Casa Bandera Apartments | Las Cruces, NM

Introduction

In 2020, National Asset Services (NAS), one of the leading commercial real estate companies in the U.S., 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.

Challenges

Issues stemming from the property’s original construction had to be addressed including structural issues with the balcony areas as well as exterior wall surfaces that were not prepped properly prior to the original painting of the property.

The COVID-19 pandemic had a tremendously negative impact on the market area. Despite this, NAS managed to implement proactive, aggressive strategies 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. This high occupancy rate was sustained despite the property’s proximity to New Mexico State University, which had been restricted to virtual learning since March 2020.

Strategies and Implementation

NAS enhanced the property’s 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.

Results

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. This 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.

Conclusion

“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.”

This case study demonstrates NAS’s ability to navigate complex market conditions and deliver positive outcomes for its clients. It underscores the importance of proactive management, strategic planning, and the ability to adapt to changing circumstances.