Henley investments, a leading private equity real estate firm based in the UK and the US, together with partners Tower 16 Capital Partners, has sold three workforce housing communities in Las Vegas, totalling 1,165 units for $182m.
Since acquiring the properties in September and November of 2018 and July of 2019, the partnership has implemented a program of interior and common area renovations, and in turn has delivered compelling returns for investors and a material increase in value well in advance of their underwriting.
Commenting on the sale, Garrett Solomon, CIO of Henley North America, said:
”The properties were identified as assets that would benefit significantly from a repositioning in a market where demand is being driven by strong demographic in-migration from other states where cost of living is higher. These trends have been further augmented by COVID as high-quality affordable housing has become critically important to so many during difficult economic times. As a result of the renovations undertaken, we have seen higher demand for units, coinciding with growing rents, higher occupancy and stronger operating performance – a strategy that we have also successfully executed and continue to target in other select US markets.
Earlier this year, executing a similar strategy, Henley sold a 199-unit multi-family community in North Carolina, Arbors at North Hill for $27 million.
Ian Rickwood, Chief Executive Officer of Henley, added:
”The multi-family and workforce housing space continues to be a successful strategy for our US platform, despite the impacts of COVID and the resulting economic drag. Our strategy to turn around properties into high-performing assets is not only delivering returns for our investors, but also ensuring that high-quality multi-family workforce housing is available where it is needed. We will continue to look to deploy funds with an active buy side programme this year in the workforce housing space.