As most Investor’s know; Reno is the Mothership of real estate investing as it is the distribution point for all goods coming from China, Wal Mart et al.  as well as many other types of goods and services and has incredible growth in jobs and retiree/worker population in the future.

A large Investment Company (Tamanek Group LLC) out of; you guessed it California (our Golden Goose) just came in and dumped a $56 million investment into the Montabello at Summit Ridge Apartments.

 These apartments that dodged the condo conversion  trap a few years ago are in a great Northwest Reno location near the Home Depot store, Somersett golf club and homes, close to the ski areas, tech, bio-tech, warehouse et al jobs.

The Investor’s who seem to have a Warren Buffet (Buy when everyone is selling/long term model)  put $20 million of “skin” into the deal (down payment), it works out to around $124,000. a door, a cap of a mid 5 cap rate and there are 450 units that are heavy on the 2 bedroom size.

The question many investor’s reading this comes to mind; wow that isn’t such a great cap rate etc.  Keep in mind, these are newer units, condo quality in a progressive central location and remember; these are long term investors; these guy’s believe in the number one town in the United States if not the entire world where jobs, retirees, and people are dog-piling in for the quality of life, tax savings and gateway/exit to/from California. 

 I think mostly however they may believe rents will increase as well as their cap rate, cash on cash etc.  I agree to this type of thinking and coach my investors and members of my Reno Real Estate Investor’s group regularly on the dynamics of this town.

This transaction was brokeraged by Dylan Mattole dmattole@marcusmillichap.com and Ken Blomsterberg at the dynamic Investment Brokerage Company of Marcus Millichap in Reno Nv. (Nevada).

Great job guys!  Welcome to town Tamanek Group LLC! 

Filed under: LOCAL MARKET, SOMERSETT, UNCATEGORIZED