Q3 2018333 Holcomb Ave., Ste. 300 + Reno, Nevada 89502 + 775.850.3100 + DicksonCG.com

SalesRental Rates

New ConstructionMULTIFAMILY REPORTRENO

SPARKS

RENO | SPARKS MULTIFAMILY REPORT

Multifamily had a robust quarter with a few sizable transactions. A mixed portfolio was acquired by global real estate investment company Kennedy Wilson out of California for a total acquisition price of $36 million ($122,867/unit). That sale includes 79% affordable units and 21% market rate apartments (Southridge, Skyline, and Skyview Apartments) with a total of 293 units on Sky Valley Drive in Northwest Reno.

The Marina Village Apartments was purchased by Sunrise Enterprises, Inc., a San Diego based holdings company. The property consists of a three-story, 240-unit MultiFamily complex situated on a 9-acre parcel located in the Sparks Marina. The unit mix is comprised of 100 1-bed/1-bath, 100 2-bed/2-bath, and 40 3-bed/2-bath units. It is currently 96.5% occupied with rents ranging as follows: (1+1) at $1,199-$1,540, (2+2) at $1.399-$1,549, and (3+2) at $1,699-$1,899. The seller confirmed an actual cap rate of 4.80% at time of sale.*

In another deal, DCG represented Wolf Run LLC, the seller and original developer of Wolf Run Village and Wolf Run East, which sold for $35.5 million, marking one of the largest multifamily transactions in 2018 and the largest student housing deal this year in Northern Nevada. Located just east of the University of Nevada Campus, the Wolf Run Village and Wolf Run East portfolio has a total of 142 student-only units with 395 beds and 5.3 acres of additional land development.

*Info provided by Costar

SALES RECAP

3RD QUARTER 2018

Address/SF Price Details

Marina Village Apartments350 Harbour Cove Dr., Sparks

$51,120,000($213,000/unit) 240 units

Wolf Run Student Housing467 Beverly St./1910 Valley Rd.

Reno

$35,500,000($250,000/unit) 142 units

Southridge, Skyline, Skyview Apartments

1550, 1570-1590 Sky Valley Dr.Reno

$36,000,000($122,847/unit)

293 units

Civic Center Apartments300 Holcomb Ave., Reno

$3,150,000($73,256/unit)

43 units

Lancaster Apartments155/165 Lancaster Dr., Reno

$2,900,000($207,143/unit)

14 units

NOTABLE SALES

Q2 Transaction Volume:

Q3 Transaction Volume:

$69,000,000

$155,738,746

JULY

With limited inventory, Multifamily continued to be relatively slow in July. In West Reno, 12 apartment units at 3001 W. 4th Street, fully leased on 0.50 acres plus the adjacent 0.777 vacant parcel, sold for a total acquisition price of $1,290,000 ($107,500/unit) with a reported 7.00% cap rate. The property has ten one-bedroom units and two 2-bedroom units.

In Midtown, eight 1-bedroom units at 340 Cheney, recently renovated in 2017, sold for $1,100,000 ($137,500/unit) at a 5.29% cap rate. Another eight units at 264 Thoma Street also sold for $1,100,000 ($137,500/unit).

Others multifamily sales include eight 2-bedroom units at 3596 Gypsum that traded for $1,225,000 ($153,125/unit), and the Mill Street Manor at 810 Mill Street with 14 units on two parcels, which sold for $860,000 ($61,428/unit).

NEW CONSTRUCTION

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1. Marina Village Apartments350 Harbour Cove Dr.$51,120,000($213,000/unit)

2. Wolf Run Student Housing467 Beverly St./1910 Valley Rd. $35,500,000($250,000/unit)

3. Southridge, Skyline, Skyview Apartments1550, 1570-1590 Sky Valley Dr.$36,000,000($122,847/unit)

4. Civic Center Apartments300 Holcomb Ave.$3,150,000($73,256/unit)

5. Lancaster Apartments155/165 Lancaster Dr.$2,900,000($207,143/unit)

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TREVOR RICHARDSON MULTIFAMILY SPECIALIST775.233.0754 CELLtrichardson@dicksoncg.com

Written By:

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CHRIS MOTON MULTIFAMILY SPECIALIST775.870.7142 CELLcmoton@dicksoncg.com

NOTABLE SALES

Apartment Vacancy

RENO | SPARKS MULTIFAMILY REPORT

Apartment Rental Trends

RENT AND VACANCY RECAP

CURRENT AVERAGE RENT

CURRENT VACANCY

MARKET STATISTICS

$1,319

2.79%

3RD QUARTER 2018

Apartment demand for Reno remains very strong with limited inventory available. Despite a small dip in rental rates during Q4 of last year, 2018 continues to impress with strong rental growth. At the end of Q2 Reno has set another record highmark for rental rates.

Apartment demand for Reno remains very strong with limited inventory available. Average rental rates leveled off during Q3 mirroring Q3 of 2017. Vacancy increased to 2.79% toward the end of the summer moving season. 2018 has had strong rent growth year-to-date of 11.8%.

RENO | SPARKS MULTIFAMILY REPORT

RENT AND VACANCY RECAP BY UNIT TYPE

3RD QUARTER 2018