JULY 2017LAS VEGAS MULTIFAMILY MARKET REPORT

ApartmentInsiderISSUE 21 | 2019

CONTENTS

FEATURED LISTING -ECHELON AT CENTENNIAL HILLS01

IS VEGAS THE SPORTS CAPITAL OF THE WORLD?03

Q1-19 MULTIFAMILY MARKET RECAP11

CARL SIMSExecutive Director Direct: +1 702 688 6921 carl.sims@cushwake.com

TAYLOR SIMS Director Direct: +1 702 688 6957 taylor.sims@cushwake.com

Courtyard

Pool / Spa

Gym

Clubhouse

Dog Park

Inside Parking

62UNITS

2008BUILT

9501 ECHELON POINT DRIVE, LAS VEGAS, NV 89149

CONTACT: Taylor Sims | Director | +1 702 688 6957 | taylor.sims@cushwake.com

FEATURED LISTING Echelon at Centennial Hills

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IS LAS VEGAS BECOMING THE SPORTS CAPITAL OF THE WORLD?

Only a few years ago all that Las Vegas had to offer in sports was the occasionalchampionship boxing match. How things have changed in just a few years. Today we have hockey, football, baseball, soccer, basketball, national rodeo finals, & racing events.

Southern Nevada continues its long winning streak. The activity surrounding sports is fruitful for the market’s main export, tourism, with 30% of the area’s work force (nearly 400k

people) dedicated to the hospitality sector. Visitor growth (in both volume and spending) continues to rise month over month, and the industry is healthy with many companies competing to add new workers. 2018 visitor volume was over 42M and trending strong. Visitors are seeking entertainment and Southern Nevada continues to diversify by focusing on sports. Let’s take a look at the current & upcoming sports that call Vegas home.

- Taylor Sims3 4

A unicorn inaugural season was demonstrated with flare and [Marc-André] Fleury when the goalie led the Vegas Golden Knights to the Stanley Cup Finals in 2018. Although the team fell just short of clinching the title, the city was electric with energy surrounding the team’s efforts. Albeit somewhat bias, the Golden Knights incredible season generated new fans who wouldn’t have garnered interest otherwise.

Go Knights Go!

LAS VEGAS GOLDEN KNIGHTS

HOCKEY

While the franchise has 50 years under its belt, the infrastructure in Las Vegas is literally and figuratively getting placed. The stadium is strategically located opposite the famous Las Vegas Strip allowing hotel guests on the south end to get a glimpse. Initial efforts have been made to integrate the team into the community. Football fans are working to embrace the incoming home team’s coaches and players all while holding tight to their loyalty of their favorite team. The appeal of Las Vegas as a destination, coupled with visitors wanting to catch a game, is sure to further drive activity for city. Residents themselves are prepared for active real estate and employment markets once the Las Vegas Raiders 2020 season approaches.

• First Las Vegas game expected during 2020 NFL season• Seat capacity 65K• $1.9B domed stadium• Las Vegas to host NFL Draft 2020• Stadium is expected to produce $620M of economic impact per year

• Highest ticket prices in the NHL• Average crowd size between 16,000 and 18,000 per game• Team payroll over $100M

FOOTBALLLAS VEGAS RAIDERS

The LV Ballpark, located on eight acres in the heart of Downtown Summerlin, is shaping out to be a state-of-the-art stadium and home to Las Vegas Aviators. The Triple-A affiliate of the Oakland Athletics is currently in a two-year Player Development Contract with the mjor-league team. The park itself offers several amenities to cater to groups from executive meetings to social events. There is even a swimming pool. The facility, with its festival-like atmosphere, is scheduled to open Spring 2019.

• Team former name Las Vegas 51s• New name pays homage to Howard Hughes • Rich history with aviation in Southern Nevada • Opening Night April 9, 2019• $150M ballpark with 10K seat capacity

LAS VEGAS AVIATORS

BASEBALL

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The Las Vegas Aces (formerly the San Antonio Stars) are now based in Las Vegas and playing in the Western conference of the Women’s National Basketball Association. The team is owned by the MGM Resorts International and games are played at the Mandalay Bay Events Center. Bill Laimbeer, former Detroit Pistons player is Head Coach. Laimbeer won back-to-back championships in 1989 and 1990. The Las Vegas Aces defied odds recently by being the first team to win the number one overall pick three times in a row. A win they achieved at the 2019 WNBA Draft Lottery.

Since the WNBA has come to Las Vegas:

• The NBA has announced a formal gaming partnership with the MGM. • Talks of more new arenas have started • Rumors of an NBA team moving to Las Vegas

We’re all in with the LV aces

We’re ALL IN with the Las Vegas Aces

BASKETBALLLAS VEGAS ACES

The Las Vegas Lights Football Club, founded by Brett Lashbrook and his family, with the goal of bringing community focused professional soccer to Southern Nevada. The team made its debut with the United Soccer League in 2018 and calls Cashman Field home.

#VivaLights

LAS VEGAS LIGHTS

SOCCER

While you may not think of the Rodeo being a major sport, it is in Las Vegas. Locals and tourist swarm on Las Vegas to see the professional Bull Riders, and other events. This is the favorite event for locals! Put on your boots and hat and come on down!

