Investors buy The Gramercy apartment buildings and land

Investors buy The Gramercy apartment buildings and land

Las Vegas Review Journal

When Ofir Hagay and partners bought ManhattanWest five years ago, the suburban Las Vegas project was abandoned, unfinished and surrounded by barbed wire-topped fencing.

“It was like a war zone,” he said.

Today, after completing construction, landing tenants and selling its commercial buildings, Hagay’s group has sold the rest of the project, now called The Gramercy, and again fetched a hefty sum.

Developer Lyon Living acquired The Gramercy’s two four-story apartment buildings and 12.6 acres of vacant land and parking lots. The $45.75 million purchase closed May 31, property records show.

Lyon plans to build more apartments and a hotel at The Gramercy, and the purchase comes as investors buy a rising tally of rental complexes around the valley.

It also marks a full exit for The Gramercy’s prior owners, who bought the mothballed project for cents on the dollar after Las Vegas’ real estate market collapsed, and when the economy was in far worse shape than it is today.Frank Suryan, chairman and CEO of Newport Beach, California-based Lyon, said in an interview that The Gramercy, on Russell Road just west of the 215 Beltway in the southwest valley, sits right off the freeway and has “higher-end” workforce housing and easy access to places like Summerlin and the Strip.

“I love the location,” he said.

Suryan said he aims to break ground on the planned 300-unit apartment building and 175-room hotel at the start of 2019.

WGH Partners co-founder Benjy Garfinkle, whose firm teamed with The Krausz Cos. to buy the mixed-use project in 2013, noted that developers are building a lot of apartments in Las Vegas but don’t normally include on-site commercial space.

The Gramercy’s two four-story office and retail buildings were almost fully leased last year when The Koll Co. and Estein USA bought them for $61.75 million. Ground-floor tenants include DW Bistro, Pinches Tacos and The Cuppa Coffee Bar.

According to Garfinkle, The Gramercy’s apartments are “give or take” 90 percent occupied, though Suryan put the figure at 83 or 84 percent. Either way, Lyon paid top dollar for them.

The apartment buildings have 160 units total, and property records show they traded for $37 million. That amounts to $231,250 per unit, more than double the market average last year, as tracked by brokerage Colliers International.

Developer Alex Edelstein envisioned ManhattanWest as having 600-plus homes as well as offices, retail space and a hotel — one of many high-density, urban-style projects underway in Las Vegas during the bubble years last decade.

But Edelstein reportedly lost his funding and stopped construction in late 2008 as the economy was crashing, and he left the site untouched — one of many abandoned, partially built projects blighting Las Vegas during the recession.

Garfinkle has said Edelstein spent $170 million on the project.

WGH and Krausz bought ManhattanWest for $20 million, renamed it and finished much of what Edelstein left behind, the main exception being his unfinished nine-story condo tower, which they imploded in 2015.

“That was a big decision to blow that thing up,” Garfinkle said.

Hagay, also a WGH co-founder, said last week’s sale was “closure for us.” When his group bought the property, Las Vegas’ unemployment rate was nearly double the current rate, and Hagay said no one thought the project could be saved.

“Everybody said it’s not going to work,” he said.

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Private Equity Firm Seizes Local Economic Growth Opportunities

Private Equity Firm Seizes Local Economic Growth Opportunities

Moonwater Capital has recently acquired Montecito Tower, a six-story high rise that sits comfortably along the I-215 Beltway, just west of the US-95 Highway in the rapidly expanding Northwest Las Vegas submarket. The Class-A office space projects superior visibility and maximum exposure as the only high-rise in the vicinity.

The emerging firm secured the $41 million capital package to acquire the office building with financing arranged by Dekel Capital, a Los Angeles-based Real Estate Merchant Bank. The remaining balance of the acquisition was funded through a $27.5 million first mortgage loan from Prime Finance, along with a joint-venture equity investment from a large global private equity firm.

Although 90% occupied, Moonwater Capital seeks to further develop Montecito Tower. Not only will it improve overall quality of the property by bringing in a diverse mix of retail and office tenants, but through excess land it will add two 4,000 square foot pad sites. The intent is for the pads to be utilized for medical office, office, or retail development.

