Case Study
Property Details
Location: Las Vegas, NV
Property Type: Multi-Family
Size: 295,880 SF
Units: 347
Date of Acquisition: April 2004
Investment Metrics
Purchase Price: $13 million
Equity Investment: $4.6 million
Profit: $8.7 million
Equity Multiple: 1.9x
Levered IRR: 143%
Holding Period: 0.7 years

Sierra Gardens

Investment Opportunity

Levy Affiliated purchased a non-performing note from a regional lender at a discount. The note was secured by a 347-unit multi-family complex located in a transitioning neighborhood less than one mile from the Las Vegas Strip. Levy Affiliated’s strong relationship with the selling broker enabled the Company to match all other bidders in securing the deal.

Value Creation

Significantly minimizing the risks associated with note purchases, Levy Affiliated negotiated a deed-in-lieu during its due diligence period. This enabled the Company to take ownership of the real estate shortly after closing on the note acquisition. Levy Affiliated management aggressively implemented a hands-on business plan to renovate the complex, reduce operating expenses, and increase occupancy. The property was sold within one year for $18.5 million, representing a 143% levered IRR.