Investors Realize 121% Cumulative Return Upon Sale of Multifamily Property
National Asset Services has successfully facilitated the sale of Casa Bandera Apartments in Las Cruces, NM. The transaction resulted in a cumulative return of 121% over the investment’s holding period for property ownership.
Despite the tremendously negative impact of the COVID-19 pandemic on the market area, NAS managed the implementation of proactive, aggressive strategies designed to maintain an above market occupancy rate of over 96% at the 226,604 square-foot, 232-Unit property that primarily houses a student population. The high occupancy rate was sustained despite the property’s proximity to New Mexico State University, which has been restricted to virtual learning since March 2020.
Along with a history of strong occupancy, NAS enhanced the property’s attractive marketability with favorable loan assumption terms, secured when company executives delivered a capital source with a highly competitive interest rate in early 2015.
Flooring and accent upgrades to multiple units, along with upgrades to the community’s swimming pool area helped maintain the high occupancy level despite the economic downturn caused by the pandemic.
“We are extremely pleased to have delivered such a positive outcome for a deserving group of clients that were, at one time, facing difficult decisions with limited options,” commented Karen E. Kennedy, President and Founder of National Asset Services and NAS Investment Solutions. “Casa Bandera is a good example of our ability to deliver results by focusing our expertise and professional tenacity to enhance a property’s value even when facing the headwinds of a challenging marketplace and economic environment.”
NAS executives began working with the property’s tenants-in-common (TIC) co-owners in October 2014, less than 90 days ahead of a loan maturity date in January 2015. NAS proposed an effective refinancing strategy that required the TIC co-owners to consolidate ownership into one legal entity that allowed the group to meet the loan maturity, while still allowing them to remain in their investment. As a result of the consolidation, the newly created entity was then able to take advantage of the most favorable financing option with a highly competitive interest rate.
NAS worked with NorthMarq executives Cynthia Meister, Vice President and Bill Hahn, Executive Vice President, to represent Casa Bandera ownership in the transaction. NorthMarq is one of the largest commercial real estate capital markets firms in the U.S and is an example of NAS’ network of highly reputable industry resources.
Built in 2002, Casa Bandera is comprised of 14 buildings consisting of 36 one-bedroom, 148 two-bedroom and 48 three-bedroom units located on 12.73 acres. Property amenities include an outdoor swimming pool, spa and clubhouse with fitness center, game room, library/computer room and basketball courts.