Eager investors flock to sale of Reno apartment complex
A Meadowood-area apartment complex has been sold for $8.3 million after spirited bidding from investor groups from across the country.
Washoe County records show the 206-unit Delucchi Lane Apartments were purchased by FAOF Delucchi Lane LLC, a private real estate investment firm based in San Francisco. The seller was Kinecta Federal Credit Union of Manhattan Beach, Calif.
Aiman Noursoultanova and Len Ramos of the Reno office of CBRE represented the credit union in the sale.
Noursoultanova said 107 potential buyers 92 them from out of state signed confidentiality agreements to take a close look at the property, and Kinecta received 13 offers for the Delucchi Lane Apartments.
She said the strong interest reflects the stabilizing rental market in Reno as both rents and occupancy have shown continued improvement.
“A strong investor interest in the Reno/Sparks multi-family market is a good sign for this property sector as it’s beginning to stabilize and gain traction,” Noursoultanova said. “The economic fundamentals in the multi-family sector have improved in a positive direction and we forecast this to continue.”
The Delucchi Lane property drew particular interest, she said, because investors believed that Kinecta Credit Union would be a motivated seller.
The location of the property it’s within walking distance of Meadowood Mall and near major employment centers also helped attract investors.
Originally part of a larger 704-unit complex, the Delucchi Lane Apartments were built in 1975 and 1977.
The complex includes 23 buildings, a swimming pool, tennis courts and covered parking on 7.48 acres.
The property sold at a capitalization rate of 7.5 percent. (That’s a calculation of its annual net operating income divided by its cost.)
“It’s a very good deal for this market,” said Noursoultanova.
“The best transactions are defined by sellers being willing to set their ego aside for the benefit of their customers and employees,” writes Mike Bosma.