EL PASO, TEXAS (December 21, 2018) – NorthMarq Multifamily recently closed the 232-unit Indian Springs apartments and the 159-unit Desert Peaks apartments in two separate transactions.
The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented the buyers and sellers in both sales.
MKL Capital Group, LLC of Las Vegas, Nevada purchased Indian Springs. Talos Holdings LLC of Scottsdale, Arizona was the seller.
“Indian Springs is a partially renovated community with upside in rents via interior and exterior upgrades,” says Hahn. “The seller deployed capital to repair deferred maintenance so that the buyer can focus on value-enhancing improvements.”
Desert Peaks Owner, LLC an entity formed by a private investment company of Los Angeles, California was the buyer of Desert Peaks. SCP El Paso, LLC an entity formed by PEM Real Estate of Phoenix, Arizona was the seller.
“Desert Peaks is a great example of an out of state investor taking advantage of the high cap rates and opportunity in the El Paso market,” says Hudson. “The asset features a new renovated club house and spacious floor plans at a low price per unit purchase price.”
The El Paso multifamily market continues to improve, fueled by consistent employment growth. Year-over-year, employers have expanded payrolls by approximately 2 percent, outpacing the average gains in the market from the past few years. Job growth has fueled renter demand for apartments, driving the vacancy rate down 90 basis points in the past year to just 4.2 percent. This is the lowest vacancy rate in El Paso since 2010.