ACRES Originates $37.5M Construction Loan for Mixed-Use Multifamily Property Near Las VegasSEPTEMBER 01, 2021
HENDERSON, Nev. – (August 31, 2021) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated a $37.5 million loan to fund the construction of The Watermark (the “Property”), a mixed-use multifamily property featuring luxury rental units, retail and office space located at 215 S. Water Street in Henderson, Nevada.
The loan is provided to sponsor Strada Development Group (“Strada”), a Nevada-based development firm focused on the Las Vegas community that develops mixed-use, hospitality, food and beverage, casino, and entertainment assets. The loan carries an initial term of 24 months.
“As a variety of commercial investments and jobs continue to flow into Henderson, now is the ideal time to create a mixed-use multifamily project that will accommodate the city’s significant demand for rental units,” said ACRES Chief Executive Officer and President Mark Fogel. “The Watermark will represent a new, high-quality housing option that will serve Henderson’s diverse and growing employment base. Additionally, the Property will be well-situated downtown, offering tenants convenience and easy access to amenities.”
The Watermark will contain 151 residential rental units and accompanying parking spaces, as well as 9,928 square feet of retail space, 14,725 square feet of restaurant space and 11,923 square feet of office space. The class A, luxury Property will be located in Downtown Henderson’s Water Street District, which contains an eclectic mix of boutique shops, restaurants and nightlife—all within proximity to the Las Vegas Strip. The District’s Water Street Plaza, a versatile venue hosting a variety of events, is currently undergoing a revitalization that will include a 500-seat canopied amphitheater and 60,000 square feet of programmable deck area.
Henderson, which was Nevada’s fastest-growing city in 2017 and 2018, has experienced a steady increase in population, making it an ideal location for a project like the Watermark, according to Jeffrey Cruden, Founding Partner at Strada.
“It has been a pleasure working with the ACRES team to secure construction financing for this project and bringing our business plan for The Watermark to life,” he stated. “We look forward to leveraging our expertise in the Las Vegas market to ensure that the Property is a success and providing the citizens of Henderson with a new place to call home.”
This substantial growth is partially due to new projects such as Google’s new $600 million data center, which is projected to bring 200 new technology-industry jobs to the city; Henderson Hospital’s $150 million expansion and planned Phase 2 renovation; and the newly constructed Las Vegas Raiders Headquarters and Intermountain Healthcare Performance Center. Moreover, Haas Automation plans to relocate to a 2.4 million-square-foot facility in Henderson in 2022, bringing more employment opportunities to the area.
“We are excited to partner with ACRES on another transaction,” stated Shahin Yazdi of George Smith Partners, who arranged the loan. “The Watermark will provide the city of Henderson and the greater Las Vegas market with a well-located multifamily property that will meet the needs of a wide range of tenants.”
The deal was originated by Chris Hetzel of ACRES’ Los Angeles office.