Monday, June 16, 2008 • Source: Multi-Housing News
By Anuradha Kher, Online News Editor
LAS VEGAS – The Siegel Group Nevada Inc. has completed its acquisition of Casa Palms, a 137-unit apartment complex located on Las Vegas Boulevard (commonly known as the strip) in Las Vegas, for $5 million. The property is situated on approximately 1.33 acres.
SASCO Properties, an affiliate of the Siegel Group, will assume operational control and begin a substantial renovation of both the exterior and interior of the property to correct deferred maintenance issues while converting it to the company’s Flexible-Stay program.
In addition, the property will undergo renovations to include landscaped grounds and a new pool and retail component. Due to the existing deferred maintenance, combined with a 50 percent occupancy rate, the property possesses significant upside potential.
“Occupancy will quickly fall in line with that of other Siegel Suites locations, increasing to 93-96 percent once the renovation is completed,” says Judith Perez, executive vice president of SASCO Properties.
The property will be renamed Siegel Suites Las Vegas Blvd. and operate under the Siegel Suites brand which provides short- and long-term residences with flexible terms.
“This newest acquisition is situated directly on Las Vegas Boulevard and is located just one block from another of our Siegel Suites locations and these economies of scale will reduce our operational costs, further strengthening our presence in the area,” says Stephen Siegel, president and CEO of The Siegel Group. “We believe in the potential of downtown Las Vegas, which currently lacks renovated and secure rental housing options and we are committed to filling this void and providing quality residences to the growing workforce that continues to expand as investment in the area increases.”