The Siegel Group Completes Acquisition of Las Vegas Boulevard Apartment Complex
June 10, 2008
LOS ANGELES — The Siegel Group Nevada, Inc., a Commercial Real Estate & Business Development Company, today announced that it had completed its acquisition of Casa Palms; a 137 unit apartment complex situated on approximately 1.33 acres of land on Las Vegas Boulevard in Downtown Las Vegas, Nevada. The purchase price was $5 million which equates to approximately $36,500 per unit and reflects The Siegel Group’s proven strategy of acquiring value-added assets at below-market prices which it is able to quickly renovate and reposition. SASCO Properties, an affiliate of the Siegel Group, will assume operational control and immediately begin a substantial renovation of both the exterior and interior of the property to correct years of deferred maintenance issues while converting the property to its Flexible-Stay program. Additionally, plans are also underway to landscape the grounds and construct both a new pool and a retail component to attract residents. Due to the existing deferred maintenance combined with a 50% occupancy rate and the previous owners neglect and mismanagement of the complex, the property possesses significant upside potential. Judith Perez, Executive Vice-President of SASCO Properties states that based on the company’s proven business model, occupancy will quickly fall in line with that of other Siegel Suites locations, increasing to 93-96% once the renovation is completed. The property will be renamed Siegel Suites Las Vegas Blvd. and operate under the Siegel Suites brand which provides quality accommodations to customers seeking short and long-term residences that provide flexible terms as well as a host of amenities and services without the constraints of a long-term lease agreement. Despite the challenging credit markets of today, The Siegel Group’s unwavering and ongoing focus of purchasing only value-added multi-residential properties at discounted prices in this turbulent environment demonstrates the strength of its business model as well as its belief and long-term commitment in the viability of the Las Vegas market.
Stephen Siegel, President and Chief Executive Officer of The Siegel Group, said: “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. Additionally, this property is in walking distance of the many hotel-casinos that make up the Downtown Gaming District, including the Gold Spike Hotel & Casino which we recently acquired and are in the process of renovating, enabling us to cater to the employees that support these establishments who are integral to the success of our business model. Furthermore, as our recent acquisitions demonstrate, we firmly 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.”
About Siegel Suites
Siegel Suites (www.siegelsuites.com), a registered trademark of The Siegel Group Nevada, Inc., was formed by Stephen Siegel to manage and brand his multi-residential portfolio. With a portfolio of multi-family residences, Siegel Suites is able to provide residential accommodations with a host of amenities to tenants seeking short and long-term living arrangements with a number of properties offering fully furnished units and complimentary utilities. With thousand of units throughout Nevada, Siegel Suites is quickly becoming the largest provider of multi-family accommodations in Las Vegas.
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.
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.
