Siegel Group buys Fremont Street apartment complexes
Siegel Group Nevada has acquired three apartment complexes totaling 247 units on Fremont Street for $3.85 million, or about $15,600 a unit, said Stephen Siegel, the commercial real estate investment group’s founder and chief executive officer.
The properties, built in the early 1980s, are between 13th and 15th streets and will be renamed Siegel Suites Fremont I, II and III. They were acquired as a distress sale from an out-of-state investment group.
Siegel Group has implemented a business model of acquiring distressed and underperforming assets in Nevada, converting several apartment complexes into Siegel Suites. The group portfolio has grown to 19 Siegel Suites locations in Las Vegas, Mesquite and Reno.
“We’re taking something that’s run down, mismanaged with crime issues and cleaning it up, just by our presence,” Siegel said as he started work on his latest project. “So many tenants have already come up and thanked us for fixing work orders. We had 80 work orders on the first day.”
Siegel Group immediately addressed deferred maintenance issues and security officers began monitoring the premises. Cosmetic improvements include new carpet and paint.
Combining all three properties under one management will yield economies of scale and reduce operating costs, Siegel said. Weekly rates will start at $169 when renovations are completed in about six months, he said.
Siegel believes the East Fremont corridor has tremendous potential for development, and that property values will see significant appreciation.
“I think you’ll see over the next 12 months, Fremont will be the place where people want to stay,” he said. “We as a company remain steadfast in our commitment to the Las Vegas market and look forward to contributing to the revitalization efforts occurring along East Fremont.”
HOUSING WATCH
Inventory levels of homes available for sale in Las Vegas have reached lows unseen since 2005 and 2006, the last years of double-digit appreciation, David Brownell of Keller Williams Realty said in his January market report. That points to more price increases in 2013, he said.
He shows 3,341 single-family homes and 918 condominiums on the market, a 55 percent decrease from January 2011. Of those, 540 properties are priced over $500,000. Another 500 are gone, still showing up as available on the Multiple Listing Service, but with multiple offers. And 250 to 500 homes are priced so far out of line with the market, they can’t be considered, Brownell said.
“And I’m not even going to factor in properties that are so destroyed that they’ve been sitting for months and months, if not years,” he said.
Brownell said 3,518 new listings were added in January, compared with 4,809 in the same month a year ago.
COMMERCIAL DEFAULTS
Nevada Title Co. reported 22 commercial property mortgage defaults in January, about half the number of defaults from a year ago.
The largest default was for $85 million on apartments at 3001 Lake East Drive and 8600 Starboard Drive. The owner of record is Sunrise TIC and the original beneficiary is Column Financial.
Prime Spencer defaulted on a $14.5 million loan for apartments at 3937 Spencer St., and Prime Algonquin defaulted on a $20 million loan for apartments at 3955 Algonquin Drive. Prudential Multifamily Mortgage was the lender on both loans.
Spring Valley Shopping Center at Rainbow Boulevard and Flamingo Road defaulted on a $17.5 million loan from Lehman Bros. Bank, one of four retail properties in default in January.
COMMERCIAL TRANSACTIONS
Mike DeLew and Greg Pancirov of Colliers International represented Blevans Industrial Associates in the sale of a 153,585-square-foot industrial property at 880 Wigwam Parkway in the Traverse Pointe Industrial Center to Harsch Investment Properties. The total transaction value was $8.5 million.
Spencer Pinter, Dan Doherty and Chris Lane of Colliers represented City National Bank in the sale of three industrial buildings totaling 11,781 square feet to Ted and Wendy Wanigasekera for $650,000. The property is in the Red Mountain Business Park in Boulder City.
Tom Elkington of NAI Las Vegas represented Technibilt, a shopping cart distribution business, in the 39-month lease of 38,400 square feet of industrial space at 4030 Industrial Center Drive. Total transaction value was $373,278. The landlord is ProLogis TLF Las Vegas.
Robin Civish and Lauren Brouillet of NAI Las Vegas represented Tressformation Hair Co. in leasing a 2,096-square-foot hair salon at 409 E. Silverado Ranch Blvd. The 60-month lease is valued at $172,277. The landlord is Empress Group.
Soozi Jones Walker and Bobbi Miracle of Commercial Executives represented the landlord, PostJones, in the lease of 2,120 square feet of office space at 6325 S. Jones Blvd. to Business Finance Corp. The 36-month lease is valued at $72,500.
Nick Barber and Jeremy Foley of Gatski Commercial represented Pines Office Center in the 39-month lease of a 5,040-square-foot office space at 7361 W. Charleston Blvd. for $244,944 to Clark County Public Works.
Barber, Foley and Chris Beets of Gatski Commercial represented Marco Boyce in a 60-month lease of a 3,570-square-foot office space at 2685 Rainbow Blvd. for $190,518. Tanner Peterson of CB Richard Ellis represented the landlord, Rainbow Plaza.
Contact reporter Hubble Smith at
hsmith@reviewjournal.com
or 702-383-0491.