As Moonwater Capital continues to shape the greater Las Vegas landscape, its recent developments are only the beginning. The city is in the midst of opportunistic renaissance; cultivated from its gaming and bombastic roots, the city is transitioning into that of a prosperous business destination thanks in part to various state incentives and zero state income taxes.

“We are seeing growth like never before, creating an environment of unlimited business opportunity. I am so excited to be part of this revival.” – Ofir Hagay, President & CEO of Moonwater Capital

In September, Moonwater Capital closed On A $24.8 million acquisition Of 8912 & 8918 Spanish Ridge, Adjacent Class-A office buildings in the southwest corridor of Las Vegas near Summerlin, Henderson, and Green Valley.

About Moonwater Capital
Founded in 1997, Moonwater Capital is a Las Vegas-based boutique private equity real estate fund headed by Mr. Ofir Hagay. Moonwater Capital specializes in value-add investments, particularly real estate properties in the greater Las Vegas and surrounding metropolitan areas. According to RealPage/MPF Research, “value-add investment is an intriguing and timeless concept with optimum ROI opportunity.” Through years of company-wide success, Moonwater Capital takes this “timeless concept” and creatively applies it to the Las Vegas Marketplace, a market in which they standalone.

The company leverages its deep knowledge, relationships and global experience to identify, secure and profit from strategic real estate projects; real estate projects that also impact the city of Las Vegas by way of job creation and community development.

About Montecito Tower
Built in 2008, Montecito Tower’s current occupancy is above 90% and includes anchor tenant Asurion, the leading provider of insurance & support services for consumer electronics serving 280 Million consumers worldwide. Additionally, the property is also occupied by the law firm Alverson Taylor Mortensen & Sanders. The firm began in 1977 as a partnership between two friends and former schoolmates, Bruce Alverson and Nevada Senator Harry Reid. ATM&S is now one of the largest law firms in the state of Nevada and provides legal services in the fields of civil litigation, medical malpractice, construction defect, and numerous other specialties.

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Investor purchases in Las Vegas office market on the rise

Investor purchases in Las Vegas office market on the rise

Las Vegas Review Journal

Las Vegas’ office market was left for dead during the recession as job losses soared and buildings emptied.

But in a sign that things could finally be turning the corner, investor purchases are climbing fast – and they’re not just buying ghost-town buildings at discounts anymore.

There were 94 office-property sales in Southern Nevada last year, more than double 2016’s tally. The sales total and average price of $187 per square foot were the highest in years, according to brokerage Colliers International.

Las Vegas’ office market is smaller than other cities’, and its vacancy rate remains well above pre-recession levels. Southern Nevada also has a track record of getting slap-happy for real estate, so there’s always a chance that investors can pile in too quickly on market trends and inflate property values…

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Dekel Capital Arranges $41M Financing Package for Vegas Office Acquisition

Dekel Capital Arranges $41M Financing Package for Vegas Office Acquisition

Commercial Observer

Moonwater Capital has secured a $41 million capital package to acquire a ten-year-old office building in Las Vegas’ booming northwest section, according to an announcement from Los Angeles-based Dekel Capital, which arranged the financing.
The transaction comprises a $28.5 million mortgage loan from Prime Finance and a joint-venture equity investment from a partnership between Moonwater and HIG Realty Partners, sources close to the deal told Commercial Observer.

The 177,000-square-foot building, at 6605 Grand Montecito Parkway, is about 15 miles northwest of the Las Vegas Strip. Two tenants—Alverson Taylor Mortensen & Sanders, a law firm, and Asurion, a company that insures mobile phones—now lease about 90 percent of the building’s space.

But the building’s recent history is a case study in how quickly the submarket’s fortunes have turned, said Shlomi Ronen, Dekel Capital’s founder.

“The seller bought [the building] in 2012 vacant,” Ronen said. “Like all of Vegas, [it’s] seen a substantial recovery over the last eight years. The market continues to grow at a very healthy pace, driven by the business-friendly environment, combined with affordable housing options.”

Even so, Ronen, who spoke with Commercial Observer shortly after returning to Los Angeles from the Mortgage Bankers Association’s San Diego conference this week, believes the city is just beginning to win a reputation as a solid destination for real estate investment.

