The Siegel Group Acquires Deer Creek Apartments From Bankruptcy Court
July 7, 2008
LAS VEGAS — The Siegel Group Nevada, Inc., a Commercial Real Estate & Business Development Company and Great American Capital today announced that in partnership the two companies have completed the acquisition of the Deer Creek Apartments; a 330 unit apartment complex situated on approximately 6.68 acres of land adjacent to the corner of Flamingo and Swenson in Las Vegas, Nevada. The Siegel Group had previously been negotiating the purchase of Deer Creek back in late 2007 with the prior owner of the property, Atherton Newport Investments, which acquired the property in February of 2006 with the intention of demolishing and constructing a condominium development for which it submitted for the required entitlements. In early 2008 the property was put into bankruptcy and assigned to a Trustee by the Bankruptcy Court with whom The Siegel Group and Great American Capital continued negotiations with; ultimately settling on a purchase price of $19.10 million. SASCO Properties, an affiliate of the Siegel Group, will assume operational control and immediately begin to correct the numerous deficiencies that the previous owner and property management company failed to address which resulted in high vacancy rates and numerous tenant delinquencies that are months in arrears. The property will be re-tenanted followed by a substantial renovation to correct years of deferred maintenance and cosmetic issues and renamed Siegel Suites Swenson and operate under the Siegel Suites brand which provides quality residential accommodations throughout Nevada. Additionally, The Siegel Group plans to construct additional apartment units with a retail component or a flagged business hotel on excess land located on the southeast corner of the property.
Stephen Siegel, President and Chief Executive Officer of The Siegel Group, said: “I am happy to announce that this newest acquisition marks our 16th Siegel Suites location in Nevada. We have worked diligently over the last 9 months with the prior seller, bankruptcy court and trustee to finalize this transaction. As a result of our proven business model and track record in the Las Vegas market we are able to acquire properties at a substantial discount and secure competitive financing despite today’s increasingly tough credit market and are excited to have acquired a property in such an excellent location. Deer Creek is just blocks from such well-known landmarks as UNLV, the Las Vegas Convention Center, McCarran International Airport and the Las Vegas Strip and is situated directly across the street from the Vegas Grand; a luxury condominium development that is nearing completion and a perfect example of the tremendous redevelopment that is occurring in the area.”
About The Siegel Group Nevada, Inc.
The Siegel Group, a Commercial Real Estate Investment & Business Development Company founded by Stephen Siegel with offices located in Las Vegas, Nevada and Studio City, California, specializes in the acquisition, disposition and development of under-performing, valued added real estate and businesses with significant turn-around potential. The company´s extensive expertise in the areas of operations, management, finance, marketing, branding, leasing, renovation, design, entitlements, construction, and redevelopment enable The Siegel Group to elicit an operational turnaround on the assets it acquires which include a variety of businesses and a commercial real estate portfolio comprised of multi-residential apartment complexes, extended-stay, boutique resorts, hotel-casinos, retail and office. The Siegel Group is actively seeking new investments and joint-venture opportunities with upside potential. For more information on The Siegel Group and its affiliates, visit the Company´s website at https://siegelcompanies.com.
About Great American Capital
Great American Capital (GAC), headquartered in Las Vegas, Nevada with offices in California and Arizona, specializes in the acquisition, development, and management of income producing assets. With a portfolio that includes retail and apartment complexes, hotels, resorts, industrial projects, mini-storage facilities and condominium developments, GAC has consistently produced properties that have proven successful in today’s competitive marketplace. Great American Capital and its affiliated investment companies are experienced in all facets of development including land acquisition, site design, entitlements, construction, leasing, and property management and are committed to the discovery and exploration of new development opportunities. For more information on Great American Capital, please visit the company’s website at www.greatac.com.
Contact
To obtain further information regarding this release, please contact Michael Crandall via email at mcrandall@siegelcompanies.com or by phone at (310) 597-9221.
