REAL ESTATE BRIEFS: MARCH 5

Build-to-Rent community sells for $80 million

Moderne at Centennial, a 14-acre build-to-rent community situated in North Las Vegas at North Fifth Street and West Centennial Parkway, was sold to RSE Capital Partners for $80 million. Moderne Communities, a real estate investment and development company based in Scottsdale, Arizona, purchased the land in 2019 and started construction on the gated community that includes 185 rental homes and community amenities in spring 2020. The sale to RSE Capital for $80 million closed Feb. 24.

Moderne at Centennial includes a mix of one-, two-, and three-bedroom units, ranging from approximately 640 square feet to 1,225 square feet. In addition to gated security, community amenities include 12 pocket parks, a community fitness center, resort-style pool, ramada and barbecue area and three electric car charging stations.

Trevor Koskovich and Thomas Olivetti of Northmark Brokers facilitated the transaction.

“We currently have two build-to-rent communities under construction in Arizona, and we are looking for another parcel to build on in Las Vegas,” said Randy Bury, president of Moderne Communities. “The need for residential community living is in high demand. We began leasing here in early 2021 and it’s already 85 percent leased.”

Moderne at Roosevelt is in the city of Tolleson, just outside downtown Phoenix. Moderne at Rocking K Ranch is in Vail in Southern Arizona. Both communities are targeted to open for leasing in 2023. For more information, visit modernecommunities.com.

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Affordable housing gets 20 percent of city’s funding

The Las Vegas City Council voted to award $121,070,000 in American Rescue Plan Act funding. The funds were divided into four categories, with 20 percent going toward affordable housing projects, 20 percent to businesses, 20 percent to pandemic response and 40 percent to nonprofit organizations.

In 2021, the city received $131 million in American Rescue Plan funds that must be spent by Dec. 31, 2024. The majority of those funds have now been awarded with more than $9 million held in reserve. The reserve funds will be available should COVID-19 make a resurgence and added resources are needed to address the situation. If the funds are not used, then those organizations not receiving funding this time will have the opportunity to reapply.

To see a complete list of those who have been approved for funding, visit lasvegasnevada.gov/ARP.

The city established a systematic approach for evaluation of project proposals and distribution of funding into the community. Through the pre-application submission process applicants demonstrated how funding would help to address those most affected by the pandemic. The city established a committee to review and evaluate all pre-applications and to provide assurance the request is in compliance with the U.S. Department of the Treasury guidelines and is an appropriate eligible use. The review committee also considered how quickly an organization is able to get the funds to those in need.

Based on the reviews, the committee made recommendations on projects that provide the most positive impacts on the community and those affected. Those recommendations were presented to the City Council.

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State earmarks funds for affordable housing

The Nevada Housing Division (NHD) has announced that $300.7 million or 87 percent of Nevada’s 2021 tax-exempt bonding authority has been earmarked for development of affordable housing projects throughout the state. This historic investment is being made in the face of the acute and ongoing housing crisis that many Nevadans are facing.

Fourteen affordable housing projects currently under construction will bring 2,898 affordable housing units online by early 2024. These developments located in Reno, Las Vegas and North Las Vegas contain a mix of senior and family complexes and new construction and rehabilitated units. Nine of these developments, totaling 2,153 units, are projected for completion in 2022 or early 2023.

According to Department of Business and Industry Director Terry Reynolds, the 2021 bonding authority allocation of $300,774,00, the highest amount earmarked for state-led affordable housing development since the inception of the program, will give the division the ability to approve even more qualified projects in order to continue to grow the state’s affordable housing stock.

“We know that housing is a priority for Nevadans,” Reynolds said. “That’s why we’re ensuring that our bond utilization matches the needs of Nevadans to provide more affordable housing.”

“As we focus our recovery efforts on meeting the needs of all Nevadans, housing has become a clear and critical need,” said Nevada Gov. Steve Sisolak. “This investment is one way we are going to provide assistance and relief to Nevadans, and I look forward to continue to look at ways we use federal relief dollars to complement this critical priority.”

The Department of Business and Industry administers Nevada’s tax-exempt private activity bond (PAB) program to facilitate public and private sector collaboration in financing eligible projects at below-market interest rates. Bonding authority can be used for projects such industrial manufacturing, research and development facilities, civic and cultural enterprises, nonprofit educational institutions, health care facilities and affordable housing development.

Tax-exempt bond authority allocated to NHD is used to incentivize private developers to increase the number of affordable housing units built or existing units renovated by providing a mechanism for financing projects with a lower cost of capital than conventional financing can offer. Along with developer tax credits offered through the Low-Income Housing Tax Credit program, these developments will remain affordable, below-market residential rentals for a minimum of 30 years.

For the five-year period from 2017 to 2021, more than $1 billion of tax-exempt bonding authority has been transferred to NHD, including $91 million in 2018, $278.4 million in 2019 and $266.7 million in 2020.

Qualified low-income seniors and families can find listings for available market and affordable housing rentals by visiting nvhousingsearch.org, a comprehensive database maintained by NHD.