“[Las Vegas] is still not a focus for a lot of lenders,” Ronen said. But “more so than before, lenders are open to lending in Vegas. They’ll lend with caution in Vegas, relative to other markets where we’re seeing lenders get a lot more aggressive.”

Ofir Hagay, Moonwater’s CEO, has seen a similar trickle of ever-growing outside interest in the city.

“We see Vegas becoming more attractive,” Hagay said. “I do all the tours with prospective tenants, and 80 percent of them are from out of town. People want to take advantage of the no state tax.”

Representatives for Prime Finance and HIG Realty Partners did not respond to requests for comment.

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Spanish Ridge Press Release

Spanish Ridge Press Release

Moonwater Capital Press Release

Boutique Private Equity Real Estate Fund Acquires 112,407 Square Feet
Portfolio Property In Southwest Las Vegas

Moonwater Capital Recently Closed On A $24.8M Acquisition Of 8912 & 8918 Spanish Ridge,
Adjacent Class-A Office Buildings

On September 8, 2017 Moonwater Capital acquired the highly sought after New Spanish Ridge office buildings
situated just off I-215 in the heart of the Las Vegas South-West submarket. The buildings prime location sits
comfortably within a central and burgeoning community, providing easy access to Summerlin, Henderson and
Green Valley.

In addition to Moonwater Capital’s joint-venture equity contribution, debt financing for the properties were
arranged by Shlomi Ronen and the Dekel Capital team, a Los Angeles-based Real Estate Merchant Bank. Dekel
Capital secured the partnership with MidCap Financial Services, LLC.

Moonwater Capital CEO Ofir Hagay is extremely optimistic, not just as it applies to local economic impact, but
as an example of Moonwater Capital’s dynamic prowess and investment philosophy. Prior to closing and while
in escrow, 54,000 square feet were leased; Moonwater Capital will lease up the remaining 21,000 square feet
with vibrant and growing businesses.

“I believe in the can do spirit of the former frontier men. Moonwater Capital, a pioneer Las Vegas based private
equity real estate fund, will capitalize on this spirit and on the thriving entrepreneurial atmosphere in today’s
Las Vegas, #VegasStrong.”
– Ofir Hagay

Moonwater Capital is currently seeking real estate opportunities and capital investments (private &
institutional) to achieve their goals of reshaping greater Las Vegas through innovative and extraordinary results.
The company is in the process of moving forward on additional transactions, details are forthcoming.

About Moonwater Capital
Founded in 1997, Moonwater Capital is a Las Vegas-based boutique private equity real estate fund headed by
Mr. Ofir Hagay. Moonwater Capital specializes in value-add investments, particularly real estate properties in
the greater Las Vegas and surrounding metropolitan areas. According to RealPage/MPF Research, “value-add
investment is an intriguing and timeless concept with optimum ROI opportunity.” Through years of companywide
success, Moonwater Capital takes this “timeless concept” and creatively applies it to the Las Vegas
Marketplace, a market in which they standalone.

The company leverages its deep knowledge, relationships and global experience to identify, secure and profit
from strategic real estate projects; real estate projects that also impact the city of Las Vegas by way of job
creation and community development.

Contact Information
Gal Hagay
Moonwater Capital
http://www.MoonwaterCapital.com
(702)498-3571

Investor still pursues distressed Las Vegas real estate

Investor still pursues distressed Las Vegas real estate

After the real estate market crashed last decade, investors swooped in for the leftovers. They bought cheap houses in bulk to turn into rentals and snapped up abandoned projects at steep discounts.

The bargain hunters included Ofir Hagay, who, with partners, bought partially built projects in Las Vegas, finished construction and signed tenants.

Today, beat-up, discounted properties are largely gone from the valley, but Hagay is still going after distressed real estate.

The 52-year-old Israeli native bought two office buildings out of bankruptcy in September for $24.8 million, property records show. He acquired the buildings, 8912 and 8918 Spanish Ridge Ave., in the southwest valley, through a new fund at his firm Moonwater Capital.

According to listing brokerage Sun Commercial Real Estate, 8912 Spanish Ridge, a three-story, 71,000 square-foot building, was fully occupied at the time of sale, and 8918, a two-story, 41,400-square-foot building, was 50 percent occupied.