Newmark[1] announced that it has arranged the $135.2 million sale, $359,575 per unit and $91.4 million financing of Lyric Apartments, a luxury, 376-unit multifamily community in the high growth area of Las Vegas, Nevada’s Silverado Ranch submarket. Lyric traded from The Bascom Group—a private equity firm that has completed over $19.1 billion in multifamily value-add transactions since 1996 — to Starlight U.S. Residential Fund, a fund focused on the acquisition, ownership and operation of multifamily properties in the U.S. The property was 99% occupied at the time of the sale.
Newmark Executive Managing Director Curt Allsop and Managing Director Angela Bates along with Executive Managing Director Doug Schuster and Director Vittal Ram represented the seller in the transaction. Newmark Executive Managing Director Matthew Williams and Assistant Vice President James Maynard of the firm’s Debt and Structured Finance team helped secure the acquisition financing from Sumitomo Mitsui Banking Corporation.
“The purchase of Lyric Apartments offered a rare opportunity to acquire and add value to a well-built, luxury multifamily property in one of the most affluent residential areas in the Las Vegas MSA,” said Allsop. “The multifamily sector in Las Vegas has experienced price appreciation of approximately 100% over the past few years, and properties like these will almost always be in demand by value-add investors looking to plant their flag in this market.”
Lyric Apartments is just east of Las Vegas Blvd at 304 East Silverado Ranch and was constructed in 2014 by Nevada West, a company known for quality construction and unique floor plans. The property features a mix of one-, two-, and three-bedroom units with an average unit size of 1,084 square feet. Amenities include two resort-style pools with formal cabanas, a state-of-the-art fitness center, a LP Karaoke Lounge and a splash pad and playground. Newmark also represented the original developer, Nevada West, when the Bascom Group purchased the property in 2016.
“This purchase marks Starlight’s second multifamily acquisition in the Las Vegas MSA. Our team worked in close concert with the Starlight team to help secure the most advantageous financing for the acquisition,” said Williams. “The property will be a great addition to their portfolio, and we look forward to working with them again in the future.”
Lyric Apartments’ location in a high-growth submarket offers proximity to above average demographics and notable retail and entertainment attractions, including The Las Vegas Strip, Allegiant Stadium and McCarran International Airport.
According to Newmark Research, Las Vegas is second in the country for rent growth annually at 30.9% compared to the U.S. average of 13.4%.
