Vintage Roselake Apartments in Reno Trades for $12 million

Investor Kaweah LLC ended its more than a decade-long ownership of Roselake Apartments in Reno, NV, disposing of the 80-unit property for $11.8 million. The California seller, represented by CBRE’s Senior Vice President Ben Galles, agreed to an all-cash deal with buyer Daniel Ochoa.

“The seller decided to cash out and not do a 1031 exchange,” Galles told ApartmentBuildings.com. “They had a pretty good basis in the property, as they acquired the asset in 2014, a few months before Tesla and Panasonic announced they were going to build facilities in Northern Nevada.”

Located at 3050 Lakeside Dr. in the southwest Reno area, the 99%-occupied Roselake Apartments were delivered in 1971. The two-story gated property has two-bedroom units averaging 886 square feet, plenty of on-site parking, and direct access to Virginia Lake Park. The park features walking paths, a fishing pond stocked with rainbow trout, multiple play areas and exercise stations. The upside for the buyer is in the rents following unit renovations.

Galles explained that Roselake Apartments generated significant interest while on the market. “Interestingly, no exchange buyers offered on the property,” he added. “Most of the offers came from groups that already owned in the market.”

The winning offer was backed by cash and closed within 24 days of going under contract. “In a market where bank debt requires significant down payments, a cash deal from an experienced buyer made sense to the seller,” Galles said.