A luxury apartment complex near the Strip has sold for a sky-high value, underscoring landlords’ increased appetite for rental properties in Southern Nevada.
California real estate firm Ideal Capital Group acquired Jade, a new 287-unit apartment complex near the Rio, for $124.5 million. The sale, by developer Jonathan Fore, closed last month, property records show.
All told, the sale price amounts to nearly $433,798 per unit, far above average for the Las Vegas Valley.
Apartment complexes regularly trade hands in Southern Nevada, but sales dropped sharply in 2020 amid devastating job losses and other turmoil sparked by the coronavirus pandemic. However, Las Vegas’ rental market has since heated up with fast-rising rents and shrunken availability, in part as people sought more space amid widespread work-from-home arrangements, and investor sales have rebounded.
Austin Herzog, president and CEO of Ideal Capital, said his firm has been expanding its portfolio into new markets, including Utah and Arizona.
He pointed to the flow of newcomers moving to Nevada and Jade’s proximity to the Strip and noted there isn’t much apartment construction nearby, making Jade stand out as a newer property.
Herzog also said his firm, based in Clovis, California, plans to hold the property for a long time.
“We just believe in Vegas long-term,” he said.
Jade, at 3150 W. Twain Ave. near Dean Martin Drive, boasts “Alexa”-compatible smart-home panels, a sky lounge, package “concierge” lockers, EV charging stations and other amenities.
Arizona real estate firm Mark-Taylor Cos. announced the sale this week, saying Jade marks its third property under management in the Las Vegas area and Ideal Capital’s first acquisition in the region.
Fore, managing partner of Fore Property Co.’s western region, said Wednesday that the first tenants moved into Jade in January 2021 and the complex was 86 percent occupied at the time of sale.
He also said the sales price was higher than expected.
Overall, Southern Nevada saw 193 apartment complex sales last year, compared to 91 in 2020 and an average of 172 in the five years before preceding the new decade, according to figures provided by the Nevada State Apartment Association.
Last year’s average price per unit, $215,151, was up 38 percent from 2020, according to the data, which the association pulled from real estate tracker CoStar.