Spectrum Apartment Homes - 252 Units
Las Vegas, NV
- Purchased the asset in April of 2014 for $30,800,000 ($122,222 per door)
- Total acquisition cost was $31,750,000 requiring equity of $10,250,000
- $800,000 of capital improvements spent over the 2 year hold
- Increased rents by 23% and eliminated move in concessions and monthly loss to lease
- Improved total collections from 226K per month to 267K per month. An improvement of 41K per month and 492K annually
- Improved the NOI from 1.6 million to 2.1 million over a 2 year period
- Sold Spectrum in 2016 for $38,350,000 ($151,785 per door) which was a 19.6 IRR to investors
- Returned original equity of $10,250,000 plus a $5,632,000 profit to investors
The Spectrum Apartment Homes is a 252 unit apartment community purchased by Tilden Properties in 2014. Originally designed as a for-sale development, the property was completed in 2010 to condominium-quality specifications and has been operated as a luxury apartment property since its opening. Tilden Properties was able to buy the complex at a significant discount directly from the equity provided because of the 2007 recession and the significant decline in the condominium market.