A Look at Bulk Buys in Trophy Bldgs.
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Polger: “These transactions are typically too small for the large institutional investors to play in, so we are encountering much less competition in this arena.”
SAN DIEGO—Multiple-unit purchases within an existing community may be bargains compared to replacement costs, but they can be much more difficult to finance, locally based Pathfinder Partners’ senior managing directorLorne Polger tells GlobeSt.com. The firm recently marked its first Las Vegas acquisition by purchasing 64 units for $18.1 million in Sky Las Vegas, a trophy high-rise building on the Las Vegas strip, picking up all the remaining units that never sold when the 409-unit, 42-story luxury-condominium tower opened in 2007.
According to Polger, his company purchased the units from the original developer, Sky Las Vegas Condominiums LLC, who had previously sold 345 units and was operating the remaining unsold units as rentals. Polger says that while bulk purchases like this are in hot demand, there are some challenges inherent in these types of deals. We spoke with him exclusively about the pros and cons of multiple-unit purchases within an existing community, as well as where such transactions are common and why his company is keen on them…
