollar renovation program that will include improvements to unit interiors, building exteriors and common areas. Management expects to complete the improvements and stabilize the asset within 18 months.
The property is leveraged with attractive financing from Bridge Debt Strategies. A portion of the equity is being funded by capital contributions from Laguna Point Properties’ extensive pool of high and ultra-high net worth individuals.
Cushman & Wakefield has been engaged to manage the property.