NAI ALLIANCE NEGOTIATES SALE OF WOLF RUN STUDENT HOUSING FOR $35.5M
Reno, Nevada—August 15, 2018 NAI Alliance, a member of the world’s premier managed network of commercial real estate firms, announced today the sale of Wolf Run Student Housing, a 142-unit apartment property located in Reno, Nevada, according to Principal and Senior Vice President Dan Oster, SIOR. The asset sold for $35,500,000.
Benjamin Nelson, Vice President, Investments, at NAI Alliance represented the buyer—Academy West Investments out of Aliso Viejo, California, who joint ventured on the purchase with Blue Vista Group, headquartered in Chicago, Illinois.
“With the burgeoning growth of the University of Nevada, Reno, demand for student housing is on the rise. With pre-leased (fall 2018) vacancies hovering around 1%, developers have squarely taken an interest, acquiring conglomerations of land on all sides of the University. This compelling fact made for a perfect storm between the buyer and seller,” Nelson said.
Wolf Run is comprised of two different properties located near the University of Nevada, Reno: Wolf Run Village, located at 467 Beverly Street (built in 1999) and Wolf Run East, located at 1980 Valley Road (built in 2017). Part of the transaction included a 5.3-acre piece of raw land adjacent to the property. The owners plan to develop that land into student housing as well.
Blake Wettengel, President and CEO of Academy West Investments, said, “This was a wonderful opportunity to buy properties in one of the fastest growing markets in the country, and to partner with one of the best names in student housing development and investment. We’re thrilled with the potential of these projects.”
Wolf Run was 100% leased at the time of the sale, which included a new “master lease” for Wolf Run East that was negotiated between Academy West Investments and Tesla, Inc.–--the first master lease of its kind in all of northern Nevada. The Tesla lease provides limited housing for up to 50 students who are involved in a select internship program at the (northern Nevada-based) Tesla Gigafactory, located 20 miles east of Reno.
With major players such as Park 7, University Housing Group, and Academy West Investments entering the arena, the outlook for student housing development in the Reno area could not be more promising.