• Las Vegas guaranteed to serve as host through 2024• 169,171 people attended NFR in 2018• Cowboy Christmas, an event attached to NFR brings additional revenue to city• In 2018, Sage Kimzey becomes first bull rider in NFR era to win 5 consecutive world championships

NATIONAL FINALS RODEO (NFR)

RODEO

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For the automotive racing fans, Las Vegas has it all. Most events are held at The Las Vegas Speedway. The Speedway is a 1,200 acre site for all types of racing events. The Speedway opened in 1996 and has seating for over 116,000 people. Visitors to Las Vegas can enjoy events such as:

NASCAR Truck SeriesNASCAR WeekendBoyd Gaming 300Monster Energy NASCAR Cup SeriesKobalt 400Pennzoil 400NHRA Nationals

• Two NASCAR races are held in Las Vegas- September and March• 80K seat capacity for NASCAR• 9 Tracks and 3 driving experiences• Electric Daisy Carnival (EDC) hosted at LVMS draws in 400K attendees

RACING EVENTSLAS VEGAS MOTOR SPEEWAY

UFC has called Las Vegas home for several years and its international success continues to expand the popularity of the mixed martial arts sport. While events are now held all over the world, no one does it quite like Vegas. The company and fighters themselves are well integrated into the community with the purpose of helping overcome adversity, pro-mote equality, and public service.

• Roughly 20K people attend UFC events in Las Vegas• Male UFC athletes can compete in 8 different weight classes• Female UFC athletes can compete in 4 different weight classes• UFC ranks the top 15 fighters in each weight class• 557 Athletes listed with UFC: 88 Women & 469 Men

Welcome to the Octagon

MIXED MARTIAL ARTSMIX MARTIAL ARTS – Ultimate Fighting Championship (UFC)

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PROPERTY NAME CITY ZIP UNITS YEAR BUILT PRICE PRICE / UNIT RENTABLE SF PRICE/SF DATE ONYX5150 DUKE ELLINGTON WAY

Las Vegas 89119 63 2008 $14,000,000.00 $222,222.22 77,400 $180.88 03/2019

HARBOR ISLAND370 EAST HARMON AVENUE

Las Vegas 89169 997 1989 Undisclosed - 464,000 - 02/2019

MI CASITA & PINEWOOD CROSSING764 EAST TWAIN AVENUE

Las Vegas 89169 764 1973 $67,700,000.00 $88,612.57 671,712 $100.79 02/2019

POINTE AT CENTENNIAL5900 SKY POINTE DRIVE

Las Vegas 89130 624 1997 $100,000,000.00 $160,256.41 764,214 $130.85 02/2019

MOSAIC6355 SOUTH RILEY STREET

Las Vegas 89148 456 2011 $87,140,000.00 $191,096.49 732,696 $118.93 02/2019

LIBERTY SQUARE AT PROVIDENCE7099 NORTH HUALAPAI WAY

Las Vegas 89166 218 2009 $48,500,000.00 $222,477.06 399,948 $121.27 02/2019

PLATA 474747 PENNWOOD AVENUE

Las Vegas 89102 218 1987 $23,700,000.00 $108,715.60 197,310 $120.12 02/2019

CHAPEL HILL9620 WEST RUSSELL ROAD

Las Vegas 89148 237 2001 $43,992,000.00 $185,620.25 250,650 $175.51 01/2019

WILLOWS AT TOWN CENTER9145 ECHELON POINT DRIVE

Las Vegas 89149 188 2005 $37,750,000.00 $200,797.87 192,353 $196.25 01/2019

MADISON AT BLACK MOUNTAIN640 EAST HORIZON DRIVE

Henderson 89015 124 1994 $19,600,000.00 $158,064.52 115,696 $169.41 01/2019

SUNSET HILLS2825 BLUEGRASS LANE

Henderson 89074 120 1988 $17,800,000.00 $148,333.33 124,080 $143.46 01/2019

$460,182,000

2019 TRANSACTION VOLUME

TOTAL:

KEY METRICS

$46,018,200Average Sale

$130.51Average $/SF

$152,782.87Average $/Unit

5.16%Average Cap Rate

Q14,009 units

The temperature in Las Vegas will soon be over 100 degrees; this is still not as hot as the multifamily market. Rents are expected to increase seven-to-eight percent in 2019, while the vacancy rates are expected to stay below 5% due to slow deliveries.

Buyer activity remains strong. At a recent multifamily housing conference, Las Vegas was on everyone’s buy-list. Buyers are diversifying with “Three Buckets of Money”. One for “A” class properties, one for “Work Force Housing” and one for “Reposition Opportunities”. Despite this, transaction volume in the Las Vegas multifamily market is down 42.1%, year over year. We expect Q2 and Q3 volumes to rise with the successful disposition of a few notable portfolio sales.

Opportunities are hard to come by and it looks like the Calida Group knocked it out of the park (excuse the sports pun).

Recent notable transactions include:

Calida Group buys Pointe at Centennial apartments for $100 millionContinental Realty buys Onyx Apartments for $14 millionCarlyle Group/Calida Group JV buys Mosaic Apartments $87 million

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Cushman & Wakefield Copyright 2018. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

CARL SIMSExecutive Director Direct: +1 702 688 6921 carl.sims@cushwake.com

TAYLOR SIMS Director Direct: +1 702 688 6957 taylor.sims@cushwake.com

VENESSA MCEVOYMarketing Support Direct: +1 702 688 6955 venessa.mcevoy@cushwake.com

6725 Via Austi Parkway, Ste 275 Las Vegas, NV 89119cushmanwakefield.com