Siegel Group Tees Up $50M in Acquisitions
October 11, 2007
By Brian K. Miller
LAS VEGAS – The Siegel Group Inc. of Los Angeles is in the process of acquiring three more properties here that will become part of the real estate and business development company’s Siegel Suites chain of hotel-apartment hybrids it refers to as “flexible-stay” properties. The combined cost of the acquisitions is approximately $50 million. On Wednesday, the company closed on Coliseum Villas, a 186-unit, 3.64-acre property near the corner of Paradise Road and Twain Avenue, across the street from the Wynn Las Vegas golf course. The purchase price was $13.75 million, which translates to $74,000 per unit and $3.8 million per acre.
“As a land play it’s incredible for what we paid and once we put our Siegel Suites model on it and create some positive cash flow while holding it, it makes perfect sense to us,” Michael Crandall, Siegel Group’s director of business affairs, tells GlobeSt.com.
Sasco Properties, an affiliate of the Siegel Group, will assume operational control of the property and immediately begin dealing with “years of deferred maintenance,” Crandall says. The property, to be renamed Siegel Suites Twain, will provide short and long-term residences, furnished and unfurnished, without the constraints of a long-term lease agreement.
In the next 30 days, Siegel also will close on the 225-unit Emerald Suites hotel on Tropicana Avenue, just west of Interstate 15, and the 230-unit Falls apartment complex, which is located on Cambridge Street near the University of Nevada. The combined price of the two will be approximately $35 million, Crandall says.
The Siegel Suites Flexible Stay brand comprises 2,200 rooms, mostly in the Las Vegas and Reno markets. In August, it acquired a 126-unit property and adjacent land near Exit 122 from Interstate 15 in Mesquite, 80 miles northwest of Vegas. Siegel intends to construct additional units on the excess land and possibly retail space. First Republic Bank in Nevada provided acquisition financing. Siegel Group president Stephen Siegel said it was attracted to the property due to the shortage of rooms in Mesquite and the increasing number of people moving to the area to escape the rising cost of living in Las Vegas.